Swick advances business demerger

Image: Swick.

Swick Mining Services expects the separation of its drilling and mineral technology to provide great value to the company after adding a number of contracts to its order book in the past two months.

The company has secured $237 million in new and extended contracts since the beginning of the 2021 fiscal year, including a a five-year underground drilling contract at BHP’s Olympic Dam poly-metallic mine in South Australia reported in early August.

In late July, the company was also awarded a two-year extension at Northern Star Resources’ Jundee gold operations in Western Australia.

Swick managing director Kent Swick said he was pleased with the company’s performance for the 2020 fiscal year, and the foundation it has built as it enters the 2021 financial year.

“I am pleased with the ability of our drilling business to deliver robust earnings in this environment and secure new work with existing clients, including our two largest contracts for Northern Star and BHP, which provide a strong platform for the business as we enter the 2021 financial year,” he said.

“We … are now progressing with the outcome of our strategic review to demerge the drilling business and the mineral technology business to allow them to pursue their respective strategies and ultimately deliver the greatest value to Swick shareholders.”

The company is working through applying for demerger relief and analysing its options for an Orexplore listing as part of the demerger process.

Swick’s mineral technology business, Orexplore, completed its first in-field commercial agreement at St Barbara’s Gwalia gold mine in Leonora, Western Australia.

“Our key focus will remain the successful and safe execution of work at our secured projects, whilst driving the commercialisation of Orexplore with revenue starting to come through,” Swick stated.

“We are extremely pleased by the latest significant work secured from existing clients which provides Swick a solid platform for the drilling business in (the 2021 financial year).”

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