Major Drilling Group (mdi.to) Pick & Shovel Play + Ree Tailwind

What they do:

The world’s largest specialized contract driller. They drill holes for miners worldwide: no commodity risk, pure pick-and-shovel. They get paid to drill regardless of what’s found.

The business today:

•700+ drills, 5,400+ employees, active in 20+ countries

•Record revenue Q2 FY2026: $244M (+29% YoY)

•Clean balance sheet, strong cash position

• Specializes in complex/remote projects: premium pricing, less competition

The Mega-Tailwind: REE is Coming Home:

China currently controls about 92% of global REE processing and has started using it as a geopolitical weapon. In April 2025 alone, Chinese magnet exports collapsed, auto manufacturers throttled production . The West woke up.

The response is now massive and accelerating:

• July 2025: The US Department of Defense took a 15% equity stake in MP Materials, guaranteeing a minimum price of $110/kg for neodymium-praseodymium oxide double the market price at the time. This marks the first time the US government became a major shareholder in a critical minerals company.

• December 2025: The DOE launched a $134M funding opportunity to boost domestic REE supply chains, targeting extraction from mine tailings, e-waste, and unconventional sources.

• October 2025: The US signed an $8.5 billion rare earth deal with Australia.

•Belgium’s Solvay has begun producing magnet-grade REE oxides in France, supplying US magnet makers Europe is building its own REE midstream.

•Greenland: Critical Metals Corp. is drilling one of the world’s largest hard rock REE deposits (Tanbreez), reporting 132m intervals of high-grade rare earth mineralization in its 2025 campaign, with a 2026 follow-up planned.

•Australia, Brazil, Wyoming, Texas, Saudi Arabia REE projects are being drilled and funded across the entire non-Chinese world simultaneously.

Why this directly feeds Major Drilling:

Every single one of these projects in Greenland, Australia, Wyoming, South America, Africa needs the same thing first: someone to drill. Before a single ounce of REE can be processed in the West, thousands of kilometers of drill holes need to happen.

That’s Major Drilling’s business.

They don’t care which project wins.

They just drill.

Bonus: Silver and Gold reached ATH. More deills for Silver and Gold.

You don’t know which Western REE project will win but every single one of them has to be drilled first. That’s Major Drilling.

PT 64. NFA.