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Geodrill : Q3 CONSOLIDATED FINANCIAL STATEMENTS (Q3 FS 2025 FINAL)
Geodrill : Q3 CONSOLIDATED FINANCIAL STATEMENTS (Q3 FS 2025
About this update from Geodrill Limited
GEODRILL LIMITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the nine months ended September 30, 2025 and 2024 (unaudited) (in United States dollars) CONTENTS Page CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 2 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 3 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 4 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS 5 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 6-25 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) September 30, December 31, 2025 2024 Note US$ US$ Assets Non-current assets Property, plant and equipment 8 74,067,996 71,371,173 Right-of-use assets 9 1,269,522 1,311,397 Total non-current assets 75,337,518 72,682,570 Current assets Financial assets at fair value through profit or loss 10 4,580,559 6,469,704 Inventories 11 35,899,494 36,687,134 Prepayments 2,742,329 2,363,954 Trade and other receivables 12 37,890,576 30,237,595 Cash 21,577,742 13,051,518 Total current assets 102,690,700 88,809,905 Total assets 178,028,218 161,492,475 Equity and liabilities Equity Share capital 28,568,250 28,547,515 Share-based payment reserve 3,850,818 3,946,719 Retained earnings 97,077,825 87,382,062 Capital and reserves attributable to owners of Geodrill Limited 129,496,893 119,876,296 Non-controlling interests 13 (652,572) (349,534) Total equity 128,844,321 119,526,762 Liabilities Non-current liabilities Deferred tax liability 7(iv) 1,902,520 1,837,104 Loans payable 14 2,363,058 2,329,847 Lease liabilities 168,131 412,278 Total non-current liabilities 4,433,709 4,579,229 Current liabilities Trade and other payables 15 30,475,185 25,013,065 Loans payable 14 8,115,800 7,910,585 Lease liabilities 819,913 707,447 Taxes payable 7(ii) 5,339,290 3,755,387 Total current liabilities 44,750,188 37,386,484 Total equity and liabilities 178,028,218 161,492,475 Contingency 23 As at September 30, 2025 and December 31, 2024 2 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) For the three and nine months ended September 30, 2025 and 2024 Three-month period Nine-month period ended September 30 ended September 30 Note 2025 US$ 2024 US$ 2025 US$ 2024 US$ Revenue 38,966,876 34,091,221 138,068,755 109,934,652 Cost of sales 6 (36,606,619) (25,740,107) (110,207,937) (81,418,108) Gross profit 2,360,257 8,351,114 27,860,818 28,516,544 Selling, general and administrative expenses 6 (4,823,209) (3,877,600) (14,431,908) (12,193,078) Expected lifetime credit recovery / (loss) 12 106,710 (215,744) (70,943) (592,896) Foreign exchange gain / (loss) 767,267 285,912 1,575,115 (225,814) Other income 10 1,844,640 30,925 3,899,614 81,273 Results from operating activities 255,665 4,574,607 18,832,696 15,586,029 Finance income 13,628 26,161 39,085 41,445 Finance costs (318,136) (278,246) (877,716) (792,242) Income before taxation (48,843) 4,322,522 17,994,065 14,835,232 Income tax expense 7(i) (1,458,594) (1,711,641) (8,601,340) (5,272,526) (Loss) / income and total comprehensive (loss) / income for the period (1,507,437) 2,610,881 9,392,725 9,562,706 (Loss) / income and total comprehensive (loss) / income for the period is attributable to: Owners of Geodrill Limited (1,356,435) 2,680,216 9,695,763 9,660,018 Non-controlling interests (151,002) (69,335) (303,038) (97,312) (1,507,437) 2,610,881 9,392,725 9,562,706 (Loss) / earnings per share Basic 20(i) $(0.03) $0.06 $0.21 $0.21 Diluted 20(ii) $(0.03) $0.06 $0.20 $0.20 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) For the nine months ended September 30, 2025 and 2024 Share Capital Payment Reserve Retained Earnings controlling interests Total Equity US$ US$ US$ US$ US$ Balance at January 1, 2025 28,547,515 3,946,719 87,382,062 (349,534) 119,526,762 Income and total comprehensive income for the period - - 9,695,763 (303,038) 9,392,725 Equity-settled stock options 20,735 (9,035) - - 11,700 Cash-settled stock options - (253,352) - - (253,352) Issuance of stock options - 166,486 - - 166,486 Balance at September 30, 2025 28,568,250 3,850,818 97,077,825 (652,572) 128,844,321 Balance at January 1, 2024 28,258,711 3,735,982 78,123,286 (154,540) 109,963,439 Income and total comprehensive income for the period - - 9,660,018 (97,312) 9,562,706 Equity-settled stock options 288,804 (65,733) - - 223,071 Share-based payment expense - 232,521 - - 232,521 Balance at September 30, 2024 28,547,515 3,902,770 87,783,304 (251,852) 119,981,737 Attributable to owners of Geodrill Limited Share-based Non- CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS For the nine months ended September 30, 2025 and 2024 September 30, 2025 September 30, 2024 US$ US$ Cash flows from operating activities Income before taxation 17,994,065 14,835,232 Adjustments for: Depreciation expense 12,931,622 9,370,244 Movement in expected lifetime credit losses 70,943 592,896 Change in provision for inventory obsolescence 506,781 107,941 Share-based payment expense 645,539 232,521 Finance income (39,085) (41,445) Finance costs 877,716 792,242 Gains on financial assets at fair value through profit and loss (3,899,614) (81,273) Unrealized foreign exchange (gain) / loss (2,561,135) 386,113 26,526,832 26,194,471 Disposals of financial assets at fair value through profit and loss 5,838,712 (255,630) Change in inventories 280,859 (20,569) Change in prepayments (378,375) (3,627,983) Change in trade and other receivables (7,773,877) (8,016,183) Change in trade and other payables 5,636,323 1,749,916 30,130,474 16,024,022 