Devico boost for Imdex

Staff reporter

Imdex’s revenues continue to climb on the back of its expanded mining technology stack, with the Australian-listed company’s annual general meeting hearing of record Q1 sales of A$126.1 million.

CEO Paul House told the AGM the company’s acquisition of Norway’s Devico earlier this year had enhanced Imdex’s “capability, reach and technology”.

“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 1Q24 revenue,” he said.

“This is up from 60% at the full year.”

The unaudited first-quarter revenue number was 19% higher year-on-year and 10% more than the previous three months. Devico contributed 17% of the FY24 Q1 rise and has generated $38.8m in the seven months since its acquisition, versus $35.9m “average revenue” over seven months last year.

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

Without Devico, Imdex’s sales rose 2% yoy.

“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,” House 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.

“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.”

House said overall market demand was expected to remain steady throughout FY24 as resource companies continued to respond to a high-cost environment, where the baked-in increase in labour rates was likely to extend the recovery phase.

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

Imdex’s share price was up nearly 5% this week, capitalising the company at about $776 million.


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