Tag Archives: Paul House

IMDEX, Krux Analytics look to fill drilling productivity gap

A partnership between IMDEX and drilling analytics company Krux is driving a digital transition to improve productivity in exploration and production drilling, according to the ASX-listed mining tech company.

With recent figures revealing a reduction in metres drilled despite record mineral exploration spending, IMDEX and Krux say it is time for the mining industry to embrace technology that will deliver better outcomes.

IMDEX Chief Executive Officer, Paul House, said the Australian Bureau of Statistics figures for the June quarter which showed a reduction in metres drilled against a June spending record of A$1.069 billion revealed the productivity gap facing the mining industry.

While the figures were for Australia, the same cost pressures were present in other countries, he said.

IMDEX took a 40% interest in Krux earlier this year.

Krux collects and analyses exploration and production drilling data in near real time.

Founder and Chief Executive Officer, Jody Conrad, said Krux software is central to solving the productivity challenge.

“We definitely fill that productivity gap,” she said. “Our goal is to get you as many metres as possible.”

Conrad said a combination of technology and innovation meant it was now cost effective to make the digital transition.

Together, IMDEX and Krux have the software and tools to collect and analyse the increasing streams of data from digital drill rigs, they say.

A mechanical engineer who built and designed automated drilling rigs for the oil and gas sector, Conrad founded Krux in 2016 with an aim of marrying real-time drilling analytics with financial data to optimise drilling operations.

The plan was to target the oil and gas sector; instead, Krux found itself solving the same problem in the mining sector, ending the need for spreadsheets and manual data entry, and resolving time delays, inefficiencies and inconsistencies caused by trying to compare separate data sets, contracts and financial statements.

“It was an onerous, manual process. There was never a reconciliation in the old process,” Conrad said.

“Someone might have entered the operational data and done analysis but the two would be sitting separately.

“The number one thing we do is bring all the data together so you can understand what’s costing you money and what’s producing your metres so you can optimise your operations.

“It’s vital that there is a single source of data. That’s the problem, or the crux of the matter, that we solved.”

House said that in time Krux software would replace the IMDEX Mobile product and provide a clear pathway for customers to receive a best-in-class solution.

Krux’s strong market position in North America, combined with IMDEX’s strength in the Asia Pacific and Africa, presented the opportunity to develop a global solution, the two companies say.

Conrad said the migration of IMDEX Mobile customers to the Krux platform was progressing well.

She said: “More than 80% of customers are in conversations with us. Our platform is currently on over 600 rigs worldwide, but the potential market is more than 4,000 rigs.”

One of the benefits of the Krux software is that data is normalised, allowing for meaningful comparisons of drilling campaigns.

“Regardless of who is drilling or which mining company, our data goes into a normalised system so that if I’m a mining company with operations in Australia, Canada and the US I can normalise all those operations to say how is the US doing compared with Canada or how is the drilling performance different between these rigs or how are my costs different,” she said.

“The transparency is the key to driving better results.

“Mining clients want to reduce their costs, but they don’t mind as much if they are drilling more metres.

“For drillers, at the end of the day, they are trying to drill as many metres as possible for their client and there is a budget.

“If we can optimise their drilling, then they get work next year.

“What driller wants to sit on standby and get a lower rate from the mining client because their drilling program took longer than expected and was disrupted, rather than get the higher metreage rate.

“The interactive process is the benefit we have over our competitors. It’s the approval and validation, a single source of data for all decisions.

“Others take data from multiple sources and provide it for analysis. That’s one step up from a spreadsheet.

“We take the data to the next level. It’s approved and validated; everyone has access, and everyone is on the same page.”

IMDEX feels benefit of Devico acquisition in quarterly results

IMDEX has revealed record September-quarter revenue of A$126.1 million ($79.4 million) as the group continues to benefit from the recent acquisition of Devico.

Revenue was up 19% on the same time last year, with Devico contributing about A$18.2 million, or 17%, of the increase. Organically, excluding Devico, revenue was A$107.9 million, a 2% increase on the same time last year.

Devico has delivered A$38.8 million in revenue in the seven months since completion of the acquisition, against average revenue for seven months in calendar 2022 of A$35.9 million, IMDEX noted.

“We are extremely pleased with the performance of the business that has delivered growth in spite of the clear market pressures in key regional markets such as Canada and Australia,” Paul House, CEO of IMDEX, said. “We are successfully introducing DeviGyros into our IMDEX network, displacing competing tools in the process.

