Master Drilling’s new mobile tunnel borer ready for the world

MASTER Drilling’s new mobile tunnel borer machine, which allows for continuous mining without blasting, will be unveiled and commissioned next month and thereafter rolled out globally.

The group first announced the launch of this machine in February and it is expected to have a beneficial impact on mining. It said yesterday that progress also continued on blind shaft boring technology, which was expected to be launched in the first quarter of 2019.

Chief executive Danie Pretorius said their innovation journey was ongoing and would remain a critical element of the growth and sustainability of their business alongside people capacity and development and increased profitability.

“We believe this strategy positions us well as we continue to look for expansion opportunities,” Pretorius said.

The group provides specialised drilling services to major blue-chip and mid-tier companies in the mining, civil engineering and energy sectors, across a number of commodities. It has a global footprint with operations in Latin America, Africa and Europe. Revenue In the six months to end June, the group reported an 11.3 percent increase in revenue to $67.4 million (R953.71m), driven by the addition of a new machine and the acquisition of the remaining shareholding in Sweden-based Bergteamet Raiseboring Europe A in the first half of 2018. Operating profit was up by 6 percent to $12.9m.

The group said the strength in emerging market currencies during the first half proved challenging for the business, with the rand accounting for a large portion of the company’s costs.

“The macro-economic environment remained challenging across a number of markets during the first half of the year, but our ability to report stable profitability amid tough conditions suggests that Master Drilling’s strategy does not only position the business for future growth, but also supports the business throughout the economic cycle,” Pretorius said.

The group said earnings per share (Eps) in US currency decreased by 4.5 percent to 6.3 cents, and South African Eps decreased 10. 9 percent to 77.5c on the back of the stronger rand compared to the same period last year.

Headline earnings per share (Heps) in US currency decreased 10.6 percent to 5.9c and SA Heps declined by 16.6 percent to 72.6c but the group is looking for a better performance in the future with a committed order book worth $114.4m and a pipeline of $358.2m.

“The uptick in the global economy and commodity cycle is bearing fruit in our business as we receive new contracts and a steady flow of new enquiries that feed into the pipeline. Our presence is growing in Central and North America as well as in Europe,” Pretorius said.