Master Drilling Group Limited Overview
Master Drilling is the world's largest raise-boring contractor by fleet. It operates 151 raise-bore rigs, 76 slim-drilling rigs and one Mobile Tunnel Borer across 29 countries on five continents. The business was founded in South Africa in 1986. It has built a vertically integrated model: it designs, manufactures, operates and maintains its own rigs, and it rents or operates them rather than selling them. This lets it deliver mechanised vertical and horizontal excavation (ventilation shafts, ore passes, slot holes, escape ways and blind shafts) mainly to blue-chip and mid-tier miners. Raise boring and support services generate about 83% of revenue. The Group is building three adjacent pillars around that core: digital safety systems (proximity detection, people tracking), robotic exploration drilling, and non-explosive mechanical rock excavation. About 26% of revenue comes from South Africa and the rest is spread across Latin America, the rest of Africa, North America, Europe and Asia. The company trades at a deep discount to book value, reflecting its small capitalisation, founder control and South African listing.
Company's own description (paraphrased from the FY2025 Annual Financial Statements and Integrated Report 2025)
Master Drilling Group Limited is an investment holding company. Its subsidiaries provide specialised drilling and mining services to blue-chip major and mid-tier companies in mining, civil engineering, construction, infrastructure and hydro-electric power, across many commodities and geographies. The subsidiaries also supply technology that enforces mine business rules, optimises output, protects miners, manages assets and locates missing persons.
The Integrated Report 2025 calls the Group the global leader in raise boring. It says the Group offers a fully mechanised suite covering exploration, blast-hole drilling, raise boring, reverse circulation, diamond drilling and directional drilling. It also says the Group is moving from a traditional drilling contractor toward a technology-driven provider of mechanised mining solutions.
Business model and revenue model
| Dimension | Characterisation | Evidence |
|---|---|---|
| Core revenue model | Service contracts, usually multi-month to multi-year, priced per metre drilled, per hole, per rig-month or as turnkey lump sums. Rigs are operated or rented, not sold. | IR2025 "Agility: rent/operate versus selling equipment" |
| Product versus service mix | Predominantly services. The FY2025 revenue bridge includes a small "industrial products" line (−USD2.4m year on year). | FY2025 results presentation revenue waterfall |
| Recurring / software-like revenue | The digital segment (A&R Group, Embedded IQ, Lamproom/Moxie, AVA associate) earned 11% of FY2025 revenue (13% in FY2024) from proximity detection, people tracking and data platforms. The precise subscription and licensing split is not publicly disclosed. | FY2025 presentation (business pillar split) |
| Licensing | No material licensing revenue is disclosed. Software solutions are tested for royalty-equivalent value in impairment testing. | FY2025 AFS note 5.1 |
| Value chain position | Specialist contractor between mine owners/EPCM firms and equipment OEMs. Master Drilling also acts as its own OEM, with engineering and manufacturing in South Africa through Drilling Technical Services (Pty) Ltd and procurement and manufacturing in China. | IR2025 "Master Drilling in a snapshot" |
| Customer types | Major and mid-tier mining houses (named examples: Northam Platinum, African Rainbow Minerals, Anglo American Platinum (now Valterra Platinum), Codelco, AngloGold Ashanti historically), civil engineering and infrastructure owners (e.g., the TELT Lyon–Turin rail tunnel ventilation shafts), and hydro-electric developers | FY2022 SENS; Engineering News, Apr 2026 |
| End-markets / commodities (FY2025 revenue) | Copper 32%, gold 21%, PGMs 18%, silver/lead/zinc 14%, civils 4%, diamonds 3%, hydro 3%, coal 1%, other 3% | FY2025 results presentation |
| Mine life-cycle exposure | Exploration (core, RC, percussion, geotechnical, de-watering); capital projects (raise and blind shaft boring, MTB, SBS, reef boring); production (box holes, escape ways, slots, long holes, ventilation) | IR2025 pp.15–17 |
Independent characterisation
Master Drilling is effectively a capital-intensive, asset-heavy niche contractor whose returns depend on fleet utilisation and revenue per operating rig.
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Utilisation of the large raise-bore rigs (103 units) was 76% in FY2025, and average revenue per operating rig (ARPOR) was about USD199,000 per month.
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Smaller rigs (48 units) ran at 59% utilisation and about USD106,000 ARPOR.
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Slim-drilling utilisation is volatile: 86% (2023), 51% (2024), 53% (2025) and 38% (H1 2026).
The model hedges currency structurally. Most costs are local while a larger share of revenue is in hard currency, and the Group lists this "ZAR hedge" as a key differentiator.
Raise boring is tied mainly to mine development and expansion capex (shaft and ventilation infrastructure) rather than exploration budgets. This gives it less cyclicality than pure exploration drillers, though it remains exposed to project timing and client deferrals, as H1 2026 showed.
The founder-controlled structure gives strategic continuity and long-horizon technology bets (the SBS has been in development since at least 2019). It also concentrates governance power and limits free float to about 42%.
Strategy
Stated strategy (IR2025)
Purpose: "Making a difference by reimagining the future of mining". The values are respect, accountability, innovation, safety and efficiency (the "RAISE" acronym).
