Imdex Ltd · ASX:IMD
Imdex — Macquarie Australia Conference 2018
27 slides from Imdex's conference presentation, May 2, 2018
Slide 1: Macquarie Australia Conference Presentation
2 May 2018 Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam MACQUARIE AUSTRALIA CONFERENCE PRESENTATION Please find attached the presentation to be delivered by Bernie Ridgeway (Managing Director) at the Macquarie Australia Conference in Sydney
Slide 2: IMDEX – Macquarie Presentation
IMDEX – Macquarie Presentation Bernie Ridgeway – Managing Director 2 May, 2018
Slide 3: Leading global mining equipment, technology and services company
We are a leading global mining equipment, technology and services (METS) company. Our solutions improve the process of identifying and extracting what is below the earth’s surface for drilling contractors and resource companies – we let clients know where it is and what it is…now. Our vision is to b
Slide 4: Established Global Business
Established Global Business Operational Leverage World Mineral Exploration Review and Outlook - Top Destinations for 2017 (Source: S&P Global Market Intelligence) IMDEX facilities – not including distributors 3
Slide 5: Simple Scalable Structure
Simple Scalable Structure Leading Integrated Brands • Dominant within minerals industry – strong brands and market share • Focused on integrated IMDEX solutions – comprising AMC and REFLEX 4
Slide 6: Leading Technologies
Leading Technologies IMDEX Solutions Our Strengths • Global footprint with operational leverage • World-class R&D facilities and capabilities • Connectivity via IMDEXHUB-IQTM • Integrated solutions for all stages of mining Client Benefits • Chain of custody • Quality data • Timeliness of information
Slide 7: 1H18 Financial Metrics
1H18 Financial Metrics ($millions) $MILLIONS UNLESS INDICATED OTHERWISE 1H18 1H17 VAR VAR% Revenue 104.7 81.8 22.9 28% EBITDA 20.1 13.5 6.6 49% NPAT 10.6 (9.9)1 20.5 EPS (cents) 2.89 (3.42) 6.31 Operating cash flow (excluding financing costs) 2.4 9.8 (7.4) (76%) Net assets 173.5 159.8 13.7 9% 1 Incl
Slide 8: Revenue by Region
Revenue by Region ($millions) • Increasing revenue across all regions • Business benefits from global presence and regional expertise • Americas – region with highest revenue and potential for growth • Continued increase in activity during 3Q18 and into 4Q18 7
Slide 9: EBITDA
EBITDA ($millions) 20.1 18.0 13.5 10.9 9.4 7.9 7.7 6.2 1.2 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 • 1H18 EBITDA up 49% on pcp • 2H18 EBITDA expected to be greater than 1H18 • Additional investment in the business of ~$5 million* *Investment includes internal digital transformation program and
Slide 10: Balance Sheet
Balance Sheet ($millions) 31 DEC 17 30 JUN 17 Cash 12.7 19.4 Receivables 42.4 41.5 Inventory 36.0 29.9 Fixed assets 33.7 32.2 • Strong balance sheet Intangibles 60.0 60.4 • Cash position at 30 June 18 Other assets / deferred tax 28.9 27.5 forecast to be greater than TOTAL ASSETS 213.7 210.9 31 Decem
Slide 11: Market Overview
Market Overview IMDEY REAL-TIME SUBSURFACE SOLUTIONS “IMDEX Is well positioned for continued growth" New technologies gaining momentum in order to drive efficiencies and productivity . . Mining companies need to replace Major, intermediate and junior depleting reserves companies well-funded with Bro
Slide 12: World Mineral Exploration Review and Outlook
World Mineral Exploration Review and Outlook • Budget 2017 spend of US$8.4bn up 14% on CY16 • CY18 budgets forecast to increase by 15 – 20% to US$10bn • Gold budgets up by 22% year-on-year • Gold/copper represent >70% of global expenditure. Gold/base metals >80% • The Americas attracted >50% of expe
Slide 13: Intermediate/Junior Financings
Intermediate/Junior Financings • US$1.1bn raised in March (Feb-US$582m) • TSX – 63%, ASX – 29% • Gold – 47%, base metals – 31%, specialty metals – 21% 12