Finance income received 39,085 7,836 Finance costs paid (878,912) (769,386) Income taxes paid (6,952,021) (2,922,199) Net cash generated from operating activities 22,338,626 12,340,273 Investing activities Purchase of property, plant and equipment (13,525,157) (11,939,271) Net cash used in investing activities (13,525,157) (11,939,271) Financing activities Loans received 10,500,000 10,838,722 Loan payments (10,261,574) (12,025,221) Lease liabilities payments (790,986) (613,494) Cash-settled stock options (720,705) - Cash received on exercise of options - 223,071 Net cash used in financing activities (1,273,265) (1,576,922) Effect of movement in exchange rates on cash 986,020 (160,299) Net increase / (decrease) in cash 8,526,224 (1,336,219) Cash at beginning of the period 13,051,518 15,638,682 Cash at end of the period 21,577,742 14,302,463 GENERAL INFORMATION Geodrill Limited (the "Company" or "Geodrill") is a company registered and domiciled in the Isle of Man. The address of the Company's registered office is Ragnall House, 18 Peel Road, Douglas, Isle of Man, IM1 4LZ. The unaudited condensed interim consolidated financial statements of the Company for the periods ended September 30, 2025 and 2024 comprise the interim financial statements of the Company and its wholly owned subsidiaries, Geodrill Ghana Ltd, Geodrill Mauritius Limited, Geodrill Cote d'Ivoire SARL, Drilling Services Malta Limited, Vannin Resources, Unipessoal Limitada, Geodrill Sondagens LTDA, Silver Back Egypt for Mining and Drilling Services S.A.E., Geodrill for Leasing and Specialized Services Freezone LLC, Geodrill Leasing Company Limited, Geodrill Senegal SARL, Company AL-TANQIB AL-MUTAKHIS For Mining LLC, Geodrill Zambia Limited being Geodrill Limited's registered foreign Zambian operating entity, Geodrill BF being Geodrill Cote d'Ivoire SARL's registered foreign Burkina Faso operating entity, Geodrill Mali being Geodrill Cote d'Ivoire SARL's registered foreign Mali operating entity, Geodrill Mauritius Egypt Branch Limited being Geodrill Mauritius Limited's registered foreign Egypt operating entity, Recon Drilling S.A.C. of which the Company owns a 95% shareholding, Recon Drilling Chile SPA of which the Company owns a 95% shareholding and Geo-Drill SARL of which the Company owns a 95% shareholding, GTS Drilling Ltd a company under common control, collectively referred to as the "Group". The Group is primarily a provider of mineral exploration drilling services. These unaudited condensed interim consolidated financial statements were approved and authorized for issuance by the Board of Directors of Geodrill on November 12, 2025. BASIS OF PREPARATION Statement of compliance These unaudited condensed interim consolidated financial statements for the three months ended September 30, 2025 have been prepared in accordance with IAS 34, Interim Financial Reporting, on a basis consistent with the accounting policies as presented in Note 2 disclosed in the Company's audited consolidated financial statements for the year ended December 31, 2024. Certain information and footnote disclosure normally included in annual financial statements prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IFRS") has been omitted or condensed. The accounting policies applied in these unaudited condensed interim consolidated financial statements are consistent with those applied in the preparation of, and disclosed in, the consolidated annual financial statements for the year ended December 31, 2024. Basis of measurement The unaudited condensed interim consolidated financial statements are prepared on the historical cost basis except where otherwise stated. Functional and presentation currency The unaudited condensed interim consolidated financial statements are presented in United States dollars which is the Group's functional and presentation currency. BASIS OF PREPARATION (CONTINUED) Critical accounting estimates and judgments In preparing these unaudited condensed interim consolidated financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended December 31, 2024. Trade receivables Trade receivables are initially stated at their fair value. The carrying amounts for accounts receivable are net of allowances for doubtful accounts, which represent management's estimate of lifetime expected credit losses ("ECL"). The Group uses the simplified approach to recognizing ECLs for its trade receivables that do not have a significant financing component. The expected credit losses on these financial assets are estimated using a provision matrix based on the Group's historical credit loss experience applied to the aging of receivables, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at each reporting date. MATERIAL ACCOUNTING POLICIES AND CRITICAL ESTIMATES AND JUDGEMENTS These unaudited condensed interim consolidated financial statements have been prepared using the same accounting policies and methods of computation as the annual consolidated financial statements of the Group as at and for the year ended December 31, 2024. Critical estimates and judgements applicable to these financial statements remain consistent with those disclosed in the annual consolidated financial statements of the Group as at and for the year ended December 31, 2024. Trade receivables are initially recorded at fair value. The carrying amounts for trade accounts receivable are net of lifetime expected credit losses ("ECL"). The measurement of the ECL allowance for trade accounts receivable requires the use of management judgment in choosing estimation techniques, selecting key inputs and making significant assumptions about future economic conditions and credit behavior