Major Drilling is generally considered a good proxy for the mining industry. It represents a great way to participate in the mining market without the need to purchase individual mining company stocks. The Company is very well positioned with no net debt, a very modern fleet by industry standards and has maintained its core competencies during the last downturn.
“The industry’s new discovery rate still falls well short of what is needed over the long term... Increased production by the major gold producers over the past decade has resulted in a greater need to add to reserves in order to maintain a life-of-production that satisfies the long-term views of investors and market analysts... Although, as a group, the major producers successfully replaced almost twice their total production over the past ten years, almost all of these reserves additions were achieved through acquisitions or by upgrading resources at existing projects and mines, and not through finding new significant discoveries.”
Metals Economics Group
June 16, 2009