ASX-listed Babylon Pump and Power has reported $500,000 in revenues for the March quarter as the newly listed ASX company continues to ramp up its rental, rebuild and maintenance services in the revitalised WA mining sector.
In a market update recently, Babylon, who listed on the ASX courtesy of a reverse takeover of Melbourne-based health company IM Medical, said the strong top-line growth brought its year-to-date revenues to $1.5m driven by wins in its specialty rental and diesel businesses.
These included securing further equipment rental work with CSIRO’S CCS RDD Project by providing rental de-watering equipment for use at an open pit nickel mine and rental de-watering equipment for use at a gold mine, both in WA, the company said in the update.
In addition, the Kalamunda-based company said it was now providing site-based diesel services at multiple gold mines, continuing diesel component rebuilds for a major iron ore miner and undertaking engine and component rebuilds for earthmoving contractors.
According to management, another positive development for Babylon in the third fiscal quarter was the securing of new work with a Kalgoorlie based mining company and the acquisition of new equipment, expected to be available for deployment in the June quarter.
“The Directors continue to be delighted with the positive response from customers to Babylon’s entry to the market as a new specialist operator,” Babylon told the ASX.
“The Company is continuing to fill out its equipment inventory and its customer order book, and the Board is optimistic that this work will lead to material growth in rental and diesel maintenance contracts in the coming quarters. “
The upbeat announcement from the Forrestfield head-quartered company comes after it recently revealed it has $4.2 million cash in the bank to fund asset purchases through 2018.
Babylon, who provides de-watering pumps and services for mine sites and industrial applications, is a little unique in the sector in that it provides pumping consulting services in addition to the pump units themselves.
The company also provides on-ground operations teams to run its equipment.
Additionally, the Babylon is currently diversifying into small generators that can be used to run its de-watering pumps, adding another potentially lucrative revenue stream to its increasingly diverse offering.
With the mining industry starting to undergo a renaissance due to consistently high commodity prices, mining services companies are gearing up their operations to meet what is generally expected to be a rapidly increasing demand curve over the next couple of years.
Babylon appears to be well placed in that mix.