Slide 1: IMDEX 1H19 Results Presentation
For personal use only IMDEX 1H19 Results Presentation Bernie Ridgeway – Managing Director Paul Evans – CFO & Company Secretary Paul House – Chief Operating Officer 18 February|2019 CONFIDENTIAL – Property of © IMDEX Limited
Slide 2: For personal use only
2 a ‘= We are a leading global Loose *) © mining equipment, (A) Our solutions improve the @ technology and services Or! process of identifying and w* (METS) company extracting what is below s Ww the earth's surface .. @ jp, ios | Welet clients know fw for drilling “ad © where it is and what contract
Slide 3: Delivering Value to Clients
Delivering Value to Clients Technical leadership & integrated IMDEX solutions For personal use only 3
Slide 4: Key Financial Metrics December 2018
Key Financial Metrics 31 December 2018 For personal use only 1H19 1H18 VAR VAR% $m $m $m Revenue 125.0 104.7 20.3 19% EBITDA 25.2 20.1 5.1 25% NPAT 13.5 10.6 2.9 27% EPS (cents) 3.65 2.89 0.76 26% Operating cash flow 19.0 2.1 16.9 805% Fully-franked interim dividend declared (cents) 0.8 - 0.8 - • Si
Slide 5: Revenue by Region
Revenue by Region For personal use only • 1H19 revenue up 19% on 1H18 • Increasing activity globally, albeit, at a slower rate (S&P: CY19 ~10% - 15%) • Improving quality and benefits of rental fleet – generally commands higher rates Minerals revenue only ($m) 5
Slide 6: EBITDA
EBITDA For personal use only 1H19 EBITDA up 25% on pcp Minerals EBITDA only ($m) • Net investment in transformational initiatives* forecast to be ~$8.0m for FY19 – investment expected to reduce substantially from FY20 • Gross margins have been maintained *Drill & Blast project; COREVIBE™ and MAGHAMM
Slide 7: Balance Sheet
Balance Sheet As at 31 December 2018 For personal use only $m 31 DEC 18 30 JUN 18 • Robust balance sheet Cash 26.8 13.9 Receivables 46.5 49.3 • Conservatively geared with strong net cash position $20.6m Inventory 37.7 33.6 Fixed assets 38.1 36.5 • Receivables exceeded payables by 94% Intangibles 59.
Slide 8: Working Capital
Working Capital Cash flow from operations For personal use only • Cash flow from operations improved substantially on pcp • Normal working capital investment ratio of 30c to 35c for every incremental dollar of revenue expected for full year 8
Slide 9: World Mineral Exploration Review and outlook
World Mineral Exploration Review and outlook For personal use only S&P forecast 10% - 15% Increase in C19 over C18 • CY16 the low point in the cycle • The new cycle is expanding at a measured rate • Commodity prices support investment in exploration/development 9
Slide 10: Major Discoveries
Major Discoveries Gold and Copper 1990 – 2017 For personal use only Dearth of recent discoveries – easy deposits have been found License to operate is an increasing challenge New mines – under ground cover, deeper, more drilling, higher costs and longer development times Source: S&P Global Market In
Slide 11: Market Overview
Market Overview For personal use only • Steady increase in exploration budgets and activity globally – albeit at a slower pace • Macro geopolitical concerns – tapering global growth and the US / China trade tensions – are impacting capital markets • The ability for juniors to raise funds is challeng
Slide 12: Growth Strategy
Growth Strategy High-level overview For personal use only We have a clear objective of delivering sustainable earnings growth for our shareholders via a two-tiered strategy, which includes organic and transformational growth. Organic growth focuses on protecting and growing our core business, while
Slide 13: Transformational Products: COREVIBE & MAGHAMMER
Transformational Products COREVIBETM & MAGHAMMERTM – Drilling Productivity For personal use only • Entered Secondary Option Period to progress COREVIBE™ & MAGHAMMER™ towards commercialisation • Strong demand from drilling contractors and resource companies, and successful trials at IMDEX’s test site
Slide 14: Transformational Products: Drill & Blast
Transformational Products Drill & Blast – IMDEX Mining Solutions For personal use only • Project designed to increase mine to mill efficiency for clients • Progressing well, commercial prototypes expected to be trialled in-pit with clients during 2H19 • Strong support from industry partners includin
Slide 15: Leading Global METS Company
Leading Global METS Company Unique competitive position For personal use only 15
Slide 16: 1H19 Summary & Outlook
1H19 Summary & Outlook For personal use only • Strong 1H19 – increased revenue by 19% and EBITDA by 25% • Fully-franked interim dividend declared of 0.8 cents per share • Robust balance sheet with a strong net cash position – $20.6m • Entered Secondary Option Period to progress COREVIBE™ and MAGHAMM
Slide 17: Appendices
For personal use only Appendices
Slide 18: Core Product Development
Core Product Development Protecting and growing market share For personal use only Our ongoing investment in core product R&D ensures we maintain and enhance our technical leadership and protect and grow our market share. • World-class R&D facilities and excellent internal capabilities • Market lead
Slide 19: Seequent IMDEX Partnership
Seequent IMDEX Partnership Real-time 3D visualisation for minerals drilling projects For personal use only IMDEXHUB-IQ™ and Seequent Central Integration Download Brochure Here 19
Slide 20: Established Global Business
Established Global Business Operational leverage – we are where the money is being spent For personal use only 20
Slide 21: Exploration Budgets By region
Exploration Budgets By region For personal use only Higher 2018 explorations budgets in all regions except Pacific / SE Asia 21
Slide 22: Exploration Budgets Stage of Development
Exploration Budgets Stage of Development For personal use only • Late-stage exploration budgets surged in 2018 by 29% — above global budget increase of 20% • Increases in budgets for grassroots — up 14% • Minesite exploration — up 15% Source: S&P Global Market Intelligence – Data as of October 29 20
Slide 23: World Mineral Exploration By Target
World Mineral Exploration By Target For personal use only Gold and copper >70% of exploration budgets 23
Slide 24: COREVIBE Client benefits
COREVIBE™ Client benefits For personal use only 24
Slide 25: MAGHAMMER Client benefits
MAGHAMMER ™ Client benefits For personal use only 25
Slide 26: Material Characterisation
Material Characterisation Blast holes provide detailed view of in-situ resource For personal use only Characterise material pre blast Differentially load blast holes Generate desired rock fragment size Minimise dilution/increase recoveries 26
Slide 27: Variability of Fragmentation
Variability of Fragmentation For personal use only 27
Slide 28: Company Snapshot
Company Snapshot As at 31 December 2018 For personal use only Corporate Information Share Register Analysis of top 50 Shareholders ASX listed IMD Institutions 66.85% Share price $ 1.07 Employees, directors & company related parties 3.27% Issued shares m 376.3 Corporate holders 0.01% Market cap $m 40
Slide 29: Board of Directors
Board of Directors High-functioning team For personal use only 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, LLB • Non-Executive D
Slide 30: Disclaimer
Disclaimer For personal use only 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. Th