Tag Archives: ASX

DDH1 drilling contractor debuts on ASX after stellar IPO

DDH1 Ltd has officially commenced trading on the Australian Securities Exchange following an initial public offering last week that saw the drilling contractor secure gross proceeds of A$150 million ($115 million) through the issue of around 40% of its shares.

The IPO proceeds were used to allow existing shareholders to realise part of their investment in the company and to repay company borrowings, the company said. The IPO was one of the largest by a Western Australia-based business in the past decade, according to DDH1.

“The ASX listing marks a significant milestone in the evolution of DDH1, which was established in Perth in 2006 with the vision to create Australia’s premier mineral drilling contractor,” the company said. “Over time, DDH1 has earned the custom of Australia’s premier mining companies through its repeated and meticulous service offering of gathering the critical geological data that supports the decision making in respect of all mining activity through the complete cycle of a mine’s life.”

DDH1 has a portfolio of approximately 102 clients, with a financial year 2020 pro-forma revenue of A$249.8 million. Its earnings are diversified across multiple commodities and geographies, with a client base that includes Newcrest Mining, BHP, Evolution Mining, Gold Fields, Independence Group, Kalgoorlie Consolidated Gold Mines, Newmont Corp, Ramelius Resources, Rio Tinto, Roy Hill Iron Ore and St Barbara.

It offers both surface and underground drilling services, with diamond coring and reverse circulation rigs on offer.

Sy Van Dyk, DDH1’s Managing Director and CEO, said: “The growth and success of DDH1 to date is testament to the commitment of the whole team, which strives to ensure the safety of all stakeholders while delivering exceptional service to our clients.

“Our long-term client relationships are built on the provision of quality drilling services and a deep understanding of our client’s business needs. The company’s significant market position reinforces the strong levels of industry recognition.”

He concluded: “There is growing demand in the Australian mineral drilling sector for DDH1’s services because of increased exploration, development and production spending by minerals exploration and mining companies. As an ASX-listed company with a strong balance sheet, a committed shareholder base, a disciplined approach to growth and access to capital markets, DDH1 is well positioned to pursue its growth strategy.”

Dynamic Drill and Blast looks for further growth with ASX IPO

Specialist drill and blast services supplier, Dynamic Drill and Blast Holdings, is looking for further growth with a plan to raise A$5 million ($3.5 million) and seek admission to the Australian Securities Exchange official list.

The Perth, Western Australia-based company has established itself as a contractor able to supply everything from large production blasts to vibration-sensitive, close-proximity civil work, it said.

Associated with strong and ongoing growth in the mining and civil sectors, Dynamic says it has seen a surge in project opportunities and plans to use funds from the initial public offering (IPO) to grow its fleet and provide working capital to tackle a strong tendering pipeline.

The company was founded in 2011 and, since 2018, has been on a rapid growth path following a strengthening of the balance sheet and the introduction of new strategic investors, including current Executive Director, Matt Freedman, a major shareholder.

Revenue has grown from A$12.97 million in the 2018 financial year to A$19.1 million in the 2019 financial year. Along the way, it has attracted a strong Tier One mining client base, and is undertaking work on projects owned by Rio Tinto, Fortescue Metals Group and Galaxy Resources, it said.

Dynamic says it is currently operating at three West Australian sites, one of which is nearing completion, and has developed a strong pipeline of tendering opportunities.

“Importantly, a number of the tendered opportunities are for medium-to-long term contracts which, if awarded to Dynamic, would enable continued growth of a steady/underlying revenue stream,” the company said.

Dynamic’s management and board comes with proven and diverse skills, according to the company.

Mark Davis, Managing Director of Dynamic, was a founding member and brings over 25 years’ experience in the mining services sector.

Dynamic has also recently appointed Garret Dixon as Non-Executive Chairman. His recent roles include Executive Vice President at Alcoa Corp and President Alcoa Bauxite. He has held previous roles as Executive General Manager for civil construction and contract mining group Henry Walker Eltin Ltd, Managing Director of logistics company Mitchell Corp, and Managing Director and CEO of ASX-listed Gindalbie Metals.

JP Equity Partners has been appointed Lead Manager to the IPO, with the company aiming to hit the ASX boards around August 20.

Davis said the time was right to list on the ASX and the IPO will provide the company with the capital required to secure project opportunities and continue its rapid growth push.

“It has been an exciting period for Dynamic,” he said. “As a founding member, I have seen first-hand the incredible transformation of the business since 2018. We are now preparing ourselves for the next phase of growth.

“The company is well-supported by a Tier One client base, which continues to grow with the pipeline of tendered contracts.

