Mitchell Services Ltd
ASX:MSV
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Mitchell Services Ltd
Mitchell Services Ltd. engages in the provision of drilling services to the mining industry. The company is headquartered in Brisbane, Queensland and currently employs 650 full-time employees. The company went IPO on 2011-08-02. The firm provides mine site drilling services to the global exploration, mining and energy industries. The firm offers a range of services, including coal exploration, mineral exploration, mine services, large diameter, coal seam gas, directional drilling services, coal mine gas drainage and wireline services. The firm through its subsidiary Deepcore Holdings Pty Ltd provides services to the mining and infrastructure industries, including underground mobile drilling, diamond drilling, acoustic and deep directional drilling. The firm carries out its mine and exploration service in brownfields and greenfields projects in Australia.
Mitchell Services Ltd. engages in the provision of drilling services to the mining industry. The company is headquartered in Brisbane, Queensland and currently employs 650 full-time employees. The company went IPO on 2011-08-02. The firm provides mine site drilling services to the global exploration, mining and energy industries. The firm offers a range of services, including coal exploration, mineral exploration, mine services, large diameter, coal seam gas, directional drilling services, coal mine gas drainage and wireline services. The firm through its subsidiary Deepcore Holdings Pty Ltd provides services to the mining and infrastructure industries, including underground mobile drilling, diamond drilling, acoustic and deep directional drilling. The firm carries out its mine and exploration service in brownfields and greenfields projects in Australia.
Strong Profitability: Mitchell Services delivered strong profits in H1 FY26, achieving a net cash position and healthy cash flow, rebounding from a tougher prior year.
EBITDA Margins: EBITDA margin reached 19.7% for the quarter, with management stating these levels are sustainable if operating conditions remain steady.
Rig Utilization: 62 of 90 rigs are operating, with some spare capacity; management remains disciplined on pricing and expects potential for higher utilization as demand grows.
CapEx Guidance: Full-year capital expenditure is expected to be between $17.5 million and $18 million, mostly maintenance, and below the prior year's nearly $20 million.
Order Book & Pipeline: Demand pipeline is solid, particularly from juniors in gold and minerals, with tenders pending and inquiries from both new and existing clients.
Loop Decarbonization Growth: The Loop business is gaining momentum, with new contracts and plans to add rigs as demand rises, supported by Sumitomo’s investment.
Capital Management: The board will decide on capital allocation, including buybacks or dividends, after the half-year release in February, with flexibility up to 75% of net profit.
