RE:third large contract announced.....And this confirmed what Harper had mentionned before Christmas about 2 significant contracts that could be annonced. I come up with 25 drills under contract versus the West African fleet of 65 - 40% utilisation. And looking at their January presentation they have added Mako as well as Barrick as clients verus their June 21 presentation.
So we should have increased usage in 2022. And increased rates. One has to remember that it is not easy to add rigs in West Africa. For competitors, it involves also higher mobilisation rates as they are not based is WA.
Anyway, if miners are starting to sign long term contracts, it is to make sure that they do have rigs available. We should see others trying to secure rigs. The marginal rates for short term contracts should be quite higher than these long term contracts.
We can understand Harper comment that he wiants to add capacity with the cash flows generated. As this is the beginning of a supercycle, it makes sense.
And just looking at at Centamin (added also on the presentation), their Egyptian operations now want to do exploration. Expect more expansion on that side of Africa.
GLTA