Dynamic set for some drilling duels after winning up to $11.6m over three new contracts
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Specialist services company Dynamic is set to pocket between $8.4m and $11.6m after its Orlando Drilling and Welldrill businesses secured three new contracts.
All three of the contracts, which have terms ranging from three to 12 months, are for projects based in Western Australia that are operated by well renowned and resourced clients.
These add to Dynamic Group’s (ASX:DDB) existing portfolio of long-term mining, construction, exploration and water drilling projects.
It also reflects the ongoing strength of the mining industry, which in turn benefits the services sector.
“We are pleased that our exploration drilling capabilities and experience in delivering services within the lithium sector are resulting in new work being secured with well-funded and experienced battery metals producers in the critical minerals space,” managing director Mark Davis said.
“Dynamic Group’s wide experience in lithium and nickel related projects places it in a strong position for further expansion within these sectors.
“We are also excited that we have been able to support Welldrill at a group level to secure new projects to complement its long-term iron ore multi-rig contract in the Pilbara.”
The company is continuing contract discussions at various stages with multiple parties and is experiencing a sustained and strong level of enquiry, which provides a significant pipeline of opportunities for short, medium and long term projects.
Orlando has secured a contract with a lithium producer based in the Pilbara region of Western Australia to deliver reverse circulation drilling services from early November 2022.
It has also secured an expansion of scope to an existing project providing RC and diamond drilling services with another customer in the Pilbara.
Meanwhile, Welldrill has been awarded a production and monitoring bore contract with a tier 1 gold producer as well as securing work with Liontown Resources for exploration monitoring and production wells.
These complement its cornerstone long term contract with a tier 1 Iron Ore producer.
It also validates Dynamic’s belief that the acquisition of Welldrill in July would add a defensive revenue stream to its portfolio.
This article was developed in collaboration with Dynamic Group, a Stockhead advertiser at the time of publishing.