Four strategic pillars: 1. Diversification and growth
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Operational excellence and efficiencies
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Disruptive technology and innovation
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Positive sustainable impacts (ESG)
Three horizons: - Horizon 1 (one year): optimise core raise boring and slim drilling.
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Horizon 2 (two years): scale reef boring, robotic slim drilling and specialised tunnelling.
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Horizon 3 (three years and beyond): mechanical cutting, shaft boring, automation and integrated mining services.
Service-line framework "Connecting the D.O.T.S.": Diversity and growth, Operational excellence, Technological leadership, Sustainability. It is cascaded across raise boring, exploration, new technologies and mining services, with a COO accountable for each.
Business-model evolution: From a traditional drilling contractor to a technology-driven mechanised mining solutions provider. Opportunities identified include "Mining as a Service" (performance-based turnkey contracts), data monetisation and predictive maintenance.
Strategy scorecard (IR2025)
| KPI | FY2025 target | FY2025 actual | FY2026 target |
|---|---|---|---|
| Revenue growth (%) | 10 | 7.8 | 10 |
| Revenue outside Africa (%) | 55 | 56.5 | 60 |
| Revenue from mechanised/technology solutions (%) | 20 | 6.2 | 30 |
| ROCE-EBITDA (%) | 22 | 14.5 (as stated) | 22 |
| Hard-currency revenue (%) | 60 | 56.0 | 60 |
| Reduction of reliance on raise-bore revenue (%) | 20 | 21.1 | 20 |
| Group EBITDA margin (%) | 24 | 20 | 22 |
| LTIFR | 1.96 | 1.55 | below 0.5 |
| ARPOR (USD/month) | 165,000 | 173,857 | 175,000 |
| Revenue from new technology platforms (USD M) | 25 | 5 | 30+ |
| R&D as % of revenue | 2.0 | 1.5 | 2.5 |
| Employee performance rating (%) | 70 | 74 | 75 |
| Community investment (% of revenue) | 0.5 | 2 (as stated) | 1 |
Initiatives announced or advanced in the last 24 months
| Initiative | Status / target | Source |
|---|---|---|
| Group ERP rollout (with Ernst & Young), ZAR100m budget | All modules populated. Cost USD4.4m in FY2025 and USD4.0m in H1 2026. | IR2025; presentations |
| Autonomous raise-boring technology | Announced March 2026 | Mining Weekly, 31 Mar 2026 |
| SBS next phase | Funding secured; design and manufacture by late 2026 to early 2027 | H1 2026 SENS |
| Reef Boring System (ARM, Bokoni) | Field trials under way; second-generation design | IR2025; H1 2026 SENS |
| MTB commercial deployment (South Africa) | Operating since Q4 2025 | IR2025 |
| Desert Elephant / Dragon Fly robotic rigs | Production readiness | IR2025 |
| A&R Group stake increase (+15% to about 66%) | Completed 2025 | IR2025 |
| Namibia exploration division | Launched 2025 | IR2025 |
| Geographic priorities | Saudi Arabia, Scandinavia, Canada, USA, Australia; slim drilling expanding into Africa | IR2025; Mining Weekly |
| Fleet utilisation target of 75%; slower fleet additions focused on larger units | Ongoing (H1 2026 raise-bore utilisation was 64%) | FY2025 and H1 2026 SENS |
| ESG instrumentation | Carbon-emission and water meters on machines; carbon reduction reported over 12 months to H1 2026 | IR2025; H1 2026 SENS |
| Talent framework | High-potential talent identification, succession management, Clevrly psychometric platform | IR2025; H1 2026 SENS |
Medium-term financial targets: The Group gives no formal quantitative earnings guidance. The scorecard targets above (10% revenue growth, 22% EBITDA margin, 22% ROCE-EBITDA, 30% technology revenue) serve as management's stated targets. The historical dividend policy is earnings cover of 4–5x, per the 2012 prospectus.
Products & Services
Pricing models are not publicly disclosed at product level. Unless noted, all offerings are contracted services using Group-owned rigs.
