Geodrill

Geodrill

GEO

Last Updated On: October 12, 2018

Share Price On This Date: $1.71

Offers drilling exploration services to miners in Africa through its fleet of multi-purpose drilling rigs.

Summary

Geodrill offers contract drilling services to miners in western Africa. They have been actively trying to diversify their customer base into base metals and potash but most of their business is still with the gold mining industry. Business was weak for a few years as the price of gold came crashing down. I was able to pick up this company during the downturn at a big discount to the value of their drilling rigs. The stock price has recovered as the industry starts to lift from its slumber but I still think there is room for this stock to run. I don't have a strong conviction about what the price of gold will be next year but Geodrill is a solid company that is making money, has no net debt, has decent prospects for continued growth and expansion and can be bought for a p:e of 10 and a little over tangible book value.

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