Major Drilling rides 75 per cent revenue increase to post Q1 profit of $5.1M
"Activity levels continue to improve in every region," president and CEO Francis McGuire said in a news release announcing the results.
"Canada, Chile and Argentina sustained their strong recovery, while we also saw good growth in Mexico, U.S. and Mongolia this quarter."
McGuire said the 75 per cent increase in revenue — 109.5 million in the most recent quarter versus $62.5 million last year despite an unfavourable foreign currency translation of $6 million — came mainly from improved utilization.
"Pricing remains competitive, although we are starting to see improvements in certain geographic areas," he said, adding that the bulk of the increased activity is still coming from intermediate mining companies and junior mining companies with advanced properties — projects that require several years of multi-rig drilling.
"Early stage exploration companies are still experiencing difficulties in getting financing," he said.
The earnings report, issued after markets closed, showed the company earned $5.1 million, or 21 cents per share, in the three months ended July 31. That compared with a loss of $3.3 million, or 14 cents per share in the prior-year period.
Major Drilling is one of the world's largest metals and minerals contract drilling service companies with operations in Canada, the United States, South and Central America, Australia, Asia, and Africa.
Its shares were up 16 cents at $24.76 Wednesday on the Toronto Stock Exchange.
"Canada, Chile and Argentina sustained their strong recovery, while we also saw good growth in Mexico, U.S. and Mongolia this quarter."
McGuire said the 75 per cent increase in revenue — 109.5 million in the most recent quarter versus $62.5 million last year despite an unfavourable foreign currency translation of $6 million — came mainly from improved utilization.
"Pricing remains competitive, although we are starting to see improvements in certain geographic areas," he said, adding that the bulk of the increased activity is still coming from intermediate mining companies and junior mining companies with advanced properties — projects that require several years of multi-rig drilling.
"Early stage exploration companies are still experiencing difficulties in getting financing," he said.
The earnings report, issued after markets closed, showed the company earned $5.1 million, or 21 cents per share, in the three months ended July 31. That compared with a loss of $3.3 million, or 14 cents per share in the prior-year period.
Major Drilling is one of the world's largest metals and minerals contract drilling service companies with operations in Canada, the United States, South and Central America, Australia, Asia, and Africa.
Its shares were up 16 cents at $24.76 Wednesday on the Toronto Stock Exchange.
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