EDMS starts necessary business overhaul

EVERY Day Mine Services has warned it will post a “disappointing” full-year result as it was hit by management and project interruption issues in the recent half year.
EDMS starts necessary business overhaul EDMS starts necessary business overhaul EDMS starts necessary business overhaul EDMS starts necessary business overhaul EDMS starts necessary business overhaul

Every Day Mining Services drilling.

Blair Price

EDMS owns GOS Drilling, which holds a major exploration contract for China Shenhua Energy’s Watermark project in New South Wales.

Another subsidiary supplies a mine mixer for the underground coal and hard rock sectors, while subsidiary Australian Gas Drilling caters to the coal seam gas sector.

The company has been undergoing management changes since managing director and chief executive Ashley Pattison resigned in late April.

In an update issued from his successor, Stephen McCoy, EDMS delivered a sour outlook on the earnings for the recent financial year.

“After a promising first-half performance, a combination of management issues, inclement weather and project interruptions in the second half of the year will see a disappointing full-year result,” EDMS said.

An initial review of current business processes and structure is complete.

“An immediate overhaul of tendering, contract and cash management processes and structure has commenced to improve performance and profitability,” EDMS said.

“The reorganisation of the business has been initiated and will accelerate in August when the remainder of the key executive team has commenced.

“The new team will be mandated to introduce a range of new management practices designed to substantially improve operating performance.”

The latest recruits to the new team include Stephen Earp as general manager of assets and logistics, and Tony Glass as GM of the energy division.

Earp boasts asset management and maintenance experience from his time at Orica Mining Services and Allen’s Services Ltd.

Glass formerly held senior roles with both of these companies plus Toll Freight in Australia and was most recently the western regional director for a “leading international mining services company based in Canada” according to EDMS.

Both men will start their new roles on August 16.

“I am delighted to be able to appoint executives with management skills, and contractual and operational experience these outstanding candidates possess,” McCoy said.

Aside from Shenhua, other EDMS clients include Peabody Energy, Xstrata, Glencore and CBH Resources.

EDMS shares closed down 1.8% to 5.5c yesterday, while they were 11.5c at the end of April.

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