PDAC-Major Drilling posts loss as miners rush to cut costs

Mon Mar 4, 2013 10:14am EST
 
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* Q3 loss 5 Canadian cts/shr, revenue falls 32 pct

* Major Drilling sees volatility affecting revenue

* Miners delay exploration due to financing crunch

* Major Drilling is world's No. 2 exploration driller

* Gold miner Iamgold outlines plans to cut costs

By Euan Rocha

TORONTO, March 4 (Reuters) - Major Drilling Group International Inc reported a quarterly net loss on Monday, as the financing crunch in the mining sector pushed metal and mineral exploration companies to cut back and delay drill programs.

Shares of the Moncton, New Brunswick-based company dropped after the results. It also warned that volatility in the mining sector would significantly affect revenue in the current quarter.

"In a number of jurisdictions uncertainty as to the policies of host governments or issues of land tenure are adding to the uncertainties," said Major Drilling Chief Executive Francis McGuire. "These factors, combined with the fact that sources of funding for junior mining companies remain limited, has led to pricing pressures in certain regions."   Continued...