INVESTORS will have a rare opportunity to invest directly in the mining services sector when Bassendean company Labtech Essa launches a $3 million share market float next month.
INVESTORS will have a rare opportunity to invest directly in the mining services sector when Bassendean company Labtech Essa launches a $3 million share market float next month.
While the share market has no shortage of mining and exploration companies, very few mining services companies have sought a public listing.
Labtech Essa, which plans to list as Essa Australia, has grown over the past decade to become one of the world leaders in the provision of sampling and sample preparation equipment.
Its clients include numerous mining companies as well as commercial testing laboratories such as Canning Vale firm Ultra Trace.
Last financial year the company had a turnover of nearly $12 million and managing director Darryl Stevens is forecasting a turnover of $13.5 million in 2005.
The growth will be aided by plans to expand the use of robotics in what has traditionally been a manual industry.
“The future of our business is in automation and robotics,” Mr Stevens said.
“We want to list and raise some capital to be able to grow that business quicker.”
He said the increased use of robotics would not only boost operating efficiency, but also would remove the risk of human error from the sampling process.
To support its planned strategic thrust, Essa recently recruited Rio Tinto executive Rob Williamson, who was closely involved in the use of robotics in product sampling in Rio’s iron ore loading facilities at Dampier.
Mr Williamson said there were an estimated 700,000 robots in use worldwide and the challenge was to develop operating systems and peripheral equipment that maximise the efficiency gain.
Essa is aiming to supply complete packages to its clients, with imported robots integrated with appropriate software and crushing and pulverising equipment.
It delivers fully assembled and factory tested equipment to customers worldwide.
The company handles most steps in the product process, from design to engineering, manufacturing and warehousing, and currently has 50 staff.
It also has half-owned affiliate companies in Chile, England and South Africa, as well as distributors in other parts of the world.
Labtech Essa was established in 1996 from the merger of two companies, Essa in Perth and Labtechnics in Adelaide, which had developed complementary products.
The predecessor companies were both established in 1983.
Mr Stevens said the company’s long-term preparations for a stock market float had included the auditing of its accounts for the past five years.
A final step ahead of the float will be the appointment of experienced mining industry executive Dudley Kingsnorth as chairman and Geoff Donohue as a director.
The float is being managed by Patersons Securities and Mr Stevens expects Essa to be listed on the Australian Stock Exchange by October this year.
He said the company had explored alternative funding options, such as venture capital, but was not tempted by the deals on offer.
“People wanted too much of the business, we would have been giving it away,” Mr Stevens told WA Business News.