of the customers, including the likelihood of customers defaulting and the resulting losses. Management uses a provision matrix to determine the ECL for trade receivables. The provision matrix is used to estimate future credit losses based on the Group's historical credit loss experience. The ECL determined by the provision matrix is adjusted for current and forward-looking information relating to future economic conditions and factors specific to individual debtors that were identified to be at higher risk of default. Significant judgements are made in determining the adjustments for these factors. There are large aged trade receivable balances for which judgement is required to determine the measurement of the impairment provision at the reporting date. DETERMINATION OF FAIR VALUES A number of the Group's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Where applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. The following sets out the Group's basis of determining fair values of: Trade and other receivables The fair value of trade and other receivables approximates their carrying value due to their short term nature. Cash Cash consists of cash at bank and cash on hand. The fair value of cash approximates its carrying values due to its short term nature. Trade and other payables The fair value of trade and other payables approximates their carrying values, due to their short term nature. Loans payable The fair value of the loans payable approximates their carrying value. Share-based payment transactions The fair value of stock options is measured using the Black-Scholes model. Measurement inputs include the share price on the measurement date, exercise price of the instrument, expected volatility, expected term of the instruments (based on historical experience and general option holder behavior), expected dividends, expected forfeiture rates and the risk-free interest rate (based on government bonds). Service and non-market performance conditions attached to the transactions are not taken into account in determining fair values. Financial assets held at fair value through profit and loss Financial assets held at fair value through profit and loss consist of listed equity securities and their fair value is measured using quoted market prices. SEGMENT REPORTING The primary format of operating segments is based on the Group's management and internal reporting structure, which is submitted to the Chief Executive Officer (CEO) who is the Chief Operating Decision Maker. Due to the integrated nature of the Group's operations and re-deployment of drill rigs within Africa, the Group maintains only one operating segment. The Group has operations in South America, however, this is not material to the Group's operations and therefore not considered to be a reportable segment. For the three months ended September 30, 2025, three customers individually contributed 10% or more to the Group's revenue. One customer contributed 15%, one customer contributed 11% and one customer contributed 10%. For the three months ended September 30, 2024, three customers individually contributed 10% or more to the Group's revenue. One customer contributed 17% and two customers contributed 11%. For the nine months ended September 30, 2025, one customer individually contributed 10% or more to the Group's revenue and that customer contributed 20%. For the nine months ended September 30, 2024, three customers individually contributed 10% or more to the Group's revenue. One customer contributed 17%, one customer contributed 16% and one customer contributed 12%. EXPENSES BY NATURE The Group presents certain expenses in the Condensed Interim Consolidated Statements of Comprehensive Income by function. The following table presents those expenses by nature: Three month period Nine month period ended September 30, ended September 30, 2025 US$ 2024 US$ 2025 US$ 2024 US$ Expenses Wages and employee benefits 15,974,293 11,197,930 48,036,796 35,257,225 Drill rig expenses 10,721,113 8,368,269 35,368,261 26,880,347 External services, contractors and others 9,247,976 5,630,771 24,188,568 17,895,554 Depreciation 3,997,798 3,054,619 12,931,622 9,370,244 Repairs and maintenance 1,488,648 1,366,118 4,114,598 4,207,816 41,429,828 29,617,707 124,639,845 93,611,186 Three month period Nine month period ended September 30, ended September 30, 2025 US$ 2024 US$ 2025 US$ 2024 US$ Cost of sales 36,606,619 25,740,107 110,207,937 81,418,108 Selling, general and administrative expenses 4,823,209 3,877,600 14,431,908 12,193,078 41,429,828 29,617,707 124,639,845 93,611,186 TAXATION Income tax expense Three month period Nine month period ended September 30, ended September 30, 2025 2024 2025 2024 US$ US$ US$ US$ Current tax expense (iii) 2,747,102 2,560,431 8,535,924 6,083,482 Deferred tax (recovery) / expense (iv) (1,288,508) (848,790) 65,416 (810,956) 1,458,594 1,711,641 8,601,340 5,272,526 Taxes payable Payments Balance at during the Charge for Balance at Jan. 1 period the period September 30, US$ US$ US$ US$ 2025 3,755,387 (6,952,021) 8,535,924 5,339,290 2024 175,401 (2,922,199) 6,083,482 3,336,684 Reconciliation of effective tax rate Three month period Nine month period ended September 30, ended September 30, 2025 US$ 2024 US$ 2025 US$ 2024 US$ Income before tax (48,843) 4,322,522 17,994,065 14,835,232 Corporate tax at 25% (12,211) 1,080,631 4,498,516 3,708,808 Add: Effect of different rate tax countries 557,271 (390,034) 1,249,659 (1,158,684) Adjustments for current tax of prior years 250,509 - 250,509 - Deferred tax liability on undistributed profits of subsidiaries (1,000,000) (600,000) 75,000 175,000 Tax effect of amounts that are