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