Paul House, CEO of Australia’s IMDEX, has stressed the US$1 billion mining technology company has “white space opportunities all around us” as it weighs further growth opportunities with a strong balance sheet and enhanced credentials as a sector consolidator on the back of recent deals.
The ASX-listed company, which has a current market value of circa-A$1.55 billion (US$1 billion), maintained EBITDA margins around 30% on softer fiscal 2025 revenues (A$431 million). It cut net debt from $35 million to $13 million in FY25, “giving us an ample capacity to invest in growth and pursue strategic opportunities as and when they become available”, according to House.
IMDEX is generating two-thirds of its revenue from sensors and software at a time when the global mining industry is digitalising, automating, and increasingly integrating technologies to increase the speed and efficiency of workflows in the circa-US$15 billion mineral exploration field. It is growing its exposure to the adjacent, much larger mine production sub-surface intelligence market.
Recent digital bolt-ons Datarock and Krux Analytics have continued to expand sales at above-average rates – up 63% and 86%, respectively, in FY25 – which means IMDEX will pay more for them when it moves to 100% ownership of both this year under the original deal terms.
However, the results, plus the successful integration of major 2023 acquisition, Devico, speak to the strategic acumen of IMDEX management and the company’s execution capacity.
“Execution is what sets IMDEX apart and positions us to lead the next wave of transformation in mining,” House said on the company’s FY25 results call.
With the latest acquisition of Norway’s Earth Science Analytics and its cloud-based, AI-driven geoscience platform, IMDEX has in Datarock, Krux and ESA a “connected, interoperable digital stack … that spans the full subsurface workflow and delivers scalable, recurring SaaS revenue”, according to Digital Earth Knowledge division chief, Michelle Carey.
“Together, these platforms integrate seamlessly with IMDEX Hub-IQ, creating a unified data platform that brings forward decision-making for our customers and positions IMDEX as a leader in mining intelligence.”
Carey said the company’s strategy was “deliberate, highly scalable and already delivering results with an expectation that in aggregate they will be break even in FY26”.
With its large directional drilling tools, fluids and downhole sensors business, IMDEX has another key advantage when it comes to scaling new technologies and that is its global footprint. At last count it had “solutions” deployed with more than 650 resource companies and contractors on over 1000 sites.
Asked if the company’s acquisition focus was on bolstering its digital capabilities, more so than other parts of the business, House said, “it’s not as narrow as just the digital realm”.
“I think we’ve been very consistent in saying that we see white space opportunities upstream of us, downstream of us, within the same market segment of us, as well as the digital layers that sit above across all of that,” he said.
“We look regularly at opportunities that are presented to us. We’re very disciplined about what we say no to or yes to.
“But we do see white space opportunities all around us as we sit today.”
Software and sensor company acquisitions have dominated the 30 or so significant M&A transactions in the mining and metals tech space since the start of 2024. All up, the value of M&A and financing in the sector in that time has been circa-US$4.8 billion.
In the past five years it has totalled close to $13 billion.
IMDEX has been an aggressive acquirer and also a strong organic builder in that period.
It puts its five-year revenue CAGR at 13%, versus the S&P exploration budget CAGR of 6%. About half IMDEX’s current annual revenue is generated in the Americas where it sees the most growth potential. “Our [FY25] Q4 revenue hit a record of $119 million, up 19% on Q3,” House said. This was partly driven by strong US activity.
Its market value has climbed about 150% in five years.
