DrillCube
DrillCube provides consulting services and supplies rock tools, ground support and other equipment to the mining sector both locally and internationally.
Need
With contracts to export underground tools for a mine site overseas, DrillCube felt pressure on operating cash flow and needed financing to keep up with manufacturing costs. It was unable to secure banking finance and approached us for support.
Solution
Our $1.4m Export Line of Credit helped DrillCube manufacture tools and meet its customer’s order. It also relieved pressure on operating cash flow, helping the business to stay on track with production lead times.
DrillCube is a mining supply and consumable business. It provides more than 50 global mining houses with consumables they need to start up operations.
The innovative business concept of ‘shop-in-box’ model, according to Principle and Director Jason Wasley, saves miners time, money and stress.
“We have a unique value proposition of supplying the four pillars – ground support, rock tools, ventilation and poly products – through one house,” Jason explained. “So, instead of miners having to establish suppliers, order gear and rely on other people, we send sea containers to their site so they can get straight to work.”
After developing the concept for DrillCube in 2014 and receiving its first contract in 2016, the business was unable to secure finance from the private market because it held its stock overseas. Fortunately, Jason learned about Export Finance Australia through his network.
“We realised that the facility was available for people like us, who were innovative but just outside of the traditional lending criteria,” explained Jason.
Export Finance Australia is the cornerstone of our business – we wouldn't have survived without it. And with the transition to electric and the need for copper, nickel and lithium for battery generation on its way, we're poised to enter the next 10 years in a very strong position.
Jason Wasley
Principle and Director, DrillCube
More than finance
Jason met with the local WA team who supported DrillCube through the loan application process.
“Once we realised that Export Finance Australia were on our side and this loan facility was there to help us grow and to develop our export, the application was a pain-free journey.”
Securing a $900,000 line of credit through Export Finance Australia enabled the business to deliver on its contract. It also delivered a range of other benefits.
“Finance from Export Finance Australia freed up our working capital and removed the risk from our business. It also allowed us the breathing space to successfully grow rather than focusing on paperwork and money.”
Jason said that the loan strengthened their relationships with their factories, because they weren't waiting for remittance.
“It also gave confidence to our end users, who knew we had the necessary working capital so they wouldn't have to find further suppliers,” he said.
Jason anticipates a significant growth curve ahead for DrillCube – and acknowledges the significant role we’ve played in its success.