Norcliffe Mining Services (NMS) is an Australian mining services company that is the result of a synergised amalgamation of two existing mining services businesses.
Barclay Pearce Capital is acting as Lead Manager to Norcliffe Mining Services on its A$9.5M Pre-IPO raise via a private placement of ordinary shares.
About Norcliffe
Norcliffe Mining Services (NMS) is an Australian mining services company that is the result of a synergised amalgamation of two existing mining services businesses. The merger brings together a highly skilled team with extensive experience in mining, management, technical, risk management, and cost expertise to provide sustainable and innovative mining service solutions to Australian and International mining companies.
Offer Details:
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A$9,500,000 via the issue of 47,500,000 ordinary shares at $0.20 each.
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Enterprise Valuation of A$20,780,000.
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The Company reserves the right to accept over-subscriptions at its discretion.
Investment Highlights:
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Geographical spread across Australia + South Pacific & NZ.
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Both groups provide services to Australia’s largest mining companies.
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Board with significant resources, ASX and capital markets success.
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Combined FY20 actual financials: A$43m Revenue and A$11.4m EBITDA. Currently, a A$156m secured contract book (~ A$62m gross margin).
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Opportunity to drive revenue opportunities through a national footprint and complimentary services: rig fleets in place, excellent safety record and multiple sites.
Acquisitions:
1. Company One
Company One is a Western Australian-based full service heavy mobile equipment rental and mechanical maintenance company that commenced operations in 2012. It operates a vertically integrated business model that consists of three business units:
- Equipment Hire: Dry-hire of drill & blast rigs servicing production drilling within the resource sector.
- Maintenance Services: Providing skilled tradespeople on flexible terms to support and improve the mobile equipment maintenance programs of mining companies.
- Offsite Maintenance Services: Supplying quality aftermarket spare parts as well as service and innovation to the blast hole drilling industry. In addition, custom fabrication including, but not limited to, multiple machine rebuilds and large mining buckets.
It has a long-standing relationship with several top-tier clients including FMG, Rio Tinto, Downer Group, and Action Drill & Blast. This is due to a highly skilled and experienced team with 103 employees in WA and >4,000 skilled maintenance service personnel registered for contract work, holding an excellent Safety Record with ISO450001 Certification and >1,500 Days LTI (Lost Time Injury) free. The result is a strong track record of earnings with FY20 Revenue of A$22.9m and EBITDA of A$3.7m.
2. Company Two
Company Two was formed in 2008 with the principal of the business having over 32 years of experience in blast hole drilling contracting. The company is one of the leading blast hole drilling companies in Australia in the mining and quarry sector and has strategically positioned itself in the mid to large global mining sector. Company Two currently has projects across Australia, New Zealand, and Papua New Guinea. A large fleet of 34 rigs servicing current contract value from July 2020 to March 2025 of A$156m (A$62m gross margin).
This private placement is exclusive to s708 investors only.
