What projects has Premier Drilling Co. worked on and how has project volume changed recently?

JS: Our projects include drilling, abandonments, and well-deepening for I-80 Gold. We are collaborating with Centerra Gold on greenfield exploration in Idaho and Nevada, utilizing core and mid-sized RC rigs. To meet Centerra Gold 's specific needs, we acquired a mid-sized RC rig for RC sampling. We also worked with Nevada Gold Mines.

We observed a drop in core drilling demand and large water-well and dewatering projects, despite higher gold prices. Rising costs across the board impacted our clients, particularly junior clients, who are struggling with funding. Material sourcing has become challenging too, with vendors now proactively reaching out—something that did not happen a year ago when demand was so high that we had difficulty getting quotes. How does Premier Drilling Co. attract and retain skilled labor?

JS: Our leadership’s firsthand experience on drill rigs helps us understand the challenges our crews face. Our president emphasizes respect and values each team member, recognizing their role in generating revenue. We avoid contacting support crews during their off-hours, provide per diem allowances, and provide health, life, and dental insurance, ensuring they can focus on their work without financial stress. How does Premier Drilling Co. approach safety?

JS: Safety is our top priority, supported by a comprehensive and evolving safety program. We now utilize tablets for easy access to safety documents, and each project has a tailored health and safety plan to address its unique challenges. We promote a “brother’s & sister’s keepers” mentality, encouraging everyone to look out for each other and ensure everyone returns safely.

DT: We have declined projects when conditions posed safety risks, like extreme heat. Scheduled breaks and time off are essential for crew safety and morale. How are market dynamics affecting the drilling sector?

JS: We observed a decline in greenfield drilling due to rising funding costs, while brownfield projects are more active. Budget transparency is crucial, as we work with vendors for competitive rates and share these details with clients to build trust. Although costs are increasing, the green energy transition presents opportunities. Spending scrutiny is intensifying across all projects.

DT: The industry is experiencing consolidation, with smaller companies merging to share resources. Many investors are diverting funds to newer markets like AI and cryptocurrencies instead of mining. Market volatility affects demand despite high gold prices. It is unusual to see such high commodity prices alongside low activity levels. Some investors appear hesitant due to new investment opportunities, but the fundamentals of commodities will draw interest back. The industry needs time to adjust. What is Premier Drilling Co's competitive advantage?

JS: Our competitive advantage comes from having ‘A teams’ on every project, ensuring consistent quality across the board. We are confident in our ability to handle challenges professionally, maintaining open communication with clients. From the bidding stage, we meticulously prepare and estimate each project, using weekly budget meetings and KPI reviews to track our progress. This feedback loop promotes continuous improvement and transparency, ensuring that clients are kept informed about budget constraints and project goals.

DT: Every project has its challenges, but we address them directly and collaborate closely with clients. Our proactive communication helps clients anticipate issues, and our teams are well-equipped to respond without external resources. We work as a team, sharing responsibility and improving communication. Some projects may exceed budgets due to challenging ground conditions, especially in Nevada, where drilling can vary significantly over short distances. Experienced drillers who understand the local terrain are crucial for success; our team’s local expertise allows us to navigate these complexities effectively with the right tools and strategies. Our emphasis on quality people distinguishes us from others in the industry. What are Premier Drilling Co’s objectives for 2025?

JS: Our focus is to establish a strong project backlog to keep all crews and five rigs operational at least 90% of the time. We want to bring in new team members but need to ensure we have a stable workload first.

DT: Building a backlog is essential. We have had skilled drillers from other companies expressing interest in joining us, but we want to ensure they will have consistent work.