June 8, 2010 / 9:54 PM / 8 years ago

UPDATE 2-Major Drilling turns profit on rebounding miners

* Revenue rebounds on recovery in exploration

* Says juniors, intermediate firms leading rebound (Adds outlook; in U.S. dollars unless noted)

TORONTO, June 8 (Reuters) - Major Drilling (MDI.TO) reported a stronger fourth-quarter profit on Tuesday, and said it was seeing a steady recovery in the mining sector, led by junior and intermediate companies.

The world’s No. 2 mine drilling company earned C$3.2 million, ($3 million) or 14 Canadian cents a share, compared with a year-before loss of C$4.6 million, or 19 Canadian cents a share.

Revenue rose 47 percent to C$97.4 million, as rebounding metal prices prompted companies to restart exploration that was shut down following the 2008 price crash.

“Currently, we we are seeing a much more general resumption of activities around the world and if customers move forward with their stated plans, we expect year-over-year growth to continue at a similar pace for the upcoming year,” Chief Executive Francis McGuire said in a statement,

He said the company is seeing a steady recovery by region, led by junior and intermediate miners.

“While senior companies have increased their exploration budgets for calendar 2010, spending has not yet rebounded to their pre-financial crisis levels,” McGuire said.

Early-stage exploration companies have also shown little increase in activity due to difficulties obtaining financing, he said.

The company’s shares rose 37 Canadian cents to C$21.37 on the Toronto Stock Exchange. The results were released after markets closed.

$1=$1.05 Canadian Reporting by Cameron French, additional reporting by Abhiram Nandakumar in Bangalore; editing by Rob Wilson

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