“It’s an exciting time in the Western Australian mining sector with strong market dynamics in both gold and iron ore. At completion of the IPO, Dynamic will be well-positioned to service these growing and important sectors. There is also the potential for strong growth in the civil sector with infrastructure projects coming out of increased government spending, post-COVID-19.”

He added: “I would like to take the time to thank Matt Freedman, who has played a critical role in growing the business to where we stand today and all our employees who contribute on daily basis and are essential to the day to day success of Dynamic.

“I would also like to welcome Garret Dixon as Non-Executive Chairman. To be able to attract someone of Garret’s calibre is a testament to where Dynamic is heading as business.

“Lastly, we could not be here today without out investor base. Over the past 24 months, Dynamic has been fortunate enough to welcome a number of key strategic investors with significant contracting and capital markets experience and I look forward to delivering long-term value to these investors and to the shareholders who join our register, once we hit the ASX boards.”

COSOL to expand SAP, ERP offering to Ok Tedi Mining

COSOL is to expand the work it is currently providing Ok Tedi Mining, in Papua New Guinea, with the ASX-listed company set to enhance and optimise the exploitation and efficiencies of its core SAP ERP business systems for the copper-gold miner.

The company is currently providing the miner with special projects work as part of a digital transformation program and support services.

The expanded engagement is valued at approximately A$2.2 million ($1.4 million)/y over two years.

COSOL said: “The expanded engagement builds on the existing support arrangement provided by COSOL for Ok Tedi Mining’s SAP, Ariba, SuccessFactors, core HR and payroll systems.

“In addition to the continued core systems support, COSOL is driving the expanded digital transformation program focusing on digital workspace collaboration and business intelligence.”

A key component of the program will be the sustainment and modernisation of the copper and gold miner’s underlying IT infrastructure to underpin the move to a hybrid cloud platform, COSOL said.

COSOL CEO, Scott McGowan, said: “This expansion of services reinforces COSOL’s engagement approach in being more than simply a technology services provider. While our extensive capability in enterprise asset management generally, and SAP specifically, underpins our operations, it is our understanding of our clients’ business drivers, priorities and the underlying data that supports our clients’ digital transformation.

“Flexibility to adjust to, and provide value in, the dynamic business environments our clients operate continues to be a hallmark of COSOL’s growth and success – both domestically and internationally.”

Qube bolsters mining and industrial logistics services with LCR buy

ASX-listed Qube Holdings has acquired industrial logistics company LCR, building up its mining and industrial services capabilities.

The deal was estimated to cost around A$135 million ($92.7 million), which would be funded by Qube’s existing undrawn debt facilities.

LCR is a “leading specialist provider of outsourced industrial logistics services, operating across mining, heavy transport, mobile crane and renewable energy industries including oil and gas”, according to Qube.

The acquisition provides Qube additional geographical diversity and service capability to enhance the company’s ability to provide reliable integrated logistics solutions, according to Qube. Both groups are aligned in their business models, which are driven by a strong safety culture, a solid and stable team, and a strong ethos to work with our local communities rather than simply in them, the company added.

LCR says it specialises in off-highway bulk commodity haulage and ancillary services, linking customer locations with rail infrastructure. It also provides critical, low cost services leveraged to increasing productivity, it said.

LCR CEO and Managing Director, Col Partington, said: “This alignment will continue under the support umbrella of Qube which will drive our collective goal to increase our presence and customer focus both in Australia and internationally. I am very excited for the staff and customers of LCR; Qube offers a great opportunity for all parties to be part of a growing national logistics business”

Qube Holdings’ Chief Operating Officer, Paul Digney, said: “The acquisition of LCR is significant as it provides Qube the ability to deliver enhanced broad spectrum mining and industrial services to its existing and future customers. LCR is well known for providing innovative lift and shift materials handling solutions across Australia and Papua New Guinea.

“Qube is committed to developing strong business units that deliver value for our customer base.”

Hazer Group eyes commercial synthetic graphite goal as pilot plant tests recommence

ASX-listed Hazer Group says its Fluidised Bed Reactor (FBR) pilot plant has been relocated from Sydney to Kwinana, in Perth, Australia, and the company is ready to re-commence its testing programme.

The Hazer FBR pilot plant is now located next to the Paddle Tube Reactor (PTR) pilot plant, being developed by Mineral Resources in accordance with the cooperation agreement executed by the two companies back in December 2017. This pact covered the design and construction of a commercial-scale synthetic graphite facility, with Mineral Resources funding all commercial development and Hazer providing intellectual property and technical assistance.
Hazer said Mineral Resources’ PTR pilot plant has also commenced commissioning.

