Understand this – last year in WA we spent $21 billion on mineral exploration. Sure. Nice work if you can get it. And an aptly named, cracking little Aussie small cap really is. Dynamic Group Holdings’ H1 revenue just about tripled on the same time last year – up 193% to almost $35 million.By comparison, Dynamic’s EBITDA – at more than $8 million – only jumped by 178% on the previous corresponding period.Get the latest stock news and insights straight to your , that’s pretty good too.It’s no surprise really, this is a whip-smart little business led by an experienced, ambitious and utterly reliable c-suite.And while labour shortages are stunting most businesses, everyone wants to work for. Mining services demand that mining services are the backbone of the resources industry, the space has been there for companies competent enough to build – and secure – trust.Last year, in WA alone, over $1 billion was spent on gold exploration.For iron oore it was $455 million and a lot more fresh money is pouring into previously dormant sectors – like the cool $185 million that went into nickel-cobalt.And DBB’s executive director Matt Freedman re kli ckons there’s even more room to grow in WA.“In terms of the addressable market and the very high levels of exploration spend, we are seeing a sustained level of demand in the short, medium and long term, both across our exploration drilling division, as well as our drill and blast division,” he told *.“We’re generating real earnings on a maintainable basis. We’re a small company but we’re diversified, we’ve got a strong balance sheet, a strong team and the management team has skin in the game.”Gold, lithium, iron ore, you name it…Dynamic Group Holdings (ASXDB) is working on 18 active projects, supported by a drill rig fleet of 39, with 240+ personnel across gold, lithium, iron ore, civil/construction, nickel and copper.During the half, DDB acquired Orlando Drilling, which was selected by Global Lithium Resources (ASX:GL1) to complete a 60,000m RC drill program at their Marble Bar Project – which is now underway.Orlando also entered several new contracts, with ongoing exploration across the Pilbara, Murchison and Gold Field regions, focusing on a diverse mix of commodities including gold, lithium, nickel and copper.And due to the ongoing demand and growing pipeline of tender opportunities, the company has now purchased four additional drill rigs.Pic: WA’s share of national mineral exploration expenditure was 65% of the national total.Opportunities across both business divisions Freedman said there’s synergies between the two businesses to become a fuller service drilling operation that are yet to be fully realised.“What we’re being really mindful of is retaining the kind of culture that drives the efficiencies within each specific business unit,” he said.“There are some lower hanging fruit which remains to be picked and those things can include logistics, supply chain management, volume based pricing, on that supply chain side of things.“The main thing is the cross pollination of opportunity once the capacity exists within the respective businesses.”Growing against COVID Freedman said that while there’s been some labour shortages due to COVID travel restrictions, the company has a strong workforce retention strategy.“Our attraction/retention strategies have never been more important,” he said.“There’s no doubt there are labour challenges, but the work that we put in over the last few years into the contractual mechanisms and the general composition of our contracts allows us to protect the business to a certain degree.”Upskilling is also a focus, with the company introducing training programs to attract and retain staff.Pic: The company has an established and growing client baseacross a diverse commodity mix.Ready to cater for continued exploration activityLooking forward, China will continue to rely on WA for its iron ore, while global inflation concerns support a favourable outlook for gold.Plus, strong growth in investing and developing green metals for a low-carbon future is supporting commodities like lithium, nickel and copper.With the strong projected growth forecasts for commodities, Freedman is confident that DDB is well placed to service the rapidly growing WA mining sector.Not to mention the company has a healthy $10.1 million of cash“We have a robust pipeline of growth opportunities, and a strong level of inquiry for short, medium and long-term projects,” Freedman said.“Organic growth is the focus, but we’re constantly looking at corporate activity, which is going to provide accretive value to our shareholders.“We’ve got a very strong balance sheet with access to significant undrawn facilities in excess of $7 million dollars with the two major banks NAB and Commonwealth.“We will continuously find growth opportunities and assess them on a case-by-case basis.”
DB) is working on 18 active projects, supported by a drill rig fleet of 39, with 240+ personnel across gold, lithium, iron ore, civil/construction, nickel and copper.During the half, DDB acquired Orlando Drilling, which was selected by Global Lithium Resources (ASX:GL1) to complete a 60,000m RC drill program at their Marble Bar Project – which is now underway.Orlando also entered several new contracts, with ongoing exploration across the Pilbara, Murchison and Gold Field regions, focusing on a diverse mix of commodities including gold, lithium, nickel and copper.And due to the ongoing demand and growing pipeline of tender opportunities, the company has now purchased four additional drill rigs.Pic: WA’s share of national mineral exploration expenditure was 65% of the national total.Opportunities across both business divisions Freedman said there’s synergies between the two businesses to become a fuller service drilling operation that are yet to be fully realised.“What we’re being really mindful of is retaining the kind of culture that drives the efficiencies within each specific business unit,” he said.“There are some lower hanging fruit which remains to be picked and those things can include logistics, supply chain management, volume based pricing, on that supply chain side of things.“The main thing is the cross pollination of opportunity once the capacity exists within the respective businesses.”Growing against COVID Freedman said that while there’s been some labour shortages due to COVID travel restrictions, the company has a strong workforce retention strategy.“Our attraction/retention strategies have never been more important,” he said.“There’s no doubt there are labour challenges, but the work that we put in over the last few years into the contractual mechanisms and the general composition of our contracts allows us to protect the business to a certain degree.”Upskilling is also a focus, with the company introducing training programs to attract and retain staff.Pic: The company has an established and growing client baseacross a diverse commodity mix.Ready to cater for continued exploration activityLooking forward, China will continue to rely on WA for its iron ore, while global inflation concerns support a favourable outlook for gold.Plus, strong growth in investing and developing green metals for a low-carbon future is supporting commodities like lithium, nickel and copper.With the strong projected growth forecasts for commodities, Freedman is confident that DDB is well placed to service the rapidly growing WA mining sector.Not to mention the company has a healthy $10.1 million of cash“We have a robust pipeline of growth opportunities, and a strong level of inquiry for short, medium and long-term projects,” Freedman said.“Organic growth is the focus, but we’re constantly looking at corporate activity, which is going to provide accretive value to our shareholders.“We’ve got a very strong balance sheet with access to significant undrawn facilities in excess of $7 million dollars with the two major banks NAB and Commonwealth.“We will continuously find growth opportunities and assess them on a case-by-case basis.”
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