MD MDI.TO Major Drilling Group International Inc. Loading... : Investor Sentiment and Bull/Bear Views

The author argues that a 45% quarterly jump in rare earth prices will push Western governments and miners to spend more aggressively on exploration, and that Major Drilling, the world's largest specialized drilling contractor, gets paid per meter drilled regardless of who wins the resource race. Supporting catalysts cited include TSX mining companies raising $16B in 2025 (up 53% YoY), record gold and near-record copper prices, and Western mandates for domestic critical mineral sourcing. The author notes Q3 margins were deliberately sacrificed to hire crews and stock supplies ahead of a 'much busier 2026,' with January already ramping faster than last year, and sets a 27 CAD price target. Main stated risk is the weak Q3 margin performance, which the author frames as already priced in.

The author argues Major Drilling is the clearest way to gain exposure to a multi-year mining and drilling trend across copper, silver, gold and rare earths. As the world's leading specialized drilling services provider, its services and know-how become essential as the rare earth race returns to the West and gold/silver sit near all-time highs. The cited Eloro contract for a 40,000m drill program at Iska Iska is offered as evidence of demand. No specific risk is stated beyond the general NFA disclaimer.

The author argues Major Drilling is a specialist in deep, hard-rock, complex drilling that enables the REE and critical minerals boom without owning mines. As Western governments push for supply chain independence from China and easy deposits are exhausted, more exploration and specialized deep drilling should follow, benefiting MDI. The author cites record Q2 FY2026 revenue of CAD 244M, CAD 38M EBITDA, essentially zero net debt and CAD 149M liquidity as evidence of financial strength, with a CAD 23 price target over a 3-5 year horizon. Main risk implied is cost pressure on margins.