Geodrill at LD Micro main event: growth, margins and value gap

On Tuesday, 20 October 2026, Geodrill (GEO) highlighted its growth and challenges at the LD Micro 20th Annual Main Event Conference. The company has witnessed steady expansion through commodity cycles, but is currently grappling with margin pressure due to rising fuel costs. Geodrill boasts a remarkable fleet size of over 100 rigs across five countries in Africa and South America, with no acquisitions in its history.

CEO Dave Harper emphasized Geodrill's focus on gold and copper exploration drilling, serving major mining and exploration clients like Newmont and Kinross. The company has benefited from long-term customer relationships and contract renewals. Despite recent profitability falling short of historical highs, Geodrill's outlook remains optimistic due to record rig utilization, a robust balance sheet, and increasing demand for drilling services.

Q2 2024 witnessed a revenue growth of $55 million, a 10% increase year-over-year and 14% sequentially. Gross profit and EBITDA also improved, reaching $9 million and $8 million, respectively, with margins of 16% and 14%. Analysts anticipate a revenue of $51 million in Q3 2024, marking a 31% year-over-year growth.

Harper stated that Geodrill's expansion has been through organic reinvestment rather than acquisitions, with revenue growth outpacing rig additions. The company's fleet is operating at record utilization levels, driven by strong commodity demand and limited rig supply. Fleet utilization stands at record levels, supported by a robust operations hub in Ghana and an advanced support facility.

The main cost pressure on Geodrill comes from higher diesel fuel prices resulting from the Iran-related oil shock. However, the company anticipates a gradual recovery in EBITDA margins through pricing adjustments and renegotiations. Geodrill's business primarily revolves around gold and copper commodities, with both markets showing strong demand.