“We have achieved a 25% increase in DeviGyros deployments across our IMDEX network and doubled the number of Devico sensors on hire in the US. Our Devico directional core drilling business has demonstrated consistent growth post-completion.”

He added: “The combination of Devico and IMDEX is a highly strategic investment that positions our business very well for the long term. It represents a substantial enhancement in our capability, our reach and our technology. “It secures a market-leading position in Europe, delivers leadership in directional core drilling and strongly complements our leadership position in survey tools, as evidenced by the financial performance since completion.”

Across the regions, consolidated revenue was:

  • Up 38% in the Americas (IMDEX revenue alone was up 14%), with strong activity in parts of South America including Chile and Argentina and steady growth in Brazil;
  • Up 16% in Africa and Europe (IMDEX up 2%), with solid growth in central and eastern Africa and strong demand for fluids and directional core drilling in Europe; and
  • Down 6% (IMDEX down 13%) in Asia Pacific, with strong activity in Asia and the east coast of Australia being offset by lower rig use and project delays in Western Australia.

House said: “For Q1 (September quarter), excluding the Devico fleet, average sensors on hire were up 8% on the prior quarter, but they remained down 9% on the same time last year.

“The impact of the combined IMDEX and Devico businesses on our product mix now means the higher margin sensors and software solutions in our portfolio represented 63% of Q1 2024 (September quarter) revenue. This is up from 60% at the full year.

“Overall, we expect market demand to remain steady throughout FY24 as resource companies continue to respond to the high-cost environment, where the baked in increase in labour rates is likely to extend the recovery phase – particularly in regions such as Western Australia.

“Importantly, however, mid-tier and major resource companies remain well-funded and capital raisings have shown some signs of improvement for juniors.”

IMDEX posts record underlying earnings as technology deployments accelerate

As well as posting record underlying earnings for its financial year ending June 30, 2023, IMDEX made significant strides with deploying its newest technology, the company says.

This is the first set of financial results to include revenue from global directional drilling and sensor technology company, Devico, which IMEX acquired in February.

Revenue for the 2023 financial year was A$411.4 million (265.1 million), an increase of 20.3% on the previous year, which included four months of Devico revenue.

Underlying earnings, normalised for the Devico transaction costs as well as exceptional legal costs, was a record at A$122.6 million and delivered at a sustained margin of 30%, notable given the rising cost environment experienced more broadly in the mining industry, IMDEX noted.

IMDEX Chief Executive Officer, Paul House, said: “We are especially pleased at the record performance of the business and the sustained margins. This is a testament to the relentless effort by our teams around the world; the strength of our business model; and a reflection of our prior investment in our digital 1.0 platforms. This allowed us to ward off the rising cost environment while at the same time continue our investments in R&D and our IMDEX Mining Technology business unit.”

As well as the Devico acquisition, IMDEX took a 40% investment in drilling analytics software company Krux Analytics and increased its stake in geoscience image analysis company Datarock.

IMDEX continues to grow its suite of mining technologies including IMDEX BLAST DOG™ which remains in the commercial prototype phase with three units now on rent with trials in Western Australia, Queensland and South America.

Underground production hole survey technology IMDEX BOLT™ and blast hole stabiliser IMDEX BHS™, both commercial prototypes, have been installed in four sites with two trials underway and installed in 11 sites with five trials underway, respectively, it says.

During the financial year, the company achieved the commercial launch of its automated spectral mineralogy technology IMDEX aiSWYFT™, the advanced IMDEX OMNIX 38 & 42 GYRO™ and its core logging solution IMDEX LOGGERX™.

“IMDEX is well positioned to leverage the robust industry fundamentals and the unique competitive position its global presence, leading technologies and integrated solutions provide,” House said.

IMDEX joins Australian Automation and Robotics Precinct, plans for Dirt Lab

IMDEX says it has become a major industry partner of the new Australian Automation and Robotics Precinct in Perth, Western Australia.

The partnership with the state government-owned precinct will allow IMDEX to accelerate testing and demonstration of technology including its BLAST DOG™ at a site close to its Balcatta headquarters

IMDEX BLAST DOG is a commodity-agnostic blasthole sensing and physical measurement technology that provides near real-time blasthole physicals and orebody knowledge, and a 3D view into the bench.

The 51 ha automation and robotics precinct 40 km north of the Perth Central Business District was purpose-built for testing, research and development, and training in autonomous, remote operations, and robotic systems and equipment.