Rock boring (raise boring and support services) — about 83% of FY2025 revenue
| Offering | Description / capability | Target customer | Year / status | Flagship examples |
|---|---|---|---|---|
| Conventional raise boring | A pilot hole is drilled down, then reamed upward to full diameter. Used for ventilation shafts, ore passes and hoisting shafts. The fleet includes RD-series rigs up to the RD8-1500 (8.5 m diameter, more than 1.5 km). | Underground miners | Since 1986; RD8-1500 commissioned 2015 | Zondereinde Western Extension (Northam): about 1,530 m × 5.5 m, described as the world's largest and longest raise bore (2026). Palabora: two 6.1 m × 1.2 km shafts (2014). |
| Blind-hole / blind shaft boring | Boring from the top without bottom access, using low-profile machines | Mines without lower access, new development | First dedicated rig 2011; first remote-operated blind-hole machine reported H1 2026 | New-generation blind-hole machine for Chile (2023). Potential deployment of two more blind-hole machines in South Africa (FY2025). |
| Box-hole boring | Upward boring from a lower level without top access | Production mines | Ongoing | — |
| Slot-hole / slot boring | Large-diameter slots for stoping | Sub-level/long-hole stoping mines | Mobile slot borer completed 2023/24; secured slot-boring scope expansion in South Africa (2025) | — |
| Horizontal raise boring (HRB) | Horizontal large-diameter boring, e.g., for block-cave undercuts. The Group cites patented technology for horizontal boring. | Block-cave miners (diamonds, copper) | Phase 1 world-first 4.5 m HRB through kimberlite (website imagery, Cullinan) | Cullinan |
| Directional drilling / steering | High-accuracy pilot holes for long shafts | Deep shafts | World-record accuracy at Lonmin (2012). Advanced directional steering introduced in South America (2025). | — |
| Remote / autonomous raise boring | Remote-control drilling (since 2020). Autonomous drilling technology announced in March 2026. Remote-controlled reaming deployed in North America (H1 2026). | All raise-bore clients | 2020 / 2026 | Remote reaming delivered a schedule gain in Central & North America (H1 2026) |
| Paste-fill and paste holes | Holes for backfill reticulation | Mines using paste fill | Landmark paste-fill project in South America; high-profile paste-hole project in South Africa (2025) | — |
| Shotcrete services | Ground support spraying | Latin American mines | Diversification in South America (2025) | — |
| Piling | Foundation piling services | Civil and mining infrastructure | New in South Africa (2025) | — |
| Reverse circulation / large-hole services | Including the Shaft Reverse Circulation Equipment (RCE) | North America | RCE impaired and exited 2024 (USD5.4m) | — |
| Civil and hydro raise boring | Ventilation and evacuation shafts for tunnels; surge and penstock shafts | Infrastructure owners, hydro developers | Since 2015 | TELT Lyon–Turin (four 500 m shafts, Europe). Stockholm shaft projects. New hydro project (Rest of World, 2025–26). |
| Engineering, manufacturing and maintenance | In-house design, manufacture, customisation and maintenance through Drilling Technical Services (South Africa) and Chinese entities | Internal; some third-party industrial products | Ongoing | — |
Exploration / slim drilling — about 4% of FY2025 revenue
| Offering | Description | Status |
|---|---|---|
| Diamond core drilling (surface and underground) | High-recovery core for resource definition | Core service (Master Drilling Exploration, Geoserve, Hall Core) |
| Reverse circulation (RC) drilling | Faster, lower-cost sampling and grade control | Ongoing |
| Percussion, air rotary, mud rotary | Early-stage exploration and blast-hole drilling | Ongoing |
| De-watering drilling | Mine water management (PGM sector) | Dewatering paused by a PGM client in 2023 for cost reasons |
| Geotechnical services | Geotechnical drilling and studies | On schedule (FY2025) |
| Micro-fracking / hydraulic stress relief | Pilot completed, with a second-phase order (2025) | Emerging service |
| Desert Elephant | Robotic surface core-drilling rig with a robotic rod-handling arm, aimed at deep holes | Commissioned 2025; software being finalised for production |
| Dragon Fly | Robotic underground drilling rig | Production started late 2023; deployed 2024 |
| Remote-operated percussion grade control | Under development | IR2025 |
| Large-scale uranium exploration (Namibia) | New Namibian exploration division (headcount +168 in 2025) | Commenced 2025 |
Digitalisation and smart mining — about 11% of FY2025 revenue
