Q1 2027 Major Drilling Group International Inc Earnings Call
Operator: Good day, and thank you for standing by. Welcome to the Major Drilling Q1 2027 Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Ryan Hanley, Director of Capital Markets. Sir, please go ahead.
Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you'll need to press *11 on your telephone.
Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded.
Speaker #1: I would now like to hand the conference over to your speaker today, Ryan Hanley, Director of Capital Markets. Sir, please go ahead.
Speaker #2: Thank you. Good morning, everyone. As mentioned, we would like to welcome you to Major Drilling's conference call for the first quarter of fiscal 2027.
Ryan Hanley: Thank you. Good morning, everyone. As mentioned, we would like to welcome you to Major Drilling's conference call for the first quarter of fiscal 2027. With me on the call today are Denis Larocque, President and CEO, and Ian Ross, CFO. Our results were released yesterday after market hours and can be found on our website at www.majordrilling.com. We also invite you to visit our website for further information. Before we get started, we'd like to caution you that during this conference call, we'll be making forward-looking statements about future events or the future financial performance of the company. These statements are forward-looking in nature, and actual events or results may differ materially from those currently anticipated in such statements. I'll now turn the presentation over to Denis Larocque, President and CEO.
Ryan Hanley: Thank you. Good morning, everyone. As mentioned, we would like to welcome you to Major Drilling's conference call for the Q1 of fiscal 2027. With me on the call today are Denis Larocque, President and CEO, and Ian Ross, CFO. Our results were released yesterday after market hours and can be found on our website at www.majordrilling.com. We also invite you to visit our website for further information. Before we get started, we'd like to caution you that during this conference call, we'll be making forward-looking statements about future events or the future financial performance of the company. These statements are forward-looking in nature, and actual events or results may differ materially from those currently anticipated in such statements. I'll now turn the presentation over to Denis Larocque, President and CEO.
Speaker #2: With me on the call today are Denis Larocque, President and CEO, and Ian Ross, CFO. Our results were released yesterday after market hours and can be found on our website at www.majordrilling.com.
Speaker #2: We also invite you to visit our website for further information. Before we get started, we'd like to caution you that during this conference call, we will be making forward-looking statements about future events or the future financial performance of the company.
Speaker #2: These statements are forward-looking in nature, and actual events or results may differ materially from those currently anticipated in such statements. I'll now turn the presentation over to Denila Rock, President and CEO.
Speaker #3: Thanks, Ryan. And good morning, everyone, and thank you for joining us today. We had a strong start to our new fiscal year with quarterly revenue of $277.3 million, representing a 22% increase over the prior period and setting a new quarterly record for the company.
Denis Larocque: Thanks, Ryan, and good morning, everyone, and thank you for joining us today. We had a strong start to our new fiscal year with quarterly revenue of CAD 277.3 million, representing a 22% increase over the prior year period and setting a new quarterly record for the company. This new record was the result of each region delivering meaningful year-over-year revenue growth as we continue to deploy rigs in the field in order to meet the growing needs of our customers. The bulk of the growth continues to be driven by increasing activity levels in Canada and the US, where we saw new contract wins and the addition of rigs to existing projects.
Denis Larocque: Thanks, Ryan, and good morning, everyone, and thank you for joining us today. We had a strong start to our new fiscal year with quarterly revenue of CAD 277.3 million, representing a 22% increase over the prior year period and setting a new quarterly record for the company. This new record was the result of each region delivering meaningful year-over-year revenue growth as we continue to deploy rigs in the field in order to meet the growing needs of our customers. The bulk of the growth continues to be driven by increasing activity levels in Canada and the US, where we saw new contract wins and the addition of rigs to existing projects.
Speaker #3: This new record was the result of each region delivering meaningful year-over-year revenue growth, as we continue to deploy rigs in the field in order to meet the growing needs of our customers.
Speaker #3: The bulk of the growth continues to be driven by increasing activity levels in Canada and the US, where we saw new contract wins and the addition of rigs to existing projects.
