Swick said revenue for the period was $A28.3 million, down 19% over the same time last year, with total metres drilled also down 19%.
A rock fall and temporary suspension of works at Aditya Birla Minerals’ Nifty copper mine in Western Australia also caused the company to revise its full-year guidance.
Swick said the halt at Nifty had seen revenue guidance cut to $113-117 million, down from $115-125 million previously.
The previous guidance was itself a downgrade, with the company dropping expectations from the $125-135 million range in December.
Full-year earnings before interest, tax, depreciation and amortisation are expected to land within $14-16 million.
The company said it was confident work would soon restart at Nifty.
On a more positive note the driller saw its total fleet utilisation for the quarter come in at 68%, with 73% of the underground diamond fleet in use.
The quarter also saw significant contracts ramp up at MMG’s Golden Grove and Rosebery mines, where eight rigs started work over a three-month period.
The total number of rigs in use at the end of March was 55, 14 more than the December figure of 41.
“It is pleasing that Swick experienced a rebound in rig utilisation over the last quarter as a number of underground diamond drill rigs were deployed to new contracts, as well as seeing some rigs returning to work that were previously suspended,” Swick managing director Kent Swick said.
“Despite Swick’s rebound in utilisation, the macro mineral drilling market remains suppressed, indicating that the brownfield, predominantly underground strategy employed by Swick is a benefit for the business.
“In these difficult market circumstances, Swick is working with its customers, responding to their immediate needs as best as we can and working hard to ensure we remain the safest, highest quality and best value choice in the market.
“The tender pipeline remains strong and a number of underground diamond drill rigs are being overhauled and upgraded for potential upcoming work over the next quarter and beyond.”
Elsewhere, average monthly revenue per operating rig was on par with last quarter at $176,000.
Swick said the figure was expected to rise next quarter, with contract wins and redeployment of some suspended operations helping boost activity.
Looking further ahead it said there was potential to score further contracts but the overall environment remained tough.
“It is essential that Swick continues to invest capital and engineering and operational resources to continually improve its operating methods with the aim to increase productivity and lower the unit costs to our clients,” Swick said.
In other areas the quarter saw Swick implement the final piece of a new safety management system, continuing an overall reduction in injuries.
The period also saw the company field test new initiatives to help support safer production.
Swick shares were last trading steady at 26c.
