Expect few new projects to be commissioned in the short- to medium-term: Master Drilling
(Kitco News) - JSE-listed Master Drilling (JSE:MDI) said Tuesday its H1 showed a revenue decrease of 17.9%, from $70.0 million to USD57.4 million due to COVID-19 disruptions.
Operating profit retracted 37.7% to $7.3 million; however cash generated from operating activities increased 100% from $5.5 million to $11.1 million. The company also said its sales pipeline is improving.
Master Drilling said bright spots in the mining sector are limited.
"Global economic growth is not expected to correct in the short term and global volatility across capital and commodity markets is set to further impact overall mining activity and capex spend. Although some commodities are showing positive trends, only a limited number of new mining projects are expected to be commissioned in the short to medium term," wrote the company.
The company said it is focused on artificial intelligence and big data as key differentiator.