Mining exploration activity has shown signs of recovery in 2025, with gold-related activity leading the way and base metals following. This recovery is supported by record gold prices and resilient copper pricing. Both are key commodities for this firm’s customer base.
The company’s strong financial position provides flexibility to capitalize on market opportunities (such as the transformative Explomin acquisition) while continuing to invest to service elevated activity levels.
MAJOR DRILLING (Toronto symbol MDI; majordrilling.com) is a large contract driller which mainly serves the mining industry.
In November 2024, Major Drilling acquired Explomin Perforaciones, a specialty drilling contractor based in Lima, Peru. The purchase price was $63 million U.S., with an additional $22 million U.S. available over the next three years based on future performance.
Explomin offers a wide array of specialized services including deep hole, directional, and high-altitude drilling, supplemented by a stable base of underground drilling operations. Major Drilling acquired a fleet of 92 drills. Its total rig count is now 707 and the Explomin assets solidify its position as the world’s largest mineral driller.
Explomin has a strong brand and reputation in South America, with over 90% of revenue derived from senior mining firms. The company has annual revenue of about $95 million U.S.
The acquisition seems like a good fit for Major Drilling. It will provide the company with increased exposure to the copper market.
Note—Explomin is one of the largest South American drilling contractors, with the majority of its operations in Peru, while it also serves markets in Colombia, the Dominican Republic and Spain.
Increased drilling activity bodes well for Major Drilling
In the quarter ended April 30, 2025, the company’s revenue rose 11.6%, to $187.5 million from $168.0 million a year earlier. Excluding the acquisition of Explomin, which was completed at the beginning of the quarter, revenue totalled $149.9 million, representing a decrease of 10.8%.
More specifically, revenue in the Canada-U.S. region fell 21.1% to $58.8 million. The decrease was mainly due to a slow start to the quarter as many projects were delayed entering the new calendar year. As well, the junior market remained negatively impacted by a lack of access to capital.
South and Central American revenue increased 78.5% to $88.0 million for the quarter. The increase reflects elevated copper activity in Chile.
Asian and African operations reported revenue of $40.8 million, which was down 7.7% from the same period last year. Project delays at the start of the year negatively impacted revenue in the quarter.
Major Drilling earned $1.0 million, or $0.01 a share, in the quarter, down sharply from $9.9 million, or $0.12. The decline came from added costs for the Explomin acquisition, as well as higher operating expenses.
The company’s balance sheet remains strong, with cash of $46.0 million, or $0.56 a share. It also has long-term debt of just $27.7 million.
Major Drilling reports that activity levels increased in the final weeks of the latest quarter, which it expects to lead to continued revenue growth.
Recommendation in Power Growth Investor: Major Drilling Group Int’l is a buy for aggressive investors.