Speaker #3: While seniors continue to execute on their expanded programs, we're seeing juniors becoming increasingly more impactful as they look to deploy larger amounts of capital that flowed through the significant increase in financing activity we saw earlier in the year.
Denis Larocque: While seniors continue to execute on their expanded programs, we're seeing juniors becoming increasingly more impactful as they look to deploy larger amounts of capital that flowed through the significant increase in financing activity we saw earlier in the year. As a result, revenue in Canada, US region increased by over 31% when compared to the prior year period. In South and Central America, we saw a strong 18% year-over-year increase led by continued growth in Peru and increasing activity levels in Mexico and Brazil. In the Australasian and Africa region, revenue increased by nearly 14% when compared to the prior year period, driven by new contract wins and project expansions with seniors in Australia.
Denis Larocque: While seniors continue to execute on their expanded programs, we're seeing juniors becoming increasingly more impactful as they look to deploy larger amounts of capital that flowed through the significant increase in financing activity we saw earlier in the year. As a result, revenue in Canada, US region increased by over 31% when compared to the prior year period. In South and Central America, we saw a strong 18% year-over-year increase led by continued growth in Peru and increasing activity levels in Mexico and Brazil. In the Australasian and Africa region, revenue increased by nearly 14% when compared to the prior year period, driven by new contract wins and project expansions with seniors in Australia.
Speaker #3: As a result, revenue in the Canada and US region increased by over 31% when compared to the prior year period. In South and Central America, we saw a strong 18% year-over-year increase, led by continued growth in Peru and increasing activity levels in Mexico and Brazil.
Speaker #3: In the Australasian and Africa region, revenue increased by nearly 14% compared to the prior-year period, driven by new contract wins and project expansions with seniors in Australia.
Speaker #3: With this strong revenue, increase in each region, and ongoing efforts to manage cost pressures, the company generated EBITDA of $37.2 million in the quarter, a 16% increase over the prior-year period, while net earnings increased by nearly 44%, further demonstrating our operational leverage.
Denis Larocque: With the strong revenue increase in each region and ongoing efforts to manage cost pressures, the company generated EBITDA of CAD 37.2 million in the quarter, a 16% increase over the prior year period, while net earnings increased by nearly 44%, further demonstrating our operational leverage. I will discuss more of the outlook after Ian walks us through the quarter's financials. Ian?
Denis Larocque: With the strong revenue increase in each region and ongoing efforts to manage cost pressures, the company generated EBITDA of CAD 37.2 million in the quarter, a 16% increase over the prior year period, while net earnings increased by nearly 44%, further demonstrating our operational leverage. I will discuss more of the outlook after Ian walks us through the quarter's financials. Ian?
Speaker #3: I'll discuss more of the outlook after Ian walks us through the quarter's financials. Ian?
Speaker #4: Thanks, Deni. Revenue for the quarter was $277.3 million, up 22.4% from the $226.6 million recorded for the same period last year, driven by strength in each region, led by Canada and the US.
Ian Ross: Thanks, Denis. Revenue for the quarter was CAD 277.3 million, up 22.4% from the CAD 226.6 million recorded for the same period last year, driven by strength in each region led by Canada and the US. The favorable foreign exchange translation impact on revenue when compared to the effective rates for the same period last year was approximately CAD 8 million, while the impact on net earnings was minimal. The overall adjusted gross margin percentage, excluding depreciation, was 24% for the quarter, compared to 25.2% for the same period last year. While margins improved from the 22% realized in the last quarter, reflecting ongoing pricing improvements, this was partially offset by ramp-up costs associated with new contracts, as well as higher labor and consumable costs and investments in workforce training and development. G&A costs was CAD 23.8 million, an increase of CAD 2.4 million compared to the same quarter last year.
Ian Ross: Thanks, Denis. Revenue for the quarter was CAD 277.3 million, up 22.4% from the CAD 226.6 million recorded for the same period last year, driven by strength in each region led by Canada and the US. The favorable foreign exchange translation impact on revenue when compared to the effective rates for the same period last year was approximately CAD 8 million, while the impact on net earnings was minimal.
