Industry Analysis & Industry Trends
Over the past five years, the performance of the Oil and Mineral Exploration Drilling industry has been volatile. Industry players provide services to mining companies that are engaged in greenfield oil and mineral exploration. This is the riskiest area of the Mining division as companies look for new economically viable resource deposits. Expenditure on greenfield exploration fluctuates significantly year on year, in line with small miners' ability to access capital. When commodity prices fall or sentiment in the Mining division declines, demand for greenfield exploration services (such as specialist drilling activities) tends to decline.
Over the past 10 years, industry operators have benefited from a prolonged boom in capital expenditure in the Mining division... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry displays a low market share concentration. In 2015-16, the industry's four largest players are estimated to account for less than 30% of total revenue. Boart Longyear, the industry's largest major player, is estimated to have a market share of nearly 15% in 2015-16. Other industry players tend to be small-scale specialist drilling companies that provide contracted exploratory drilling services to junior miners and greenfield exploration companies.
Over the past five years, the industry's market share concentration has increased as larger exploration companies have gained market share at the expense of smaller firms. As demand has declined and revenue has fallen, larger players have reduced prices in an effort to increase demand and to ensure optimal equipment usage... purchase to read more