Specialist Australian drilling contractor Vysarn has added a consulting arm, Pentium Water, as it pursues an ambition to be a vertically integrated water services business serving mining and other markets.
It complements ASX-listed Vysarn’s existing Pentium Hydro and Australian Groundwater businesses, the former a hydrogeological and dewatering drilling contractor. Australian Groundwater provides production critical, hydrogeological drilling, dewatering and test pumping services.
Pentium Water, which has inked a maiden six-month agreement with RPS AAP Consulting, is being led by general manager and technical director urban water management, Shane McSweeney. Ron Colman is technical director mine water management.
Demand for Pentium Water’s hydrogeology, hydrology and environmental planning services is understood to be high, with Vysarn managing director James Clement telling InvestMETS the consultancy could employ 15 people by the end of the current quarter.
That would take Vysarn’s total headcount to 130-140 people.
Clement said about 10 employees were stuck in eastern Australia ready to work once Western Australia’s border opened. The company was “fortunate to have more WA-centric people”.
Vysarn, established 2.5 years ago, is making the most of surging commodity-price led demand for hydrogeological drilling, particularly in areas such as WA’s Pilbara region where vast resources sit under ground water tables. Roy Hill, Fortescue Metals Group, IGO and Iluka head its client list.
Vysarn has a versatile fleet of dual rotary (DR), dual tube flooded reverse (DTFR) and conventional rigs and had 10 of its 12 drills working last year.
FY21 revenue was A$25.8 million, up 117% on the previous year. Vysarn is aiming for $50 million revenue in FY22 based on high fleet utilisation and no significant disruption from wet weather, mechanical breakdowns or COVID lockdowns.
The company is understood to be looking for bolt-on acquisitions.
Vysarn’s share price was up more than 2% today at 8.6c, capitalising the company at about $34 million.