EDMS is positive
Wednesday July 15, 2009
Every Day Mine Services believes the worst of the economic downturn is behind the company, with a range of new contracts now in place.
The ASX listed company, which was established in Cobar, last week held an extraordinary general meeting in Sydney where chairman Peter Bradfield said the company is well placed for the coming financial year.
EDMS recently announced the acquisition of assets from the liquidated company Henry Drilling Pty Ltd, and the marketing and manufacturing rights for Mine Mixers.
At the meeting Mr Bradfield acknowledged the difficulties experienced by EDMS, and the mining industry as a whole, in the last financial year.
“The business climate became incredibly tough and this is still the case today for some of our clients. In saying this, we have made very good penetration into the energy sector with our surface fleet during trying times for the company and demand in this area continues to be very strong,” Mr Bradfield said.
According to a recent operational update released by the company, EDMS has a new contract with Unimin for the Tallawang project near Mudgee, as well another in Victoria.
“In addition to this, EDMS has eight tenders out for additional work in the down-the-hole area and management expect to see utilisation increasing over the next quarter,” the report said.
While the outlook is positive, the company was recently forced to reassign or make redundant a number of employees after a batch plant contract with Cobar’s CSA Mine was suspended. CSA is trialling alternate ground control methods and will retain an EDMS batch plant onsite until a decision has been reached.
Mr Bradfield said despite this, the company is better placed than 12 months ago with a focus on attracting high quality employees.
“Since our last shareholder meeting, the management have been working extremely hard to ensure that the right team is in place to make EDMS a long term sustainable business,” Mr Bradfield said.
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