Master Drilling CEO Danie Pretorius shares outlook for company

Master Drilling's Africa operations have surpassed South America as the largest source of revenue, generating $27.4 million, up from $22 million. The company recently released its full-year numbers, and CEO Danie Pretorius joined CNBC Africa to discuss the results and the company's appetite for European exposure. Pretorius acknowledged that while the return on capital employed (ROCE) had been disappointing, he remains optimistic about the company's performance. He noted that despite a decrease in ROCE, the company has maintained solid double-digit figures on the EBITDA line. Pretorius expressed a desire for ROCE to be north of 15, which is currently substantially below the target. However, he believes that with the improvement in commodity prices and a positive sentiment in the market, the company is on track to achieve its goals. The CEO addressed concerns regarding an increase in costs, attributing it to factors such as exchange rates and impairment transactions. Despite these challenges, Pretorius emphasized that the company's EBITDA performance has been relatively stable compared to previous results, with the top-line revenue being the main area of disappointment. Looking ahead, Pretorius shared his optimism about the future, citing the growing order book and positive market sentiments following political developments in South Africa. He highlighted the company's focus on various segments, including zinc, copper, and gold, particularly in South America and North America. The CEO also mentioned the potential for growth in the mining industry by expanding into horizontal drilling and vertical shaft boring technologies. He emphasized the importance of diversifying the company's services to adapt to changing market demands and enhance operational efficiency. Pretorius underscored the significance of vertical shaft boring in accessing deep mineral reserves, especially in South Africa, which holds significant gold and platinum deposits at great depths. He expressed confidence in the company's strategic direction and the potential for growth and innovation in the mining sector.