- Major Drilling Group International (TSX:MDI), a profitable drilling stock and the largest mineral driller in the world, has acquired Peruvian drilling contractor Explomin Perforaciones for US$63 million in cash plus US$22 million in potential earn-out milestones
- Explomin generated revenue of US$95 million (over 90 per cent derived from senior miners) and EBITDA of US$16 million for the year ending October 31, 2024
- Major Drilling is the world’s leading provider of specialized drilling services, primarily serving the mining industry
- Major Drilling stock has added 20.08 per cent year-over-year and 60.71 per cent since 2019
Major Drilling Group International (TSX:MDI), a profitable drilling stock and the largest mineral driller in the world, has acquired Peruvian drilling contractor Explomin Perforaciones for US$63 million in cash plus US$22 million in potential earn-out milestones.
Major Drilling believes the acquisition will be immediately value-accretive, increasing its exposure to the copper market by owning one of the largest and most successful South American drilling contractors.
Explomin generated revenue of US$95 million (over 90 per cent derived from senior miners) and EBITDA of US$16 million for the year ending October 31, 2024. To cash in on earn-outs, the company will have to generate annual EBITDA of US$21 million over the next three years.
Explomin’s global operations, centred on Peru with strategic presences in Colombia, Spain and the Dominican Republic, include a diverse suite of services spanning deep hole, directional and high-altitude drilling, with about 40 per cent of the company’s time spent on underground drilling.
The acquisition, funded with cash and existing debt facilities, adds 92 drills to Major Drilling’s fleet, bringing its globally leading rig count to 701. The company has used its assets to deliverer consistent growth and profitability, growing revenue by 72.7 per cent from C$409.14 million in 2020 to C$706.69 million in 2023, in addition to over C$190 million generated in fiscal Q1 2025. Management has kept growth in line with shareholder value, averaging over C$47 million in net income over the past four years.
Leadership insights
“We are very excited to welcome Explomin and its employees into the Major Drilling group,” Denis Larocque, president and chief executive officer of Major Drilling Group International, said in a statement. “This acquisition is directly aligned with our strategic plan, offering us growth opportunities in new jurisdictions, a diversified revenue source with additional underground operations, and an expanded senior customer base with high operational standards. Peru is a market that has been on our radar for a number of years given it is the second-largest producer of copper in the world. Carlos Urrea, chairman and founder of Explomin and the existing management team will remain in place to continue building on a strong reputation as the specialized driller of choice in the regions in which they operate. Explomin and Major Drilling also have very similar cultural and operational values, approaches with respect to customer service and strong commitments to sustainable resource development consistent with Major’s global ESG framework.”
“I am thrilled to have Explomin join Major Drilling, a milestone that opens up remarkable opportunities for us to grow and excel together,” Urrea added. “I want to extend my heartfelt thanks to our incredible team — your hard work and dedication have brought us to this moment, and I couldn’t be prouder. Looking ahead, with Major Drilling’s resources and expertise, combined with our deep local industry knowledge, we are poised to achieve new heights and lead the way as the clear specialized operator of choice in South America. Together, we are stronger and better positioned than ever to create a thriving future for our employees, clients and communities.”
About Major Drilling Group International
Major Drilling, established in 1980, is the world’s leading provider of specialized drilling services, primarily serving the mining industry. The company operates in Canada, the United States, Mexico, South America, Asia, Africa and Australia.
Major Drilling stock (TSX:MDI) is up by 4.91 per cent trading at C$8.55 per share as of 10:00 am ET. The stock has added 20.08 per cent year-over-year and 60.71 per cent since 2019.
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(Top photo: Explomin Perforaciones)