Launched in October 2021, the Australian Automation and Robotics Precinct currently provides extensive test beds, freehold lots and an onsite office for industry use. It is being developed into a facility for innovation, with a state-of-the-art Common User Facility operation building, research and development facilities such as laboratories and design co-labs, and advanced test beds with multiple areas and roadways for physical testing.

IMDEX has signed on as an industry partner for an initial period of two years and will build and maintain a common user drill pad as a critical part of a 22 ha Dirt Lab, which will enable various commercial and collaborative opportunities as an innovation mine test and development site.

IMDEX Chief Executive Officer, Paul House (pictured on the right with IMDEX Chief Strategy Officer, Michelle Carey (centre) and Stuart Nahajski, DevelopmentWA General Manager Regional (left)), said having a purpose-built, robotics research and development site so close to the company’s headquarters was ideal.

“While we operate globally and have an unrivalled presence on all major mining operations, Western Australia is home to some of the world’s major mining companies so having the opportunity to develop and promote our technology locally is an additional benefit,” House said.

“BLAST DOG won’t be the only technology we will test at the site. We have plans for testing a range of IMDEX tools and technology developed by our research and development team.”

IMDEX has recently signed deals with two tier-one mining companies for further commercial testing of BLAST DOG.

The company achieved its first commercial contract with BLAST DOG in August 2022, at Iron Bridge in the Pilbara region of Western Australia, with the agreement providing for the staged use of up to three units together with associated products, software, data analysis, reporting and support.

Six commercial prototype trials were planned for the 2023 financial year under the first phase of BLAST DOG development.

BLAST DOG has been developed in collaboration with Universal Field Robots and IMDEX industry partners Teck Resources and Anglo American.

IMDEX delivers record H1 revenue amid ongoing M&A drive

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%.

IMDEX aims for directional drilling leadership with Devico acquisition

Global mining-tech company IMDEX has entered a binding agreement to acquire Norway-based Devico AS in a A$334 million ($230 million) deal that, it says, will reinforce its market-leading position in mining technology and deliver increased market penetration.

The proposed acquisition of Devico AS, a provider of advanced sensors and directional drilling technologies, is expected to be completed by late February.

IMDEX Chief Executive Officer, Paul House, said the proposed acquisition was a highly significant investment that extended IMDEX’s core business in both geographical reach and technology capability. It follows on from a recent heads of agreement to acquire a 40% interest in Krux Analytics, a developer of drilling analytics software focused on the collection and analysis of exploration and production drilling data in real time, for $6.42 million in cash.

The addition of Devico would strengthen IMDEX’s position as the leading provider of advanced rock knowledge sensors and establish the business as the number one directional drilling technology company globally, the company said, with Devico’s portfolio of rock knowledge sensors complementing IMDEX’s existing technology.

IMDEX said: “Through increased scale and market penetration, particularly in Europe and South America, IMDEX would further expand its presence on mine sites, opening further opportunities for its solutions to be delivered to established customers.

“Devico services mining and civil industries globally, has world-class facilities located in a key hub in the Scandinavian mining market, and strong research and development capabilities.”

Alongside this, it has a track record of commercialising innovative mining technologies and a commodity-agnostic product offering which complements IMDEX’s core business, it added.

House said IMDEX saw significant value in combining the complementary product portfolios, market-leading R&D capabilities and global presence.

“Devico’s flagship facility in Trondheim will become a key asset for IMDEX – providing us a new innovation and manufacturing hub for the European market,” he said. “Devico’s expertise, professionalism and their relentless customer focus matches our own and we are excited about what our teams can achieve together for the mining industry. We have commenced integration workstreams and are confident in a smooth transition.”

Devico has a workforce of 200 personnel across 15 locations around the world, with the existing management and technical team seen as a key asset for IMDEX.

Devico is expected to deliver 2022 revenue of about $61 million and EBITDA of $29 million and has demonstrated its ability to scale its business over the past three years with a revenue compound annual growth rate of 17% per year. About 46% of Devico’s revenue is generated from its sensors and 56% from its directional drilling technologies, according to IMDEX.

IMDEX reveals record quarterly results as new tech developments await deployment

IMDEX has revealed record September-quarter revenue amid a strong start to its financial year, with CEO Paul House noting revenue growth was up in all key regions with an increasing demand for real-time orebody knowledge and robust industry fundamentals.

IMDEX says its technologies enable resource companies and drilling contractors, to find, define, and mine orebodies – with precision, confidence and at speed.

Record unaudited first-quarter FY2023 revenue of A$105.9 million ($69.2 million) was up 22% on the same period last year, IMDEX said.