| Offering | Entity | Description | Status / metrics |
|---|---|---|---|
| Proximity detection systems (PDS) | A&R Group / Embedded IQ (component manufacturer) | Collision avoidance for trackless, rail-bound and scraper-winch equipment and pedestrians | Won a major safety-system tender after regulatory changes (2025). Scraper Winch PDS tested (2023). |
| Underground people tracking / Missing Person Locator | A&R Group | Real-time location of underground workers | Tracks about 68,000 employees in real time (IR2025). Proof-of-concept rollouts (H1 2026). |
| AI-powered cameras | A&R / digital pillar | AI vision modules integrated into safety systems | Specialised AI modules integrated in H1 2026 |
| Underground networking ("last-mile" communication) | Digital pillar | Connectivity infrastructure underground | Strategic collaborations (2025) |
| SHARP system | A&R Group | Safety system (details not disclosed) | Tested successfully; moving to the next phase (IR2025) |
| Fleet management / mine analytics | Applied Vehicle Analysis (40% associate) | OEM-independent fleet and mine-performance monitoring | More than 28 sites, more than 2,000 assets, five commodities. Operates in South Africa, West Africa, Peru and Malaysia. |
| Proprietary safety hardware | Embedded IQ / EIQ Manufacturing | Hardware for harsh environments | Under development (2025) |
Mechanical rock excavation and cutting (new technologies) — about 2% of FY2025 revenue
| Offering | Description | Status |
|---|---|---|
| Mobile Tunnel Borer (MTB) | Mobile tunnelling machine able to drive horizontal tunnels and inclines of up to about ±12°; developed with partners including TunnelPro (Italy) | First unit launched 2018. Sandsloot decline at Mogalakwena (2022–23). Impaired USD7.8m in 2024, then partially reversed USD4.5–4.8m in 2025 after a new South African contract. Fully operational in H1 2026 with improving performance. |
| 2nd-generation MTB | Revised design | Design costs of USD0.3m impaired in FY2025; the Group says it has no current interest in this solution |
| Shaft Boring System (SBS) | Mechanised blind shaft sinking; patent acquired with the design (carried at USD1.06m) | Phase 1 in 2019. Test sink planned in South African hard rock. Next phase funded, with design and manufacture targeted for late 2026 to early 2027. Held through Master Sinkers (51% Master Drilling / 49% IDC). |
| Reef Boring System (non-explosive mining) | Tabular, narrow-reef orebody borer using advanced cutterheads | Field trials with African Rainbow Minerals (Bokoni UG2) started late 2025; second-generation components in design (2026) |
| Vacuum mining machine | New-technology mining machine | Manufacture finalised 2023 |
| Polycrystalline diamond cutting | Partnership-based cutting technology | IR2025 inputs |
Financial Detail
Segment Revenue
| Segment | Countries (IR2025) | Commodities / sectors | Rigs at FY2025 |
|---|---|---|---|
South Africa | South Africa | Coal, copper, diamonds, gold, iron ore, platinum; also hosts the Group's 76 slim rigs and the MTB | 26 raise bore + 76 slim + 1 MTB |
Africa (ex-SA) | Botswana, DRC, Ghana, Mali, Namibia, Sierra Leone, Tanzania, Zambia, Zimbabwe | Coal, copper, diamonds, gold, iron ore, platinum | 23 |
South America | Brazil, Chile, Colombia, Ecuador, Peru | Copper, gold, polymetallic, silver, zinc | 56 |
Central & North America | Canada, Mexico, USA | Copper, gold, nickel, polymetallic, silver | 20 |
Rest of the World | Australia, China, Finland, France, India, Ireland, Norway, Saudi Arabia, Sweden, Turkey | Hydro, civils/construction, mining (chrome, gold, iron ore, lead, polymetallic, zinc) | 26 |
Revenue by Segment
| Segment | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
South Africa revenue (USD Mn) | — | 75.8 | 74.8 |
Africa ex-SA revenue (USD Mn) | — | 40.6 | 51.0 |
South America revenue (USD Mn) | — | 65.0 | 92.9 |
Central and North America revenue (USD Mn) | — | 35.2 | 21.1 |
Rest of World revenue (USD Mn) | — | 54.2 | 52.2 |
Group revenue (USD Mn) | 242.8 | 270.8 | 292.0 |
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View Subscription PlansSegment share of revenue (%)
| Segment share of revenue (%) | FY2024 | FY2025 |
|---|---|---|
South Africa share (%) | 28 | 26 |
Africa ex-SA share (%) | 15 | 17 |
South America share (%) | 24 | 32 |
Central and North America share (%) | 13 | 7 |
Rest of World share (%) | 20 | 18 |
Segment Revenue (Op. margin FY2024 (%)–Gross profit contribution FY2025 (%))
| Segment | Op. margin FY2024 (%) | Op. margin FY2025 (%) | Derived op. profit FY2025 (USD Mn) | Gross profit contribution FY2024 (%) | Gross profit contribution FY2025 (%) |
