Imdex Ltd · ASX:IMD
Imdex — Macquarie Australia Conference 2023
41 slides from Imdex's conference presentation, May 3, 2023
Slide 1: Macquarie Australia Conference 2023 Presentation (ASX cover letter)
3 May 2023 Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 MACQUARIE AUSTRALIA CONFERENCE 2023 PRESENTATION For personal use only Dear Sir/Madam Please find attached the Macquarie Australia Conference 2023 presentation to be presented later today. Yours fait
Slide 2: About IMDEX
The ASX listed company (ASX Code: IMD and ABN: 78 008 947 813) develops cloud-connected sensors and drilling optimisation products to improve the process of identifying and extracting mineral resources for drilling contractors and resource companies globally. IMDEX’s unique end-to-end solutions for
Slide 3: Macquarie Australia Conference
For personal use only Macquarie Australia Conference PAUL HOUSE, CEO PAUL EVANS, CFO 3 MAY 2023
Slide 4: Forward Looking Statements
Forward Looking Statements For personal use only THIS PRESENTATION MAY CONTAIN CERTAIN ‘FORWARD-LOOKING STATEMENTS’ AND RESULTS OR TRENDS TO DIFFER MATERIALLY, INCLUDING BUT NOT LIMITED TO PROJECTIONS PROVIDED BY OR ON BEHALF OF IMDEX LIMITED (IMDEX). FORWARD RETENTION OF KEY BUSINESS RELATIONSHIPS,
Slide 5: IMDEX is a leading global mining-tech company
For personal use only IMDEX is a leading global mining-tech company. We are uniquely positioned to enable clients to find, define and mine orebodies with precision, confidence and at speed. 3
Slide 6: ESG Inside and Outside of IMDEX
ESG Inside and Outside of IMDEX WE FOCUS ON ESG THROUGH TWO DISTINCT LENSES For personal use only Inside IMDEX Outside IMDEX The practices that we Leverage our research and control to ensure we set development capabilities to the right targets and enhance the sustainability of continuously improve f
Slide 7: Presentation Overview
For personal use only PRESENTATION OVERVIEW 3Q23 UPDATE GROWTH OPPORTUNITIES IMDEX MINING TECHNOLOGIES DEVICO & KRUX ANALYTICS FY23 FOCUS AREAS & OUTLOOK 5
Slide 8: Our Integrated Solutions – Bolstered by Strategic M&A
Our Integrated Solutions – Bolstered by Strategic M&A • Drilling Fluids Our Drilling Optimisation • DRILLING Solids Removal Units For personal use only suite of products enhance OPTIMISATION • Remote Fluid Testing Technologies SALES AND drilling productivity while PERFORMANCE • Rig Alignment Technol
Slide 9: Our Value Proposition – Bolstered by Strategic M&A
Our Value Proposition – Bolstered by Strategic M&A For personal use only TIMELY INFORMATION FOR CRITICAL DECISION MAKING QUALITY DATA REPRESENTIVITY TIME SAVINGS • Industry leading sensors • Cost effective methods • Actionable information allowing data to be collected in real-time • QA/QC at point o
Slide 10: Devico Integration – First Days
Devico Integration – First 60 Days TRANSACTION UPDATE For personal use only • Deal closed on 28 February 2023 as planned • Integration proceeding smoothly, overseen by a dedicated Steering Committee • Combined Group FY23 results to be announced end of August 2023, incl. 4 months of trading for Devic
Slide 11: Devico Integration – First Days
Devico Integration – First 60 Days PRODUCTS & ENGINEERING For personal use only • IMDEX and Devico Engineering teams collaborating well, with reciprocal site visits completed • Shared IP and shared product roadmaps complete • Commercial prototype DeviDrill RSS for directional drilling has been deplo
Slide 12: 3Q23 Update – A Solid Start to 2H23
3Q23 Update – A Solid Start to 2H23 For personal use only 3Q REVENUE $M 12%* Healthy exploration budgets remain in place 92.2* 3Q23 REVENUE ON 3Q22 3Q23 exploration activity was impacted by: (10% at constant currency) • A rising cost environment 81.9 3Q23 REVENUE INLINE WITH • Juniors preserving fun
Slide 13: An Update Around Our Regions
