Boart Longyear’s customers in the Minerals Industry are predominantly major blue-chip gold, copper and other base metals miners, with sufficient capital to ensure steady exploration drilling budgets in addition to continued development and production activity.
Majors are forecast to represent more than 40% of the Company’s Minerals Industry drilling services related revenue in FY2007. Management estimates that no one customer accounted for greater than 7% of the Drilling Services division pro forma revenues in FY2006 and the Company’s largest customer accounts for approximately 4% of total Company revenues.
The continued consolidation of mining companies, such as BHP Billiton’s takeover of WMC Resources, provides Boart Longyear with an opportunity to be a single source services provider to large mining companies who prefer to have a focused program of supplier selection. Boart Longyear’s size, broad geographic footprint and strong regional presence enable it to provide the volume of services required by global participants and meet the safety standards required by these customers.
Key Drilling Services division customers include:
– Anglo American
– Barrick
– BHP Billiton
– Companhia Vale do Rio Doce
– De Beers
– Newcrest
– Newmont
– Phelps Dodge
– Rio Tinto
– Xstrata
The Company’s customers in the Environment & Infrastructure Industry are generally municipal councils and water contractors. The size of these customers is generally small with Boart Longyear having no major individual customers.
