Key points
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Master Drilling unveils shaft boring, tunnel boring, and reef cutting.
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Master Drilling’s novel developments target faster, safer mining.
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Profit jumps 399 percent as company eyes expansion.
Master Drilling is betting on three new technologies to cut costs and speed up mining. The South African company believes the tools can also boost safety while opening access to deeper ore.
The Johannesburg Stock Exchange-listed firm reported a 399 percent surge in half-year after-tax profit to $18.1 million. The increase came after partial impairment reversals. Its order book now stands at $306 million, supported by a $515 million pipeline across 28 countries.
The first innovation is a shaft boring system (SBS) that can drill shafts in half the usual time. The second, a mobile tunnel borer (MTB), will soon be deployed at African Rainbow Minerals’ Bokoni platinum mine in Limpopo.
The third, a narrow-reef rock cutter, will help recover more ore while limiting waste in deposits once seen as uneconomical.
Master Drilling pushes shaft boring system
Chief Executive Officer Danie Pretorius said the systems aim to cut costs and improve safety. “Dilution in the industry is a cancer,” he said.
“If we can reduce dilution and get the on-reef cutter on autopilot, it’s going to add value. From smaller plants to lower energy use, the benefits are clear.”
The SBS has already drilled a 4.3-meter shaft to 100 meters. Master Drilling plans to scale it up for bigger projects. Contract talks are complete, and operations at Bokoni should begin in the fourth quarter of 2025.
Financial results show growth momentum
For the six months ending June 30, revenue rose 4.9 percent to $133.2 million. Operating profit jumped 234 percent to $26.6 million. Earnings per share climbed 485 percent to $0.117.
Capital spending reached $13.9 million. Of that, 41 percent went to expansion and 59 percent to maintaining the current fleet. Debt fell to $45.4 million from $48 million, although the gearing ratio rose to 10.5 percent.
The fleet now includes 148 raise bore rigs, 35 slim drilling rigs, and one MTB rig. Utilization rates are 65 percent for raise boring and 28 percent for slim drilling.
Therefore, Master Drilling aims to raise overall use to 75 percent through diversification across regions, commodities, and industries.
Pretorius added that the company continues to recycle drilling water and track energy use. “Mining is key to the green economy,” he said. “We want to reduce the footprint of every project.”
