Imdex Ltd · ASX:IMD
Imdex — Macquarie Australia Conference 2019
23 slides from Imdex's conference presentation, Apr 30, 2019
Slide 1: ASX cover letter: Macquarie Australia Conference Presentation
For personal use only 30 April 2019 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 Austr
Slide 2: IMDEX Presentation – Macquarie Australia Conference
IMDEX Presentation For personal use only Macquarie Australia Conference BERNIE RIDGEWAY CONFIDENTIAL – MANAGING DIRECTOR PROPERTY OF 30 APRIL 2019 © IMDEX LIMITED
Slide 3: IMDEX at a glance
IMDEX at a glance A leading global METS company For personal use only 1H FY19 FINANCIAL PERFORMANCE Our solutions improve the process of (V 1H FY18) identifying and extracting what’s below the 19% 25% 27% 26% Earth’s surface for drilling contractors and resource companies. We let clients know where
Slide 4: Technology & Service Offering
Technology & Service Offering Applicable across whole mining value chain For personal use only Downhole Navigation Structural Geology In-field Geoanalysis Drilling Optimisation Driller Operable Survey instrumentation Core orientation Portable sample analysis Downhole tools Geophysics Rig Alignment C
Slide 5: Delivering Value to Clients
Delivering Value to Clients Enhancing their efficiency and profitability For personal use only IMDEXHUB-IQ™ Quality Data & Chain of Custody RESOURCE COMPANIES CONTRACTORS EXPLORATION DEVELOPMENT MINING INTEGRATED IMDEX SOLUTIONS Downhole Structural In-Field Drilling Driller Navigation Geology Geoana
Slide 6: Target Markets
Target Markets Increasing presence in Mining For personal use only GLOBAL MINERALS INDUSTRY CORE MARKET MARKET EXTENSION Exploration & Development Mining TOTAL ADDRESSABLE MARKET TOTAL ADDRESSABLE MARKET + CURRENT SERVICE CURRENT SERVICE Currently 80% of revenue Currently 20% of revenue – growing fa
Slide 7: Growth Strategy
Growth Strategy Compelling opportunities for sustainable growth For personal use only Strategy Why Success? • Protect and grow • Financial strength core business DRILLING • No competitors offering by enhancing PRODUCTIVITY end-to-end solutions NEW and extending (COREVIBE™, MAGHAMMER™) technical lead
Slide 8: FY19 – FY20 Priorities: Drilling productivity technologies
FY19 – FY20 Priorities Delivering further revenue and EBITDA growth For personal use only COMMERCIALISE DRILLING PRODUCTIVITY TECHNOLOGIES – COREVIBE™ AND MAGHAMMER™ • Attractive addressable market - COREVIBE™ ~ 1800 coring rigs • Strong industry demand for greater productivity • Unique technologies
Slide 9: FY19 – FY20 Priorities: Drill & Blast project
FY19 – FY20 Priorities Delivering further revenue and EBITDA growth For personal use only COMMERCIALISE TECHNOLOGIES FOR MINING SEGMENT – DRILL & BLAST PROJECT • Substantial addressable market, ~6000 blasts per day • Strong industry need to increase productivity • Limited technology risk – leverages
Slide 10: Financial Performance Update
Financial Performance Update Revenue growth outpacing tool fleet growth For personal use only Revenue 3Q FY19 up on 3Q FY18 MAINTAINED GROSS MARGINS • More advanced instrumentation and technologies deliver greater benefits to clients • A greater proportion of newer tools in the fleet – 3 to 5x the r
Slide 11: Operational Performance Update
Operational Performance Update On track to deliver new technologies in FY20 For personal use only Additional Option to Drill & Blast prototype trials Drill & Blast acquire Availability of IMDEX test site in NZ - with clients commence revenue Flexidrill extended option period for 6 months anticipated
Slide 12: Industry Outlook
Industry Outlook Steady recovery, longer-term opportunities For personal use only • S&P forecast non-ferrous exploration budgets to increase 5% - 10% for CY19 • Macro geopolitical concerns remain • Ability for juniors to raise funds is challenging • Base metal prices are relatively robust – gold rem
Slide 13: Company Outlook
Company Outlook Entering FY20 with a stronger business For personal use only • Benefiting from recovery in exploration spend – albeit at a measured rate • Expect to exercise Option to acquire Flexidrill in December 2019 • COREVIBE™ and MAGHAMMER™ expected to generate additional revenue and earnings
Slide 14: Summary
Summary Leading global METS company, sustainable growth For personal use only • Strong competitive advantages • Increasing industry demand for drilling productivity technologies and innovation • On track to commercialise new drilling productivity technologies in FY20 to grow core business • On track
Slide 15: 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 16: Speaker notes – IMDEX at a glance
SPEAKERS NOTES – MR. BERNIE RIDGEWAY, IMDEX MANAGING DIRECTOR For personal use only COVER – IMDEX PRESENTATION MACQUARIE AUSTRALIA CONFERENCE SLIDE 2 IMDEX AT A GLANCE A Leading METS Company We have successfully established ourselves as a leading mining equipment, technology and services company to
Slide 17: Speaker notes – Technology & service offering
SLIDE 3 TECHNOLOGY & SERVICE OFFERING Applicable across whole mining value chain For personal use only Our solutions integrate our market leading AMC and REFLEX brands and include: • Structural Geology • In-field Geoanalysis • Driller Operable Geophysics • Drilling Optimisation • Downhole Navigation
Slide 18: Speaker notes – Target markets
SLIDE 5 TARGET MARKETS Increasing presence in Mining For personal use only Historically we have focused on the exploration and development phases within the global minerals industry. Exploration and development currently represent 80% of our revenue. We have established a strong market presence with
Slide 19: Speaker notes – Why will our strategy be successful?
Why will our strategy be successful? Our company has: For personal use only • Financial strength with the ability to leverage opportunities for growth • A strong core business – profitable throughout the recent downturn • No competitors currently offering our end-to-end solutions • Market leading br
Slide 20: Speaker notes – COREVIBE and Drill & Blast
• COREVIBE™ and MAGHAMMER™ will not cannibalize existing product offering – excellent synergies to offer complementary products • COREVIBE™ and MAGHAMMER™ will generate additional rental revenue per month For personal use only • Flexidrill transaction is viable based on the commercialisation of CORE
Slide 21: Speaker notes – 3Q FY19 performance update
SLIDE 9 – 3Q FY19 FINANCIAL PERFORMANCE UPDATE Revenue growth outpacing tool fleet growth For personal use only Our 3Q FY19 revenue is up on 3Q FY18 and we have maintained gross margins Revenue growth is outpacing tool fleet growth due to: • More advanced instrumentation and technologies that delive
Slide 22: Speaker notes – Industry outlook
• Increasing momentum with internal digital transformation – projects are delivering greater internal efficiencies and will ultimately provide a better client experience • Focusing on safety and achieving operational excellence within all market conditions. For personal use only SLIDE 11 – INDUSTRY
Slide 23: Speaker notes – Company outlook and summary
• Positioning to grow revenue and earnings from mining segment – large adjacent market, less cyclical • Drill & Blast project expected to generate additional revenue from 2H FY20 For personal use only • Positioned to benefit from long-term industry dynamics – resources depleting, declining ore grade