ASX drilling stocks are bulking up their fleets in preparation for further demand
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The past 12 months has been a good time for ASX drilling stocks – and mining services generally – but companies are claiming there’s more good times to come.
ASX investors would be all too familiar with the commodities boom in the last 12 months. The surge in commodity prices (particularly iron ore and gold) has led to increased exploration and production from both large and small caps on the ASX.
But the mining services sector makes all this possible providing adjacent services such as drilling and engineering. It too has capitalised on the increased demand.
Did someone mention something about gold rush, something about selling shovels…
Investor enthusiasm in some commodities may have arguably waned but Dynamic Drill & Blast (ASX:DDB) is one ASX drilling stock having none of it.
This stock listed in August last year at 20 cents per share and is now at 46 cents per share.
Today it told shareholders it acquired another three drill rigs, taking its total fleet to 16.
The three new purchases are Epiroc D65 Down the Hole drill rigs while all but one of the remaining drills in its fleet are top hammer drills.
Dynamic managing director Mark Davis said his company’s pipeline remained strong and it wanted to have the right fleet to undertake new projects.
“The additional three DTH drill rigs further strengthens Dynamic’s breadth of offering and its particularly bolstered by the RC capabilities introduced, allowing Dynamic to provide grade control drilling services,” he said.
Fellow drilling contractor DDH1 Limited (ASX:DDH) has also expanded its drill rig fleet purchasing four new rigs last week.
The company plans to have 103 drilling rigs by the first half of FY22 and it too says the rigs are required because of strong customer demand.
“DDH1 is experiencing strong industry growth with rising demand for our services because of increased exploration, development and production spending by minerals exploration and mining companies,” said CEO Sy Van Dyk.
“This additional investment is based on contracted demand and will provide increased capacity to service our clients.”