JSE-listed Master Drilling Group, a leading international provider of drilling technology and services to the mining sector, has posted remarkable financial results for the six months ending June 30, 2025, with profit after tax soaring by an extraordinary 399% to $18.1 million. The strong performance highlights the group’s resilience and ability to adapt amid global economic uncertainty while leveraging its innovative drilling technologies and strategic regional expansion to strengthen its position in the mining services industry.
Revenue for the period increased by 4.9% to $133.2 million, while headline earnings per share rose 6.7% to 9.6 US cents, with the equivalent figure in rands up 4.7% to 176.6 cents. The company also reported a robust revenue pipeline valued at $515 million and a committed order book of $305.6 million, reflecting a steady flow of new business opportunities. Although Master Drilling traditionally declares dividends at year-end, the strong interim results have boosted investor confidence.
CEO Danie Pretorius expressed pride in the company’s achievements during the first half of 2025, noting that the results underscore the resilience of its operating model. He emphasized that Master Drilling’s disciplined capital management, client partnerships, and innovative technologies were key drivers of the company’s financial success. Pretorius also highlighted that despite profitability pressures in certain regions, the adoption of new drilling and cutting technologies has made a meaningful impact on the mining industry and positioned the group for continued growth.
In addition to its core technologies, Master Drilling has been strategically investing in digital and asset-light ventures, including proximity detection solutions and integrated data management systems tailored for mining operations. These initiatives have enhanced financial performance, improved operational efficiency, and opened up new growth avenues for the company.
A significant contributor to the sharp profit increase was the partial reversal of an impairment loss related to the group’s Mobile Tunnel Boring Machine. In 2024, the company had recorded a $7.8 million impairment due to uncertainty in commodity prices affecting the machine’s target market. However, in the first half of 2025, Master Drilling secured a contract to deploy the machine, enabling a reassessment of its recoverable value and resulting in a $4.7 million impairment reversal. This turnaround played a pivotal role in boosting profitability.
Operationally, the company generated $11 million in net cash from operations and maintained diligent cash management to fund opportunities requiring specialized design and investment. Total capital expenditure during the period amounted to $13.9 million, with 41% allocated to expansion and 59% to sustaining the existing fleet. Debt levels fell from $48 million to $45.4 million, although the gearing ratio increased from 6.3% to 10.5%.
Regionally, Master Drilling reported mixed but promising developments. In South America, growth was strong as the group benefited from a regional shift toward underground mining and demand for strategic minerals aligned with ESG-focused practices. A new joint venture expanded service offerings, while additional contracts with both existing and new clients enhanced revenue streams. In Central and North America, operations stabilized after robust interventions resolved legacy issues and strengthened profitability.
Africa presented challenges, with one major project placed on hold and another halted due to diamond price pressures. However, the group secured a new contract in the region and has begun mobilizing additional equipment, including the launch of a first-of-its-kind drilling unit. Meanwhile, operations in the Rest of the World region exceeded profitability expectations, supported by the award of new contracts.
Looking ahead, Pretorius reaffirmed confidence in Master Drilling’s long-term prospects, citing the group’s stable foundation of long-term contracts, diversified geographic footprint, and commitment to innovation. Among its latest technological advancements is Project Desert Elephant, a cutting-edge surface core drilling rig featuring a robotic hand, which underscores the group’s focus on pioneering solutions for the mining industry.
With a clear strategy, innovative technologies, and global diversification, Master Drilling has positioned itself strongly for the future, and its impressive interim results demonstrate its ability to deliver sustainable growth even amid global challenges.
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