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Foraco International SA T.FAR

Alternate Symbol(s):  FRACF

Foraco International S.A. is a France-based company engaged in the mining, geological and hydraulic drilling sectors. The Company's principle business consists of drilling contracts for companies primarily involved in mining and water exploration. The Company operates in two business segments: Mining and Water. The Mining segment covers drilling services offered to the mining and energy industry during the exploration, development and production phases of mining projects. The Water segment covers all activities linked to the construction of water wells leading to the supply of drinking water, the collection of mineral water, as well as the control, maintenance and renovation of the existing installations. The Water segment also includes drilling services offered to the environmental and construction industry, such as geological exploration and geotechnical drilling.


TSX:FAR - Post by User

Comment by FrozenInOntarioon Mar 02, 2021 10:09pm
83 Views
Post# 32702088

RE:RE:Level of debt

RE:RE:Level of debtYour numbers do sound right.  However, their operations are different, see the drilling for water division for Foraco.  Their geographical mix is differetn too.  This being said, Foraco could produce very interesting results for investors as they delever and we hit an upcycle with improved capacity utilisation and improved day rates.

Investing on the most levered player can produce the best results, if of course, they do not go bankrupt (Energold anyone )

I really like the fact that the co ceos own 40% of the company.  The risk of a massive dilution is minimized.

Amazing what these guys could throw out in terms of free cash flows should the market heat up a bit more.  They were valued at close to $ 5/share at the top of last cycle.

GLTA
.


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