BC Business
Frederick Davidson, CEO, Energold Drilling Corp. | BCBusinessReturn to: B.C. Entrepreneur of the Year 2012
Congratulations to Frederick Davidson, president and CEO of Energold Drilling Corp., the 2012 Pacific Region Entrepreneur of the Year in Mining and Metals. For Frederick Davidson, CEO and president of Energold Drilling Corp., valuing environmental and social issues has had a positive impact. “We made it a first priority,” he recalls of the decision to develop and use more environmentally friendly rigs 10 years ago.
For Frederick Davidson, CEO and president of Energold Drilling Corp., valuing environmental and social issues has had a positive impact. “We made it a first priority,” he recalls of the decision to develop and use more environmentally friendly rigs 10 years ago.
Bucking the norm comes naturally to Davidson, who was a lecturer at UBC and single father of two before entering mining in 1974. He saw Energold through its 20-year transition from Total Energold Corp. to Energold Drilling Corp. in 2005. In 2009, he saw the bear market as an opportunity to expand Energold’s mineral services (by offering larger rigs, for example) and diversify its drilling business. Today, the company is also involved in water and energy exploration, a segment that’s “not that popular,” says Davidson, but one that he expects will account for one-third of the company’s activities in coming years.
At 64, Davidson is full of stories that colour Energold’s approach to its operations in Mexico, the Caribbean and Central America, which account for 47 per cent of its business (South America is 35 per cent; Africa and Asia 18 per cent). “I have a photo of a Schuar Indian from eastern Ecuador,” deadpans Davidson, “whose people were headhunters just two generations ago, ready to board a helicopter, wearing a helmet, goggles, safety boots — and a loincloth.” The man worked for Energold, which employs local personnel and establishes meaningful relationships where it does business, while a health and safety group ensures care for the local environment and culture.
Energold today has a market cap of $174.8 million (first quarter 2012 revenues were a record $53.7 million), employs nearly 2,600 staff and has more than 240 drill rigs operating in 22 countries. Of these, 90 are portable frontier rigs, another company milestone and proof that Energold is positioned for the future: at less than 200 kg apiece, they are environmentally friendly and simple enough for locals to operate.
“I believe our industry is critical,” Davidson says, adding that ultimately “we want to do it with as small a footprint as possible, with maximum social benefit.”
What did you want to be when you were a kid? It was only when I couldn’t afford to be a professor anymore that I got into mining.
What was your first big break in your current business? When we went into exploration. We were drilling, down to our last bit of money and said, “We’ve got this wrong.” We put our money into building a couple of rigs, and the more we showed it around, the more we became evangelical about it.
Looking back, what’s one thing you would do differently, professionally speaking? If somebody doesn’t work out, it’s our fault for not properly recognizing their strengths and only identifying their weaknesses.
What book do you recommend for entrepreneurs just starting out? Other than the Bible because we have to be praying constantly? I don’t really believe in how-to books. I’d rather read a historical novel. Texts never prepare you for this type of business.