01/08/2014 - 14:24

Swick to beat revised target

01/08/2014 - 14:24

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Drilling company Swick Mining Services has announced it should beat its downgraded guidance for the year in its quarterly update today.

Swick managing director Kent Swick.

Drilling company Swick Mining Services should beat its downgraded guidance for the year, according to its quarterly update released today.

The company achieved a record 250,000 metres drilled in the quarter, and has recently won contracts in Australia and overseas, despite what it describes as challenging conditions in the global drilling market.

It expects revenue to be slightly ahead of the its revised $113 million to $117 million guidance range, and EBITDA to exceed guidance of $14 million to $16 million.

But these ranges were downgraded from initial forecasts of between $125 million to $135 million and EBITDA of up to $27 million.

The suspension of mining at Aditya Birla's Nifty copper mine in April contributed to the reduction.

Managing director Kent Swick said the last quarter of the financial year had delivered an improved performance.

“I am confident from our improved results, market growth and feedback received from clients that our safety, production and quality is continuing to improve in a market that potentially may encourage short cuts and lower quality,” Mr Swick said.

“Swick remains totally dedicated to the safety of its employees, the quality of our service and the total value created to the client as a result.”

He believed the company would continue to be in a strong position to attract and retain key clients.

Swick was up 1.9 per cent to 27 cents at the time of writing.

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