|---|---|---|---|---|---|
South Africa | 19 | 21 | 15.7 | 30 | 32 |
Africa ex-SA | 24 | 24 | 12.2 | 11 | 23 |
South America | 14 | 10 | 9.3 | 20 | 20 |
Central & North America | −8 | −1 | −0.2 | 9 | 4 |
Rest of the World | 30 | 16 | 8.4 | 30 | 21 |
Segment Revenue (Half-Yearly)
| Segment | H1 2025 revenue | H1 2026 revenue | H1 2025 op. margin (%) | H1 2026 op. margin (%) |
|---|---|---|---|---|
South Africa | 30.6 | 46.2 | 17 | 14 |
Africa ex-SA | 24.0 | 27.9 | 17 | 16 |
South America | 42.6 | 44.3 | 18 | 5 |
Central & North America | 10.7 | 11.3 | 16 | 0 |
Rest of the World | 25.3 | 26.2 | 13 | 17 |
Group | 133.2 | 155.8 | — | — |
Segment Revenue (FY2024 (%)–H1 2026 (%))
| Pillar | FY2024 (%) | FY2025 (%) | H1 2025 (%) | H1 2026 (%) |
|---|---|---|---|---|
Raise boring and support services | 82 | 83 | 84 | 78 |
Digitalisation and smart mining | 13 | 11 | 11 | 13 |
Slim drilling | 4 | 4 | 5 (combined with row below) | 9 (combined with row below) |
Mechanical rock excavation and cutting | 1 | 2 | (combined) | (combined) |
Income Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (USD Mn) | 171.8 | 226.4 | 242.8 | 270.8 | 292.0 |
Revenue (ZAR Mn) | 2,541 | 3,701 | 4,482 | 4,966 | 5,220 |
Gross profit (USD Mn) | — | — | — | 84.0 | 82.6 |
Operating profit reported (USD Mn) | 27.9 | 35.1 | 33.8 | 29.6 | 46.5 |
Operating profit normalised (USD Mn) | — | — | — | 43.5 | 46.3 |
EBITDA (USD Mn) | 39.1 | 50.3 | 50.4 | 58.2 | 57.2 |
EBITDA (ZAR Mn) | 575 | 822 | 934 | 1,067 | 1,023 |
Finance costs (USD Mn) | — | — | — | 6.3 | 6.0 |
Profit before tax (USD Mn) | — | — | — | 25.2 | 44.6 |
Taxation (USD Mn) | — | — | — | 6.9 | 12.7 |
Profit for the year incl NCI (USD Mn) | — | — | — | 18.3 | 31.9 |
Profit attributable to owners (USD Mn) | — | — | — | 17.2 | 30.5 |
Basic EPS (USD cents) | 13.2 | 14.2 | 13.6 | 11.4 | 20.2 |
Diluted EPS (USD cents) | — | — | — | 11.3 | 20.2 |
HEPS (USD cents) | 13.6 | 14.2 | 14.5 | 17.5 | 18.4 |
Basic EPS (ZAR cents) | — | 232.5 | 251.0 | 209.0 | 361.1 |
HEPS (ZAR cents) | 201.2 | 232.5 | 267.7 | 320.9 | 329.0 |
Dividend declared per share (ZAR cents) | 32.5 | 47.5 | 52.5 | 65.0 | 40.0 |
Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue growth YoY (%) | 40.0 | 31.7 | 7.2 | 11.5 | 7.8 |
Gross margin (%) | — | — | — | 31.0 | 28.3 |
Operating margin reported (%) | 16.2 | 15.5 | 13.9 | 10.9 | 15.9 |
Operating margin normalised (%) | — | — | — | 16.1 | 15.9 |
EBITDA margin (%) | 22.8 | 22.2 | 20.8 | 21.5 | 19.6 |
Net margin incl NCI (%) | — | — | — | 6.7 | 10.9 |
Effective tax rate (%) | — | — | — | 27.5 | 28.4 |
Balance Sheet
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (USD Mn) | — | — | 356.7 | 373.0 | 434.4 |
Property plant and equipment (USD Mn) | — | — | 165.5 | 170.0 | 199.1 |
Intangibles and goodwill (USD Mn) | — | — | 21.1 | 19.7 | 21.7 |
Current assets (USD Mn) | 117.3 | 161.6 | 157.7 | 163.5 | 193.2 |
Inventories (USD Mn) | — | — | 48.1 | 46.9 | 54.1 |
Trade and other receivables (USD Mn) | — | — | 76.4 | 71.2 | 85.5 |
Cash and cash equivalents gross (USD Mn) | — | — | 27.9 | 34.6 | 40.1 |
Interest-bearing borrowings short-term (USD Mn) | — | — | 4.6 | 40.8 | 16.2 |
Interest-bearing borrowings long-term (USD Mn) | — | — | 39.5 | 7.2 | 44.2 |
Total interest-bearing borrowings (USD Mn) | 32.1 | 46.1 | 44.1 | 48.0 | 60.4 |
Lease and instalment-sale liabilities (USD Mn) | — | — | 7.2 | 6.6 | 10.8 |
Net debt borrowings less net cash (USD Mn) | — | — | 16.2 | 13.4 | 21.6 |
Current liabilities (USD Mn) | — | — | 85.0 | 133.8 | 114.7 |
Working capital CA less CL (USD Mn) | — | — | 72.7 | 29.7 | 78.5 |
Trade and other payables (USD Mn) | — | — | 63.8 | 69.6 | 74.4 |
Equity attributable to owners (USD Mn) | 176.5 | 171.0 | 181.6 | 183.7 | 219.9 |
Non-controlling interest (USD Mn) | — | — | 22.3 | 22.4 | 21.9 |
Total equity (USD Mn) | — | — | 203.9 | 206.1 | 241.9 |
Dividends & Capital Returns and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Cash generated from operations before interest and tax (USD Mn) | — | — | 57.8 | 35.2 |
Net cash from operating activities (USD Mn) | 25.0 | 35.5 | 42.0 | 17.9 |
Total capital spend company-defined (USD Mn) | 24.4 | 34.7 | — | 20.6 |
PPE purchased for cash (USD Mn) | — | — | 28.1 | 17.7 |
Free cash flow CFO less cash PPE (USD Mn) | — | — | 13.9 | 0.2 |
Dividends paid to shareholders (USD Mn) | — | — | 4.4 | 5.5 |
Dividends paid to NCI (USD Mn) | — | — | 1.1 | 1.2 |
Share buybacks (USD Mn) | — | — | 0.6 | 0.0 |
Expansion share of capital spend (%) | 63 | 76 | — | 66 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Return on equity PAT company-defined (%) | — | — | 10.7 | 7.6 | 10.0 |
