AFTER his uncharacteristic optimism six months ago when Master Drilling released its interim results, CEO Danie Pretorius has reverted to his usual sceptical self as a result of the war on Iran.
Master Drilling is holding off on the declaration of an annual dividend despite the group reporting excellent results for the year to end-December during which US dollar revenues hit a record high of $292m along with a “stable order book of $371.4m and a record pipeline of $997.8m.”
US dollar headline earnings were up 5.1% to 18,4c a share while rand headline earnings were up 1.4%to 329c but the dividend decision has been deferred “until there is more certainty on how the possible consequences of the current global hostilities may unfold.”
And that’s also despite Pretorius’s continuing positive business outlook which is that “despite prevailing global economic uncertainties, Master Drilling maintains a steadfast outlook on its performance capabilities. The group enters 2026 with a solid order book, a record pipeline, and a disciplined capital allocation structure positioning it well for sustainable long-term growth and shareholder value creation.”
Pretorius told Miningmx his main concern is over logistics and the ability and cost of being able to move the group’s mining and drilling equipment around the world.
He commented, “we just did not feel comfortable reducing our cash holdings” pointing out that Master Drilling had seen “many companies going under due to cash flow with a good, solid pipeline and order book. We need to be mindful of the balance sheet and the gearing and not get ahead of ourselves.”
The group will declare a dividend as soon as it becomes possible depending on when there is more certainty over the Iran war situation and how the possible consequences of it could play out.
Master Drilling highlighted Africa in general and South Africa in particular as major generators of business for the group.
Pretorius commented, “Africa has been a stronghold for the group in the past couple of years and the current year was no exception. Africa is positioned for significant expansion driven by successful project execution and strategic growth initiatives.”
He split the business opportunities offered in Africa into two broad categories which were copper in the Democratic Republic of Congo and gold in the rest of of the continent but highlighted the “challenges requiring adaptable strategies to navigate market fluctuations and capitalise on growth prospects. “
He commented, “if you look at what happened to Barrick in Mali … two years ago nobody could have foreseen that taking place.”
Turning to South Africa he said platinum had been the main driver over the past 18 months.
“Our business in this region achieved exceptional financial growth in 2025 significantly surpassing projected revenue targets and demonstrating a strong upward trajectory anticipated to continue into 2026.”
Pretorius said traditional raising boring operations have formed the backbone of Master Drilling’s operational revenues for the past 40 years and would continue to do so in the short-term but, looking out three to five years, there could be big changes coming from several new technology projects underway.
“I do believe in three to five years we will be having a different discussion.”
