Major Drilling Group International (MDI) investor relations material

Executive summary

• Achieved record quarterly revenue of CAD 277.3 million (USD 277.3 million), up 22.4% year-over-year, driven by growth across all regions, especially Canada and the U.S.

• Net earnings increased nearly 44% year-over-year to CAD 14.5 million (USD 14.5 million), or CAD 0.18/share, reflecting strong operational leverage and expanded rig deployment.

• Operations span over 20 countries on 6 continents, with a fleet of 683 rigs and approximately 6,000 employees.

• Revenue diversification by commodity (46% gold, 28% copper, 9% iron ore, 17% other) and by customer, with 85% from senior/intermediate mining companies and juniors growing to 15% of revenue.

• All geographic segments posted double-digit revenue growth, with notable contributions from Canada-U.S., South and Central America, and Australasia/Africa.

Financial highlights

• Revenue reached CAD 277.3 million, a 22.4% increase from CAD 226.6 million in the prior year period.

• Adjusted gross margin was 24.0%, down from 25.2% year-over-year but improved sequentially from 22%.

• EBITDA was CAD 37.2 million, up from CAD 32.1 million year-over-year.

• Net cash at quarter end was CAD 15.7 million, down from CAD 20.6 million last quarter due to higher working capital needs.

• G&A costs increased to CAD 23.8 million, mainly due to wage adjustments and growth-related expenses.

Outlook and guidance

• Rigs expected to be deployed at higher prices as demand from seniors and juniors remains strong, with pricing improvements on new contracts and renewals anticipated.

• Margin expansion anticipated to continue, though at a slower pace than revenue growth due to ongoing labor and ramp-up costs.

• Recruitment and training efforts are ongoing to address industry-wide driller shortages, which may temporarily impact productivity.

• Optimism supported by strong gold and copper prices and continued focus on critical minerals.

• Exploration budgets remain below prior peaks, suggesting further upside potential as commodity prices remain high.