Dynamic surges on ASX debut

Perth-based Dynamic Drill and Blast has become the latest mining contractor to successfully list on the Australian Stock Exchange, with its share price more than doubling.

Dynamic, which raised $5 million from its initial public offering in June, began trading at 50 cents per share – up 150 per cent on its IPO price of 20 cents.

Managing director Mark Davis said the contractor was now well-funded for its next phase of growth, with the market for specialist drill and blast continuing to grow.

“The outlook for the WA mining industry is extremely strong, supported by strong growth forecasts particularly across the gold and iron ore sectors,” Mr Davis said.

“We will continue to develop a pipeline of project opportunities that are buoyed by the level of tendering activity at the moment across both mining and civil infrastructure.”

Mr Davis said the listing strengthened Dynamic’s balance sheet and would assist the company in negotiating finance and working capital providers.

“At the same time, we are strengthening relationships with our equipment suppliers to ensure access to our core fleet that is required to undertake new projects,” he said.

Dynamic is currently servicing three Western Australian projects, owned by Rio Tinto, Fortescue Metals Group and Galaxy Resources.

Shares in Dynamic dropped back to 45 cents per share at 1:14pm AEST.