Can you provide a brief overview of Foraco and highlight your presence in Ontario?

Foraco is ranked as the third-largest global drilling company based on the number of drill rigs catering to the mining and water industries worldwide. In Ontario, Foraco primarily services tier one customers. Our company offers a diverse range of drilling services, encompassing surface and underground core drilling, long hole drill and blast, reverse circulation, rotary, water wells, large-diameter bulk sampling, and deep directional drilling, among others. This diversity allows us to engage in mining activities across various stages of the mining life cycle, from exploration to closure. Have you observed any recent changes in demand for drilling services, specifically in Ontario?

Yes, the challenging equity markets have affected junior customers and even some mid-tier customers. Despite favorable gold and copper prices, we have noticed a decrease in service levels from junior customers. Fortunately, Foraco is not heavily weighted in that segment — it represents less than 20% of our total revenue globally and even less in Ontario. While it has not significantly impacted us, we remain mindful of the importance of the junior mining space. Can you provide insights into the composition of your client base?

Our client strategy involves aligning ourselves with tier one miners, particularly focusing on EV minerals such as copper, nickel, and lithium. We emphasize drilling during the pre-feasibility and feasibility stages, which is some of the most technically challenging work for drillers. This strategy provides predictability with longer-term contracts, typically lasting 3-5 years. Moreover, it opens opportunities for water drilling services, addressing water issues in both open pit and underground operations. Can you discuss Ontario’s contribution to Foraco’s success?

Ontario holds a crucial position in Foraco's operations. It serves as a vital arena for refining our most challenging drilling techniques, particularly deep directional drilling. What sets us apart is our unique approach to handling all aspects internally, including borehole planning and directional management, without relying on subcontractors. This allows our Ontario customers to collaborate with a single service provider, streamlining the process. The Sudbury Basin, near our main office in North Bay, acts as an excellent testing and training ground for our crews engaged in intricate projects for Glencore and Vale throughout the year. Ontario is not just a testing ground; it also serves as the operational base for our drill and blast division, underground coring division, and rotary division involved in water-related projects. Can you share your perspective on the recent technological advancements shaping the drilling sector?

I am thrilled about the increasing user-friendliness of technology in the drilling industry. A decade ago, the idea of a drilling contractor surveying their own holes seemed far-fetched. However, we not only survey our own holes but also leverage various software and programs to understand and correct their trajectory accurately. The improvements in directional drilling tools, particularly our alliance with BG Drilling Solutions and their continuous wedging tool, have revolutionized our approach. The success rate has soared, providing us and our customers with better, faster, and more cost-effective results.

Some of our rotary drill rigs are remote-controlled, which allows the crew to operate the rig at a safe distance and in some cases, a climate-controlled environment as opposed to being exposed to the harsh elements we sometimes operate in. This has helped us attract the newer generation and has led to more women working in the field. How has Foraco handled the ongoing talent shortage?

Attracting talent has been challenging for us. In the junior market, projects are often seasonal or short-term, leading to inconsistency in employment. By transitioning to longer-term contracts spanning 3-5 years, we can offer our field crews a predictable rotation schedule, addressing the work-life balance concern. The certainty of employment and the structured rotation have made us more appealing, especially to the new generation who value stability and predictability in their work schedules. Could you outline your plans for 2024?

We anticipate a significant amount of repeat business and projects from our key clients. However, our primary focus is on diversifying our services in Canada and, more importantly, extending this diversification globally. The key strategy involves leveraging the expertise we have developed in Canada and Ontario as well as other regions in the Foraco world.