Imdex Ltd · ASX:IMD
Imdex — Morgan Stanley Conference (June 2019)
28 slides from Imdex's conference presentation, Jun 13, 2019
Slide 1: Morgan Stanley Conference Presentation cover letter
For personal use only 13 June 2019 Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam Morgan Stanley Conference Presentation Please find attached the Morgan Stanley Conference Presentation to be presented later today. Yours faithfully Imdex Limit
Slide 2: IMDEX Presentation - Morgan Stanley Conference
IMDEX Presentation For personal use only Morgan Stanley Conference PAUL HOUSE - CHIEF OPERATING OFFICER CONFIDENTIAL – PAUL EVANS - CFO & COMPANY SECRETARY PROPERTY OF 13 JUNE 2019 © IMDEX LIMITED
Slide 3: A leading Mining-Tech Company
A leading Mining-Tech Company. Enabling successful and For personal use only cost-effective operations, from exploration to extraction. 2
Slide 4: IMDEX at a Glance
IMDEX at a Glance A leading Mining-Tech company For personal use only MARKET CAP STRONG MARKET MINING VALUE CHAIN – Outperforming $402.6m PRESENCE ON ONLY COMPANY 70% WITH END-TO-END market growth TECHNOLOGY 67% INSTITUTIONAL OF MINERAL RIGS PORTFOLIO Exciting pipeline of INVESTORS GLOBALLY new tech
Slide 5: What Our Technologies Do
What Our Technologies Do Enable successful cost-effective operations For personal use only “improve We develop cloud-connected devices and drilling optimisation products to the process of identifying and extracting mineral resources globally. It’s about drilling faster and smarter and knowing your r
Slide 6: Technology Portfolio
Technology Portfolio Applicable across whole mining value chain For personal use only Drilling Accurate Faster & Smarter Subsurface Data Receiving Real-Time Information Exploration Discovery Definition Planning Fragmentation Extraction GRAPHIC SOURCE: CRC ORE EXPLORATION & DEVELOPMENT MINING 5
Slide 7: Key Metrics
Key Metrics A strong financial platform For personal use only FY17 FY18 1H19 1H19 FINANCIAL PERFORMANCE $m $m $m (V 1H18) Revenue 176.2 218.5 125.0 19% 25% 27% EBITDA 31.5 42.4 25.2 NPAT 3.7 21.1 13.5 REVENUE EBITDA NPAT MAINTAINED GROSS MARGINS EPS (cents) 1.1 5.7 3.6 STRONG NET CASH POSITION Opera
Slide 8: Revenue
Revenue Growth outpacing tool fleet growth For personal use only 1H19 Revenue REVENUE BY REGION 3Q FY19 up on 3Q FY18 AMERICAS 24% MAINTAINED GROSS MARGINS 45% ASIA PACIFIC 31% • More advanced instrumentation and technologies EUROPE & AFRICA deliver greater benefits to clients • A greater proportion
Slide 9: Compelling Opportunities
Compelling Opportunities For personal use only 8
Slide 10: Growth Strategy
Growth Strategy Compelling opportunities for sustainable growth For personal use only Protect and grow core business by: enhancing technical DRILLING IMDEX MINING leadership; technical integration; PRODUCTIVITY TECHNOLOGIES TECHNOLOGIES NEW (E.G. BLAST DOG™) and increasing share of wallet (E.G. CORE
Slide 11: Exploration & Development Segment Priority Projects
Exploration & Development Segment Priority Projects For personal use only COMMERCIALISE DRILLING PRODUCTIVITY TECHNOLOGIES – COREVIBE™ AND MAGHAMMER™ • Attractive addressable market COREVIBE™ ~ 1800 coring rigs • Strong industry demand for greater productivity - from drilling contractors and resourc
Slide 12: COREVIBE
COREVIBE™ Significant productivity gains for clients For personal use only TRADITIONAL DRILLING COREVIBE™ HIGH FREQUENCY 67 SHIFTS 47 SHIFTS PULSE ASSISTED DRILLING FOR UP TO 30% PRODUCTIVITY WIRELINE CORING IMPROVEMENT OPERATIONS 500m Minimises hole deviation with high penetration rates 1000m Reduc
Slide 13: MAGHAMMER
MAGHAMMER™ Significant productivity & safety benefits for clients For personal use only TRADITIONAL RC DRILLING MAGHAMMER™ ON DIAMOND DRILL RIG FLUID DRIVEN AIR POWERED WATER POWERED PERCUSSIVE Significantly safer and zero dust generated Entire drill hole can be DRILLING ON A completed with one rig
Slide 14: Mining Segment Priority Project
