Driller says revenues are up, thanks gold
Editor's Note: We are proud to unveil our new mining page, an entire space dedicated to up-to-the-minute news, with exclusive industry interviews and all the relevant information you need, rounded in up in one spot. Who is merging? Who is Buying? Who is Digging? We got you covered!
(Kitco News) - Major Drilling said yesterday that quarterly revenue was $117.5 million, better than 19% from the same quarter last year.
The company reported that EBITDA was up 78% to $18.0 million, and net earnings were $6.0 million or 8 cents per share.
"The price of gold, which historically has accounted for approximately 50% of the company's drilling activity, has increased by 15-20% over the last three months and we could see a pickup in junior financing in the coming months, although a potential increase will not translate into immediate drilling activity as it usually takes a few months to get a drilling campaign organized," said Denis Larocque, President and CEO of Major Drilling.
Larocque said Drilling was up in all regions. The company's work has shifted to bigger companies, while work from juniors has lagged.
While gold is up, base metals miners and juniors are doing less well with the slump in commodity prices.
"Despite this, we have increased our activity with senior copper producers as they need to replenish their reserves as they face a supply deficit in the coming years. Prices for drilling services continue to improve, although these improvements are always initially offset somewhat by an increase in labor and mobilization costs."