Major Drilling offers leverage to a structurally constructive metals and mining cycle, particularly in copper, gold, and battery metals, without taking single-asset or single-jurisdiction risk. As a specialized driller with global operations and a focus on technically challenging work, the company has strong pricing power and barriers to entry.
This shows up in its ability to post record revenues and growing net income as activity ramps up. The company’s diversified geographic footprint (Canada–US, South & Central America, Australasia, Asia, Africa, Europe) and long-standing relationships with major miners mean that increases in exploration and development budgets tend to translate directly into higher metres drilled and higher-profit=-margin contracts.
All in all, this company offers pure-play exposure to the cycle without commodity price volatility or single-asset risk faced by miners themselves.
MAJOR DRILLING GROUP INTERNATIONAL INC. (Symbol MDI on Toronto; majordrilling.com) is a large contract driller mainly serving 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 following 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 is a good fit for Major Drilling. It provides the company with increased exposure to the copper market.
Note—Explomin is one of the largest South American drilling contractors, with most of its operations in Peru, while it also serves markets in Colombia, the Dominican Republic and Spain.
Meanwhile. Major Drilling is embedding AI directly into drilling via its “Drillside GeoSolutions” platform and a strategic partnership with DGI Geoscience and KORE GeoSystems.
Thia venture uses AI-powered core-logging software to process high‑resolution core images in near real time at the drill site. By combining its specialized fleet and TrailBlazer Rock5 technology with this AI platform and DGI’s borehole data acquisition, Major Drilling aims to deliver standardized geological, geophysical, and geotechnical data almost instantly, helping clients make faster drilling decisions, improve model quality, and run more responsive exploration programs.
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Major Drilling posts strong revenue and eyes further gains
In the quarter ended January 31, 2026, revenue rose 14.9%, to $184.6 million from $160.7 million a year earlier.
More specifically, revenue in the Canada-U.S. region jumped 56.7% to $67.4 million.
South and Central American revenue increased 4.2% to $78.5 million for the quarter. The increase in revenue was primarily driven by growth in Peru, Colombia and Brazil, offset to some degree by reduced activity in Chile and Argentina and the termination of underperforming contracts.
Asian and African operations reported revenue of $38.7 million, which was down 8.7% from the same period last year. Activity levels continued to be impacted by a slowdown in drilling operations following a mine incident in the previous quarter for the company’s largest customer in Indonesia.
Major Drilling lost $10.8 million, or $0.13 a share, in the quarter, compared to a loss of $9.1 million, or $0.11, a year earlier. The company typically loses money in this slower quarter. In this particular period, costs rose as Major took strategic steps to prepare for what is expected to be a much busier year ahead. There were also increased start-up and mobilization costs as activity levels ramped up in January compared to last year.
Major Drilling’s balance sheet remains strong, with cash of $88.6 million. It also has long-term debt of just $27.2 million.
The company reports that activity levels and prices continued to increase in the latest quarter and are expected to keep improving.
Recommendation in Power Growth Investor: Major Drilling Group Int’l Inc. is a buy.