Mining Segment Priority Project For personal use only COMMERCIALISE BLAST DOG™ TECHNOLOGY • Substantial addressable market, ~6000 blasts per day • Strong demand for productivity increases • Limited technology risk – leverages existing technology and engineering expertise • Strong support from indust
Slide 15: Blast DOG
Blast DOG™ Optimised blasting and material tracking 1 2 3 4 5 For personal use only Drilling Domaining Optimised Post-Blast Productivity & Analytics Blasting Metrics Processing Metrics PREDICTABLE FRAGMENTATION OF BLASTED GROUND CONTROLLED VIBRATION, DUST, FUMES AND HEAVE INCREASED PROCESSING INTENS
Slide 16: On Track to Deliver New Technologies
On Track to Deliver New Technologies Additional revenue and earnings from FY20 For personal use only COREVIBE™ & MAGHAMMER™ Option period - comprehensive testing Exercise secondary option and product development Option to acquire Availability of IMDEX test site in NZ - Flexidrill extended option per
Slide 17: Outlook & Summary
For personal use only Outlook & Summary 16
Slide 18: Industry Outlook
Industry Outlook Longer-term opportunities For personal use only • S&P forecast non-ferrous exploration budgets to increase 5% - 10% for CY19 • Mining production levels and commodity market fundamentals remain positive • Dearth of recent discoveries • Opportunities to find new deposits at depth • Ne
Slide 19: Summary
Summary Well positioned to deliver returns to shareholders For personal use only • Strong financial platform and competitive advantages • Driving own growth • Positioned to benefit from industry dynamics • On track to commercialise new drilling productivity technologies in FY20 to grow core business
Slide 20: Thank you
Thank you 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. THE
Slide 21: Appendices
For personal use only Appendices 20
Slide 22: Company Snapshot
Company Snapshot As at 31 December 2018 For personal use only SHARE REGISTER CORPORATE INFORMATION 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 Private shareholders 5.78% Market cap $m
Slide 23: EBITDA
EBITDA Strong earnings growth For personal use only Minerals business remained profitable throughout downturn 25.2 22.3 20.1 18.0 1H19 13.5 EBITDA UP 10.9 7.9 7.7 9.4 25% ON PCP 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 MINERALS EBITDA ONLY ($M) 22
Slide 24: Balance sheet
Balance sheet 1H19 revenue up 19% on 1H FY18 For personal use only • Robust balance sheet $m 31 DEC 18 30 JUNE 18 • Conservatively geared with strong net cash Cash 26.8 13.9 position $20.6m Receivables 46.5 49.3 • Receivables exceeded payables by 94% Inventory 37.7 33.6 • Net asset position improved
Slide 25: Established Global Business
Established Global Business Extensive network For personal use only SALES WITHIN 100 COUNTRIES Smithers- Canada East Sussex - UK Rastede - Germany FY19 Vancouver - Canada Timmins - Canada Amsterdam - Netherlands Salt Lake City - USA San Luis Obispo - USA Phoenix - USA IMDEX Facilities Dubai - UAE no
Slide 26: Clients & Industry Partners
Clients & Industry Partners Long-standing collaborative relationships For personal use only OUR CLIENTS DIRECTLY SUPPORTING LONG-STANDING 18 OF THE TOP 50 MINING DRILLING CLIENTS • Drilling contractors and resource COMPANIES GLOBALLY companies in all key mining regions • BHP Billiton • Boart Longyea
Slide 27: Our People
Our People World-class engineering and development capabilities For personal use only EMPLOYEES BY GENDER 24% 23% FEMALE EMPLOYEES BY FUNCTION MALE 76% ENGINEERING, R&D & IT 28% 21% SUPPLY CHAIN EXECUTIVE & CORPORATE 28% EMPLOYEES 19% SALES & OPERATIONS BY REGION 40% ASIA PACIFIC TOTAL NUMBER OF EMP
Slide 28: Safety & ESG
Safety & ESG Areas of focus FY19 For personal use only SAFETY SOCIAL • Focus on improving safety performance • Developed Modern Slavery Policy • Enhancing visible safety leadership • Implemented Supplier Code of Conduct to align with • Improving systems and compliance IMDEX’s transparent, safe and e