RE:RE:RE:RE:RE:RE:Q3 resultsThere is also a recent article on their subsidiary in Peru.
Mining is a tought business and the increase/shortages in drilling is just another one.
There is a nice slide in the Major Drilling deck which makes a parrallel between this cycle and the previous one that started in 2002-2003 and peaked in 2012. We are in the first innings with Juniors raising cash and wanting to drill for exploration. What would be different this time is the staff shortage and the increase of material costs.
Now, as a junior or even major, can you defer your exploration because cost are higher. I would say no way, as the first movers will get ressources out the faster and benefit from the current prices. Would you be sitting on your bottom with gold at this price ? Nope, you spend your exploration budget no matter what is the cost. Furhtermore, in the case of juniors, they raised some cash on the equity market to find some ressources not to stay iddle. If positive, they can always come back for more. If negative, well, this is mining :).
So I would infer that rates will go up much faster this time because of the staff shortage and the limited supply. You might see miners fighting for rigs much sooner and for longer than in the past. So rates should take off not only to cover the costs but would generate increased margins sooner.
Anyway, this is the way I see it, right or wrong, but when we start hearing about delays, drillers will be doing a lot of $$$. This is the fun part of the cycle. Commodity or Streamers might be safer but the upside is nowhere near as to what drillers can offer and streamers have a risk of overpaying also.
GLTA