Speaker #4: The favorable foreign exchange translation impact on revenue, when compared to the effective rates for the same period last year, was approximately $8 million, while the impact on net earnings was minimal.
Speaker #4: The overall adjusted gross margin percentage, excluding depreciation, was 24% for the quarter, compared to 25.2% for the same period last year. While margins improved from the 22% realized in the last quarter, reflecting ongoing pricing improvements, this was partially offset by ramp-up costs associated with new contracts, as well as higher labor and consumable costs, and investments in workforce training and development.
Ian Ross: The overall adjusted gross margin percentage, excluding depreciation, was 24% for the quarter, compared to 25.2% for the same period last year. While margins improved from the 22% realized in the last quarter, reflecting ongoing pricing improvements, this was partially offset by ramp-up costs associated with new contracts, as well as higher labor and consumable costs and investments in workforce training and development. G&A costs was CAD 23.8 million, an increase of CAD 2.4 million compared to the same quarter last year.
Speaker #4: G&A costs were $23.8 million, an increase of $2.4 million compared to the same quarter last year. The increase was attributable to annual wage adjustments and additional costs to address rapid growth in our busiest regions.
Ryan Hanley: The increase was attributable to annual wage adjustments and additional costs to address rapid growth in our busiest regions. Other expenses were CAD 6 million, up from CAD 3.3 million in the same quarter last year due to increased incentive compensation resulting from improved profitability and higher stock-based compensation costs tied to the company's share price performance.
Ian Ross: The increase was attributable to annual wage adjustments and additional costs to address rapid growth in our busiest regions. Other expenses were CAD 6 million, up from CAD 3.3 million in the same quarter last year due to increased incentive compensation resulting from improved profitability and higher stock-based compensation costs tied to the company's share price performance.
Speaker #4: Other expenses were $6 million, up from $3.3 million in the same quarter last year, due to increased incentive compensation resulting from improved profitability and higher stock-based compensation costs tied to the company's share price performance.
Speaker #4: The income tax revision for the quarter was an expense of $4.6 million, compared to an expense of $3.9 million in the prior year period.
Ian Ross: The income tax provision for the quarter was an expense of CAD 4.6 million, compared to an expense of CAD 3.9 million in the prior year period. The increase reflects the overall improvement in profitability, while the lower effective rate is attributable to the utilization of previously unrecognized losses. The company generated EBITDA of CAD 37.2 million in the quarter, an increase of 15.9% from the CAD 32.1 million recorded for the prior year period. Net earnings of CAD 14.5 million or CAD 0.18 per share increased from CAD 10.1 million or CAD 0.12 per share in the same period last year, demonstrating our operational leverage. The company ended the quarter with CAD 15.7 million in net cash, a decrease from the CAD 20.6 million at the end of the prior quarter, as higher regularization resulted in a temporary increase in working capital requirements.
Ian Ross: The income tax provision for the quarter was an expense of CAD 4.6 million, compared to an expense of CAD 3.9 million in the prior year period. The increase reflects the overall improvement in profitability, while the lower effective rate is attributable to the utilization of previously unrecognized losses. The company generated EBITDA of CAD 37.2 million in the quarter, an increase of 15.9% from the CAD 32.1 million recorded for the prior year period. Net earnings of CAD 14.5 million or CAD 0.18 per share increased from CAD 10.1 million or CAD 0.12 per share in the same period last year, demonstrating our operational leverage. The company ended the quarter with CAD 15.7 million in net cash, a decrease from the CAD 20.6 million at the end of the prior quarter, as higher regularization resulted in a temporary increase in working capital requirements.
Speaker #4: The increase reflects the overall improvement in profitability, while the lower effective rate is attributable to the utilization of previously unrecognized losses. The company generated EBITDA of $37.2 million in the quarter, an increase of 15.9% from the $32.1 million recorded for the prior year period.
