Norcliffe Mining Services has finalised a second pre-IPO capital raising, ahead of a listing later this year.

The Western Australia-based business which does equipment hire, maintenance services, offsite maintenance and blast hole drilling, closed a $22 million raise late last week in a deal managed by Tony Davis’ wholesale team at Shaw and Partners.

The business, run Charlie Massarella, is the parent company of two core businesses; Roc-Drill and Enerflow.

It services profitable operating mines or large blue-chip companies with blast hole drilling services, which means it is less exposed to drillers’ boom and bust cycle because it doesn’t work with pure-play explorers.

The company generated $50 million of revenue in 2021 and earnings before interest, tax, depreciation and amortisation of $14.1 million. It made $7.9 million in profit before tax.

For the 2022 financial year the company is forecasting $114 million in revenue and $27.9 million in EBITDA plus $21.1 million in net profit before tax. The majority of the work for 2022 has already been contracted, with the remaining under heads of agreements.

The company’s operations span copper and gold (49 per cent), iron ore (31 per cent) and zinc (15 per cent).

Its latest capital raise follows a $9.5 million pre-IPO private placement conducted in February, managed by Barclay Pearce Capital.

Norcliffe’s clients include the likes of Fortescue Metals Group, Rio Tinto, Downer Group, and Action Drill & Blast.

Article source: AFR, 24 August 2021