The future seems bright for Norcliffe Mining Services following the acquisition of Queensland-based production drill and blast contractor Roc-Drill.

While Norcliffe had previously flagged that it was on course for revenue growth of 25 per cent year on year in FY 2021, it now says that the already attractive forecast was decidedly conservative.

How so, you might ask?

By obtaining a significant revenue contribution from Roc-Drill’s current contracts, with Norcliffe managing director Charlie Massarella telling Stockhead that this is expected to increase significantly moving forward.

And it is not just the attractive size of the order book that will benefit Norcliffe.

The acquisition also brings Roc-Drill workforce and founder Nigel de Veth and his over 28 years of experience in operating and managing drilling and blasting services for the mining industry on board.

He will retain operational control over Roc-Drill and will retain a significant shareholding when Norcliffe moves to list on the ASX later this year.

“I’m more invested in the business now than I have ever been,” de Veth said.

“Roc-Drill is one of the best, most efficient and effective drill and blast companies in Australia but as an individual you will certainly hit a wall and to take it to that next level, we have been developing further opportunities and we needed somebody like Charlie and his team to further develop Roc-Drill”.

“Now that the deal is signed and we’re off and racing, it’s pretty exciting.”

He noted that Roc-Drill had recently secured a number of additional projects across Australia that required the investment of capital to support additional fleet requirements to support contracts and continue to consistently deliver above client expectations.

Norcliffe’s acquisition will provide the platform for additional capital, enabling that growth and long-term sustainability.

 

Roc-Drill and mining services outlook

Massarella noted that Norcliffe had identified Roc-Drill as the best performing, privately-owned drill and blast contractor in Australia with rigorous safety standards, high quality services and clients.

But it’s de Veth’s management and the culture, passion and drive to grow that has been instilled in the company that truly drew his attention.

“That’s what attracted us to the business in the first place,” he told Stockhead.

“We also support Nigel’s dream and identified the opportunity to bring Roc-Drill to the West and cementing it as a national player in the drill and blast game.”

He added that his belief is that there is going to be substantial money coming out of tech stocks into mining services where there is value.

 

Next steps

With the acquisition of Roc-Drill completed, Norcliffe will now focus on supporting de Veth to secure some quick wins for Roc-Drill.

It will then proceed with completing the acquisition of a complimentary Western Australian-based opportunity before it proceeds towards the planned initial public offering.

“We’ve just been focused on closing these deals. Everything related to the IPO is also well underway and ready to go. It’s just a matter of when we pull the trigger now,” Massarella said.

This article was developed in collaboration with Norcliffe Mining Services, 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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