Drilling down for value in the com­modi­ties sec­tor

Financial Mail - Investors Monthly - - Analysis -

Master Drilling may be one of the undis­cov­ered gems of the mining sec­tor. De­spite a full and grow­ing or­der book, rand hedge ex­po­sure, en­trepreneurial man­age­ment and a con­ser­va­tive ap­proach to debt, the spe­cial­ist drilling com­pany has un­der­per­formed com­pa­nies in the gold and cop­per sec­tors.

At R14.30, the shares are 130c be­low their last peak in May. Com­pared with the place­ment price of R7.85 when it listed in De­cem­ber 2012, the shares have gained 78%. But as prices have run up this year, Master Drilling’s shares have added 10%, while Sibanye Gold has dou­bled and di­ver­si­fied miner Glen­core has added 77%.

Master Drilling spe­cialises in

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