Master Drilling: Drilling down for value in the commodities sector
MASTER Drilling may be one of the undiscovered gems of the mining sector.Despite a full and growing order book, rand hedge exposure, entrepreneurial management and a conservative approach to debt, the specialist drilling company has underperformed companies in the gold and copper sectors.At R14.30, the shares are 130c below their last peak in May. Compared with the placement price of R7.85 when it listed in December 2012, the shares have gained 78%. But as prices have run up this year, Master Drilling’s shares have added 10%, while Sibanye Gold has doubled and diversified miner Glencore has added 77%.Master Drilling specialises in raise bore drilling, a faster, and more economical alternative to traditional methods of blasting and scraping in mines.In the six months to June, two-thirds of revenue came from Latin America, one-fifth from SA and one-fifth from elsewhere in Africa. One-third of revenue is from the gold sector, one-third from copper and about 9% from polymetallic metals ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.