Sensors on hire were up 13% on a year ago and 9% on the previous quarter, meanwhile.

House, speaking at the company’s AGM today, said supply chain pressures also continued to ease during its first quarter of the financial year.

Revenue growth was up 17% year-on-year in the Americas, 29% in Africa and Europe, and 27% in Australia and Asia.

He said exploration budgets remained strong in Australia, with clients reporting longer order books of nine to 10 months rather than three to four months.

Major and mid-cap mining clients were reporting ongoing or expanded exploration budgets, and deeper orebodies were resulting in larger and more complex drilling programs, he added.

The drive to expand existing projects or find additional orebodies to sustain current production levels, continuing strong demand for metals across a broad range of sectors, and an increased demand for critical metals all contributed to a strong outlook.

“It is worth noting that during this current cycle, unlike any cycle previously, the industry has not made any major discoveries,” House said. “We believe that this supports both the continued need for exploration drilling and the importance of precision mining technologies that may improve the economics of smaller deposits or increase the mine life of existing operations.”

IMDEX CEO Paul House

House said that early in the first quarter of FY23 IMDEX signed its first significant commercial contract with a tier-one resource company in South Africa for its BORE HOLE STABILISER™ (BHS), part of its suite of drilling optimisation products.

BHS is a multifunctional product formulated specifically for air drilling applications, particularly drill & blast applications.

Trials are underway with underground commercial prototypes in Africa, Asia, and Australia, and further opportunities exist for surface applications, according to the company.

House also provided an update on development of BLAST DOG™, a multi-sensor probe designed to measure a wide range of geophysical properties of an orebody and map its material rock properties.

The data collected by BLAST DOG has the potential to be used by mining companies to develop programs that could improve mine planning, blast design, fragmentation and material movement tracking, post-blast.

IMDEX achieved the first commercial contract with BLAST DOG in August 2022, at Iron Bridge in the Pilbara. The agreement provides for the staged use of up to three BLAST DOG sensors, together with associated products, software, and support, over the initial term. This will result in an estimated contract value of A$13 million.

House added: “Our MINEPORTAL™ 3D visualisation software, acquired from DataCloud in September 2021, has been instrumental in demonstrating the value of BLAST DOG to customers,” House said.

He said the initial focus for development of BLAST DOG was copper and bulk metals within Australia and the Americas.

A rigorous assessment defined by global mines with the capacity for more than three drill rigs identified a serviceable addressable market beyond five years of approximately 400 sites, IMDEX says.

With IMDEX focussing on the top 25% of those that were more likely to support the introduction of technologies that are disruptive to existing mining workflows, the assessment had determined that the obtainable market over the same period was about 100 mine sites to support this first phase of growth for the BLAST DOG.

Six commercial prototype trials are planned for the 2023 financial year under the first phase of BLAST DOG development, according to the company.

“The next generation BLAST DOG will incorporate additional sensors, software, and data answer products, and we will expand its application to other commodities and geographies and eventually to underground applications,” House said.

Exploration drill rig use on the up, IMDEX says

New mineral exploration rig use figures released today by IMDEX show continued strong activity in most major mining regions internationally.

The combined Australia/New Zealand region continued to be a standout, with rig use at 82% of capacity despite the number of rigs available increasing by 13% over the past year.

Reflecting that growth, IMDEX says March-quarter revenue for its Asia Pacific region including Australia is up 28% on the same time last year.

The rig use snapshot, contained in an IMDEX presentation to the Macquarie Australia Conference on May 4, examines the state of rig use in April this year and updates a similar assessment conducted by IMDEX at the same time last year.

IMDEX used the Macquarie presentation to reveal an overall March-quarter revenue increase of 29% compared with the same time last year.

A further regional breakdown showed revenue in the Americas was up 35%, and Africa and Europe was up 20%.

The rig count figures, of surface and underground coring and RC rigs, showed that rig use was at 62% of capacity in Canada, up from 46% at the same time last year, South America was at 50% (39%), Africa 73% (54%), Europe and the Middle East 48% (39%), and Asia 46% (37%).

Rig use was down in the US at 57%, compared with 72% last year, and Mexico and Central America 42% (44%).

Globally, the rig use figure stood at 56%, up from 46%.

IMDEX Chief Executive Officer, Paul House, said the size of the global rig fleet had decreased from April 2021, as older rigs were retired and new, safer rigs were being commissioned, but resource companies had committed to more exploration and higher standards of HSE, and drillers had committed to buying more rigs.