Hazer is undertaking the commercialisation of the Hazer Process, a low-emission hydrogen and graphite production process. The Hazer process enables the effective conversion of natural gas and similar methane feedstocks, into hydrogen and high-quality graphite, using iron ore as a process catalyst. The FBR pilot plant allows the company to trial the Hazer process.

Hazer CEO, Geoff Ward, said: “We are very pleased that these important milestones have been achieved and we look forward to seeing the results from the PTR pilot plant over the coming months as we progress our collaboration with Mineral Resources to develop a commercial synthetic graphite production facility.

“With regards to the Hazer FBR programme, the outstanding results achieved in 2018 have given us the confidence to proceed into front-end engineering and design studies for a commercial demonstration plant (CDP).

“As previously advised, these studies have progressed well and are expected to be completed in April. We are continuing to work with potential offtake hydrogen partners, gas suppliers and project funders to bring together the first commercial Hazer facility.”

The company is targeting securing all the necessary project agreements to take a final investment decision on the CDP by mid-2019, with a projected commencement date for the CDP of the December quarter of 2020.

Emeco secures more haul trucks, dozers in effort to even supply-demand balance

Emeco Holdings’ confidence in the market has led it to investing in a large package of “strategic core assets” comprising mainly 240-t haul trucks and Cat D10 (pictured)/D11 dozers, the company said in its latest financial results.

The company, in 2018, acquired Matilda Equipment for an enterprise value of A$80 million ($57 million) and has since been working hard on integrating the rental specialist into the group.

Emeco saw strong growth in the first half of its financial year to end-2018, with operating earnings before interest, taxes, depreciation and amortisation of A$102.8 million, up from A$67 million a year earlier.

The company put this down to a full contribution from Force Equipment – which Emeco also acquired recently – and Matilda Equipment, continued improvement in average operating utilisation to 64% (up from 57% a year earlier) and strength in the Eastern Region, particularly coal mining customer demand.

Emeco has paid a A$20 million deposit to secure this haul truck and dozer fleet, with the recently acquired Force Equipment workshops playing a pivotal role in getting these assets ready for work.

“Emeco currently has very high utilisation in these asset classes – demand outweighs supply,” it said, adding that rental agreements were in place for a majority of these assets prior to them arriving in Australia.

Delivery and preparation of these assets is expected to occur throughout the second half of 2019, with earnings contribution expected in its 2020 financial year, the company said.

IMDEX sticks with Flexidrill acquisition plan as drill tech trials continue

IMDEX has entered into a secondary option period from March 2019 – December 2019 to acquire New Zealand-based companies Flexidrill Ltd and Flexidrill Construction Ltd, and the patent-protected technologies COREVIBE™ and MAGHAMMER™.

IMDEX’s decision to progress the COREVIBE and MAGHAMMER towards commercialisation is based on strong demand from drilling contractors and resource companies, together with successful trials at IMDEX’s test site in New Zealand, it said. COREVIBE trials – validated by SGS, a world leading inspection, verification, testing and certification company – concluded a productivity gain of 33% over conventional coring.

The secondary option period will allow IMDEX to conduct further product development and testing, while establishing its supply chain and manufacturing requirements, Imdex said.

In relation to COREVIBE, IMDEX expects to trial commercial prototypes with clients by the end of its 2019 financial year. MAGHAMMER commercial prototype trials will follow in the first half of 2020.






“The consideration to enter the secondary option period was varied from NZ$5 million ($3.4 million, 50% cash/50% IMDEX shares) to NZ$3 million in IMDEX shares to allow for NZ$2 million cash being applied to additional investment in product development,” Imdex said. There are no other variations to the original option agreement or extended option agreement, as announced in January 2018 and September 2018, respectively, the company said.

“Should IMDEX choose to exercise its option to acquire Flexidrill in December 2019, the COREVIBE and MAGHAMMER are expected to provide additional global revenue and earnings during financial year 2020 and be earnings accretive within 12 months of the exercise date,” the company said.

IMDEX’s Managing Director, Bernie Ridgeway, said: “We are pleased to further progress the COREVIBE and MAGHAMMER technologies towards commercialisation. These unique technologies have the potential to deliver substantial economic and productivity benefits to our clients globally, which is becoming increasingly important as new discoveries are likely to be under ground cover, deeper and require more drilling.

“It is widely recognised within the industry that drilling costs represent approximately half of global mineral exploration expenditure. Reducing these costs has been a major challenge, which is likely to intensify given increasing safety standards, environmental restrictions and greater average hole depths.”

