Water drilling services company Vysarn has added BHP Nickel West to its list of blue-chip mining clients in Western Australia.
The ASX junior says subsidiary Pentium Hydro will this month start a three-year contract with the large nickel producer to drill and install production water bores, and provide monitoring services.
The first six months of work is expected to generate about A$2.8 million of revenue for Vysarn, which is aiming to double the size of its business this year.
Its current client list includes Fortescue Metals Group, Roy Hill, IGO and Iluka Resources, and it has previously worked for the likes of Rio Tinto, Newcrest Mining and AngloGold Ashanti.
Vysarn more than doubled its revenue in FY21 (ended June 30 last year) to $25.8m, lifting EBITDA to $5m from the previous year’s negative result.
In FY22 it is targeting circa-$50m of revenue and EBITDA of $10-11m.
Vysarn’s share price is up 7.5% this year at 8.6c, capitalising the company at about $32m.