not deductible in calculating taxable income (44,833) 175,628 463,627 313,153 Tax expense before withholding tax (249,264) 266,225 6,537,311 3,038,277 Add: 510.3% 6.2% 36.3% 20.5% Withholding tax 1,707,858 1,445,416 2,064,029 2,234,249 Total tax expense 1,458,594 1,711,641 8,601,340 5,272,526 Effective tax rate (2,986.3)% 39.6% 47.8% 35.5% TAXATION (CONTINUED) Deferred tax liability September 30, 2025 US$ December 31, 2024 US$ Balance at January 1 (1,837,104) (1,619,574) Charge for the period (65,416) (217,530) Balance at end of the period (1,902,520) (1,837,104) Recognized deferred tax assets and liabilities and movement in the period Deferred tax assets and liabilities are attributable to the following: September 30, 2025 US$ December 31, 2024 US$ Tax losses carried forward (1) 3,630,521 2,748,972 Deferred tax asset not recognized (2) (3,460,748) (2,183,322) Deferred tax on undistributed profits (75,000) (100,000) Property, plant and equipment (2,222,146) (2,509,187) Provision for inventory obsolescence 224,853 206,433 Total (1,902,520) (1,837,104) (1) The Group has tax losses in numerous jurisdictions that are available for the years December 31, 2025 through December 31, 2029. (2) Deferred tax assets in numerous jurisdictions have not been recognized in the financial statements because it is not probable that future taxable profit will be available against which the Group can utilize the related tax benefits. Deferred tax assets have been recognized where it is considered probable that the Group will generate sufficient future taxable income to utilize the related tax benefits. Tax, Customs and Transfer Pricing audits The Group has received a formal notice of recovery from a tax authority in one jurisdiction for tax amounts owing for the years 2022 to 2024. The notice of recovery is for missing payments in the amount of CFA4,714,639,248 (US$8.44M) with an additional amount of penalties of CFA4,714,639,248 (US$8.44M) amounting to a total amount of CFA9,429,278,496 (US$16.9M). The Group has obtained all of the remittance certificates from the tax authority's tax platform indicating that the missing payments have been remitted. As at the date of these financial statements, the Group has formally objected to the notice of recovery and is in discussions with the tax authorities and the Ministere des Finances. Based on the information obtained to date, management believes that its position is defensible and will continue to evaluate additional information as it becomes available on the matter. Management believes for all other matters that the ultimate amount of liability, if any, for any pending assessments (either alone or combined) would not materially affect the Group's operations, liquidity or financial position taken as a whole. However, the ultimate outcome of these audits is uncertain. 8. PROPERTY, PLANT AND EQUIPMENT 2025 Capital Work in Motor Plant & Drill Land & Leasehold Progress Vehicles Equipment Rigs (1) Improvements (CWIP) Total US$ US$ US$ US$ US$ US$ Cost Balance at January 1, 2025 12,076,881 36,420,694 85,901,614 10,122,181 17,797,593 162,318,963 Additions - - - - 14,927,265 14,927,265 Reclassifications from CWIP 848,288 5,282,126 15,467,538 676,702 (22,274,654) - Assets retired during the period (1,486,694) (970,520) (5,407,581) - - (7,864,795) Balance at September 30, 2025 11,438,475 40,732,300 95,961,571 10,798,883 10,450,204 169,381,433 Accumulated Depreciation Balance at January 1, 2025 9,838,778 28,694,749 47,869,544 4,544,719 - 90,947,790 Charge for the period 826,443 2,729,265 8,029,124 645,610 - 12,230,442 Assets retired during the period (1,486,694) (970,520) (5,407,581) - - (7,864,795) Balance at September 30, 2025 9,178,527 30,453,494 50,491,087 5,190,329 - 95,313,437 Carrying amounts at September 30, 2025 2,259,948 10,278,806 45,470,484 5,608,554 10,450,204 74,067,996 (1) Drill rigs include drill rigs components and rebuilds which are depreciated at the appropriate rates in accordance with the Group's accounting policies. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) 2024 Capital Work in Motor Vehicles US$ Plant & Equipment US$ Drill Rigs (1) US$ Land & Leasehold Improvements US$ Progress (CWIP) US$ Total US$ Cost Balance at January 1, 2024 11,893,196 34,182,385 80,833,363 9,714,005 10,011,355 146,634,304 Additions - - - - 21,228,902 21,228,902 Reclassifications from CWIP 782,798 2,929,944 8,355,244 1,374,678 (13,442,664) - Assets retired during the year (599,113) (691,635) (3,286,993) (966,502) - (5,544,243) Balance at December 31, 2024 12,076,881 36,420,694 85,901,614 10,122,181 17,797,593 162,318,963 Accumulated Depreciation Balance at January 1, 2024 9,456,635 26,615,816 43,605,178 4,697,732 - 84,375,361 Charge for the year 981,256 2,770,568 7,551,359 813,489 - 12,116,672 Assets retired during the year (599,113) (691,635) (3,286,993) (966,502) - (5,544,243) Balance at December 31, 2024 9,838,778 28,694,749 47,869,544 4,544,719 - 90,947,790 Carrying amounts at December 31, 2024 2,238,103 7,725,945 38,032,070 5,577,462 17,797,593 71,371,173 (1) Drill rigs include drill rigs components and rebuilds which are depreciated at the appropriate rates in accordance with the Group's accounting policies. