Boart Longyear is a global provider of drilling services, equipment, and performance tooling for mining and mineral exploration.
Boart Longyear was recently acquired by American Industrial Partners. What motivated that decision on your end? What does it entail for the company?
Boart Longyear had been a distressed business for the better part of a decade. With the ownership structure we had and the limited access to capital, we had to focus on the short term. During that period, the industry was also recovering. Now, with strong tailwinds in the industry and new opportunities ahead, this move to go fully private is great for us. We had a very small float on the Australian Stock Exchange, and by going private, we can refocus costs to the business itself.
We now have a capital structure fit for future opportunities and an ownership in AIP that invests exclusively in industrial businesses. They understand our space well, having invested in other mining companies, which is rare for private equity groups. This new structure allows us to achieve what is possible across all our business areas—services, products, and technology. It gives us a chance to reset and restart, look at all possibilities, put the right business cases together, and move forward with the right strategy.
To what extent has drilling become about data, and what are the implications of that for the mining industry?
The industry is indeed moving towards data. In our business, we provide the means for capturing that data through our services, whether it is by pulling core or chips out of the ground, dewatering mines to access new parts of the ore body, or using products that drill more efficiently and safely. We find new ways to extract data from our activities, enhancing its speed and accuracy, which benefits our customers immensely.
Mining often occurs in remote or inaccessible areas, and having quick, accurate data allows us to minimize disruptions and make informed decisions on the ground. By getting data faster with a smaller footprint and fewer people involved, we can provide a fantastic ESG story while offering significant benefits to mining companies. This efficiency and accuracy in data handling allow us to make better decisions about where and how to drill, reducing environmental impact and increasing productivity.
In that sense, why did you spin out Veracio, your suite of geological data services?
Veracio remains a wholly owned subsidiary of Boart Longyear, but we wanted to separate it because we believe it will eventually need to stand on its own and raise its own capital. For that, transparency about its operations and growth is essential. By spinning it out, we can be more transparent about Veracio’s successes and growth trajectory, ensuring its technology benefits everyone in the mining industry.
What type of mining companies are most willing to adopt technologies like Veracio? Are certain sectors more receptive than others?
Receptivity to Veracio's technology is becoming ubiquitous across the industry. Initially, smaller companies were more inclined to adopt these technologies to create value in their deposits and attract bigger companies. However, as the connection between various technologies becomes clearer, larger companies are also showing significant interest. Our customer base now includes both small and large companies, all recognizing the value of Veracio’s technology in their future plans.
Could you give concrete examples of how your services and tools at Boart Longyear help mining companies minimize their environmental impact?
Our scanning technology, TruScan, is a prime example. For instance, if you are drilling core in a remote area with a TruScan unit analyzing the core in real-time, geologists anywhere in the world can make immediate decisions about drilling operations. This reduces the need for additional trips, minimizing environmental disruption. Fewer people are involved due to our use of artificial intelligence and machine learning, which analyzes core data, reducing the need for geologists to be on-site.
Moreover, having detailed geological and mineralogical information upfront allows for more efficient mine design, leading to less environmental impact and higher productivity. This knowledge helps avoid mistakes that were common when such information was unavailable, ensuring more efficient and environmentally friendly mining operations.
Would you like to highlight a few partnerships that you are most excited about?
We have exciting work happening in places like Saudi Arabia with Ma’aden, where our technology supports their ambitious resource development plans. In Latin America, our technology aids in large copper mining operations, which recognize the benefits we offer.
Additionally, we have perfected the ability to detect gold directly with XRF technology on a bench basis, a significant breakthrough for gold production. This needs to be scaled into a production model, but it is promising. All these advancements demonstrate the synergy between our businesses and how improved data extraction will drive more drilling and product demand, benefiting Boart Longyear overall.
Where do you picture Boart Longyear five years from now?
With our new capital structure, ownership with AIP, and favorable macro trends in the industry, I see a robust and increasingly profitable future for Boart Longyear. We are focused on developing long-term value and have the means to do so at the right time in the cycle.
In five years, I expect us to extend our leadership in drilling, our products to be more recognized globally, and Veracio to grow significantly, especially in scanning technology. We are well-positioned to capitalize on the decarbonization and green technology trends, making metals crucial for these advancements. I am very excited about our future and confident in our ability to lead and innovate in the industry.
