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MASTER DRILLING GROUP LIMITED - Acquisition of a 40% shareholding in data driven mining fleet management solution AVA Solutions

Release Date: 10/03/2021 09:00
Code(s): MDI     PDF:  
Wrap Text
Acquisition of a 40% shareholding in data driven mining fleet management solution AVA Solutions

Master Drilling Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 2011/008265/06)
JSE share code: MDI
ISIN: ZAE000171948
(“Master Drilling” or the “Company”)

Voluntary announcement, acquisition by Master Drilling Mining Services (Proprietary)
Limited of a 40% shareholding in data driven mining fleet management solution AVA
Solutions:

Master Drilling, a global leader in providing drilling services to the mining, civil engineering and building
construction sectors, is pleased to advise that its subsidiary, Master Drilling Mining Services
(Proprietary) Limited has acquired a 40% investment in AVA Solutions, a specialist in data-driven mine
fleet management solutions.

Founded in 2015 by Anton Fourie and Jason van der Watt, two engineers with over 25 years of
combined mining industry experience, AVA has achieved significant recognition in South Africa by
creating a captive market for its disruptive, hardware agnostic and quick to implement Software as a
Service (SaaS) model at much lower costs to other solutions. Currently, AVA’s unique digital platform
analyses and tracks more than 1800 load & haul vehicles across 28 different sites in 5 countries for a
range of blue-chip clients.

Danie Pretorius, Master Drilling CEO, said: “Technological innovation is a key priority for Master
Drilling as we continue to support our clients to move down the cost curve, optimise their
operations and increase safety. Our investment in AVA is aligned with our strategy to diversify
our services and invest in opportunities in our existing target markets with low capital
requirements and short return cycles. We believe that AVA has great growth potential, and we
look forward to supporting them through our existing client base and networks internationally.”

AVA’s solution was shaped by the founders’ knowledge of the mining industry and understanding of the
challenges faced in the production environment. By condensing multiple technology layers into a single
interface, AVA ensures that clients’ equipment operates at its optimal level of performance with little to
no additional capital investment.

Traditionally, digital fleet management solutions were only accessible to larger mines, as the costs and
capital outlay associated with the solutions were too high. AVA disrupted the category with a solution
that is accessible for all mines and asset sizes by simplifying traditionally difficult systems to implement
and maintain. Through this offering, the potential market for AVA is vast as many mines that currently
struggle to get real value from their digital initiatives are now able to deploy a real end-to-end solution.
Commenting on the partnership, [Anton Fourie, co-founder and COO of AVA] said: “We have grown
exponentially from a start-up five years ago to a recognised player with a proven technology for
the mining industry. We have a clear strategy to provide an end-to-end solution that goes                                                                                                           1
beyond the load and haul environment and across the entire mining value chain. Through our
partnership with Master Drilling, we are gaining access to extensive experience that will support
the ongoing development of our platform and a footprint that will accelerate our international
expansion.”

Understanding the Internet of Things, AVA is able to create vast digital networks that drive
communication between multiple pieces of hardware in a mine, providing real time data that empowers
operations teams to make decisions that optimise mining operations. The next developments for AVA’s
scalable platform will focus on new elements including scheduling and logistics that will enable mines
to not only improve productivity of the load and haul value chain but of the entire mining value chain.

The acquisition has been financed from internal resources.

This acquisition falls below the threshold of the categorization of transactions which require detailed
disclosure in terms of the JSE Listings Requirements. Nevertheless, due to the strategic importance of
this transaction, the directors of Master Drilling deemed it appropriate to inform shareholders thereof.

Fochville
10th March 2021

Sponsor
Investec Bank Limited
Date: 10-03-2021 09:00:00
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