Why Invest in the Speciality & Mineral Drilling Services Sector?
The mineral drilling industry is dependent on the global demand for precious, base and strategic metals. With low levels of exploration over the past number of years, and increasing demand from Asia for most metals, supply is expected to fall well short of demand, leading to an increase in the need for all drilling services in the mineral exploration and mining industry.
Further, considering approximately 52% of all exploration dollars are expended on drilling, the outlook for drilling service companies continues to be positive.
With demand for metals driving the exploration and mining industries worldwide, unlimited potential for steady revenue growth and improved margins exists within the drilling services sector.
Why Invest in Cabo Drilling Corp.?
As a drilling services company, Cabo Drilling Corp. offers a unique investment opportunity by providing exposure to the mineral exploration and mining sectors, without the commensurate risks associated with investing in resource companies narrowly focused on specific commodities. Simply put, regardless of which type of resource is demanded, someone needs to drill for it to prove the existence, as well as the size, metallurgy and other properties of the deposit.
Cabo’s growth strategy is focused on increasing its market share in North and Central America, and establishing new operations in South America, North Africa, and Western and Eastern Europe.
The combination of low supply and higher demand for minerals and metals, world wide, coupled with Cabo Drilling’s growing international operations, strong management team, and consistent earnings makes for an attractive investment.