Flexidrill Construction said its MAGHAMMER technology followed successful deep hole field tests it carried out in the oil and gas industry. “It is a unique, magnetic down the hole hammer, compatible with any rotary rig and designed to drill open holes in virtually any formation, hard or soft,” the company said.

It can operate with any drilling fluid (including viscous bentonite solutions) so is ideal for overburden, often without the need for casings. This system is not affected by ground water, so flooded formations are also not a problem, according to Flexidrill Construction.

COREVIBE, meanwhile, offers productivity improvements through high penetration rates, extended bit life and reduced tripping of inner tube for blockages, IMDEX has previously said.

Austin Engineering after safety and service life boost with two-piece excavator bucket

Austin Engineering has designed and manufactured a new two-piece excavator bucket that, it says, can both improve safety and service life.

The bucket assembly features well-defined reusable upper and consumable lower structures, designed for quick and safe bucket change-outs during scheduled maintenance intervals, the company said.

The bucket has been structurally verified for the nominated fatigue life using both ANSYS FEA software and EDEM simulation, according to Austin. This showed the new bucket assembly will achieve the theoretical target payload at the nominated fill factor. Meanwhile, the upper and lower sections of the new bucket are fabricated with combinations of high-strength steel for maximum fatigue resistance and durability, Austin said.

“The design is focused on safety with extensive consideration given to the potential for ‘stored energy’ safety hazards to exist and these have been eliminated from the design wherever practical,” Austin said.

The reusable upper section maintains overall structural integrity of the bucket assembly for a predetermined service life through multiple change-outs of the lower, consumable, section, according to the company.

The typical baseline service life for the upper section service will be in the vicinity of 30,000 hours; around four-to-five years based on industry expectations of conventional one-piece buckets of similar size and capacities, Austin said.

“Designed to be mine site and application-specific, the upper section offers scope for customisation and benefits proportionate to minimising costs over the assembly’s operational life,” the company said.

The bucket is available as fully-lined or liner-less, while the consumable lower section features a simplified design to improve the change-out time of a complete lower section or the removal and replacement of worn individual components.

For fully liner-less, lower bucket assemblies, the resulting structure uses alternative high strength and wear resistant materials in key areas along with increased thickness of identified structural components, according to Austin.

“Components subject to high wear and impact, such as the main shell and side plates, are designed as modular inserts which can be customised to customer specific operations,” Austin said, adding that these can be easily removed and replaced if required ahead of planned change-out.

Replaced lower sections provide an option for remanufacturing and can be returned to site for storage and direct replacement as required.

Sheffield Resources’ Thunderbird mineral sands project to use LNG

Sheffield Resources has secured a 15-year agreement with Woodside Energy and Energy Developments Pty Ltd (EDL) for the supply and delivery of 1,950 TJ/y of liquified natural gas (LNG) to its Thunderbird mineral sands project in northern Western Australia.

LNG will be supplied from Woodside’s Pluto LNG truck loading facility, near Karratha in Western Australia (pictured), and transported to Thunderbird’s LNG storage facility by a newly formed joint venture between Woodside and Energy Developments. The JV will own and operate a purpose-built road tanker fleet to safely and reliably deliver the LNG to Thunderbird. This is customary with other gas logistic arrangements in place for the towns of Broome, Derby and other communities in the Kimberley region, according to Sheffield.

“The advantage of using LNG at Thunderbird is three-fold, providing Sheffield with a low-cost, low-emission fuel source that is ideally suited to the ilmenite low temperature roast (LTR) process proposed for the Thunderbird processing plant,” Sheffield said.

As previously announced, Sheffield has secured infrastructure funding support from the Northern Australia Infrastructure Facility (NAIF).

“Part of the A$95 million ($68 million) financing package will be allocated to the proposed Thunderbird LNG storage and power station facilities, which will be constructed and operated under separate agreement with third parties,” the company said.

“This arrangement will enable Sheffield to capture long-term gas supply cost savings relative to the bankable feasibility study (BFS) published in March 2017. The BFS assumed an outsourced LNG storage and power station facility model on a build own and operate basis.”

The NAIF funding arrangements enable in-sourcing of LNG storage and power station facilities to take place, providing significant reduction in operating costs compared with the BFS assumptions, according to the company.

The agreement is subject to several customary conditions precedent, including the company making a final investment decision toward the development of Thunderbird.

Sheffield Resources Managing Director, Bruce McFadzean, said: “The project is now fully permitted and construction ready, with offtake and financing agreements in place. We look forward to continuing our relationship with Woodside and EDL as we move toward development during 2019.”

Back in November, Sheffield signed up GR Engineering Services to build a 7.5 Mt/y mineral processing plant and associated facilities at Thunderbird.