Demand increases for EDMS services
Wednesday March 3, 2010
Every Day Mine Services (EDMS) has returned to profitability after the global economic downturn affected the company’s operations.
The EDMS group recorded a half yearly profit of $1.185million (after tax), a marked improvement on last year’s results.
EDMS managing director Ashley Pattison said the company’s profitability has recovered as a result of improving market conditions and tighter cost control.
The company, which originated in Cobar, has added a new subsidiary Australian Gas Drilling Pty Ltd to its GOS Drilling and EDMS Operation arms.
Mr Pattison said the company’s revenue has been boosted by the expansion into coal seam and gas drilling.
“While demand for underground services appears to be increasing, the period of these contracts are less than surface contracts due to uncertainty around base metal pricing,” Mr Pattison said in the company’s half year report.
The company recently completed a $7.5million share issue to institutional investors with the proceeds used to acquire five new drill rigs predominantly for coal seam gas work.
Mr Pattison said the company still has a major base in the Cobar region.
“The underground diamond drilling environment remains very price competitive.
“Therefore our focus for this division remains on the Cobar region where we remain contracted at two operating mines,” he said.
Mr Pattison said EDMS continues to employ around 100 people in the Cobar region in its pumps, contracting and labour hire business.
“This operation is dependent on our clients mining operations which over the past nine months have continued to ramp back up to full operation and we continue to experience increasing demand,” he said.
Mr Pattison said the company has a positive outlook, with a focus on further strengthening its coal and gas operations in the Hunter Valley, Gunnedah and Bowen Basin areas.
“Demand remains strong in the coal industry and there are signs of recovery in base metals.
“The capital raising has strengthened our balance sheet and enabled us to pursue some growth through select rig purchases,” Mr Pattison said.
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