NORTH AMERICA An Update Around Our Regions • Majors and intermediates maintaining exploration budget intentions • US majors and juniors impacted by heavy snow in 3Q23 and some M&A activity 3Q23 REVENUE GROWTH (UNAUDITED) • Canadian juniors impacted by warm weather over winter period and softer (albe
Slide 14: An Update From Our Clients
An Update From Our Clients For personal use only “Our fleet remains highly utilized… and we continue to see a strong tender pipeline of opportunities. This provides us a solid platform to achieve another record year milestone for 2023.” C E O , C AP I T AL L I M I T E D APRIL 2023 “…the outlook for
Slide 15: Robust Industry Fundamentals
Robust Industry Fundamentals LITHIUM EXPLORATION BUDGETS Global non-ferrous exploration budgets remain ~37% lower than the peak and are forecast to increase in C24 For personal use only Lithium budget Number of companies 500 Increasing demand for energy and transition metals Lithium budget ($M) and
Slide 16: Growth Opportunities
For personal use only Growth Opportunities 14
Slide 17: Drivers to Deliver Our Strategy
Drivers to Deliver Our Strategy For personal use only NEW PRO DUCT S, NEW PRO DUCT S, NEW 1. TECHNOLOGY LEADERSHIP SENSO RS AND SENSO RS AND Targeted R&D to win market share SOFT W AR E SOFT W AR E PRODUCTS / TECHNOLOGIES 2. EXTENSION INTO MINING PRODUCTION Leverage into this adjacent market where i
Slide 18: IMDEX Mining Technologies
For personal use only IMDEX Mining Technologies Hon. Madeleine King MP, Minister for Resources 16
Slide 19: Extension into Mining Production
Extension into Mining Production DRILLING OPTIMISATION PRODUCTS • BHS is a fluid product to stabilise blast holes. Data from one of the world's For personal use only largest copper mines, shows a significant % reduction in redrills • A total of 10 active BHS operations are now established • New unde
Slide 20: The Size of the Opportunity – BLAST DOG
The Size of the Opportunity – BLAST DOG™ A HIGH PRODUCTIVITY BLAST HOLE LOGGING AND ANALYTICS SERVICE For personal use only BLAST DOG TM BUSINESS GROWTH PHASE 1 WHY ENTER THE MINING PRODUCTION MARKET? • Substantially larger than the exploration and development market and 1200 less subject to cyclica
Slide 21: Devico
For personal use only Devico 19
Slide 22: Complementary Business
Complementary Business A GLOBAL LEADER IN DRILL SITE TECHNOLOGY For personal use only • HQ in Norway, with a leading global network • World-class facilities in a key hub in European mining market • Strong R&D capabilities and reputation as a pioneer of directional Drilling Technologies • Exceptional
Slide 23: Synergies to Drive Value Creation
• Synergies to Drive Value Creation For personal use only IDENTIFIED REVENUE OPPORTUNITIES IDENTIFIED COST EFFICIENCY OPPORTUNITIES • Improve IMDEX client choice through expanded Sensor Technology • Devico’s operational footprint highly complementary with IMDEX’s stack, and accelerate survey technol
Slide 24: Sensor Technologies
Sensor Technologies ACCELERATING UPGRADE CYCLE WITH BROADER PRODUCT SUITE For personal use only Devico Reference Gyro lassification | Highly Restricted 22
Slide 25: Directional Drilling
Directional Drilling KEY APPLICATIONS & ADVANTAGES For personal use only APPLICATIONS POTENTIAL CUSTOMER BENEFITS Deviation control Branch holes and sidetracking Flexibility Geotechnical analysis Reduced Reduced total operating time cost of project Reduced water Reduced number consumption and of met
Slide 26: Directional Drilling and Survey Technologies
Directional Drilling and Survey Technologies ON SITE SERVICE MODEL INCLUDING H AR D WA R E , S O F T WAR E & E X P E R T I S E For personal use only C L O U D B AS E D S O F T W AR E D E V I S OF T & D E V I C L OU D Hardware Delivered Site Based Service Model Visualisation + Services DCD Assemblies
Slide 27: Case Study: Gold Project
