Foraco CEO Daniel Simoncini believes the French drilling contractor is knocking on the door of better market treatment in Canada after the company posted strong fourth-quarter and full-year financials and promised more of the same in 2023.
One of the world’s biggest mineral and water drilling contractors, with circa-300 rigs and 2800 employees, Foraco’s Toronto share price has been tracking back up to the plus-C$2 levels achieved a year ago, before it sank as low as 92c in October. The price is up more than 23% year-to-date to $1.91, capitalising the company at nearly C$190 million (but still down about 11% in the past 12 months).
Simoncini told analysts after Foraco booked a 55% year-on-year EBITDA rise to US$66.5 million on 23% higher 2022 revenue of $330.6m he felt C$200m was the “magic number” for Toronto Stock Exchange-listed mining services companies vis-à-vis market capitalisation, and “we are not far from this threshold”.