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Depreciation has been charged in comprehensive income as follows: Three month period Nine month period ended September 30, ended September 30, 2025 US$ 2024 US$ 2025 US$ 2024 US$ Cost of sales 3,578,790 2,695,269 11,635,062 8,341,497 Selling, general and administrative expenses 198,378 193,199 595,380 557,272 3,777,168 2,888,468 12,230,442 8,898,769 As at September 30, 2025, property, plant and equipment with a carrying amount of US$31,802,576 (December 31, 2024: US$23,649,178) have been pledged as security for certain loans (Note 14). RIGHT-OF-USE ASSETS September 30, 2025 US$ December 31, 2024 US$ Cost Balance at January 1, 2,014,710 3,085,878 Additions 659,305 1,339,897 Disposals (77,527) (2,411,065) Balance at the end of the period 2,596,488 2,014,710 Accumulated Depreciation Balance at January 1, 703,313 2,379,358 Charge for the period 701,180 702,208 Assets expired in the period (77,527) (2,378,253) Balance at the end of the period 1,326,966 703,313 Carrying amounts at the end of the period 1,269,522 1,311,397 The amount of depreciation recognized as an expense in the three and nine months ended September 30, 2025 was US$220,630 and US$701,180 respectively (three and nine months ended September 30, 2024 was US$166,151 and US$471,475 respectively). FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS The Group classifies listed equity investments that are held for trading as financial assets at fair value through profit or loss (FVTPL). Movements are shown in the table below: September 30, 2025 December 31, 2024 US$ US$ Balance at January 1, 6,469,704 174,631 Additions 49,953 9,208,881 Disposals (5,838,712) (497,803) Gain / (loss) through profit and loss 3,899,614 (2,416,005) Balance at end of the period 4,580,559 6,469,704 INVENTORIES September 30, 2025 December 31, 2024 US$ US$ Inventories on hand 36,998,230 36,699,827 Inventories in transit 810,032 1,389,296 Provision for obsolescence (1,908,768) (1,401,989) 35,899,494 36,687,134 The amount of inventories recognized as expense in the three and nine months ended September 30, 2025 is US$12,621,868 and US$40,512,291, respectively (three and nine months ended September 30, 2024 is US$9,899,843 and US$31,437,832, respectively). As at September 30, 2025, inventories with a carrying amount of US$16,000,000 (December 31, 2024: US$10,500,000) have been pledged as security for certain loans (Note 14). TRADE AND OTHER RECEIVABLES September 30, 2025 US$ December 31, 2024 US$ Trade receivables 32,611,522 25,824,977 Expected life time credit losses (2,028,111) (1,901,540) Net trade receivables 30,583,411 23,923,437 Sundry receivables 7,307,165 6,314,158 37,890,576 30,237,595 As at September 30, 2025, trade receivables with a carrying amount of US$12,806,714 (December 31, 2024: US$11,349,811) have been pledged as security for certain loans (Note 14). Credit risk is the risk of financial loss to the Group if a customer fails to meet its contractual obligations. The Group's customers are given 30 to 60 day credit periods for services rendered. Certain customers take longer than 60 days to settle their accounts. 12. TRADE AND OTHER RECEIVABLES (CONTINUED) The Group provides for expected credit losses for trade receivables based on the aging of trade receivables as described in Notes 2 and 3. As at September 30, 2025, an amount of US$5.3M or 16% of the trade accounts receivable are aged over 90 days. As at September 30, 2025 the Group has approximately US$2.0M in provisions against its greater than 90 day category of trade receivables. As at September 30, 2025, the aging of the trade receivable balances aged over 90 days has increased from December 31, 2024 as follows: September 30, 2025 December 31, 2024 US$ Gross US$ Net of ECL US$ Gross US$ Net of ECL Less than 30 days 20,221,482 20,216,710 9,220,130 9,217,882 31 - 60 days 4,570,697 4,568,438 9,528,527 9,523,928 61 - 90 days 2,511,043 2,461,215 2,178,707 2,136,802 91 days and greater 5,308,300 3,337,048 4,897,613 3,044,825 32,611,522 30,583,411 25,824,977 23,923,437 The movements in the expected lifetime credit losses is as follows: September 30, 2025 December 31, 2024 US$ US$ Balance at January 1 1,901,540 5,481,683 Movement in expected lifetime credit losses in the period 126,571 (3,580,143) Balance at end of period 2,028,111 1,901,540 During the nine months ended September 30, 2025, the Group recovered US$55,628 in bad debts previously written off, resulting in an expected lifetime credit loss in the statement of comprehensive income of US$70,943. 13 NON-CONTROLLING INTERESTS September 30, 2025 US$ December 31, 2024 US$ Recon Drilling Chile SPA (5%) (529,100) (288,714) Recon Drilling S.A.C. (5%) (155,158) (92,393) Geo-Drill SARL (5%) 31,686 31,573 Balance at end of period (652,572) (349,534) LOANS PAYABLE September 30, 2025 December 31, 2024 US$ US$ US$10M Revolving Line of Credit (i) 4,000,000 6,000,000 US$7.5M Medium Term Loan (ii) 5,250,000 2,250,000 Equipment Loan (iii) 1,228,858 1,657,099 US$9.5M Medium Term Loan (iv) - - US$4.0M Medium Term Loan (v) - 333,333 Total 10,478,858 10,240,432 Current portion of loans 8,115,800 7,910,585 Non-current portion of loans 2,363,058 2,329,847 US$10.0M Revolving Line of Credit The Group has a US$10.0M Revolving Line of Credit (the "US$10.0M Revolving Line of Credit") with Ecobank Ghana Limited until December 31, 2025. Interest is repayable monthly and principal is repayable one year after drawdown. The US$10.0M Revolving Line of Credit bears interest at the applicable 3 months Secured Overnight Financing Rate (SOFR) plus a margin of 3.91% per annum on any utilized portion and is subject to periodic review in line with market conditions. The US$10.0M Revolving Line of Credit is secured by certain assets of the Group (Note 8, Note 11 and Note 12). The US$10.0M Revolving Line of Credit may be repaid prior to maturity by the Group without penalty or other costs other than interest accrued to the date of such repayment. The US$10.0M Revolving Line of Credit is subject to, and as at September 30, 2025, the Group was in compliance with normal course covenants. As