Despite worries about economic growth around the world next year, Orica expects the confident forecast for its 2022-23 financial year made when the latest results were being released a couple of months ago will be met.
CEO Sanjeev Gandhi told the company’s annual meeting yesterday that, “As anticipated, the positive momentum from the second half of the 2022 financial year has continued, with the first two months of the 2023 financial year delivering strong results.”
“We expect this momentum to continue through this financial year. We expect the demand for critical minerals to remain strong in the year ahead, and we are well-positioned to navigate ongoing external challenges with the strengths of our global network and culture, and a strengthened balance sheet.
“Our customers’ appetite for new technology and our refreshed strategy sets us on a clear pathway to drive growth from blasting technology and accelerate the adoption of our digital solutions from mine-to-mill, growing beyond blasting.
Orica’s 2021-22 underlying earnings before interest and tax (EBIT) were $579 million which was up 36% on the previous year. Statutory net profit after tax in FY2022 was $60 million but that was after $257 million of significant items expense after tax.
The final ordinary dividend of 22.0 cents share was unfranked, bringing the total dividend to 35.0 cents a share.
Judging by the comments yesterday shareholders can look forward to more next year.
Orica shares edged up 0.8% to $15.41.
For years Orica has been identified with chemicals, carbon production and processing and nasty noises like explosions. Now it is pitching itself as part of the green transition and it’s not far wrong because coal will still need to be mined and consumed and to mine coal needs ways of breaking up rock and material.
Likewise with copper, nickel, lithium, tin. lead, zinc and bauxite (the precursor for aluminium) as well as iron ore. If anything, the consumption of these battery and renewable metals will need a lot more bangs.
The Orica meeting heard a lot from management about some of the new blasting technologies such as wireless and remote technologies.
The CEO highlighted two new ideas it is looking to start introducing to customers.
“Take WebGen for example, our patented, world-first fully wireless initiation system which can communicate through hundreds of metres of rock, air and water to initiate blasts. By eliminating the need for wires,
“WebGen allows mine personnel to spend less time in the dangerous zones of the mine compared to traditional blasting systems, it’s also a critical enabler of the first stages of automated blasting with our Avatel unit.
“Avatel is the world’s first mechanised charging system developed in partnership with Epiroc. Just two weeks ago we fired the first ever mechanised, wireless development blast in the history of underground mining.
“The technology allows a single operator to locate, clean, prime and load our bulk explosives and our patented wireless initiating systems from the safety of an enclosed cabin, several metres from the face and out of harm’s way.”