Slide 14: Major Discoveries
Major Discoveries Gold and Copper Source: S&P Global Market Intelligence Despite increased expenditure, gold and copper discoveries are not keeping up with production – grades decreasing, deeper, more complex ore bodies, more difficult and longer lead times to develop 13
Slide 15: REFLEX Instruments on Hire
REFLEX Instruments on Hire (Number of units) • Increased activity means increased • Increased adoption of instrumentation – demand for instrumentation – all traditional and recent technologies commodities • Newer technologies generally yield higher • REFLEX instruments on hire increased rental – rat
Slide 16: Strategy
Strategy Driving Sustainable Earnings Growth • Growth of core business historically driven by cyclical upswing and the introduction of new technologies • Strategic positioning for sustainable earnings growth • FY18 investing in two-tiered strategy: • Organic – protect and grow core business • Transf
Slide 17: The Industry Problem: Exploration
The Industry Problem Exploration Increasing Demand for Metals Declining Discovery Rates Easy Deposits Already Found Doubles every 20-30 years Industry is making far fewer Especially in low sovereign risk More copper to be mined in major discoveries despite countries next ~25yrs than in histo
Slide 18: The Industry Problem: Drilling
The Industry Problem Drilling Fundamentally nothing has changed in drilling technology in decades. Steel rods manually joined with threads. Usually all rods rotated from surface to generate cutting action at bottom of hole. Thus slow, expensive, injury-prone and inefficient use of energy. Drivers fo
Slide 19: CoreVIBE & MagHAMMER
CoreVIBETM & MagHAMMERTM Option to acquire unique drilling productivity technologies • Option agreement executed January 2018 • Extensive testing and due diligence conducted pre-signing – including IP protection • The transaction allows for further testing and market acceptance before committing to
Slide 20: CoreVIBE
CoreVIBE™ Client benefits REAL-TIME SUBSURFACE SOLUTIONS TRADITIONAL DRILLING COREVIBE™ @ 67 sHIETS | @ 47 suirts UP TO 30% PRODUCTIVITY IMPROVEMENT 500m Minimises hole deviation with high penetration rates 1000m fF Reduces tripping of inner tube for blockages 1500m fF Improves penetration rates 200
Slide 21: MagHAMMER
MagHAMMERTM Client benefits
Slide 22: Summary & Outlook
Summary & Outlook • Continued increase in activity during 3Q18 and into 4Q18 • Activity within major mining areas is robust • Major, intermediate and junior companies well-funded with increased budgets • There remains a fundamental need to replace diminishing resources and reserves • REFLEX instrume
Slide 23: Appendices
Appendices
Slide 24: Global Leader
Global Leader Exploration, Development & Mining Substantial competitive advantage 23
Slide 25: Board of Directors
Board of Directors Professional expertise, business experience & technical knowledge Mr Anthony Wooles BCom, MBA (Finance) • Non-Executive Chairman • Appointed to the Board 1 July 2016 Mr Bernard Ridgeway B.Bus (ACCTG) ACA • Managing Director • Appointed to the Board 23 May 2000 Mr Kevin Dundo BCom,
Slide 26: Company Snapshot
Company Snapshot As at 29 March 2018 Corporate Information Share register Analysis of top 50 shareholders at 29 March 2018 ASX listed IMD Institutions 70.0% Share price (29 March 2018) A$ 1.18 Employees, directors & company related parties 2.68% Issued shares m 367.5 Corporate holders 0.01% Market c
Slide 27: Disclaimer
Disclaimer This presentation has been prepared by Imdex Limited (“the Company”). It contains general background information about the Company’s activities current as at the date of the presentation. It is information given in summary form and does not purport to be complete. The distribution of this