Latest news with #MJDLF
Yahoo
2 days ago
- Business
- Yahoo
Major Drilling Group International Inc (MJDLF) Q4 2025 Earnings Call Highlights: Revenue Growth ...
Revenue: $187.5 million, up 11.6% from $168 million in the same period last year. Adjusted Gross Margin: 22.8%, down from 26.9% last year. G&A Costs: $20.9 million, an increase of $3.5 million from the previous year. Income Tax Provision: $700,000 expense, down from $2.4 million last year. EBITDA: $20.5 million, compared to $25.3 million last year. Net Earnings: $1 million or $0.01 per share, down from $9.9 million or $0.12 per share last year. Net Debt: $3.9 million at quarter end. Capital Expenditures: $18.6 million, adding seven new drill rigs and support equipment. Total Rig Count: 708 rigs at quarter end. Specialized Work Revenue: 60% of total revenue. Commodity Revenue Breakdown: Gold 41%, Copper 35%, Iron Ore 11%. Warning! GuruFocus has detected 4 Warning Sign with MJDLF. Release Date: June 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Major Drilling Group International Inc (MJDLF) set a new safety record with a total recordable incident frequency rate of $0.74, showcasing their commitment to safety. The acquisition of Explomin expanded their presence in South and Central America, adding operations in Peru, Colombia, and the Dominican Republic. Revenue for the fourth quarter increased by 11.6% year-over-year, driven by strong performance in the South and Central American regions. The company is well-positioned with $123 million in available liquidity and plans to increase cash flow, supporting future growth. Major Drilling Group International Inc (MJDLF) plans to spend approximately $70 million on capital expenditures in fiscal 2026 to support elevated activity levels and modernize their fleet. The company experienced a decrease in gross margins from 26.9% to 22.8% due to increased startup, training, and mobilization costs. Net earnings for the quarter dropped significantly to $1 million from $9.9 million in the prior year period. The company faced delayed mobilization related to economic uncertainty around tariffs, impacting revenue and margins. Junior exploration budgets remained limited, contributing only 8% to the company's revenue in the fourth quarter. The company ended the quarter with $3.9 million in net debt due to typical fourth-quarter working capital requirements. Q: Can you provide more specifics on the activity levels in North America and other regions? A: Denis Larocque, President and CEO, explained that the increase in activity is primarily coming from North America, Chile, and Peru. In Chile and Peru, the activity is driven by copper, while in North America, both copper and gold-related programs are ramping up. Q: Regarding the addition of seven rigs and disposal of four, were any of these rigs added to North America? A: Denis Larocque clarified that due to the slowdown in juniors, there was excess capacity in North America, so no additional rigs were needed there. Most of the new rigs were deployed to South America to support already busy regions. Q: Can you provide some color on the market performance in Australasia and Africa? A: Denis Larocque noted that the region is primarily driven by senior companies and remains very stable. The slight decrease in performance is due to normal fluctuations, but overall, the region has been steady and performing well. Q: The projected revenue increase for the first quarter of 2026 seems significant. Are these contracts expected to continue beyond one quarter? A: Denis Larocque confirmed that the revenue increase reflects the expanded budgets of senior companies due to high commodity prices and the need for metals. This trend is expected to continue beyond the first quarter. Q: With the current focus on critical minerals, how does this impact Major Drilling's operations? A: Denis Larocque emphasized that the increased focus on critical minerals is driving higher exploration budgets from senior companies, which aligns with Major Drilling's capabilities in providing specialized drilling solutions for challenging deposits. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-04-2025
- Business
- Yahoo
Major Drilling Group International Inc (MJDLF) Q3 2025 Earnings Call Highlights: Revenue Surge ...
Revenue: $160.7 million, up 21% from $132.8 million last year. Revenue Excluding Explomin: $127.9 million, down 3.7% from last year. Net Cash Position: Over $11 million at quarter end. Adjusted Gross Margin: 19.5%, down from 23.4% last year. G&A Costs: $22.8 million, an increase of $5.7 million from last year. EBITDA: $7.8 million, compared to $11.4 million last year. Net Loss: $9.1 million or $0.11 per share, compared to a net loss of $2.3 million or $0.03 per share last year. Capital Expenditures: $12.6 million, adding four new drill rigs. Total Rig Count: 705, including 92 rigs from Explomin acquisition. Specialized Work Revenue: 60% of total revenue. Conventional Drilling Revenue: 11% of total revenue. Underground Drilling Revenue: 29% of total revenue. Senior and Intermediate Customers: 94% of revenue. Junior Activity Revenue: 6% of total revenue. Copper Revenue: 41% of total revenue. Gold Revenue: 34% of total revenue. Iron Ore Revenue: 10% of total revenue. Warning! GuruFocus has detected 4 Warning Sign with MJDLF. Release Date: March 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Major Drilling Group International Inc (MJDLF) successfully completed the acquisition of Explomin, the largest acquisition in the company's history. The company achieved a record low total recordable injury frequency rate of 0.38, earning the Safe Everyday Gold Award. Revenue increased by 21% year-over-year to $160.7 million, driven by the addition of Explomin. The company ended the quarter with a strong net cash position of over $11 million, allowing for continued investment in growth opportunities. There is a positive outlook for 2025, with increased exploration budgets from senior gold and copper customers and a rise in junior financings. Revenue from junior customers dropped by 60%, impacting overall revenue despite gains from senior customers. North American operations faced setbacks due to early project shutdowns and late mobilizations, affecting margins. The overall adjusted gross margin percentage decreased to 19.5% from 23.4% in the same period last year. The company reported a net loss of $9.1 million or $0.11 per share, compared to a net loss of $2.3 million or $0.03 per share in the prior year quarter. General and administrative costs increased by $5.7 million due to the addition of Explomin and inflationary wage adjustments. Q: Can you discuss the synergies from the recent Explomin acquisition? A: Denis Larocque, President, and CEO: The acquisition provides access to new markets and allows us to tap into contracts with customers who wanted us to work in those regions. Additionally, Explomin's geo solution group will assist us in other Latin American areas. There's also an exchange of expertise between the two companies, which has already begun. Q: What are the potential impacts of tariffs, and how are you mitigating these risks? A: Denis Larocque, President, and CEO: The impact of tariffs is minimal due to our geographic and supplier diversity. We can shift purchasing to minimize tariff impacts, which is an advantage not available to companies operating in fewer countries. Q: What are you hearing from juniors regarding sentiment compared to last year? A: Denis Larocque, President, and CEO: The sentiment has improved slightly with gold and copper prices rising, but financing remains limited. However, senior exploration budgets have increased significantly, which is promising for future activity. Q: Can you elaborate on the discussions with customers at PDAC? A: Denis Larocque, President, and CEO: PDAC was very positive, with increased interest from seniors in our geo solution offerings. Exploration budgets from seniors are up 18% to 20%, and there was substantial interest in our combined drilling and geo solution services. Q: How are you positioned for future growth opportunities? A: Denis Larocque, President, and CEO: We are well-positioned with a strong balance sheet and a net cash position of over $11 million. This allows us to invest in growth opportunities and prepare for increased activity in 2025. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
