Major is building on its 305% gain

Article Excerpt

MAJOR DRILLING, $9.16 (Toronto symbol MDI; TSINetwork Rating: Speculative) (www.majordrilling.com; Shares o/s: 82.0 million; Market cap: $805.4 million; No divd.) is a large contract driller that mainly serves the mining industry. Demand for Major Drilling’s specialized drilling services, especially from senior gold producers, is beginning to recover. That has pushed your shares up 305.3% since they plunged to a low of $2.26 in March of 2020. Major Drilling is now acquiring McKay Drilling Pty Limited, a leading specialty drilling contractor based in Perth, Australia. The purchase price will be $75 million Canadian. McKay’s fleet is at the very high end of specialized drilling equipment. The company is widely regarded as an innovator in the Australian mining industry and has longstanding relationships with Australia’s largest mining companies. In the year ended March 31, 2021, McKay generated revenue of $56 million Canadian. To put that into perspective, Major Drilling has annual revenue of around $400 million. McKay looks like it will be a very good fit…

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