IMDEX has announced record first-half revenue to end-2022 matched with targeted acquisition activity designed to, it says, further enhance its market-leading position.
The company reported strong growth in Africa, South America and the Asia Pacific, and increasing demand for critical minerals as it revealed record revenue of A$198.8 million ($137.7 million), an 18.4% increase on the same time last year.
During this period, the company announced plans to acquire Norway-based Devico AS in a A$334 million ($230 million) deal that, it said, would reinforce its market-leading position in mining technology and deliver increased market penetration. This deal, the company says, is expected to be completed by the end of February. The company also signed a binding heads of agreement to acquire a 40% in Krux analytics, which delivers drilling analytics software, and an increase in its Datarock holding to 40.9%, from 30 per cent, in the period.
Revenue from the Americas in the six-month period was up 14% on the same period last year to A$89.3 million; Africa and Europe up 22% (A$48.4 million); and Australia and Asia up 22% (A$61.1 million).
IMDEX Chief Executive Officer, Paul House, said the M&A activity was a highlight of the first half of the year and the results demonstrated the strength of the company’s core business.
“We are very pleased with the performance, particularly our ability to grow the business notwithstanding the current macro-related uncertainty in our operating environment and to deliver further margin expansion on a normalised basis,” he said. “The company is well positioned to leverage the robust industry fundamentals through the unique competitive position our global presence, leading technologies and integrated solutions provide.
“Combining the IMDEX and Devico businesses is expected to further strengthen this position.
“Directional drilling, a market where Devico is the leader, is one of the fastest growing segments of the mining-tech space, as companies continue to look for deposits at depth, explore complex ore bodies and respond to the growing needs of faster, cheaper more accurate drilling services.”
Normalised EBITDA for the first half of the year of A$62.8 million, which excludes the exceptional litigation costs not expected to recur during the remainder of the financial year, was up 22% on the same time last year, and up 11% on a constant currency basis.
House said revenue from sensors and software had increased as had activity linked to the search for critical minerals.
“The global commitment towards net-zero emissions and the resultant demand for critical metals or the continued extraction of reserves is outstripping their replacement,” he said.
“Critical minerals are growing at a faster rate and IMDEX is well place to benefit from the necessary supply demand rebalance.”
Industry growth was underpinned by strong demand from mid-to-major mining companies, which reported ongoing or expanded exploration budgets for 2023, and strong financing for junior and intermediate companies in December.
Other first-half highlights included:
- Rock knowledge sensors on rent up 6% and IMDEX HUB-IQ™ connected revenue increased by 41%;
- Released next generation IMDEX ioGAS™ V8 data analysis software;
- Completed first generation IMDEX MINEPORTAL™ software to support BLAST DOG™ trials and contracts;
- Commercial prototype IMDEX BLAST DOG™trials progressing as planned; and
- Spectra analysed with aiSIRIS™ software up 4%.