Imdex Ltd · ASX:IMD
Imdex — UBS 2019 Australian Emerging Companies Conference
37 slides from Imdex's conference presentation, Apr 9, 2019
Slide 1: ASX cover letter: UBS Conference Presentation
For personal use only 9 April 2019 Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam UBS 2019 Australian Emerging Companies Conference Presentation Please find attached the UBS 2019 Australian Emerging Companies Conference Presentation to be pre
Slide 2: IMDEX UBS Presentation
For personal use only COREVIBE™ trials at IMDEX test site IMDEX UBS Presentation Australian Emerging Companies Conference Series: Mining Services Bernie Ridgeway – Managing Director 9 April|2019 CONFIDENTIAL – Property of © IMDEX Limited
Slide 3: Leading global METS company
We are a leading global =... ) mining equipment, (CP) Our solutions improve the technology and services process of identifying and (METS) company extracting what is below wa the earth’s surface .. We let clients know : for drilling ~— where it is and what contractors and it is...now. resource compan
Slide 4: Leading Global METS Company: Unique competitive position
Leading Global METS Company Unique competitive position For personal use only The leading provider of subsurface intelligence solutions globally with the ability to ECONOMIES OF SCALE deliver in virtual real-time via IMDEX HUB-IQ™. Good leverage as the market grows. LEADING BRANDS ON MAJORITY OF AMC
Slide 5: Delivering Value to Clients
Delivering Value to Clients Technical leadership & integrated IMDEX solutions For personal use only 4
Slide 6: Key Financial Metrics December 2018
Key Financial Metrics 31 December 2018 For personal use only 1H FY19 1H FY18 VAR VAR% $m $m $m Revenue 125.0 104.7 20.3 19% EBITDA 25.2 20.1 5.1 25% NPAT 13.5 10.6 2.9 27% EPS (cents) 3.65 2.89 0.76 26% Operating cash flow 19.0 2.1 16.9 805% Fully-franked interim dividend declared (cents) 0.8 - 0.8
Slide 7: Revenue by Region
Revenue by Region 1H19 revenue up 19% on 1H FY18 For personal use only 3Q FY19 revenue up on pcp • Increasing activity globally, albeit, at a slower rate (S&P: CY19 ~5% - 10%) • Improving quality of rental fleet – generally commands higher rental rates Minerals revenue only ($m) 6
Slide 8: EBITDA
EBITDA Strong earnings growth For personal use only Minerals business remained profitable throughout downturn 1H FY19 EBITDA up 25% on pcp Minerals EBITDA only ($m) • Strong earnings growth over past 2 – 3 years, gross margins have been maintained • Ongoing investment in core products for organic gr
Slide 9: Market Overview
Market Overview Steady increase in activity globally For personal use only • S&P forecast non-ferrous exploration budgets to increase 5% - 10% for CY19 • Macro geopolitical concerns – tapering global growth, Brexit and the US / China trade tensions – are impacting capital markets • The ability for j
Slide 10: 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 11: Organic Growth
Organic Growth Protecting and growing our core business For personal use only IMDEX GYRO SPRINT-IQ™ – surveys 150 metres per minute, 3 times faster and more accurately. Connected to IMDEX HUB-IQ™ for real-time data access. IMDEX MUD AID™ – remotely monitored, in-field mud IMDEX Seequent link - real-
Slide 12: Transformational Growth: Flexidrill transaction update
Transformational Growth Flexidrill transaction update For personal use only • Entered Secondary Option Period to progress COREVIBE™ & MAGHAMMER™ technologies towards commercialisation • IMDEX’s controlled testing site in New Zealand accelerated R&D process • Transaction is considered viable on COREV
Slide 13: COREVIBE Technology Overview
COREVIBETM Technology Overview For personal use only Unique drilling productivity technology for diamond drilling. The COREVIBE™ increases penetration rates and reduces core blockages. 12
Slide 14: COREVIBE Benefits for IMDEX
COREVIBETM Benefits for IMDEX For personal use only • Attractive addressable market ~ 1800 coring rigs at current drill rig utilisation rates • No modification to drill rig or drilling process needed – COREVIBE™ slots straight into drill string • Strong industry demand for greater productivity – dri
Slide 15: COREVIBE Timelines
COREVIBETM Timelines For personal use only • Trials with clients commenced in 4Q FY19 in Australia • Commercial prototypes expected to be on rent 1Q FY20 in Australia and 2Q FY20 in the USA • Currently establishing supply chain COREVIBE™ trials at IMDEX test site 14
Slide 16: COREVIBE Project Risk
COREVIBETM Project Risk For personal use only • Limited technology risk • Successfully reduced engineering risk – more robust • Significantly reduced CAPEX – improved cash flow • Conducting client trials in varying geological conditions to de- risk the project further • Manufacturing and distributio
