Low debt bolsters these small caps

Article Excerpt

MAJOR DRILLING $3.91 (Toronto symbol MDI; TSINetwork Rating: Speculative) (1-866-264-3986; www.majordrilling.com; Shares outstanding: 80.3 million; Market cap: $313.2 million; No dividends paid) is a large contract driller that mainly serves the mining industry. Major believes that mining activity continues to deplete the world’s more easily accessible mineral reserves. That means attractive deposits are increasingly in remote locations. Those areas are difficult to access or they’re where the mineral is deep in the ground. For this reason, Major’s strategy is to focus on its highly specialized drilling services. Demand for that kind of assistance, especially from senior gold miners, is beginning to recover. In the three months ended April 30, 2019, the company’s revenue rose 5.2%, to $100.4 million from $95.4 million a year earlier. More specifically, Major’s revenue in the Canada/U.S. region increased 12% to $51.0 million, while revenue in South and Central America jumped 14%, to $28.0 million (largely from Chilean copper projects). In addition, its revenue in Asia and Africa climbed 23%, to $21.4…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.