Friday, November 17, 2017

Geodrill - Good Figures Once Again

Another drilling company, Geodrill (OTCMKTS:GDLLF), released very good 3Q 2017 figures. To remind my readers, Geodrill is a mineral drilling company operating in Western Africa only (Ghana, Burkina Faso etc.).

In 3Q 2017 the company, similarly to Orbit Garant, reported the highest drilling prices in its history:

 source: Simple Digressions

As the middle panel of the chart below shows, direct costs of drilling also went up significantly (due to higher salaries) did not matter. Much better pricing covered higher costs and a gross margin (defined as revenue less direct costs) was one of the highest in history as well:   

source: Simple Digressions

Summarizing - another drilling company gives an evidence that the mineral sector (particularly its precious metals segment) does quite well now.


  1. Interesting. What do you think is the upshot of this for precious metal mine investors? Should they be hopeful of a discovery of new deposits and eventual profits or is it a sign that mines are running of resources, their prospects are uncertain while their exploration costs increase? Adam

  2. Adam,
    In the case of Geodrill the good news is that in 3Q 2017 they did more core drilling. It means that African miners want to spend more money for serious exploration drilling (core drilling is the most expensive drilling method). And nobody sane wants to spend big cash on exploration when the prospects are poor.