Market analysis
On the back of the past two record-breaking years, results in 2023 are noticeably tamer. This is caused by reduced exploration activity in light of increased costs of financing, sticky inflation, slowing prices of commodities and the lack of capital raisings in the exploration sector.
Worldwide capital raisings have been subdued since November 2022, which coincides with a lack of drill meters in 2023. According to S&P Global data, in 2023, the approximate number of completed exploration drillholes decreased by 23% to 53 582 vs 70 008 in 2022. Projects were estimated to be 1515, which is around 15% less than the year prior’s 1751.
The results for 2023 of only the companies participating in Coring’s drilling statistics paint a more complicated picture. While indeed there is an average decrease in the meterage achieved, it is much smaller at around 5%. Some of the participating companies did report significant drops, others single-digit reductions, while several have improved on their results from 2022. This is likely driven by interest in the type of commodity drilled, as well as the regions where companies operate. Looking at early estimates, 2024 should bring higher results than 2023 and possibly even surpass 2022.
Financial results from 2023 are similarly complex. Some of the contractors have achieved increases both in revenue and profits. Yet, the tremendous double-digit raises reported in 2022 are few, and some companies have notched slight decreases. Reports commonly highlight the second half of the year as weaker than the first. As in the previous years, 2023 was marked by significant mergers and company charges both amongst contactors and equipment manufacturers.
There has been a slight increase in the total number of drill rigs owned by the participating companies; less than 5%, driven by several that have made large investments in expanding their fleets. Almost all contractors have made enhancements to safety and efficiency. Reported rig utilization rates remain high at over 70%.
In Focus: Company results
Boart Longyear takes the leading spot with 2 471 792 m (8 109 554 ft) achieved through diamond drilling. This is a reduction of a little over 1% from 2022. The company’s total drill fleet is 609. Late in 2023, it was announced that Boart Longyear would become a private company, and the process was completed in 2024.
Perenti Drilling Services takes the second spot and has achieved 2 325 746 m (7 630 400 ft) through diamond drilling in 2023; an increase of almost 10%. Perenti Drilling Services was formed through an industry-reshaping merger between Perenti and DDH1, and now includes the drilling brands DDH1, Swick, Ausdrill, Ranger and Strike. Collectively these five brands now have over 300 drill rigs, with ~200 of the fleet operating in the diamond drilling space.
Major Drilling achieved 2 100 979 m (6 892 976 ft) through diamond drilling in 2023. This is a decrease of around 10% in comparison to 2022. RC drilling results were 956 515 m (3 138 173 ft), also a slight decrease. The company’s drill fleet grew slightly to 604 rigs, of which 483 are used for diamond drilling. In November 2024, Major Drilling announced the acquisition of Explomin Perforaciones, another participant in the statistics, to expand its presence in Central and South America and reshape the drilling industry yet again.
Orbit Garant Drilling is another company with growth in results. The company achieved 1 452 230 m (4 764 534 ft) in 2023, which is more than a 5% increase over the year prior.
In 2023, Foraco International reported 962 665 m (3 158 350 ft) achieved through sufrace and underground diamond drilling. Further 161 410 m (529 560 ft) were completed in RC. Both results represent a decrease of around 5% from 2022. According to their annual report, the number of rigs in the company’s fleet has remained unchanged at 302. Foraco’s financial results for FY2023 (ended in Dec. 2023) have improved on average 20%, with another highlight being a sustained decade-long trend of decreases in LTI and injury frequency rates.
Canadian Hy-Tech Drilling has achieved 574 464 m (1 884 724 ft) with diamond drilling. This is a slight decrease from 2022, however, the company’s fleet has continued to grow, reaching 82 (from 69).
Forages Rouillier Drilling, another Canadian company, reported 570 530 m (1 871 818 ft) achieved with diamond drilling. While this is a decrease in comparison to 2022, the company has provided early estimations for 2024 in the range of 600 000 m (1 968 504 ft).
Explomin Perforaciones, one of the largest companies in Latin America, which will be part of Major Drilling, achieved 533 417 m (1 750 055 ft) through diamond drilling in 2023. These results may signify around 10% decrease from 2022, however, the company has reported working on more projects – 41, 37 of which diamond drilling (DD) vs 30 (26 DD) in 2022. Explomin’s fleet consists of 67 rigs (65 DD) and it has also reported an increase in drilled meterage and number of projects in 2024.
