Australian gold sector firing at just the right time
It’s been a challenging few years for gold miners in Australia but the group now looks poised to capitalise on record prices.
Major Drilling posted relatively stable quarterly revenue of $84.7 million in Q2, down 3% from the $87.2 million recorded for the same quarter last year.
“We continued to see some stability in our activity levels this quarter. This stability in our ongoing contracts in the last few quarters has allowed us to optimize productivity and costs, which is reflected in this quarter’s margins,” said Denis Larocque, President and CEO of Major Drilling.
“Although volume and pricing are still not at profitable levels, we are generating cash while still investing in our equipment and training, which is key in our plan to be ready for the next upturn.”
With exploration work down, Major Drilling has changed focus.
“Our customers continue to focus their work almost exclusively on mine sites, which means they have a much greater focus on production related drilling, such as percussive and underground drilling, which has lower margins. We are continuing to adapt to the current market conditions by investing in and growing our percussive operations.”
Other highlights from the quarter.
