r/stocks Mar 17, 12:19 PM
Major Drilling (MDI.TO) REE Pick&Shovel with price target Mining companies raised $16B in 2025 – up 53% YoY. That capital hits drill programs now, in Q1 2026. MDI is the pick & shovel play that benefits directly.
Gold at all-time highs, copper strong, silver running, REE derisk from China Monopoly. Senior miners have announced sharply higher exploration budgets for 2026.
China restricted exports of rare earths, germanium and gallium. Western miners are scrambling to find alternative supply. That means more drill programs, more revenue for MDI.
Q3 was intentionally weak, MDI hired crews, serviced rigs, stocked supplies. CEO said January already ramped faster than last year. Q4 is the proof.
P/S of 1.75 on $870M annualized revenue with expanding margins. Last cycle peak: 20+ CAD, on far less revenue than today!
PT 30 CAD, 51 CAD in 2-3 years.
NFA.
submitted by /u/East_Elderberry5385
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