METS

Imdex jumps after reporting record results

'Exceptional' full-year financials for mining tech firm

 Imdex CEO Paul House

Imdex CEO Paul House

Revenue jumped 11.2% to A$264.4 million, while EBITDA was up 38.8% to $75.5 million.

Operating cashflow rose 8.6% to $56.9 million.

The company reported a net profit after tax of $31.7 million, up 45.5%.

Imdex CEO Paul House said the record result reflected IMDEX's ability to react to changing market conditions to provide products that delivered significant, measurable benefits.

The company delivered substantial growth in its drilling optimisation, rock knowledge and cloud-connected data products over the financial year.

Imdex closed the financial year in a net cash position of $47.3 million, up 47.7%.

The Perth-based company declared a final fully franked dividend of 1.4c per share and a special dividend of 0.4c per share.

House said the strength of the balance sheet and net cash position provided the ability to pursue strategic acquisitions as they presented.

"Our objective has always been to outperform industry growth. We pride ourselves on this and in FY21 we achieved this in an exceptional way," he said.

"Our ability to be flexible and redirect resources to meet changing needs is a highlight of our results and culture. 

"Imdex is at the forefront of enabling digital transformation in the mining sector to meet increasing demands around sustainability, safety and productivity improvements, and to solve industry problems.

"We are achieving this through collaboration with major resource companies, targeted research and development to bring to market products that can deliver real change and using our global presence to understand the mining sector's demands."

At the end of June, Imdex had achieved the highest number of rock knowledge sensors on rent, up 52%, and revenue from all regions had returned to near or exceeded pre-COVID-19 levels. 

"Record demand is continuing into FY22 and sales of drilling optimisation products are increasing in all regions, including South America," House said.

The number of metres drilled using cloud-connected technologies was up 60% on the previous year to 173 million metres.

"The 60% uplift on the previous year is more than our revenue growth and highlights that our technologies enable better workflows for clients.  This is a true measure of success as a cloud-enabled company," House said.

Imdex signed three joint development agreements with major resource companies during the financial year and a further four were being negotiated.

"Increasingly, the solutions that we are designing benefit multiple players within the mining value chain," said House.

"We are encouraged by the engagement with resource companies and their willingness to collaborate to solve their biggest challenges around obtaining the most reliable, real-time ore body knowledge."

House said while the resources sector was facing some short-term constraints related to restricted mobility linked to COVID restrictions, labour shortages, and supply chain pressures, large, mid-cap, and junior resource companies were well-funded and committed to increasing their spending to replace diminishing reserves.

"The implementation of COVID-19 vaccination programs has begun to support greater mobility, particularly in the USA," he said.

"In most of Imdex's jurisdictions, mining operations are considered essential to economic recovery and are exempt from hard lockdowns."

Shares in Imdex jumped 14.2% in early trade to a nine-year high of $2.25, pushing the company's market value through $1 billion.

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