Speaker #4: Net earnings of $14.5 million, or $0.18 per share, increased from $10.1 million, or $0.12 per share, in the same period last year, demonstrating our operational leverage.
Speaker #4: The company ended the quarter with $15.7 million in net cash, a decrease from $20.6 million at the end of the prior quarter, as higher regularization resulted in a temporary increase in working capital requirements.
Speaker #4: The total available liquidity of approximately $160 million and cash flow projected to increase, the company remains very well positioned as we move through the new fiscal year.
Ian Ross: With total available liquidity of approximately CAD 160 million and cash flow projected to increase, the company remains very well-positioned as we move through the new fiscal year. In line with our ongoing fleet optimization initiatives, the company spent CAD 13.5 million on capital expenditures in the quarter, adding five new drill rigs and support equipment while disposing of 10 older, less efficient rigs, bringing the total rig count at quarter end to 683. Effective this quarter, we are consolidating fleet utilization into two categories, surface and underground. The surface component combining what was previously split into specialized and conventional categories. This adjustment was made as it better reflects how management views the business and better aligns with our internal reporting and forecasting standards.
Ian Ross: With total available liquidity of approximately CAD 160 million and cash flow projected to increase, the company remains very well-positioned as we move through the new fiscal year. In line with our ongoing fleet optimization initiatives, the company spent CAD 13.5 million on capital expenditures in the quarter, adding five new drill rigs and support equipment while disposing of 10 older, less efficient rigs, bringing the total rig count at quarter end to 683. Effective this quarter, we are consolidating fleet utilization into two categories, surface and underground. The surface component combining what was previously split into specialized and conventional categories. This adjustment was made as it better reflects how management views the business and better aligns with our internal reporting and forecasting standards.
Speaker #4: In line with our ongoing fleet optimization initiatives, the company spent $13.5 million on capital expenditures in the quarter, adding five new drill rigs and support equipment, while disposing of 10 older, less efficient rigs, bringing the total rig count at quarter end to 683.
Speaker #4: Effective this quarter, we are consolidating fleet utilization into two categories: surface and underground. The surface component combines what was previously split into specialized and conventional categories.
Speaker #4: This adjustment was made as it better reflects how management views the business and better aligns with our internal reporting and forecasting standards. As a reminder, specialized work is defined by job characteristics, including technical complexity, remote site access, and/or elevated safety requirements, and not by rig type, as in many cases a conventional rig is fully capable of performing specialized work.
Ian Ross: As a reminder, specialized work is defined by job characteristics, including the technical complexity, remote site access, and/or elevated safety requirements, and not by rig type, as in many cases, a conventional rig is fully capable of performing specialized work. Therefore, the new breakdown of our utilization in the quarter is as follows. 455 surface rigs at 57% utilization, 228 underground drills at 59% utilization for a total of 683 drills at 58% utilization. In Q1, specialized work accounted for 59% of our total revenue. We continue to see high levels of demand for our specialized services and expect this trend to continue as deposits become increasingly more challenging to find, with discoveries continuing to be made in remote locations.
Ian Ross: As a reminder, specialized work is defined by job characteristics, including the technical complexity, remote site access, and/or elevated safety requirements, and not by rig type, as in many cases, a conventional rig is fully capable of performing specialized work. Therefore, the new breakdown of our utilization in the quarter is as follows. 455 surface rigs at 57% utilization, 228 underground drills at 59% utilization for a total of 683 drills at 58% utilization. In Q1, specialized work accounted for 59% of our total revenue. We continue to see high levels of demand for our specialized services and expect this trend to continue as deposits become increasingly more challenging to find, with discoveries continuing to be made in remote locations.
Speaker #4: Therefore, the new breakdown of our utilization in the quarter is as follows: 455 surface rigs at 57% utilization, and 228 underground drills at 59% utilization, for a total of 683 drills at 58% utilization.
Speaker #4: In the first quarter, specialized work accounted for 59% of our total revenue. We continue to see high levels of demand for our specialized services and expect this trend to continue, as the pods become increasingly more challenging to find.
