- Foraco (TSX:FAR) signed two long-term contracts with Tier-one gold producers in the United States for a combined value of more than US$60 million
- Foraco International is the third-largest drilling company in the world
- The small-cap drilling stock has added 8.97 per cent year-over-year and 390.38 per cent since 2020
Foraco (TSX:FAR), a top mineral drilling company, signed two long-term contracts with Tier-one gold producers in the United States for a combined value of more than US$60 million. The identities of the new clients have not been disclosed.
The contracts will see Foraco engage in mine development and resource-definition drilling across several projects in Nevada, including surface coring, deep directional drilling, as well as reverse circulation programs. Drills are now spinning, with operations expected to reach up to 10 rigs through Q1 2026.
Foraco’s recently reported Q3 results added to its multiples years of consistent profitability, including US$16.7 million in net income over the trailing twelve months, with a strong balance sheet and an expected industry-wide boost in investment and rig utilization setting the company up for further growth.
Management commentary
“These awards represent a major milestone for Foraco and are fully aligned with our strategy to expand our presence with Tier-one gold miners and strengthen our position in the US market,” Tim Bremner, chief executive officer of Foraco International, said in Friday’s news release. “Nevada’s geology poses unique technical challenges, and our ability to meet those challenges draws directly on Foraco’s global expertise. This is another strong example of how we differentiate our services through technical excellence and operational reliability.”
About Foraco International
Foraco International is a drilling company supplying the global mining and water industries. The company operates in 17 countries across five continents, making it the third-largest drilling company in the world.
Foraco stock (TSX:FAR) is up by 6.25 per cent on the news trading at C$2.55 as of 9:33 am ET. The stock has added 8.97 per cent year-over-year and 390.38 per cent since 2020.
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