GEODRILL ANNOUNCES FIRST QUARTER 2026 FINANCIAL RESULTS

• Geodrill reported Q1 2026 revenue of $48.4M – only 1% below the record Q1 2025, but profitability evaporated.
• Net loss was $0.1M (versus a $5.6M profit a year earlier); EBITDA crashed to $5.9M (12% margin) from $13.6M (28% margin).
• Gross profit halved to $7.2M, with management citing higher labour costs and adverse currency movements.
• Rig utilization held at 76%, and net cash tumbled to just $1.9M from $7.8M at year‑end 2025.
• The company maintained that demand remains robust, supported by strong gold/copper prices and an active bidding pipeline.

• The Q1 2026 figures directly contradict the margin‑recovery narrative management promoted in the FY2025 call only two months earlier. Instead of normalizing, margins continued to deteriorate.
• EBITDA margin of 12% is barely above the 11% recorded in the troubled Q3 2025 and far below the 28% in the year‑ago quarter. The promise of margin improvement “as pricing improves and South America settles into full stride” has not materialised.
• The rapid drawdown of net cash to $1.9M is alarming. With monthly Côte d’Ivoire tax payments of $0.9M, the company has barely two months of runway solely from those obligations – before considering working capital or planned fleet capex (5‑10 rigs budgeted for 2026).
• This report compounds the already‑negative FY2025 (net loss of $1.9M, 18% gross margin). Investors who had expected a 2026 turnaround are now faced with a fourth consecutive quarter of margin pressure and a slipping liquidity position.
• Given the scale of the miss relative to recent guidance, the Q1 2026 release is a material negative event. It raises serious questions about the sustainability of the current capital structure and the timing of any operational recovery.

• Geodrill is a pure‑play drilling services provider, not a project developer. Its “flagship” is its fleet of 100 drill rigs and established workshops across West Africa, Egypt, and South America (Chile).
• The company secures multi‑year, multi‑rig contracts with Tier‑1 gold and copper miners. Expansion has focused on doubling the South American fleet to 18 rigs, all now dedicated to Chile.
• Revenue is generated through surface and underground drilling; no single mine or deposit dominates, and the portfolio is diversified by client and jurisdiction.