Tag Archives: Mark Davis

Dynamic Group looks to add ‘third limb’ to drilling business with Welldrill

Dynamic Group Holdings, the owner of Dynamic Drill & Blast and Orlando Drilling, is looking to further consolidate the Australia-based drilling sector by acquiring Welldrill from founder Peter Chegwidden.

Welldrill, founded in 2000, has serviced a number of Western Australia-based government organisations and mining companies (including BHP, OZ Minerals and BCI Minerals), in this period.

Dynamic, which has lodged a bid of A$19 million ($13 million) for the company, says it has identified a “number of opportunities to enhance performance” under the Dynamic umbrella. It would also see the company add another six water well rigs to its offering, bringing the total count to circa-45 rigs.

The company said the acquisition would provide a “defensive revenue stream” with increased exposure to government contracts and production mining. This is on top of the exploration and grade control drilling exposure it has with Orlando Drilling and drill and blast exposure it has with Dynamic Drill & Blast.

“Dynamic is also excited about the in-house safety, automation and performance tracking technology of Welldrill, which it plans to adopt across its existing fleet,” it added.

Dynamic Managing Director, Mark Davis, said: “Welldrill is expected to provide a critical third limb to our existing drill and blast, and exploration and resource definition services.”

Dynamic Drill and Blast to deploy rigs at iron ore, gold mines in Western Australia

Dynamic Drill and Blast Holdings says it has entered into a services contract with Pilbara Resources Group (PRG) and been selected as preferred supplier to Carey Mining, resulting in the delivery of work across two separate resource projects (gold and iron ore) in Western Australia.

The services contract with PRG relates to the provision of drilling and blasting services at GWR Group Ltd’s Wiluna West iron ore project, where PRG is also a contractor. It will see DDB provide services from November for Stage 1 of the C4 iron ore deposit, part of Wiluna West.

The C4 iron deposit is 1.4 km long and contains a combined DSO hematite, JORC 2004 mineral resource estimate of 21.6 Mt at 60.7% Fe, comprising 18.5 Mt at 61.2% Fe indicated and 3.1 Mt at 58% Fe inferred. DDB’s contract relates to around 1 Mt of the 21.6 Mt resource, it said.

DDB has also been selected as preferred supplier by Carey for the provision of drilling services at the AngloGold Ashanti-owned Golden Delicious deposit, part of the Sunrise Dam operation.

It is estimated DDB will provide services from late December 2020 for a period of around 24 months, with DDB and the contractor working towards execution of the final form drilling contract.

The combined revenue from both services contracts once executed is estimated to be A$9-11 million ($6.6-8.1 million) and will be based on a fixed and variable pricing structure, DDB said. It will see the recently listed ASX company use up to four drill rigs, as well as around 20 personnel and ancillary equipment to deliver the required services.

As well as the new projects, DDB has deployed equipment and personnel to additional short-term projects, it said.

DDB Managing Director, Mark Davis, said: “We are pleased to be diversifying our client base, adding two longer-term production projects, including one in the precious metals sector. These contracts complement our current operations, which include long-term mining projects and specialised civil works, which will support the sustainable growth of the business.”

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.”