ROCE EBIT company-defined (%) | — | — | 12.2 | 12.4 | 14.5 |
ROCE EBITDA company-defined (%) | — | — | 18.2 | 24.4 | 17.9 |
Return on assets analyst-computed (%) | — | — | — | 5.0 | 7.9 |
ROIC analyst-computed (%) | — | — | — | 9.8 | 12.6 |
Current ratio (x) | — | — | 1.86 | 1.22 | 1.69 |
Debt to equity borrowings over total equity (x) | — | — | 0.22 | 0.23 | 0.25 |
Gearing net debt over equity company-defined (%) | 5.8 | 8.2 | 7.8 | 6.5 | 9.1 |
Net debt to EBITDA (x) | — | — | 0.32 | 0.23 | 0.38 |
Interest cover EBIT over finance costs (x) | — | — | — | 4.7 | 7.7 |
Asset turnover (x) | — | — | — | 0.74 | 0.72 |
Working capital days company-defined | — | — | 91.3 | 65.3 | 81.5 |
Revenue by Region
| Region | FY2024 | FY2025 |
|---|---|---|
South Africa (USD Mn) | 75.8 | 74.8 |
Africa ex-SA (USD Mn) | 40.6 | 51.0 |
South America (USD Mn) | 65.0 | 92.9 |
Central and North America (USD Mn) | 35.2 | 21.1 |
Rest of World (USD Mn) | 54.2 | 52.2 |
Region growth (%)
| Region growth (%) | FY2025 | H1 2026 vs H1 2025 |
|---|---|---|
South Africa | −1 | +51 |
Africa ex-SA | +26 | +16 |
South America | +43 | +4 |
Central and North America | −40 | +6 |
Rest of World | −4 | +4 |
Capital Markets Data (ZAR)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Share price at period end (ZAR) | 11.48 | 14.48 | 13.60 | 13.59 | 16.00 |
Period high (ZAR) | 13.60 | 17.50 | 15.20 | 13.99 | 29.98 |
Period low (ZAR) | 6.51 | 11.48 | 10.11 | 11.00 | — |
Share Price History
| Date | Price (ZAR) | Source |
|---|---|---|
7 Oct 2026 | 14.82 | MarketScreener |
9 Oct 2026 | 14.14 | Mansa Markets |
9 Oct 2026 | 14.60 | Google Finance (conflicting) |
Share Price History by Period
| Period | Base price (ZAR) | Return |
|---|---|---|
Since FY2023 year-end (about 3 years) | 13.60 | +9% |
Since FY2021 year-end (about 5 years) | 11.48 | +29% |
Since FY2020 year-end | 7.50 | +98% |
Valuation Multiples
| Multiple | Master Drilling | Basis |
|---|---|---|
Market capitalisation | About ZAR2.23bn (about USD134m) | MarketScreener |
Trailing P/E (EPS) | About 4.5x | TTM EPS 329.7 ZARc (H1 2026 183.9c + H2 2025 145.8c) |
Trailing P/HEPS | About 4.4x | TTM HEPS 336.3 ZARc |
P/B | About 0.54x | NAV 165 USDc per share at about ZAR16.6/USD (implied by MarketScreener's USD capitalisation) |
EV/EBITDA (TTM) | About 2.6–3.0x | EV USD165–186m (MarketScreener EV USD165m; or market cap + net debt USD30.2m + NCI USD21.8m); TTM EBITDA about USD62.7m |
EV/Sales (TTM) | About 0.5–0.6x | TTM revenue USD314.6m; MarketScreener shows 0.6x for FY2025 |
P/E FY2024 / FY2025 (MarketScreener) | 6.26x / 4.78x | MarketScreener |
Dividend History
| Fiscal year | Gross dividend (ZAR cents) | Type / timing |
|---|---|---|
FY2016 | 30.0 | Maiden dividend, paid 2017 |
FY2021 | 32.5 | Initially deferred (Ukraine), paid June 2022 |
FY2022 | 47.5 | Final, paid 22 May 2023 |
FY2023 | 52.5 | Final, paid 20 May 2024 |
FY2024 | 65.0 | Final, paid 23 Jun 2025 |
FY2025 | 40.0 | Special (deferred because of the Iran–US war), paid 17 Aug 2026 |
Analyst Conclusions
Management guidance (H1 2026 SENS, 25 Aug 2026)
Management gave no numerical earnings guidance. It expects continued revenue growth in H2 2026, with normalisation of payables and better working capital (per the H1 2026 call summary).
Stated priorities for the rest of 2026:
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Execute safely
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Improve fleet utilisation (toward 75%)
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Protect margins
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Maintain capital discipline
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Strengthen cash conversion
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Pursue growth selectively
Several recently awarded or mobilising projects should support activity into 2027. Management says it is focusing on the quality of pipeline conversion, pricing and risk allocation rather than pipeline size. FY2026 scorecard targets are 10% revenue growth, a 22% EBITDA margin and 30% technology-driven revenue.
Consensus growth expectations
Not publicly disclosed in a reliable form. The Fintel average target of ZAR15.52 implies about 5% upside from ZAR14.82.
Bull case
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Visibility is at a record: The USD400.9m order book (up 31% year on year) and USD1.06bn pipeline (double the prior year) could support another double-digit revenue year if utilisation recovers from 64% toward the 70–76% range of 2024–2025.
