DDB shares hit record high on new contracts

ASX-listed Dynamic Drill and Blast has secured work on gold and iron ore projects in Western Australia under two subcontracts, with Pilbara Resource Group and Carey Mining.

Dynamic expects to gain up to $11 million in revenue from the combined work.

The news sent its shares up 33 per cent to a record high of 73 cents, as at 3:45pm AEST.

Dynamic, headquartered in Bayswater, has been subcontracted by Pilbara Resource Group for work at GWR Group’s C4 iron ore deposit, which forms part of the Wiluna West project.

Wiluna is an advanced hematite iron ore project, situated in WA's Mid West region.

Stage one of the project is expected to produce 1 million tonnes of ore from the 21.6 million tonne C4 deposit.

In September, GWR contracted PRG to undertake all aspects of stage one, starting with the construction of a haul and road and other infrastructure.

Dynamic is scheduled to begin work under its subcontract this month.

The business has also been selected as the preferred subcontractor by Carey Mining for work at AngloGold Ashanti’s Golden Delicious deposit, as part of its Sunrise Dam project in WA’s Goldfields-Esperance region.

Dynamic, if contracted, will begin work late in December for a 24-month period.

It will use up to four drill rigs under both subcontracts along with 20 personnel and ancillary equipment.

Managing director Mark Davis said Dynamic was diversifying its client base.

“These contracts complement our current operations, which include long-term mining projects and specialised civil works, which will support the sustainable growth of the business,” Mr Davis said.

Dynamic has also deployed equipment and personnel to other short-term projects.

Its share price dropped back to 68 cents at the end of trade, up about 23 per cent on yesterday’s close.