Vancouver, British Columbia, March 7, 2012 - Jennings Capital analyst, Russell Stanley, has increased his 12 month target for Geodrill Limited (TSX:GEO) from $4.50 to $5.25, following reported revenue and adjusted earnings, that were both stronger than forecast. Adjusted earnings were approximately $0.09 a share, well ahead of the forecast of $0.03 a share.
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The company is a leading West African based drilling company currently operating in Ghana and Burkina Faso, where the company specializes in providing reverse circulation, diamond core, and air-core drilling services using a modern fleet of drill rigs. Jennings Capital expects the company to exit 2012 and 2013 with 40 and 50 operational rigs, respectively.
CEO Dave Harper commented that "the company is considering potential acquisitions of drillers with strong operating histories, complementary customers and new contracts. The exploration market in West Africa remains strong, and we believe the company is well positioned to benefit, with its significant rig fleet growth plans and the construction on new camps and workshop facilities."
As we mentioned earlier, Jennings gives Geodrill a buy recommendation with a 12 month price target of $5.25, a 60% premium to today's $3.30 price. The company has 42.5 million shares outstanding, and is capitalized at $140 million. Jennings continues to give the company an above average risk rating.
For a more information on Geodrill please visit their website at www.geodrillgh.com (http://www.geodrillgh.com/).
Their investor relations is handled by Joanna Longo. For more information or a copy of the Jennings Research report, phone her at 416-238-1414 or email jlongo@terrepartners.com (mailto:jlongo@terrepartners.com).
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