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Valuation already discounts the risks: At about 4.5x earnings, about 0.5x book and about 3x EV/EBITDA, with net debt below 0.5x EBITDA, any normalisation of cash conversion or a re-rating toward peers' high-single-digit or low-double-digit multiples would be highly accretive.
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Technology optionality is near commercialisation: The MTB is producing revenue, the SBS next phase is funded for late 2026 to early 2027, reef boring trials are under way with ARM, and the A&R safety platform has regulation-driven demand. Meeting even half of the USD30m+ FY2026 new-technology revenue target would materially diversify earnings.
Bear case
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Growth without cash: Operating cash fell from USD42.0m (FY2024) to USD17.9m (FY2025) and USD1.9m (H1 2026), while gearing rose from 9.1% to 14.9%. If receivables, especially in South America, prove slow or impaired, earnings quality is questionable.
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Structural margin drift: EBITDA margin has declined for four years (22.8% to 19.6%). South American operating margin fell from 18% to 5%, and slim-drilling ARPOR fell by about a third. Growth is coming from lower-margin work.
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Governance and liquidity discount may persist: Founder control at 52.6%, about 42% free float, thin analyst coverage, a 68-year-old founder-CEO, a recent technical director departure and a history of impairments (USD13.9m in 2024) could keep the stock a perennial deep-value laggard regardless of operating delivery.
Key catalysts and monitorables (next 12 months)
| Catalyst / monitorable | Timing | What to watch |
|---|---|---|
| FY2026 results | 23 Mar 2027 | H2 cash conversion, working capital days (below 85 target implied), utilisation, dividend reinstatement |
| SBS manufacturing completion and first deployment | Late 2026 – early 2027 | Contract award and EPCM validation |
| Reef boring trial outcome (ARM Bokoni) | 2026–2027 | Commercial order |
| Zondereinde world-record raise-bore completion | 2026–2027 | Execution and reference value |
| XXXL follow-on work in South Africa | H2 2026 | Utilisation of the largest rigs |
| South America collections and margin recovery | H2 2026 | ECL trend, segment margin back above 10% |
| Detail of the 22 Sep 2026 board changes; Deloitte's first audit | FY2026 | Governance continuity |
| Geopolitics (Iran–US) and commodity prices (gold, PGMs, copper) | Ongoing | Client capex decisions |
Analyst verdict
Master Drilling is a genuinely differentiated niche franchise. It owns the world's largest raise-bore fleet, has four decades of deep-shaft engineering credibility and runs a vertically integrated build-own-operate model that has compounded USD revenue at about 14% a year since FY2021 to a record USD292.0m in FY2025 and a record USD155.8m interim in H1 2026. Its balance sheet is conservative, with net debt below 0.5x EBITDA, and forward visibility is the best in its history: a USD400.9m order book and a USD1.06bn pipeline.
The investment case is held back by two problems. The first is conversion. Revenue growth has not turned into cash: operating cash flow fell sharply in FY2025 and nearly disappeared in H1 2026, while receivables in South America ballooned. The second is mix. Growth is coming from lower-margin regions and services, so EBITDA margins have eroded for four consecutive years. The new technology pillars (MTB, SBS, reef boring, robotics, digital safety) are strategically coherent but generated only about USD5m of revenue in FY2025, far below management's own USD25m target. Fleet utilisation of 64% for raise-bore rigs and 38% for slim rigs is the clearest measure of untapped earnings power and also of execution risk.
At about 4.5x trailing earnings and about half of book value, the market prices Master Drilling as a structurally challenged, governance-discounted micro-cap rather than a global specialist with technology optionality. The view here is that the discount is excessive relative to the asset base and order visibility. However, a re-rating likely requires two consecutive half-years of cash conversion above 80% of EBITDA and visible third-party revenue from at least one new technology.
Verdict: a deep-value, catalyst-dependent position. It is attractive for patient capital that can tolerate founder control and limited liquidity. The H2 2026 cash flow print in March 2027 is the decisive test.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure | Prior roles / background | Age | Source |
|---|---|---|---|---|---|
Daniël (Danie) Coenraad Pretorius | CEO, founder, executive director | Since 1986 | Founded the company and personally drove early in-house rig engineering | 68 (MarketScreener) | Website; FY2025 presentation |
André Jean van Deventer, CA(SA) | Financial director and CFO | With the Group since about 2002 (MarketScreener) | Chartered accountant | 56 (MarketScreener) | AFS; MarketScreener |
Roelof (RJ) Swanepoel | COO (prescribed officer); website title "COO of Europe and LATAM" | — | Presents operational overview at results | — | Website; presentations |
Armand Fourie | COO, Africa | — | — | — | Website |
Gareth Robert Sheppard | Alternate director to DC Pretorius | — | Holds 2.0% direct/indirect | — | H1 2026 presentation; AFS |
Willem Ligthelm, CA(SA) | Group financial manager (leads corporate reporting) | — | — | — | AFS |
Izak Bredenkamp | Group business development manager / IR contact | — | — | — | Investor page |
Regional GMs | Alejandro Cardoza (Mexico), Shunqing Xu (China), Belisario Tijero Pajuelo (Peru), Paulo Meideros (Brazil), Anders Eriksson (MD Europe) | — | — | — | Website |
“—” = not publicly disclosed.
