New contracts have given Australian microcap driller Dynamic Group a solid foundation on which to lift FY25 margins and profits after its Q3 was hit by poor drill fleet utilisation.
The ASX-listed company, which has a current market value of about A$28 million, described the March quarter this year as “challenging … with lower than anticipated fleet utilisation across the businesses impacting revenue”.
It reported EBITDA of $2.3 million on $11.9m revenue versus $6.6m and $27.4m for the same period last year.
Dynamic’s $58.2m revenue and $10m EBITDA for the first nine months of FY24 compare with $73.3m and $11.6m in FY23.
The company finished March with plus-$172m in its order book.
It secured new contracts worth $11.1-12.9m in Q1.
“Multiple mobilisations have taken place during Q3 FY24 and in the early stages of Q4 FY24,” Dynamic said.
“Utilisation significantly improved into Q4 FY24 after a challenging Q3 FY24.”
The driller said significant costs were incurred in Q1 setting up for a 49-month, $60-65m drill and blast contract with Western Australian gold miner Silver Lake Resources.
A 12-month extension of Dynamic’s drill and blast contract with Carey Mining in WA was among new deals secured in Q1.
Exploration drilling arm Orlando Drilling won a two-year contract with Pilbara Manganese.