Speaker #4: With discoveries continuing to be made in remote locations, conventional drilling—which is mostly driven by juniors—contributed 17% of revenue, while underground drilling accounted for 24% of total revenue as the company continued to look for diversity in its revenue streams.
Ian Ross: Conventional drilling, which is mostly driven by juniors, contributed 17% of revenue, while underground drilling accounted for 24% of total revenue as the company continues to look for diversity in its revenue streams. Seniors continue to account for the bulk of our revenue, representing 85% of activity in the quarter as they continue their efforts to address depleting reserves, while juniors are beginning to have a more meaningful impact. Following the acceleration of junior financing activity over the last year, this segment grew to represent 15% of revenue in the quarter, compared to 13% in the prior quarter and 8% in the same period last year. In terms of commodities, gold represented 46% of revenue in the quarter, driven by continued strength in gold price and related junior financing activity.
Ian Ross: Conventional drilling, which is mostly driven by juniors, contributed 17% of revenue, while underground drilling accounted for 24% of total revenue as the company continues to look for diversity in its revenue streams. Seniors continue to account for the bulk of our revenue, representing 85% of activity in the quarter as they continue their efforts to address depleting reserves, while juniors are beginning to have a more meaningful impact. Following the acceleration of junior financing activity over the last year, this segment grew to represent 15% of revenue in the quarter, compared to 13% in the prior quarter and 8% in the same period last year. In terms of commodities, gold represented 46% of revenue in the quarter, driven by continued strength in gold price and related junior financing activity.
Speaker #4: Seniors continue to account for the bulk of our revenue, representing 85% of activity in the quarter, as they continue their efforts to address depleting reserves. Meanwhile, juniors are beginning to have a more meaningful impact.
Speaker #4: Following the acceleration of junior financing activity over the last year, this segment grew to represent 15% of revenue in the quarter, compared to 13% in the prior quarter and 8% in the same period last year.
Speaker #4: In terms of commodities, gold represented 46% of revenue in the quarter, driven by continued strength in the gold price and related junior financing activity, while copper accounted for 28% of revenue, with activity levels at copper mines and projects expected to grow as we move through the year.
Ian Ross: While copper accounted for 28% of revenue, with activity levels at copper mines and projects expected to grow as we move through the year. Iron ore continues to make a meaningful contribution at 9%, driven by continued strength for our Australian operations and demonstrating the diversity in the commodities for which we drill for around the world. With that overview of our financial results, I will now turn this presentation back to Vinnie to discuss the outlook.
Ian Ross: While copper accounted for 28% of revenue, with activity levels at copper mines and projects expected to grow as we move through the year. Iron ore continues to make a meaningful contribution at 9%, driven by continued strength for our Australian operations and demonstrating the diversity in the commodities for which we drill for around the world. With that overview of our financial results, I will now turn this presentation back to Vinnie to discuss the outlook.
Speaker #4: Iron ore continues to make a meaningful contribution at 9%, driven by continued strength from our Australian operations and demonstrating the diversity in the commodities for which we drill around the world.
Speaker #4: With that overview of our financial results, I'll now turn the presentation back to Deni to discuss the outlook.
Speaker #3: Thanks, Ian. Looking ahead to the next quarter, rigs are expected to continue to gradually be deployed into the field at incrementally higher prices as we strive to meet the demands of our senior customers, who continue to expand their exploration programs, while juniors continue to deploy the capital that they've raised over the past year.
Denis Larocque: Thanks, Ian. Looking ahead to the next quarter, rigs are expected to continue to gradually be deployed into the field at incrementally higher prices as we strive to meet the demands of our senior customers, who continue to expand their exploration programs while juniors continue to deploy the capital that they've raised over the past year. Demand remains strong and the primary constraint across the industry continues to be the availability of experienced drillers. We remain focused on recruitment and retention while also expanding our pipeline of future talent by increasing the number of training drillers in the field. As expected, there is a learning curve associated with bringing new people into the workforce, which has a temporary impact on productivity, but it's positioned us well to support future growth. As we noted last quarter, margin expansion typically trails revenue growth during periods of rapid activity growth.