He said a skilled labour shortage, the replacement trend, rig transfers and a lag between purchase and delivery were responsible for a decrease in the overall size of the global fleet, but these were short-term constraints.

Drillers were buying more rigs as the industry continued to grow, he added.

“The pleasing aspect of our business activity to date is that even in this period of transition of the rig fleet, IMDEX has recorded a 29 per cent increase in third quarter revenue — a result which has outperformed the market,” House said.

The fundamentals driving the sector remain unchanged, he said.

Strong commodity prices were being driven by increasing demand and decreasing reserves, there was an increasing demand for battery metals, strong capital raising across all commodities, and an increasing demand for secure, real-time rock knowledge data and solutions to support remote and automated operations.

“The commitment to growth in exploration by all participants in the resource sector is high and reflects both the positive underlying fundamentals and the sense of urgency required,” House said.

“Execution, however, is likely to take place over a longer period of time than planned, leading to a longer growth cycle.”

New IMDEX rig count shows strong growth in major mining regions

New mineral exploration rig use figures released by IMDEX have revealed strong growth in major mining regions across the globe.

The rig use snapshot, which account for seasonal factors, were contained in an IMDEX presentation to the Macquarie WA Forum on December 2. They were taken in October and updated a similar assessment conducted by IMDEX earlier this year.

The figures, of surface and underground coring and RC rigs, show the fleet is close to capacity in Australia and New Zealand at 81%, up from 72% in April.

European rig use in October was 50%, up from 39%, South America 48% (39%), Africa 57% (54%), Canada 65% (46%), Mexico and Central America 48% (44%).

Globally, rig use increased from 46% in April to 55% in October.

The USA, at 64%, was down from 72% but North America was up from 49% to 59% utilisation.

IMDEX Chief Executive Officer, Paul House, said delivery times for new rigs had increased, and the sector was facing skilled labour shortages and mobility restrictions — but these were short-term constraints.

“We’re seeing recovery and growth in all key IMDEX regions,” he said. “This is flowing through to revenue, and is reflected in increasing demand for IMDEX HUB IQ™ connected sensors and software as companies continue to embrace innovation and new digital ways of working.”

House said there was continuing strong demand for gold, copper and other base metals, but that demand for critical minerals was expected to increase at a faster rate because of the push for decarbonisation.

The profile of exploration spending is shifting, through a combination of targeting, compliance, and drilling at depth, he added.

House said the company’s recent acquisition of Mineportal and investment in Datarock had added strength to IMDEX’s geoscience analytics, artificial intelligence, and computer visualisation capabilities as part of its integrated rock knowledge expertise.

“IMDEX technologies enable us to provide critical insights right through the mining value chain,” he said. “Our global presence is unrivalled and provides a compelling opportunity to embed real value for clients.”

IMDEX sets BLASTDOG drill and blast tech on commercial course

IMDEX has announced what it says is a “major milestone” for its BLASTDOG™ drill and blast technology.

IMDEX BLASTDOG is a semi-autonomously deployed system for logging material properties and blasthole characteristics at high spatial density across the bench and mine and is commodity agnostic, according to the company. It has been developed in collaboration with Universal Field Robots and tested at mines in Queensland, Western Australia, Chile and Nevada (USA).

At an industry event today, IMDEX said BLASTDOG would move from engineering development to commercial prototype by the end of the year.

Progress was outlined to representatives from development partners from METS Ignited, as well as other mining sector executives.

IMDEX said there is already strong industry interest in BLASTDOG because of its capacity to deliver reliable, real-time data that will enable critical mine planning decisions to be made earlier, introducing greater efficiencies throughout the mining value chain.

IMDEX Chief Executive Officer, Paul House, said no other technology had the capacity to produce the same data and provide as large an impact on downstream processes, including enhancing productivity.

“It has the capacity to improve productivity, efficiency, and safety and is part of IMDEX’s internet of geosensing initiative, and will significantly increase mine to mill efficiency,” House said. “Moving to a commercial prototype is a significant development. We will work with prospective clients to ensure that when it is released IMDEX BLASTDOG will deliver the results, efficiencies, and safety that will be its trademark.”

Among the benefits of IMDEX BLASTDOG outlined by the company are the ability to:

  • Improve fragmentation;
  • Improve material and grade control;
  • Reduce geotechnical risk;
  • Reduce adverse vibrations;
  • Define ore boundaries and prevent ore waste;
  • Indicate reactive ground; and
  • Reduce fume, fly rock and vibration