Ann: Step-Out Drilling Extends Gold Mineralisation by 4,600m, page-7

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2011doogs88

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29/06/22

14:32

Post #: 62274085
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Originally posted by R21: ↑

I've said it a few times prior but TIE's own drilling fleet is massively underrated benefit. The rigs look like man-portable as opposed to truck/track mounted but nevertheless still very significant.

Most contract drillers have hiked prices 15-30% globally in 2022. Yes, TIE has the same cost pressures (mainly people & pipe) but there's no margin on the drilling which would be ~40% in West Africa.

100k of diamond drilling is worth about USD15m (approx 150p/m). Productivity aside, TIE saves approx 6m per annum by doing inhouse vs contracting. That's not even touching on lack of supply - having them in your own yard to call on when required vs finding slots amongst other contractors.

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Agree. But it's not just the cost. It's also the ease of always having a rig available when you need it. Basically you just run it (or in this case 4?) full time 365.
It's so often the case, especially in booms where you want a rig but are restricted by availability.

TIE Price at posting: 31.5¢ Sentiment: Buy Disclosure: Held
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Ann: Step-Out Drilling Extends Gold Mineralisation by 4,600m, page-7

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