Cabo’s Growth Strategy
Through its subsidiaries Cabo plans to continue to acquire a larger portion of the drilling services market share, reduce costs through economies of scale and improving performance and increase revenues by offering a broader range of quality international service than has been traditionally offered by global drilling companies. By consolidating within the drilling industry, Cabo plans to achieve a competitive edge in efficiency, productivity and scale.
By providing a client focused service Cabo is able to work with its clients to plan and execute exploration programs that are as unique as the companies that we work with.
The Big Picture
Cabo Drilling Corp. currently operates to meet the needs of its clients in key mining regions around the world, including Albania, Canada, Panama, Colombia and the United States, with plans to expand into Western and Eastern Europe and Central and South America.
Cabo’s clients are primarily focused on using conventional underground and surface diamond core drilling to provide accurate sampling of mineral deposits and reverse circulation drilling to provide quick assays of suspected mineralized zones. Over the last two years, Cabo has either replaced or substantially rebuilt almost 30% of its drill fleet, and is able to meet the needs of exploration and mining companies interested diamond core, reverse circulation, man portable, helicopter support and geotechnical services.
Cabo Drilling has a strong international presence. With strong demand for drilling services in international markets, Cabo is able to obtain favorable pricing for its services in these locations. Growth in these markets will continue to contribute strongly to Company’s overall margins.
Enhancing our customer service and working closely with our clients to meet their specific needs has allowed us to maintain our market presence and improve our customer satisfaction. Cabo is focusing its attention on improving customer satisfaction, while improving our operating capability, inventory management and working capital utilization.
Cabo is growing organically while selectively pursuing strategic acquisitions to grow the Company’s revenue stream. Each acquisition or market expansion will be analyzed with respect to its human resources, customer base, growth potential, location and challenges. Top priority will be given to expansion into value-added market areas.
Cabo Drilling anticipates that the predicted supply shortfall of key industrial and precious metals in the coming years will be an on-going catalyst for growth. This shortfall is expected to drive the demand for mineral drilling services, producing an environment of stable unit prices, a growing workforce of experienced drillers and supervisors, and opportunities to focus on increased drill capacity and improved cost controls, resulting in better margins. Cabo is well positioned to respond to the renewed demand for mineral exploration, development and geotechnical and mineral reserve drilling.
As markets improve Cabo will continue to focus on growth by expanding our existing long-term customer base, attracting new customers and achieving new levels of operating and administrative efficiencies. By working closely with each of our clients, to find ways to successfully complete their exploration projects, Cabo Drilling Corp. is poised to become one of the global leaders in the drilling services industry.