at September 30, 2025, the Group has outstanding US$4.0M on the US$10.0M Revolving Line of Credit leaving US$6.0M still available for drawdown. US$7.5M Medium Term Loan The Group has a US$7.5M Medium Term Loan (the "US$7.5M Medium Term Loan") with Ecobank Ghana Limited until December 31, 2025. Multiple drawings are permitted under the US$7.5M Medium Term Loan and principal amounts are repayable quarterly over twelve quarters whereas interest is repayable monthly. The US$7.5M Medium Term Loan bears interest at the applicable 3 months Secured Overnight Financing Rate (SOFR) plus a margin of 3.91% per annum on any utilized portion and is subject to periodic review in line with market conditions. Any unutilized amounts after six months from January 1, 2025 bear a commitment fee of 0.15% per annum. The US$7.5M Medium Term Loan is secured by certain assets of the Group (Note 8, Note 11 and Note 12). The US$7.5M Medium Term Loan may be repaid prior to maturity by the Group subject to a 5% penalty on principal and interest accrued to the date of such repayment. The effective interest rate of the US$7.5M Medium Term Loan is 9.5%. The US$7.5M Medium Term Loan is subject to, and as at September 30, 2025, the Group was in compliance with normal course covenants. As at September 30, 2025, the Group had drawn US$7.5M on the US$7.5M Medium Term Loan. Equipment Loan The Group has a Term Loan Facility Agreement ("Equipment Loan") with Sandvik Financial Services AB (PUBL) ("Sandvik") for up to US$2.0M relating to the purchase of a drill rig. The Equipment Loan requires the repayment of the loan over a period of 36 months with payments being made monthly. The Equipment Loan bears interest at 8.7% per annum, includes an arrangement fee and stipulates that final title to the rig will only pass once all payments have been made. All other risks and rewards of ownership lie with the Group. The effective interest rate of the Equipment Loan is 8.9%. LOANS PAYABLE (CONTINUED) US$9.5M Medium Term Loan The Group has a US$9.5M Medium Term Loan (the "US$9.5M Medium Term Loan") with Ecobank Ghana Limited until December 31, 2025. Multiple drawings are permitted under the US$9.5M Medium Term Loan and principal amounts are repayable quarterly over twelve quarters whereas interest is repayable monthly. The US$9.5M Medium Term Loan bears interest at the applicable 3 months Secured Overnight Financing Rate (SOFR) plus a margin of 3.91% per annum on any utilized portion and is subject to periodic review in line with market conditions. The US$9.5M Medium Term Loan is secured by certain assets of the Group (Note 8, Note 11 and Note 12). The US$9.5M Medium Term Loan may be repaid prior to maturity by the Group subject to a 5% penalty on principal and interest accrued to the date of such repayment. The effective interest rate of the US$9.5M Medium Term Loan is 8.8%. The US$9.5M Medium Term Loan is subject to, and as at September 30, 2025, the Group was in compliance with normal course covenants. As at September 30, 2025, the Group had not yet drawn on the US$9.5M Medium Term Loan leaving US$9.5M still available for drawdown. US$4.0M Medium Term Loan The Group had a US$4.0M Medium Term Loan (the "US$4.0M Medium Term Loan") with Ecobank Ghana Limited until May 31, 2025. No further drawings were permitted under the US$4.0M Medium Term Loan and principal amounts were repayable quarterly over twelve quarters whereas interest was repayable monthly. The US$4.0M Medium Term Loan bore interest at the applicable 3 months Secured Overnight Financing Rate (SOFR) plus a margin of 3.91% per annum and was subject to periodic review in line with market conditions. The US$4.0M Medium Term Loan was secured by certain assets of the Group (Note 8, Note 11 and Note 12). The US$4.0M Medium Term Loan could have been repaid prior to maturity by the Group without penalty or other costs other than interest accrued to the date of such repayment. The effective interest rate of the US$4.0M Medium Term Loan was 8.3%. The US$4.0M Medium Term Loan was subject to normal course covenants. As at September 30, 2025, the Group had fully repaid the US$4.0M Medium Term Loan. TRADE AND OTHER PAYABLES September 30, 2025 December 31, 2024 US$ US$ Trade payables 12,243,764 11,794,864 Other creditors and accrued expenses 15,414,173 11,531,653 VAT liability 2,817,248 1,686,548 30,475,185 25,013,065 FAIR VALUES OF FINANCIAL INSTRUMENTS The carrying values of cash, trade and other receivables, trade and other payables and related party payables approximate their fair value due to the relatively short period to maturity of the instruments. The carrying value of loans payable approximates their fair value as the fixed rate loans have been acquired recently and their carrying value continues to reflect fair value. The fair value of financial assets held at fair value through profit and loss are measured using quoted market prices. There were no financial instruments classified as level 2 or 3 in the fair value hierarchy at September 30, 2025 and December 31, 2024. RELATED PARTY TRANSACTIONS Related party Relationship Location 2025 2024 Geodrill Mauritius Limited Subsidiary Mauritius 100% 100% Geodrill Ghana Ltd Subsidiary Ghana 100% 100% Geodrill Cote d'Ivoire SARL Subsidiary Cote d'Ivoire 100% 100% Drilling Services Malta Limited Subsidiary Malta 100% 100% Vannin Resources, Unipessoal Limitada Subsidiary Madeira 100% 100% Geodrill Sondagens LTDA Subsidiary Brazil 100% 100% Subsidiary Egypt 100% 100% Subsidiary Egypt 100% 100% Silver Back Egypt for Mining and Drilling Services S.A.E. Geodrill for Leasing and Specialized Services Freezone LLC Geodrill Leasing Company Limited