MONCTON, NB, Jan. 23, 2013 /CNW/ - Major Drilling Group International
Inc. (TSX: MDI) is updating its fourth quarter (February 1 to April 30)
activity forecast from its second quarter press release dated November
26, 2012. At that time, the Company expected fourth quarter 2013
activity levels to be consistent with second quarter 2013 activity
Subsequent to the holiday season, there have been increased delays in
the decision making process on the part of many of the Company's senior
customers in regards to their 2013 exploration drilling programs. The
impact of these delays on the Company's third quarter was expected and
has not changed management's views on third quarter results. However,
given these increased delays, as well as general pricing pressures,
fourth quarter revenue will be more significantly impacted than had
been anticipated at the time of the November 26, 2012 press release.
Beyond the fourth quarter, and due to the ongoing volatility in the
sector, it is too early to make an assessment. In the meantime, the
Company continues to have a variable cost structure whereby most of its
direct costs, including field staff, go up or down with contract
revenue and a large part of the Company's other expenses relates to
variable incentive compensation based on the Company's profitability.
Longer term, fundamentals remain positive, with continuing strong gold
and copper prices, and an ongoing need for resource companies to
replace depleting resources. The Company remains in an excellent
financial position, being debt-free, net of cash.
Full financial results for the third quarter will be released on March
Some of the statements contained in this press release may be
forward-looking statements, such as, but not limited to, those relating
to worldwide demand for gold and base metals and overall commodity
prices, the level of activity in the minerals and metals industry and
the demand for the Company's services, the Canadian and international
economic environments, the Company's ability to attract and retain
customers and to manage its assets and operating costs, sources of
funding for its clients, particularly for junior mining companies,
competitive pressures, currency movements, which can affect the
Company's revenue in Canadian dollars, the geographic distribution of
the Company's operations, the impact of operational changes, changes in
jurisdictions in which the Company operates (including changes in
regulation), failure by counterparties to fulfill contractual
obligations, and other factors as may be set forth, as well as
objectives or goals, and including words to the effect that the Company
or management expects a stated condition to exist or occur. Since
forward-looking statements address future events and conditions, by
their very nature, they involve inherent risks and uncertainties.
Actual results in each case could differ materially from those
currently anticipated in such statements by reason of factors such as,
but not limited to, the factors set out in the discussion on pages 16
to 18 of the 2012 Annual Report entitled "General Risks and
Uncertainties", and such other documents as available on SEDAR at www.sedar.com. All such factors should be considered carefully when making decisions
with respect to the Company. The Company does not undertake to update
any forward-looking statements, including those statements that are
incorporated by reference herein, whether written or oral, that may be
made from time to time by or on its behalf, except in accordance with
applicable securities laws.
Based in Moncton, New Brunswick, Major Drilling Group International Inc.
is one of the world's largest metals and minerals contract drilling
service companies. To support its customers' mining operations, mineral
exploration and environmental activities, Major Drilling maintains
operations on every continent.
SOURCE: MAJOR DRILLING GROUP INTERNATIONAL INC.
For further information:
Denis Larocque, Chief Financial Officer
Tel: (506) 857-8636
Fax: (506) 857-9211