Swick reports record results

SWICK Mining Services has released its unaudited financial results and operations update for the first half of fiscal year 2012/13, including record revenue.
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Swick Mining Services managing director Kent Swick

Hannah Vickers

The unaudited $A75.6 million in revenue for the six months ending December 31 was up 9% from the previous year and was a record first half for the company.

Earnings before interest, tax, depreciation and amortisation of $15.8 million were also a record and was a 14% increase from the same period last year.

Swick ended the year with more than $21 million in cash.

Full audited first half results will be posted mid to late February.

The company reported it had 56 rigs from a fleet of 76, including three client-owned rigs, operating in the field as of December 31, compared to 57 rigs from a fleet of 69, including three-client owned rigs, last year.

Contract wins in Australia and North America will add to the rigs in work early in the 2013 calendar year.

Managing director Kent Swick said the company’s strategy to de-risk the business from significant exposure to the exploration sector had been effective.

“It has been a terrific half for Swick in terms of posting a solid financial result in a difficult market for mineral drilling contractors,” he said.

The company will have a record number of drill rigs in the North American division by March 2013.

“There is a solid base load of work secured in the North American region for calendar year 2013, and we are confident of further expanding this position in the coming months,” Swick said.

Swick received one underground diamond drilling tender award in Australia, a two-year agreement for one rig from November 2012 with MMG for its Dugald River mine in Queensland.

The company had three awards in North America, two in Canada and one in the US, and said it is in the final stages of negotiations in regards to at least three other significant contracts.

Swick also renewed a number of major contracts in Australia, including the Straits Resources Tritton Copper mine in New South Wales to October 2014 and Metals X Renison tin mine in Tasmania to August 2014.

“The management and employees at Swick should all be proud of their achievements over the last six months and we look forward to meeting the challenges of mobilising and establishing our operations at a number of new clients’ mine sites this quarter,” Swick said.

“I am also confident that we will be advising shareholders in the near future of further significant contract awards that will add to our global market position.”