Drilling specialist Dynamic to pocket up to $10m from new contracts
Dynamic has formalised a drill and blast contract and mobilised rigs for another contract that are expected to deliver combined revenue of between $8m and $10m.
The first contract will see the company provide Aurenne Parker Range with drill and blast services at the Parkers Range gold project in Western Australia’s Goldfields region.
Dynamic Group (ASX:DDB) had previously provided services to Aurenne on a periodical basis whilst formalising the contract.
It is also mobilising three drill rigs to the Northern Goldfields Interconnect Pipeline Project in the Midwest and Northern Goldfields regions to deliver drill and blast services to Nacap for an estimated minimum period of six months.
Separately, the company has commissioned a new Epiroc T45 drill rig with a second due for delivery in July.
Both rigs will support ongoing operations at the recently awarded projects.
Contract discussions at multiple stages are also continuing with several parties while a sustained and strong level of enquiries is expected to result in a pipeline of opportunities for short, medium and long-term projects.
The new contracts follow on the company reporting a strong March quarter, which saw cash inflows from operating activities of $18.6m, just under three times its cash inflows during the same period the previous year.
Likewise, revenues for the financial year to the end of March hit $53.2m, about 212% higher from the same period in FY2021 thanks to the acquisition of Orlando Drilling in July 2021.
It was also selected by Rio Tinto as a select supplier panel member and started a Tier 1 iron ore construction drill and blast project in the Pilbara earlier this quarter.
This article was developed in collaboration with Dynamic Group, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.