The results of Geodrill along with their South American subsidiary Recon Drilling for 2023 for diamond drilling sit at 348 544 m (1 143 517 ft). The company has performed significantly more RC drilling – 875 288 m (2 871 680 ft). Both numbers are <10% lower than in 2022, however, the company is expecting to deliver record meterage drilled in 2024, along with record earnings. In addition, the estimations for diamond drilling results suggest a growth of close to 30%.
Capital Drilling achieved 218 884 m (718 123 ft) through diamond drilling and 276 270 m (906 398 ft) by RC in 2023. Interestingly, the company has reported 4 133 455 m (13 561 204 m) achieved through other types of drilling. In terms of drill rigs, Capital has reported a significant growth in the size of its fleet for 2023 – 92 vs 57 in 2022, the majority of which is used for other types of drilling.
Turkish contractor and manufacturer Ortadoğu Drilling reported an increase of over 10% in the number of drilled meters through diamond drilling to 217 644 m (714 055 ft) in 2023. The fleet of in-house manufactured drill rigs has increased to 40, compared to 35 in 2022. Ortadoğu had 35 projects in 2023, primarily in the Eurasian region.
Arctic Drilling Company, based in Finland, completed 202 900 m (665 682 ft) of diamond drilling and a further 30 300 m (99 410 ft) of RC drilling in 2023.
GEOPS, covered in the In Focus article of this issue, has reached 197 673 m (648 534 ft) through diamond drilling. The company has achieved <10% higher results than in 2022.
Canadian contractor Team Drilling reported a diamond drilling result of 189 500 m (621 719 ft), achieved in 2023, and 210 000 m (688 976 ft) in 2022.
South African contractor Hall Core Drilling has once again reported growth in its diamond drilling activities. The company achieved 170 392 m (559 029 ft), primarily from the expansion of operations at the Limpopo mine. This represents an increase of over 5% from 2022. Hall Core has the same number of diamond drill rigs as in 2022 – 35, with 5 of these rigs now being underground, marking an important milestone as it is Hall Core’s first underground project.
Australian Topdrill reported achieving 154 697 m (507 536 ft) from diamond drilling in 2023 and 130 504 m (428 162 ft) in 2022. In 2024, there is a tremendous increase to the company’s diamond drilling results, reaching 225 821 m (740 882 ft), driven by new projects.
A new participant in the statistics, Finnish company KATI Oy, has achieved 143 000 m (469 160 ft) through diamond drilling in 2023 and 146 000 m (479 002 ft) in 2022.
Brazilian contractor DrillGeo also disclosed more than a 10% increase in its diamond drilling results for 2023. The company achieved 139 036 m (456 155 ft) and a further 10 160 m (33 333 ft) through RC drilling, also a modest increase from 2022. Nonfinal results for 2024 suggest a tremendous 25% growth in DD operations and a 50% increase in RC drilling.
Alton Drilling, New Zealand’s largest drilling contractor reported 90 703 (297 582 ft) diamond drilled meters and 31 864 m (104 541 ft) achieved through other types of drilling for 2023. The company had a total of 21 rigs drilling across the country for the year 2023. In 2024, they have seen substantial growth and currently have 24 rigs of their 40-rig fleet in operation.
A first-time participant in these annual statistics and a key player in the Mexican market of diamond drilling services – Maza Drilling, announced 78 700 m (258 202 ft) in 2023 and 121 783 m (399 551 ft) in 2022. Its results for 2024 are 88 060 m (288 909 ft).
Coring Magazine extends its congratulations to all companies for their outstanding results and expresses gratitude for their support in compiling these statistics!
Disclaimer
Coring Magazine is proud to present the new statistics of ‘Top mineral exploration drilling contractors for 2023’. Companies are classified by the number of meters achieved only through diamond drilling. These results were provided and confirmed by the companies themselves and have been rounded to whole numbers, where needed. The statistics present results for calendar 2023, as at the time of publication (December 2024), complete data for 2024 was not available.
Other companies qualify but are not listed here for reasons beyond our control. We did our best to contact and include as many diamond drilling contractors as possible. However, many did not respond to our invitations; others were omitted per their request. Everyone is invited to get in touch and submit their numbers as long as their results equal or exceed 50 000 diamond drilling meters per annum.
Coring Magazine cannot be held liable for any errors or inconsistencies presented in this report.
