Major Drilling Group International (MDI) has reported a strong second quarter of 2021, backed by a spike in gold mining activity across North America.
The New Brunswick-based drilling contractor reported a 6 per cent drop in overall revenue for the period, from C$121.2 million in the second quarter of 2020 to $114.2 million this year.
With a quick resumption of mining activity to pre-COVID levels across Canada and the United States, revenue from North American operations grew 8.1 per cent to $70.6 million.
However, revenue from Asian and African operations fell 15.7 per cent to $22 million, while South and Central American revenue dropped 27.5 per cent to $21.6 million, as mining activities in these regions continue to flounder with the ongoing pandemic.
Net earnings came to a total of $7 million for the second quarter, or $0.09 per share, compared to $7.3 million in the prior year.
Notably, Major Drilling completed a 3,467-metre drill hole at Osisko Mining's Windfall Project - the longest hole ever drilled in Canada - as well as a 2,000-metre hole at the Oyu Tolgoi Project in Mongolia.
The company also added one new drill rig to its fleet and disposed. of 13 older, outdated ones, bringing its total rig count to 601.
"Industry experts expect the global refined copper market to hit a deficit this year, which should lead to significant investments in copper exploration projects," said Denis Larocque, President and CEO of Major Drilling.
"Looking forward to calendar 2021, as we enter our seasonally slower third quarter, we are in a unique position to react to this market dynamic as our financial strength has allowed us to invest in safety, equipment and innovation in order to meet the high standards of our customers," he added.
Major Drilling Group International is currently up 8.57 per cent to $6.97 per share at 12:59pm EST.