Aus der Studie über Cabo!
Siehe Cabo Thread (übrigens hört die jetzt langsam auf, wirklich günstig zu sein, Cabo mein ich!)
There are two listed Canadian companies with some similarities, one much bigger and one slightly specialist company slightly smaller than Cabo.
The larger is Major Drilling Group International Inc. Major is a world presence in mineral drilling with operations in many countries; revenues are approximately fifteen times greater than Cabo’s and Major achieved gross margins slightly higher at about 30%. Revenue growth over the last two 12-month periods (just under 24%) is similar to Cabo’s although their last quarter results (to 31st January 2007) were exceptionally strong. Only 30% of Major’s revenues are from Canada and the USA, with fastest growing area by revenue being Latin America. Major trades on approximately a 17x forward P/E.
The smaller is Energold Drilling Corp, with about 30 rigs operative nearly all of them man portable modular hydraulically driven shallow capability rigs (~100m to 450m) capable of worldwide airborne deployment at short notice and in-country transport by helicopter, small truck mules or men when fully dis-assembled. Annualised revenues are about C$24m, so it is much closer in size to Cabo than is Major. The company has headquarters in Canada and maintains representative and logistics offices throughout Latin America. There is a healthy cash balance and extremely good gross margins (~50%) compared to Cabo or Major. The high revenue per drill rig is suggestive of extremely high utilization rates and lack of competition in its chosen markets. About half the market capitalisation of ~C$53m is made up of cash and shares in IMPACT Silver Corp; subtracting these leaves Energold trading on a quite attractive forward P/E of about 10:1.
Energold’s superior margins are due to its revenue stream coming almost entirely from the Caribbean and Latin America where exploration drilling demand has mushroomed and yet in-country capabilities were cut back severely during the exploration slump 1997-2004. Their capability of flying rigs in and out of country on demand and modular maintenance has allowed them to address the whole of the regional exploration market, without establishing a full infrastructure in each country. Energold recognise that they are a niche player:
“By working in less developed countries we have a market niche that allows us to maintain reasonable margins. Local competition is limited and new competitors from outside are generally unwilling to invest the time and energy to establish themselves in these markets.” Energold 2005 Annual Report
The high margins achievable by Energold support Cabo’s efforts at geographic diversification away from Canada where margins remain highly competitive and the capital needed to set up new drilling enterprises is relatively easy to obtain.