Denis Larocque: Thanks, Ian. Looking ahead to the next quarter, rigs are expected to continue to gradually be deployed into the field at incrementally higher prices as we strive to meet the demands of our senior customers, who continue to expand their exploration programs while juniors continue to deploy the capital that they've raised over the past year. Demand remains strong and the primary constraint across the industry continues to be the availability of experienced drillers. We remain focused on recruitment and retention while also expanding our pipeline of future talent by increasing the number of training drillers in the field. As expected, there is a learning curve associated with bringing new people into the workforce, which has a temporary impact on productivity, but it's positioned us well to support future growth. As we noted last quarter, margin expansion typically trails revenue growth during periods of rapid activity growth.
Speaker #3: Demand remains strong, and the primary constraint across the industry continues to be the availability of experienced drillers. We've remained focused on recruitment and retention, while also expanding our pipeline of future talent by increasing the number of training drillers in the field.
Speaker #3: As expected, there is a learning curve associated with bringing new people into the workforce, which has a temporary impact on productivity, but it positioned us well to support future growth.
Speaker #3: As we noted last quarter, margin expansion typically trails revenue growth during periods of rapid activity. We're still absorbing labor, training, and ramp-up costs, but price increases are taking hold and progressively offsetting those pressures.
Denis Larocque: We're still absorbing labor training and ramp-up costs, but price increases are taking hold and progressively offsetting those pressures. As a result, we expect margins to continue improving, albeit at a slower pace than revenue growth. In closing, we're optimistic. Gold is holding up, which keeps senior budgets and junior financing going. Copper just hit an all-time high, and everyone is talking about critical minerals. We've got the global experience, the expertise, and the best balance sheet in the industry, and we intend to stay the driller people call and the company drillers want to work for in every country where we operate. Finally, please don't forget to join us for our AGM, which will be held in person and virtually today at 3:30 PM Eastern Time. All of the details related to the AGM can be found on our website.
Denis Larocque: We're still absorbing labor training and ramp-up costs, but price increases are taking hold and progressively offsetting those pressures. As a result, we expect margins to continue improving, albeit at a slower pace than revenue growth. In closing, we're optimistic. Gold is holding up, which keeps senior budgets and junior financing going. Copper just hit an all-time high, and everyone is talking about critical minerals. We've got the global experience, the expertise, and the best balance sheet in the industry, and we intend to stay the driller people call and the company drillers want to work for in every country where we operate. Finally, please don't forget to join us for our AGM, which will be held in person and virtually today at 3:30 PM Eastern Time. All of the details related to the AGM can be found on our website.
Speaker #3: As a result, we expect margins to continue improving, albeit at a slower pace than revenue growth. So in closing, we're optimistic gold is holding up, which keeps senior budgets and junior financing going.
Speaker #3: Copper just hit an all-time high, and everyone is talking about critical minerals. We've got the global experience, the expertise, and the best balance sheet in the industry, and we intend to stay the driller people call, and the company drillers want to work for, in every country where we operate.
Speaker #3: Finally, please don't forget to join us for our AGM, which will be held in person and virtually today at 3:30 p.m. Eastern Time. All of the details related to the AGM can be found on our website.
Speaker #3: With that, we can open the question we can open the call to questions. Operator?
Denis Larocque: With that, we can open the call to questions. Operator?
Denis Larocque: With that, we can open the call to questions. Operator?
Speaker #2: Thank you. As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again.
Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment while we compile our Q&A roster. Our first question is going to come from the line of James Hill with Arcadia Advisors. Your line is open. Please go ahead.
Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment while we compile our Q&A roster. Our first question is going to come from the line of James Vail with Arcadia Advisors. Your line is open. Please go ahead.
Speaker #2: One moment while we compile our Q&A roster. Our first question is going to come from the line of James Vail with Arcadia Advisors. Your line is open.