Subsidiary Isle of Man 100% 100% Geodrill Senegal SARL Subsidiary Senegal 100% 100% Company AL-TANQIB AL-MUTAKHIS For Mining LLC Subsidiary Saudi Arabia 100% 100% Recon Drilling S.A.C. Subsidiary Peru 95% 95% Geo-Drill SARL Subsidiary Mali 95% 95% Recon Drilling Chile SPA Subsidiary Chile 95% 95% Geodrill BF Branch Burkina Faso 100% 100% Geodrill Mali Branch Mali 100% 100% Geodrill Limited Zambia Branch Zambia 100% 100% Geodrill Mauritius Limited Egypt Branch Egypt 100% 100% The Harper Family Settlement Significant shareholder Isle of Man - - GTS Drilling Ltd Common Control Ghana - - Transactions with related parties Transactions with companies within the Group have been eliminated on consolidation. The Harper Family Settlement owns 37.1% (December 31, 2024: 37.1%) of the issued share capital of Geodrill Limited. On October 1, 2024, Geodrill Ghana Ltd entered into new lease agreements with The Harper Family Settlement for the Anwiankwanta property and for the Accra property, both for a two year term and rent for the Anwiankwanta property of US$244,000 per annum and rent for the Accra property of US$99,000 per annum. The material terms of the two year lease agreements include: (i) the annual rent payable shall be reviewed on an upward only basis on or before October 1, 2026; and (ii) only Geodrill Ghana Ltd can terminate the leases by giving twelve months' notice. It was also agreed that all future rent increases will be based on USA inflation data. For the period ending September 30, 2025, the right-of-use assets relating to the properties above was US$320,362 (December 31, 2024: US$554,623) and the related lease liabilities were US$333,043 (December 31, 2024: US$560,849). 17. RELATED PARTY TRANSACTIONS (CONTINUED) Key management personnel and directors' transactions The Group's key management personnel, and persons connected with them, are also considered to be related parties for disclosure purposes. The definition of key management includes the close members of the family of key personnel and any entity over which key management exercises control. The key management personnel have been identified as directors of the Group and other management staff. Close members of family are those family members who may be expected to influence, or be influenced by that individual in their dealings with the Group. Key management personnel and directors' compensation for the period comprised: Three month period Nine month period ended September 30, ended September 30, 2025 US$ 2024 US$ 2025 US$ 2024 US$ Short-term benefits 719,937 1,512,012 4,908,173 4,424,066 Share-based payment arrangements 33,477 44,942 633,839 232,521 753,414 1,556,954 5,542,012 4,656,587 18. COMMITMENTS As at September 30, 2025, the Group had capital commitments of US$Nil (December 31, 2024: US$Nil). SHARE CAPITAL AND RESERVES Share capital Shares have no par value and the number of authorized shares is unlimited. Share capital September 30, 2025 December 31, 2024 Shares issued and fully paid 47,163,170 47,163,170 Shares reserved for share option plan 4,716,317 4,716,317 Total shares issued and reserved 51,879,487 51,879,487 Reconciliation of changes in issued shares September 30, 2025 December 31, 2024 Shares issued at January 1, 47,163,170 46,921,400 Stock options exercised - 241,770 Shares issued at end of period 47,163,170 47,163,170 All shares rank equally with regards to the Group's residual assets. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at the shareholders' meetings of the Company. During the period ended September 30, 2025, the Company did not re-purchase nor cancel any shares under its NCIB (for the year ended December 31, 2024, the Company did not re-purchase nor cancel any shares under its NCIB). Share-based payment reserve The share-based payment reserve is comprised of the equity portion of the share-based payment transaction as per the Company's share option plan. The share-based payment expense for the three and nine month period ended September 30, 2025 amounted to US$33,477 and US$633,839, respectively (September 30, 2024: US$44,942 and US$232,521, respectively) and was included in selling, general and administrative expenses in the Condensed Interim Consolidated Statements of Comprehensive Income. Retained earnings This represents the residual of cumulative profits of the Group. Total retained earnings of US$97,077,825 includes US$96,577,825 available for distribution to shareholders and US$500,000 of undistributable reserves. (LOSS) / EARNINGS PER SHARE Basic (loss) / earnings per share The calculation of basic (loss) / earnings per share for the three and nine month periods ended September 30, 2025 was based on the (loss) / earnings attributable to ordinary shareholders of US$(1,356,435) (2024: US$2,680,216) and US$9,695,763 (2024: US$9,660,018), respectively and on the weighted average number of ordinary shares outstanding of 47,163,170 (2024: 47,163,170) and 47,163,170 (2024: 47,054,700), calculated as follows: Three month period Nine month period ended September 30, ended September 30, 2025 US$ 2024 US$ 2025 US$ 2024 US$ (Loss) / income attributable to ordinary shareholders (1,356,435) 2,680,216 9,695,763 9,660,018 Weighted average number of ordinary shares Three month period Nine month period ended September 30, ended September 30, 2025 Shares 2024 Shares 2025 Shares 2024 Shares Issued ordinary shares 47,163,170 47,163,170 47,163,170 47,054,700 (Loss) / earnings per share $(0.03) $0.06 $0.21 $0.21 (LOSS) / EARNINGS PER SHARE (CONTINUED) Diluted (loss) / earnings per share The calculation of diluted (loss) / earnings per share for the three and nine month period ended September 30, 2025 was based on