Swick Mining Services is a company that supplies drilling rigs and crews to the large mining sector. It is a great way to get exposure to the resources boom without the same risk attached to the explorers and miners themselves. The company is 70% owned by the Swick family, so shares are tightly held. They have guaranteed contract income to the point where they have had to commence acquisition and building of double the number of drilling rigs.
Today, they came out with the following announcement:
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$55 MILLION REVENUE FROM NEW DRILLING CONTRACTS Swick Mining Services Ltd (ASX Code: SWK) is pleased to announce that it has been awarded new drilling contracts with a number of leading mining houses including Consolidated Minerals, Oxiana, Jubilee, Territory Resources, Barrick and Newmont. The new work is expected to generate revenue of approximately $55 million per annum, underpinning the Company’s revenue forecasts for FY08 and FY09
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The full announcement can be read from CommSec etc. But this is all good stuff for SWK.
I hold SWK long term, along with IMD - another company also in the same mining services sector.
Usual disclaimers - DYOR etc.
SWK Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