Case Study: Gold Project S AV I N G S U S I N G D E V I D R I L L C O M PAR E D TO T R A D I T I O N A L S U R FAC E D R I L L I N G For personal use only • Achieved 41% savings in meters drilled (23.6 km), equating to USD$12m savings in drilling costs • Outcome included 500m less drilling per branc
Slide 28: Directional Drilling: Why Demand Will Increase
Directional Drilling WHY DEMAND WILL INCREASE For personal use only • Deposits getting deeper and deeper, which makes directional drilling more cost beneficial • Missing targets at depth is a huge cost, both in terms of re-drills or getting wrong information • Exploration costs are increasing, so be
Slide 29: KRUX Analytics
For personal use only KRUX Analytics 27
Slide 30: Krux Analytics Investment
Krux Analytics Investment For personal use only TRANSACTION OVERVIEW KRUX OVERVIEW • 13 January 2023 IMDEX entered into a Heads of • Krux develops market leading drilling analytics Agreement to acquire a 40% interest in Krux software, focussing on the collection and analysis of Analytics for $6.5m c
Slide 31: Strategic Rationale
Strategic Rationale ESTABLISHING IMDEX AS THE #1 PROVIDER IN THE DRILLING ANALYTICS MARKET GLOBALLY For personal use only • Support the digitisation of IMDEX’s Drilling Optimisation business, complementing the Company’s existing fluids and equipment with a sensor and data aggregation layer • Provide
Slide 32: 3Q23 Strategy Delivery
3Q23 Strategy Delivery 1. TECHNOLOGY LEADERSHIP • Showcased IMDEX OMNI GYRO™, IMDEX For personal use only BOLT™ and aiSWYFT™ at PDAC NEW PRO DUCT S, NEW PRO DUCT S, NEW SENSO RS AND SENSO RS AND SOFT W AR E SOFT W AR E 2. EXTENSION INTO MINING PRODUCTION PRODUCTS / TECHNOLOGIES • Established 10 comm
Slide 33: FY23 Focus Areas & Outlook
For personal use only FY23 Focus Areas & Outlook 31
Slide 34: FY23 Focus Areas
FY23 Focus Areas PROTECTING AND INTEGRATING DEVICO For personal use only DEVELOPING OUR PEOPLE COLLABORATING WITH KRUX AND DATAROCK INVESTING IN OUR CORE INVESTING IN IMT BUSINESS MODEL BUSINESS UNIT INVESTING IN DIGITAL 2.0 32
Slide 35: Positive Long-Term Outlook
Positive Long-Term Outlook POSITIONED TO DELIVER SHAREHOLDER RETURNS For personal use only A SOLID START TO STRONG CORE STRONG LONG-TERM IMDEX POSITIONED 2H23 BUSINESS GROWTH DRIVERS TO BENEFIT • 3Q23 revenue, +12% • Outperforming market growth • Nonferrous exploration • Growth opportunities in budg
Slide 36: CEO quote on mining
For personal use only “We believe mining is essential to every aspect of modern life. Our opportunity, indeed our responsibility, is to change the global minerals industry forever.” – PAUL HOUSE, IMDEX CEO 34
Slide 37: Thank you
Thank you. For personal use only For further information, please contact Kym Clements Investor Relations Officer kym.clements@imdexlimited.com
Slide 38: Appendices
For personal use only Appendices OUR BOARD AND EXECUTIVE LEADERSHIP COMMITTEE OUR VALUES 36
Slide 39: Our Board of Directors
Our Board of Directors COMMITTED TO DRIVING SUSTAINABLE GROWTH For personal use only Mr Anthony Wooles Ms Sally-Anne Layman Mr Ivan Gustavino Ms Trace Arlaud Uwa Airhiavbere Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director 37
Slide 40: Executive Leadership Committee
Executive Leadership Committee For personal use only Mr Paul House Mr Paul Evans Mr Shaun Southwell Ms Michelle Carey Mr Wayne Panther CEO CFO COO Chief of Product Management Chief Information Officer and Marketing Mr John Hickey Ms Kiah Grafton Mr Michael Tomasz Mr Dave Lawie CTO Chief of People IM
Slide 41: IMDEX Values
IMDEX Values Forever We go Together We’re curious. beyond. we thrive. global game For personal use only changers. We believe in shaping the We are passionate about creating We are a global team of Our rich global experience and diverse future of mining through the positive customer experiences that