Epiroc AB (EPOAY · OTC)
The Picks & Shovels Behind the Copper Boom
Epiroc makes the drill rigs, loaders and consumable drill bits that mines and tunnellers depend on, then earns most of its money keeping that machinery running.
Bull case for Epiroc AB
Most revenue comes from servicing machines
Aftermarket parts and service dominate sales, giving steadier income than one-off machine deliveries.
Copper and gold mines drive most orders
Mining supplies about four-fifths of orders, concentrated in metals with long-term structural demand.
Driverless software runs rival machines too
Automation works across brands, so Epiroc earns from fleets it did not manufacture.
Bear case for Epiroc AB
Mine spending swings with metal prices
If miners cut investment budgets, orders for expensive new machines fall quickly.
Currency and tariffs squeeze reported profit
A global footprint means exchange rates and trade barriers can erode margins Epiroc cannot control.
Construction attachments have stayed weak
The smaller construction-focused business has been loss-making in growth terms and drags on group margins.