- Swick Mining Services (SWK) shares have dropped after the company deferred the demerger of its mineral technology business, Orexplore Technologies
- The deferral is due to the first commercial agreement under Orexplore has been delayed due to the client’s operational priorities
- Consequently, Swick’s board has decided to postpone the demerger until the 2022 financial year
- Additionally, Orexplore Managing Director Jason Marinko has resigned from his role and will leave the company later this month
- On the market today, Swick is down 13.9 per cent and is trading at 15.5 cents per share
Swick Mining Services (SWK) has deferred the demerger of its mineral technology business, Orexplore Technologies, until the 2022 financial year.
The deferral is due to the first commercial agreement under Orexplore has been delayed due to the client’s operational priorities.
As a result, Swick’s board has decided to postpone the demerger until the next financial year.
Notably, Orexplore continues to have a healthy pipeline of laboratory testing work and will continue to progress the development of its technology.
The proposed demerger was decided after a strategic review conducted in the first half of 2020. The review found that separation of the two entities would provide the greatest value to both businesses and to shareholders.
Last October, Swick appointed Jason Marinko as Managing Director of Orexplore.
Due to the deferral, Jason has resigned from his role and will leave the company later this month.
Swick’s Managing Director Kent Swick will now take on the role as Orexplore’s Managing Director as it progresses the demerger.
“The board of Swick would like to thank Jason for his contribution in advancing the commercialisation of the Orexplore technology and readying the company for its proposed demerger,” he said.
Over the next six months, Swick is aiming to spend $2.5 million to $3 million on Orexplore as its laboratory testing work is continuing.
Additionally, Swick says the five-day West Australian lockdown does not expect any material impact to its operations.
The company has taken additional measures in the short term to manage any potential COVID-19 risks. These include a temporary two-day shutdown of its maintenance workshop in Guilford and adjustments to fly-in, fly-out roster shifts.
On the market today, Swick is down 13.9 per cent and is trading at 15.5 cents per share at 12:47 pm AEDT.