Australia’s largest mineral drilling contractor DDH1 (ASX:DDH) reports it achieved a 44% increase in interim net profit to $28.5 million as revenue ballooned 69.5% to $298 million on the back of the expansion of its fleet of rigs and increased drilling rates.
However, DDH1 says that delayed regulatory approvals has led to slower demand from its clients for the year to date after a robust first half.
The company reports that rising exploration activity and spending, strong commodity prices, and the rise of companies pursuing battery metals, has positioned it to capitalise on long-term demand from cashed-up clients.
As of 31 December, the group’s fleet totaled 190 drill rigs, comprising 91 underground and 99 surface drill rigs
As of 31 December, the group’s fleet totaled 190 drill rigs, comprising 91 underground and 99 surface drill rigs. DDH1 reports utilisation remained strong throughout the period, with utilisation rates of 77.1% in the current period. It will add another 3 by the end of June.
More than half of its revenue is derived from Western Australia, with the balance spread across the rest of the country, the US and Europe. Some 41% of the mining services firm’s drilling is focused on gold, while 19% is spent on copper, and 11% on iron ore.
The mining services company, which provides surface and underground drilling services to a diverse group of exploration and mining houses across a balanced spread of mineral commodities, has had a busy half-year to the end of 2022.
DDH1’s drill rig fleet is a strategically important asset within the Australian mining industry. Surface drilling is performed across Australia by DDH1 Drilling, Ranger Drilling, and Strike Drilling while Swick Mining Services has a global presence performing underground drilling services across Australia, North America, and Western Europe.
Central to DDH1’s strategic approach is the pursuit of long-term relationships with clients, built on quality drilling services and a deep understanding of their business needs.
Established in 2006, DDH1 is an industry leader in enabling its clients to secure quality mineral samples with exceptional spatial accuracy. DDH1 employs around 1,923 people and operates a fleet of 190 highly specified mineral drilling rigs across its 4 brands, namely DDH1 Drilling, Ranger Drilling, Strike Drilling, and Swick Mining Services. Offering clients, the full suite of mineral drilling services including air core, reverse circulation, and both surface and underground core drilling.
Write to Adam Orlando at Mining.com.au
Images: DDH1 Ltd