Speaker #2: Please go ahead.
Speaker #1: Well, thank you very much. Not much to say, guys. Great quarter. One thing that got my attention is the gain on disposal of property of $573,000, I guess, versus last year. That suggests you're selling those older rigs at a pretty nice price.
James Hill: Thank you very much. Not much to say, guys. Great quarter. One thing got my attention, that the gain on disposal of property of CAD 573,000, I guess, versus last year suggests you are selling those older rigs at a pretty nice price. I have never seen anything like that before. Is that just an indication of how strong the market is?
James Vail: Thank you very much. Not much to say, guys. Great quarter. One thing got my attention, that the gain on disposal of property of CAD 573,000, I guess, versus last year suggests you are selling those older rigs at a pretty nice price. I have never seen anything like that before. Is that just an indication of how strong the market is?
Speaker #1: It's that I don't remember seeing anything like that before. Is that just an indication of how strong the market is?
Speaker #3: No, we don't look to sell rigs in the market. That's not our business. The odd time, we'll get rid of some old gear to help fund new purchases.
Denis Larocque: No. We do not look to sell rigs in the market. That is not our business. The odd time, we will get rid of some old gear to help fund new purchases, but a lot of it is not selling rigs to the market, that is for sure.
Denis Larocque: No. We do not look to sell rigs in the market. That is not our business. The odd time, we will get rid of some old gear to help fund new purchases, but a lot of it is not selling rigs to the market, that is for sure.
Speaker #3: But a lot of it, it's not selling rigs to the market, that's for sure.
Speaker #1: The rigs that we did rig, that we announced at dispose, usually we cut them up and they're at the end of their life, and we don't put them back in the market.
James Hill: Oh, okay.
James Vail: Oh, okay.
Denis Larocque: The rig that we announced at dispose, usually we cut them up and they are retired. They are at the end of their life, and we do not put them back in the market.
Denis Larocque: The rig that we announced at dispose, usually we cut them up and they are retired. They are at the end of their life, and we do not put them back in the market.
Speaker #1: Oh, okay. Because I was wondering if someone could buy them and undercut you in very simple drilling projects and kind of make things a little difficult.
James Hill: Oh, okay, because I was wondering if someone could buy them and undercut you in very simple drilling projects and kind of make things a little difficult, but okay. Other than that, this is great how things are coming together.
James Vail: Oh, okay, because I was wondering if someone could buy them and undercut you in very simple drilling projects and kind of make things a little difficult, but okay. Other than that, this is great how things are coming together.
Speaker #1: But okay, other than that, it's great how things have come together.
Speaker #3: Well, thank you.
Denis Larocque: Well, thank you.
Denis Larocque: Well, thank you.
Speaker #2: Thank you. And again, as a reminder, to ask a question please press star one-one on your telephone. I'm showing no further questions at this time, and I would like to hand the conference back over to Dennis Leroux, CEO, for closing remarks.
Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone. I am showing no further questions at this time, and I would like to hand the conference back over to Denis Larocque, CEO, for closing remarks.
Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone. I am showing no further questions at this time, and I would like to hand the conference back over to Denis Larocque, CEO, for closing remarks.
Speaker #5: Well, thank you. Pretty slow on the questions, but I guess right before a long weekend, we're hopeful people are going to listen to the call at a later date.
Denis Larocque: Well, thank you. Pretty slow on the questions, but I guess right before a long weekend, hopefully people are going to listen to the call at a later date. It is our AGM, so if you are around or online, please join us today. Again, we remain very optimistic on the future. Thank you for listening.
Denis Larocque: Well, thank you. Pretty slow on the questions, but I guess right before a long weekend, hopefully people are going to listen to the call at a later date. It is our AGM, so if you are around or online, please join us today. Again, we remain very optimistic on the future. Thank you for listening.
Speaker #5: We're at our AGM, so if you are around or online, please join us today. And again, we remain very optimistic about the future. Thank you for listening.
Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day.
Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day.
