DDH1 successfully lists on ASX and is well-positioned to pursue growth strategy

DDH1 Limited's (ASX:DDH) has listed on the Australian Securities Exchange (ASX) today, with shares trading in the range of 81 cents to 91 cents with more than 9.1 million traded with a value of almost $8 million. The listing marks a major milestone in the evolution of the company, which was established in 2006 with the vision to create Australia’s premier mineral drilling contractor. Last week the company completed an Initial Public Offering (IPO) that secured gross proceeds of $150 million through the issue of 136,363,636 shares – or around 40% of DDH1’s shares on issue as at its listing date – to new investors at $1.10 per share. IPO proceeds were used to allow existing shareholders to realise part of their investment in the company and to repay company borrowings. The IPO was one of the largest by a Western Australia-based business in the past decade. “Critical role in mining and exploration” Over time, the company has earned the custom of Australia’s premier mining companies through its service offering of gathering the critical geological data that supports the decision-making in respect of all mining activity through the complete cycle of a mine’s life. DDH1 chairperson Diane Smith-Gander said: “I am delighted to be chairing this great West Australian company, which plays such an important and critical role in the ongoing success of Australia’s mining and exploration industry. “DDH1 is led by a highly experienced management team with a proven track record of operating across all phases of the mine life cycle as well as a board of directors that brings a diversity of directorship experience with some of Australia’s leading companies and a history of building shareholder value. “Today is just the start of what I am sure will be the next successful chapter in DDH1’s growth story.” “Well-positioned to pursue growth” DDH1 managing director and CEO Sy Van Dyk said: “The growth and success of DDH1 to date is testament to the commitment of the whole team, which strives to ensure the safety of all stakeholders while delivering exceptional service to our clients. “Our long-term client relationships are built on the provision of quality drilling services and a deep understanding of our client’s business needs. “The company's significant market position reinforces the strong levels of industry recognition. “There is growing demand in the Australian mineral drilling sector for DDH1’s services because of increased exploration, development and production spending by minerals exploration and mining companies. “As an ASX-listed company with a strong balance sheet, a committed shareholder base, a disciplined approach to growth and access to capital markets, DDH1 is well-positioned to pursue its growth strategy.” Non-executive director and significant shareholder Murray Pollock said: “DDH1’s strategy has always been to define a long-term vision and then balance short-term profitability with investment in growth. “This strategy and the guiding principles developed to underpin it have yielded continuous profitability and significant growth.”Pollock and his fellow DDH1 co-founders retain a collective 33.3% stake in the company while funds managed by Oaktree Capital Management LP, a long-term investor since 2017, hold a 22.1% interest. Strong financials and client base DDH1 has an extensive portfolio of around 102 clients, with a FY2020 Pro-Forma revenue of $249.8 million (around 88% of which was repeat revenue). The company’s client base includes Newcrest Mining Ltd (ASX:NCM) (TSE:NCM) (FRA:NMA) (OTCMKTS:NCMGF), BHP Group Ltd (ASX:BHP) (NYSE:BHP), Evolution Mining Ltd (ASX:EVN) (FRA:WE7) (OTCMKTS:CAHPF), Gold Fields Limited (NYSE:GFI) (JSE:GFI) (FRA:EDG), IGO Ltd (ASX:IGO) (OTCMKTS:IPGDF), Kalgoorlie Consolidated Gold Mines, Newmont Corporation (NYSE:NEM) (TSE:NGT) (VIE:NEWM) (FRA:NMM), Ramelius Resources Limited (ASX:RMS) (FRA:RRZ) (OTCMKTS:RMLRF), Rio Tinto Limited (ASX:RIO) (FRA:CRA1) (OTCMKTS:RTNTF), Roy Hill Iron Ore and St Barbara Ltd (ASX:SBM) (FRA:BM1) (OTCMKTS:STBMF). The company has forecast revenue in the financial year to June 30, 2021, of $280.2 million, forecast Pro-Forma Earnings before Interest, Tax, Depreciation and Amortisation of $69.3 million and a forecast Pro-Forma Net Profit After Tax of $30 million. DDH1 currently intends to declare a dividend for the period from the date of its ASX listing to June 30, 2021.