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Interview With The President, CEO And Director: Energold Drilling Corp. (EGD.V) - Frederick W. Davidson

67 WALL STREET, New York - April 17, 2012 - The Wall Street Transcript has just published its Building Materials, Construction and Housing Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Construction Equipment Replacement Trends - North American Electrical Transmission - Improving Domestic Building Metrics - Stock Rally in Homebuilding and Home Improvement

Companies include: D.R. Horton (DHI); AAON (AAON); Armstrong World Industries, Inc. (AWI); Axion International, Inc. (AXIH); and many more.

In the following brief excerpt from the METALS AND MINING Special Report, expert analysts discuss the outlook for the sector and for investors.

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Frederick W. Davidson is President, Chief Executive Officer and Director at Energold Drilling Corp. He has been a senior executive in the mining industry for more than 35 years. Energold Drilling grew from a mineral explorer with one rig in 2001 to a global driller with 240 rigs in 22 countries. He is also the current President and CEO of Impact Silver Corp., which he nurtured from a grassroots explorer into its current state, a profitable silver producer in Mexico growing its production into a multimillion-ounce silver mine. Before Energold, he played key roles in the financing and development of several significant mining companies including Chief Financial Officer of Total Energold Group, an energy and gold producer. He was the CFO of Erikson Gold Mines Ltd. and Mt. Skukum, which grew from grassroots exploration to production. Mr. Davidson has sat on the board of Wheaton River Minerals, Plexis Resources and IMPACT Silver. He received his MBA from The University of British Columbia in 1970 and his Chartered Accounting designation in 1971. He is a Member of the Canadian Institute of Chartered Accountants.

TWST: Please start with a background and historical look at Energold Drilling.

Mr. Davidson: Actually, we started out as an exploration company a number of years ago, became extremely frustrated with the approach most drilling companies operated in the field. The lack of concern about the environment was prevalent and the rigs were heavy and difficult to work around with. We saw an opportunity here, and our innovative solution was to design rigs that are highly modular, highly portable and can drill places virtually nobody else can drill. Energold started off with about one rig 10 years ago, and now have in excess of 90 of those type of rigs - S-style for surface - making Energold the largest frontier mineral driller in the world. Being a leader with this innovative approach to doing mineral exploration with our diamond drills, we've been able to grow frontier projects and transition them into brownfield - mine-site - drilling contracts by adding additional types of conventional rigs with the clients who've asked us. We have now a total of 35 conventional mineral rigs, bringing the total number of mineral rigs to 125. We have taken that same approach and philosophy to other sectors. Last year, in July, we acquired a company called Bertram, which provides drilling in the oil sands, seismic work and geothermal, geotechnical work in Canada and United States. That's added another 115 drill rigs to our fleet. So we're now in the area of about 240 rigs, adding five more as we speak. It's all technology and its all people supported by good logistical stream. Energold is growing fast and is now one of the largest drilling companies in the world. Knowing we need a platform to grow bigger, we acquired a small manufacturer in Mexico and the other one is a 150-year-old drilling company out of the U.K., which builds leading-edge rigs in terms of waterwell rigs and RC and diamond rigs, significantly larger than ours and complementing our very small rigs capabilities. Today, we're probably in the top 10 drilling companies in the world in terms of overall fleet size - not bad considering we had one rig 10 years ago.

TWST: When you look out over the next 12 to 24 months, what accomplishments would make that time frame a success? Will it be more on the acquisition side or more of letting some of Energold's current opportunities grow and mature?

Mr. Davidson: It's a function of both. We intend to be very aggressive over the next few years, both in the mineral industry and the energy, oil and gas and oil sand, industry. The energy industry moves extremely quickly with a huge demand out there right now, and our intention is to grow as fast as the industry, ideally faster. We're planning on two to three years out at least doubling our size again. And I think that's quite within reason given the parameters we're facing, high mineral prices, high commodity prices, if you will, high energy prices, and acute shortage of supply in terms of the minerals and energy services industry.

TWST: One of Energold's major drilling clients chartered a 747 to fly three of the company's rigs over to Africa at a cost of nearly a half-million dollars. What's causing this explosion in drilling demand? Does Energold have all of the equipment it needs to meet these types demand?

Mr. Davidson: Good question. In fact, you're right; they did. The demand is that today resources have been retained or reserves that have been acquired by major companies especially only because prices have risen, and we've been able to redefine a resource by going after lower-grade material that previously wasn't a resource. The reality is we're running out of reserves and resources. And over the last 20, 25 years, there's only been three years where the industry is spending sufficient exploration capital to even maintain the current reserves, let alone discover new reserves.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.

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