Slide 17: MAGHAMMER Technology overview
MAGHAMMERTM Technology overview For personal use only The MAGHAMMER™ enables a new way of drilling – the benefits of fast percussive RC drilling on a diamond drill rig. 16
Slide 18: MAGHAMMER Project update
MAGHAMMERTM Project update For personal use only • Development is progressing well, project timeline has always trailed COREVIBETM • Initial market – pre-collar work that requires fast drilling through non-mineralized ground / overburden • Strong industry demand for greater productivity – drilling i
Slide 19: Drill & Blast Technology overview
Drill & Blast Technology overview For personal use only • Co-development project with Orica • Orica is the world’s largest provider of commercial explosives and innovative blasting systems - BlastIQTM • IMDEX is a leader in subsurface intelligence solutions – Blast DOGTM • Together we are optimising
Slide 20: Drill & Blast Precision Mining
Drill & Blast Precision Mining For personal use only Characterise material pre blast Differentially load blast holes Generate desired rock fragment size Minimise dilution/increase recoveries 19
Slide 21: Drill & Blast Benefits for IMDEX
Drill & Blast Benefits for IMDEX For personal use only • Market extension – production phase is less cyclical than exploration • Leverages our existing technology and engineering expertise into production • Substantial addressable market – 6000 blasts per day • Commodity agnostic • Potential for und
Slide 22: Drill & Blast Timeframes
Drill & Blast Timeframes For personal use only • The project is on track and is progressing well • Prototype trials commence in-pit with clients in 4Q FY19 • Trials will be carried out in Australia, the USA and Chile • Anticipate additional revenue in late FY20 Blast DOG™ trials at IMDEX test site 2
Slide 23: Drill & Blast Project Risk
Drill & Blast Project Risk For personal use only • Limited technology risk • Project clearly delineated, no crossover of IP – agreement in place with Orica • Market adoption requires a change in workflows • Strong support from industry partners. Simultaneously working with Orica, Anglo American and
Slide 24: End-to-End Solutions
End-to-End Solutions Operating across the whole mining value chain For personal use only Planning Fragmentation Exploration Discovery Definition Extraction Recovery Waste Management Course Separation Source: CRC-ORE 23
Slide 25: Summary & Outlook
Summary & Outlook For personal use only • Benefiting from steady recovery in exploration spend • Strong earnings growth over last 2-3 years – 1H FY19 increased revenue by 19% and EBITDA by 25% • 3Q FY19 revenue up on pcp • 1H FY19 fully-franked interim dividend declared of 0.8 cents per share • Stro
Slide 26: Summary & Outlook Continued
Summary & Outlook Continued For personal use only • Continuing to enhance technical leadership – delivering additional benefits (not commoditised consumables) to clients via integrated solutions • Positioned to benefit from long-term industry dynamics – resources depleting, declining ore grades and
Slide 27: Appendices
For personal use only Appendices
Slide 28: 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 • Conservatively geared with strong net Receivables 46.5 49.3 cash position $20.6m Inventory 37.7 33.6 • Receivables exceeded payables by Fixed assets 38.1 36.5 94% Intangibles 59.
Slide 29: Working Capital
Working Capital Positive cash flow conversion 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 30: Established Global Business
Established Global Business Operational leverage – we are where the money is being spent For personal use only 29
Slide 31: 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 32: World Mineral Exploration
World Mineral Exploration For personal use only Source: S&P Global Market Intelligence- March 2019 31
Slide 33: World Mineral Exploration Review and outlook
World Mineral Exploration Review and outlook For personal use only S&P forecast 5% - 10% Increase in CY19 over CY18 Source: S&P Global Market Intelligence • CY16 the low point in the cycle • The new cycle is expanding at a measured rate • Commodity prices support investment in exploration/developmen
Slide 34: Major Discoveries: Gold and Copper 1990–2017
Major Discoveries Gold and Copper 1990 – 2017 For personal use only Source: S&P Global Market Intelligence 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 develop
Slide 35: 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 36: 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 37: 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
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