Highlights
• 1Q15 revenue of $ 32.7m (unaudited) up from $ 32.0m for previous corresponding period (pcp)
• A total of 57 rigs in work, operating at 24 mine sites for 20 clients globally
• Total fleet utilisation of 70% at end of quarter up from 61% pcp
• Underground diamond fleet utilisation of 75 % at end of quarter up from 67% pcp
Operations Update
Revenue for the quarter ending September 3 0 , 201 4 was $ 3 2 . 7 m illion (unaudited), up from $32.0 million for the corresponding period a year ago . The Company is operating at 2 4 mine sites for 20 individual clients, of which 4 sites are international .
A total of 57 rigs from a fleet of 81 (including three client owned rigs) were operating in the field as of September 30, 2014 compared to 50 rigs from the same fleet a year ago. Of total rigs in work the Underground Diamond division represented 50 rigs operating from a fleet of 67, compared to 45 rigs operating from a fleet of 67 a year ago.
As foreshadowed in our FY14 full year update Swick has experienced an increase in activity during the first quarter of FY15 . In particular, the Long Hole drilling division saw increased activity as its client progresses to normal levels of demand. Demand is expected to remain relatively steady with ex isting clients, however significant tendering opportunity exists.
Swick believes its market leading underground diamond division is still well placed to see continued growth as a result of continued improvements in the sector and its focus on total value in the sector.
Kent Swick. Managing Director stated "The recovery in drilling demand has continued this quarter and indicates that our client’s drilling budgets, in particular for underground diamond coring , are returning to normal levels. In addition to the organic recovery in demand, there has been significant tendering activity and we await results for many significant contra cts. "
"Swick is progressing technology projects on its rigs to improve production and reduce non – drilling time . In addition, the Company is ready to meet the potential rig demand and has prepared and rebuilt idle rigs for anticipated upcoming demand."