Board of Directors
| Director | Role | Independence | Committee roles (as constituted Nov 2024; reconstituted 1 May 2026 and again announced 22 Sep 2026) |
|---|---|---|---|
Hendrik Roux (Hennie) van der Merwe | Chairman | Independent NED | Chair: Nominations; Chair: Corporate Governance; member: Risk |
Andries Willem Brink | NED | Independent | Chair: Audit; Chair: Risk; member: Nominations and Remuneration |
Akhter Alli Deshmukh | NED | Independent | Chair: Remuneration; member: Audit |
Hendrik Johannes (Hennie) Faul | NED | Independent | — |
Mamokete Emily Ramathe | NED | Independent | Chair: Social, Ethics and Sustainability; member: Audit |
Daniël Coenraad Pretorius | CEO | Executive | — |
André Jean van Deventer | CFO / FD | Executive | — |
Gareth Robert Sheppard | Alternate to DC Pretorius | Executive alternate | — |
Board & Management Changes
| Date | Change | Source |
|---|---|---|
Nov 2024 | Death of director Shane Trevor Ferguson; committees reconstituted 26 Nov 2024 | SENS 26 Nov 2024 |
5 Mar 2026 | Barend Jacobus (Koos) Jordaan, Technical Director, announced his resignation effective 1 May 2026 | SENS 5 Mar 2026 |
27 Mar 2026 | George Fred (Eddie) Dixon ceased as alternate to Jordaan (effective 1 May 2026); all six committees reconstituted | SENS 27 Mar 2026 |
FY2026 | Auditor change from BDO to Deloitte under voluntary rotation | FY2025 AFS |
Major Shareholders
| Holder (beneficial, at 31 Dec 2025) | % | Source |
|---|---|---|
Barrange (Pty) Ltd (Pretorius-associated) | 29.0 | FY2025 AFS |
MDG Equity Holdings (Pty) Ltd (director/management vehicle) | 25.9 | FY2025 AFS |
Ninety One Ltd | 8.6 | FY2025 AFS |
Fund managers holding 5% or more (31 Dec 2025) | % | — |
Camissa Asset Management | 13.3 | — |
Ninety One Ltd | 8.6 | — |
Abax Investments | 6.0 | — |
Insider holdings (31 Dec 2025) | Direct shares | Indirect shares |
DC Pretorius | 500,900 | 78,641,565 |
GR Sheppard | 1,727,548 | 1,228,336 |
BJ Jordaan (resigned) | 1,781,861 | 1,228,336 |
AJ van Deventer | 10,000 | 2,671,784 |
Directors total | 4,020,309 | 83,770,021 |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | Type | Notes |
|---|---|---|---|
Raise boring / shaft development | Redpath (J.S. Redpath group) | Private, Canada | Global shaft sinking and raise boring; financials not publicly disclosed |
Raise boring / shaft development | Cementation (formerly Murray & Roberts group, Americas/Africa) | Contractor | — |
Raise boring / underground development | Byrnecut | Private, Australia | Underground mining and development |
Raise boring (Europe) | Bergteamet AB (Sweden) and Thyssen Schachtbau (Germany) | Private | Shaft and raise-boring competition in Scandinavia and Europe |
Underground contract mining (incl. raise boring) | Perenti (Barminco, AUMS; drilling via Ausdrill, DDH1, Swick) | ASX: PRN | FY2026 underlying revenue AUD3.46bn; underground mining about two-thirds of revenue |
Exploration / specialised drilling | Major Drilling Group International | TSX: MDI | FY2026 (Apr) revenue CAD889.1m, EBITDA CAD102.9m |
Exploration drilling | Foraco International | TSX: FAR | FY2025 revenue USD258.2m, EBITDA margin about 18% |
Exploration drilling | Boart Longyear | Private (taken private 2024, per public reports) | Financials no longer publicly disclosed |
African drilling | Capital Ltd | LSE: CAPD | — |
Equipment OEMs (potential substitutes / suppliers) | Epiroc, Sandvik | Listed OEMs | Sell raise-boring rigs to miners and contractors |
Mechanised tunnelling / shaft boring | Herrenknecht; Robbins | Private OEMs | Compete with MTB and SBS |
Digital mine safety | Becker Mining Systems, Booyco, Strata Worldwide, others | Various | — |
Peer Comparison FY2026
| Metric | Master Drilling (FY2025) | Major Drilling (FY2026, Apr) | Perenti (FY2026, Jun) | Foraco (FY2025) |
|---|---|---|---|---|
Revenue | USD292.0m | CAD889.1m | AUD3,463m (underlying) | USD258.2m |
Revenue growth | +7.8% | +22% | −1% | −12% |
EBITDA margin | 19.6% | 11.6% | — | about 18% |
R&D intensity | 1.5% | — | — | — |
Net debt / net cash | Net debt USD21.6m (0.4x EBITDA) | Net cash CAD20.6m | Leverage 0.4x | Net debt USD71m |
“—” = not publicly disclosed.
