This concerns DDH more than SWK, but I'm still trying to get my head around what to do about the probable t/o. I post this under SWK cause I hold SWK, but benefits DDH more in the short term. DDH are in the process of acquiring 8 new rigs this FY and a further 3 next CY. Below confirms rigs are very much in demand.
Anyway HGO today announced that they about to restart drilling at their Kanmantoo Copper Project. They announced, "We are happy to have secured the three drill rigs in the current tight enviroment...."
So confirming what we all know about shortage of rigs and high demand, is the possible next problem, shortage of drillers and workers. That could put an uplift in costs as workers demand more and go to where there may be a better offer. New contracts will be mindful of that. I presume underground drilling is more specialised and more highly paid and thus less competitive and more stable???
Anyway, all up just another announcement showing the increased demand for drilling companies. And with high prices in all hard resources (except Fe) we can expect even more demand.
SWK Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