the (loss) / earnings attributable to ordinary shareholders of US$(1,356,435) (2024: US$2,680,216) and US$9,695,763 (2024: US$9,660,018), respectively and on the weighted average number of ordinary shares after adjustment for the effects of all dilutive potential ordinary shares outstanding of 48,142,403 (2024: 47,894,810) and 48,316,247 (2024: 47,409,181), respectively, calculated as follows: Three month period Nine month period ended September 30, ended September 30, 2025 US$ 2024 US$ 2025 US$ 2024 US$ (Loss) / income attributable to ordinary shareholders (1,356,435) 2,680,216 9,695,763 9,660,018 Weighted average number of ordinary shares - diluted Three month period Nine month period ended September 30, ended September 30, 2025 Shares 2024 Shares 2025 Shares 2024 Shares Weighted average number of ordinary shares - basic 47,163,170 47,163,170 47,163,170 47,054,700 Effect of share options in issue 979,233 (1) 731,640 (2) 1,153,077 (3) 354,481 (4) 48,142,403 47,894,810 48,316,247 47,409,181 Diluted (loss) / earnings per share $(0.03) $0.06 $0.20 $0.20 For the three months ended September 30, 2025, 3,420,000 options in issue were dilutive but they did not have an effect on the calculation of the diluted earnings per share. For the three months ended September 30, 2024, 3,000,000 options in issue were dilutive but they did not have an effect on the calculation of the diluted earnings per share. (4) For the nine months ended September 30, 2025, 3,420,000 options in issue were dilutive and had a $0.01 effect on the calculation of the diluted earnings per share. (4) For the nine months ended September 30, 2024, 2,220,000 options in issue were dilutive and had a $0.01 effect on the calculation of the diluted earnings per share. DIVIDENDS No dividends were paid in 2025 or 2024, and no dividends were declared through to November 12, 2025. EQUITY-SETTLED SHARE-BASED PAYMENTS Share Option Plan ("SOP") The Company has established a SOP, which is intended to aid in attracting, retaining and motivating the Group's employees, directors, consultants and advisors through the granting of stock options. The maximum aggregate number of Ordinary Shares reserved for issuance pursuant to the SOP shall not exceed 10% of the total number of Ordinary Shares then outstanding. The maximum number of Ordinary Shares reserved for issuance pursuant to the SOP and any other security based compensation arrangements of the Company is 10% of the total number of Ordinary Shares then outstanding. September 30, 2025 December 31, 2024 Number of shares subject to option Weighted average exercise price Number of shares subject to option Weighted average exercise price Balance beginning, Jan. 1 3,780,000 CAD$2.13 3,275,000 CAD$2.17 Total granted in the period 390,000 CAD$3.05 780,000 CAD$1.71 Total cash-settled options in the period (750,000) CAD$1.71 - - Total options exercised in the period - - (225,000) CAD$1.36 Total equity-settled options in the period - - (50,000) CAD$1.36 Balance ending 3,420,000 CAD$2.33 3,780,000 CAD$2.13 The following table summarizes the options outstanding at September 30, 2025: Options Exercise prices Number of options outstanding Weighted average remaining contractual life Number of options exercisable Granted on March 15, 2021 CAD$1.94 690,000 6 mos 690,000 Granted on May 16, 2022 CAD$2.20 780,000 1 Yr & 8 mos 780,000 Granted on March 13, 2023 CAD$3.05 780,000 2 Yrs & 6 mos 780,000 Granted on March 11, 2024 CAD$1.71 780,000 3 Yrs & 6 mos 520,000 Granted on March 10, 2025 CAD$3.05 390,000 4 Yrs & 6 mos 130,000 The fair values of options granted were calculated using the Black-Scholes option pricing model with the following assumptions: Granted on March 15, 2021 May 16, 2022 March 13, 2023 March 11, 2024 March 10, 2025 Risk free interest rate 1.02% 2.73% 2.90% 3.42% 2.63% Expected dividend yield 1% 3% 3% 2% 1% Stock price volatility 40% 38% 39% 42% 37% Expected life of options 5 years 5 years 5 years 5 years 5 years Forfeiture rate 30% 30% 30% 30% 30% Where relevant, the expected life used in the model used to determine the accounting value attributable to the options has been adjusted based on management's best estimate of the effects of non-transferability, exercise restrictions (including the probability of meeting market conditions attached to the option), and behavioural considerations. Expected volatility is based on historical share price volatility over relevant periods. CONTINGENCY The Burkina Faso tax authority has assessed that Geodrill had a permanent establishment in Burkina Faso for the years 2016 through 2018 and that Geodrill was subject to direct taxes, penalties and interest in the amount of CFA5,232,253,593 (US$9.4M). Geodrill maintained that it did not have a permanent establishment in Burkina Faso in the years of the assessment and that it operated in Burkina Faso as a non-resident tax-payer and that its taxes were paid to the tax authorities directly from Geodrill's clients on Geodrill's behalf. In 2021, Geodrill filed its discharge for the amounts owing under the assessment with the administrative courts in Burkina Faso and in 2023, Geodrill received the ruling from the administrative court dismissing the entire assessment and was also awarded an amount of CFA1,500,000 for expenses incurred. The Burkina Faso tax authority, however, has not paid the CFA1,500,000 and has appealed the ruling. In 2023, due to security concerns, the Group wound up its operations in Burkina Faso and redeployed all of its equipment to other countries, ceasing to operate in Burkina Faso. As at November 12, 2025, the administrative courts have not responded to the appeal, nor have they set a trial date.