Major Drilling Group International
Major Drilling Group International (MDI) is the leading global provider of specialized contract drilling services to the mining industry. Given the specialized labour force and equipment required, mining companies typically outsource exploration drilling to companies like MDI as a way to mitigate the cyclical risk that faces the sector. While the drilling equipment used is readily available for purchase, we believe there are substantial barriers to entry as the business is very cyclical and requires the ability to work in remote and challenging environments. The majority of MDI’s revenue is derived from copper and gold exploration but its drilling rigs can be used for most exploration drilling activity (e.g., for commodities such as nickel, iron ore, zinc and uranium). Read
Thoughts on the Market: August Edition
18 Months Later…
We believe that the day the Western world woke up to the risks of COVID-19 was March 11, 2020, when actors/couple Rita Wilson and Tom Hanks announced they had tested positive. If Forrest Gump could catch it, anyone could. At that point, markets had already priced in much of the pandemic and would bottom a couple of weeks later (35 days peak-to-trough).