Drill contractor Dynamic has secured a contract from Round Oak Minerals for the provision of drilling services at the Jaguar project in WA’s Goldfields region in Western Australia.

Jaguar is an established underground mine where the operator expects exploration to extend its current mine life of three years.

The initial 12-month contract for aircore, reverse circulation and diamond drilling also includes additional scope on existing drilling projects unrelated to Round Oak and is expected to generate between A$12m and A$16m of revenue per annum

Dynamic Group (ASX:DDB) noted that the contract with Round Oak, a subsidiary of Washington H Soul Pattinson and Company (ASX:SOL), allowed it to capitalise on its service capability across the Goldfields region and optimise its drilling operations for additional explorers and producers in the region when there is capacity.

It added that relaxed entry requirements in the state have allowed it to re-engage East Coast-based personnel for current and upcoming projects, which helps mitigate the labour challenges currently being experienced within the industry.

The company is also sourcing specialised heavy duty fitters during the first half of 2022 with the required training and expertise from international jurisdictions.

Additionally, Dynamic is continuing contract discussions which are at various stages with multiple parties and has a sustained and strong level of enquiry that gives it a pipeline of opportunities for the short to long-term.

Growing business

The new contract is certainly welcome for Dynamic, which reported revenue of $34.7m in the first half of FY2022 – up 193% from the previous corresponding year.

Earnings before interest, taxes, depreciation, and amortisation was also up 178% to $8.1m.

The company has 39 drill rigs in its fleet.

 

 

 

This article was developed in collaboration with [Client Name], 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.

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