Swick wins Newmont APAC drilling contract

Swick Mining has won a contract renewal for underground diamond drilling at Newmont's operations.

The renewal of this contract will see it work for another three years at Newmont's underground Jundee gold mine in Western Australia and its Granites gold mine in the Northern Territory,where Swick has been drilling since 2007.

It comes only a month after Newmont cut positions at its Granites operation.

Regarding the win, managing director Kent Swick said the company is "very proud to be selected as the successful tenderer for this large contract and looks forward to continuing the very strong business partnership with Newmont".

"Newmont have been a cornerstone client of Swick's for many years and a raft of safety and productivity initiatives in our business have been borne by our close working relationship."

Swick currently has 12 underground rigs deployed between the two sites.

Despite the downturn the contractor has recorded a promising year.

It saw a 17 per cent growth year on year,with a FY13 NPAT of $11.3 million.

It's net cash from operating activities also dramatically increased, rising 44 per cent, while at the same time its debt levels fell 78 per cent.

It achieved a full year revenue of $146.5 million and EBITDA of $30.8 million, representing an annual growth of 7 and 8 per cent respectively.

Swick saw a total of 54 rigs utilised outo f a fleet of 78 as of June 30, compared 58 rigs from a fleet of 72 this time last year.

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