Boart Longyear releases 2014 results, celebrates 125 years
Boart Longyear’s (US-OTC: BOARF; ASX: BLY) 2014 financial results show that the poor market conditions dogging the resource sector have not spared the drilling services, equipment and performance tooling supplier. The firm generated revenues of US$867 million in 2014, down from US$1.2 billion in 2013.
Revenue for Boart’s products division was US$230 million in 2014, off 25% from last year. The company’s drilling services business unit saw its revenue shrink by 31% to US$636 million.
The company’s cost-cutting in the current market lull has paid off, producing US$31 million of adjusted earnings before interest, taxes, depreciation and amortization in 2014, and minimized the increase in its net debt to $548 million. Net debt rose on higher interest costs. The company said that since 2012, cost-cutting has saved the business more than US$1.1 billion.
Boart says that its recent recapitalization, led by private equity firm Centerbridge Partners, has left the company better off than it was a year ago, with a stronger balance sheet, more liquity and improved financial flexibility. After the recapitalization, Boart ended 2014 with US$169 million in cash and equivalents to support ongoing activities.
As Boart enters its 125th year in business, its largest shareholder, Centerbridge, now owns 49% of the company.
“As a result of the recapitalization, we no longer face the uncertainty related to our potential inability to refinance our debt,” president and CEO Richard O’Brien said. “We are also much better positioned as a result of substantial and sustainable cost reductions to provide increased earnings and cash flow when our markets recover.”
Boart celebrated its 125th anniversary during the 2015 Prospectors & Developers Association of Canada convention in early March with a display of historic artifacts and photos. The company has also launched the Boart Longyear Hall of Fame to honour long-time employees that have left their mark on the company and industry.
Headquartered in Salt Lake City, Utah, Boart’s drilling services division operates in 30 countries. It’s global products division designs and manufactures drilling equipment, performace tools and parts to customers in more than 100 countries.
At press time Boart’s shares traded for A21¢, within a 52-week trading range of A9¢ to A35¢. The company has 931 million shares outstanding for a A$177-million market capitalization.
SGS lands Drakelands mine contract
Wolf Minerals (ASX: WLF; US-OTC: WFMRF) has chosen SGS to operate the on-site laboratory at its Drakelands tungsten-tin project in Devon, England.
The terms of the contract stipulate that SGS will perform all required analytical services for the project for the next five years. SGS will be tasked with analyzing production-grade control samples, process plant control streams and final concentrates for sale.
SGS will also conduct metallurgical testing and technical support through the lab, as well as from its facility at the Wheal Jane Earth Science Park in Cornwall.
Drakelands could begin production by June, representing the first new metal mine in England in more than 40 years.
“We are pleased to be partnering with SGS at Drakelands. Our custom-built laboratory, operated by their experienced team, will provide efficient and accurate assaying at the site, with 13 jobs created as a result,” Wolf Minerals managing director Russell Clark said.
SGS specializes in inspection, verification, testing and certification. The Geneva-headquartered firm has more than 80,000 employers and 1,650 international labs and offices.
Tomra Sorting to supply Saudi Arabian phosphate project
Sensor-based solutions supplier Tomra has landed a contract to deliver nine sorters for the Umm Wu’al plant, part of the Waad Al Shamal phosphate project in northern Saudi Arabia. The project is a joint venture that is 60%-owned by Saudi miner Ma’aden. Mosaic (NYSE: MOS) holds 25% of the project and the rest belongs to Saudi petrochemical firm SABIC.
Tomra said testing by Ma’aden deemed Tomra’s COM series XRT sorters the best fit for the new US$560-million processing plant in northern Saudi Arabia. The plant is set to operate in early 2016 and could process 13.5 million tons (12.2 million tonnes) of raw material per year.
The sorters will be equipped with X-ray transmission technology that can recognize and sort material by average specific atomic density, which will facilitate the production of high-purity materials.
“We are pleased to be involved with this exciting, high-profile infrastructure project. Our involvement began at the plan- design stage, which allowed us to strategically place our sensor-based systems to deliver a smaller process design without compromising performance,” Tomra’s sorting mining division head Tord Svensson said.
Based in Asker, Norway, Tomra has been in business for 40 years and serves recycling, disposal, mining, food and other industries.