DDH1 Ltd (ASX:DDH) has secured four additional surface mineral drilling rigs in response to strong customer demand.
The new rigs are in addition to 11 rigs already secured since the start of FY21 and the company has the largest surface fleet of operating mineral drilling rigs in Australia.
These four rigs, which are added to the organic fleet growth outlined in the company’s IPO Prospectus in February, will take the total number of rigs in DDH1’s fleet to 103 by the first half of FY22.
Confidence in drilling sector
DDH1’s managing director and CEO Sy Van Dyk said: “These rig purchases demonstrate our confidence in Australia’s mineral drilling sector.
“As we highlighted in our Prospectus, DDH1 is experiencing strong industry growth with rising demand for our services because of increased exploration, development and production spending by minerals exploration and mining companies.
“DDH1 had already committed to adding 11 surface drilling rigs to our industry-leading fleet.
“However, based on feedback from our customers and in response to their outstanding exploration successes, DDH1 has exercised an opportunity to secure a further four rigs.
“This additional investment is based on contracted demand and will provide increased capacity to service our clients across the DDH1 Drilling, Ranger Drilling and Strike Drilling brands.”
Rigs to become operational
The first two of the additional rigs will be operational within the DDH1 fleet this financial year and the remaining two will be operational in FY22.
DDH1 is continuing its program of progressively adding the already committed 11 surface drilling rigs – as detailed in the Prospectus – to the company’s fleet during FY21.