METS

Imdex up on H1 result, outlook

Shares in ASX-listed mining technology and consumables company Imdex have risen on a lift in reported earnings and strong growth outlook.

Staff reporter
Imdex up on H1 result, outlook

Revenue of A$124.3 million in the first half of FY2021 was down 3% on the same period in FY2020.

EBITDA rose 6% to $33.1 million, while cash from operations jumped 33% to $33.2 million.

Net profit after tax for the FY21 first half dropped 26% to $13.5 million due to higher depreciation and amortisation charges relating to additional assets to support increasing demand for gyro-related technologies and the Flexidrill and AusSpec acquisitions.

Net cash jumped 84% to $47 million.

Imdex declared a fully franked interim dividend of 1c per share.

CEO Paul House said it was a solid start to the 2021 financial year and the company was outperforming industry growth rates.

House said Imdex's strong balance sheet enabled the company to accelerate targeted research and development in line with demand and leverage opportunities for growth through acquisitions.

"While the opportunity ahead of us is exciting, we remain watchful and ready," he said.

"We are watchful of the current risks posed by COVID and ready to meet the increasing demand for mining-technologies.

"This confluence of risk and opportunities is accelerating long-term structural change in the mining industry."

House said activity increased in most of Imdex's regions, most notably North America and West Africa.

"Our global reach and unrivalled product offering mean we can grow in all market conditions," he said.

Imdex said the increase in exploration and acceleration of investment in decarbonisation metals meant the outlook for mining tech was stronger than it had ever been.

The company signed a joint development agreement with an unnamed tier one mining company to accelerate one of its key rock knowledge sensor technologies for commercial use.

It also has a joint development agreement to accelerate its drilling optimisation tool, Imdex Maghammer, for commercial use. Ground trials under that agreement have started.

Shares in Imdex jumped 7.2% to $1.85, valuing the company at $733.4 million.

 

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.