Imdex Ltd · ASX:IMD
Imdex — Morgan Stanley Conference 2023
28 slides from Imdex's conference presentation, Jun 8, 2023
Slide 1: Morgan Stanley Conference 2023 Presentation (ASX announcement)
8 June 2023 Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 MORGAN STANLEY CONFERENCE 2023 PRESENTATION For personal use only Dear Sir/Madam Please find attached the Morgan Stanley Conference 2023 presentation to be presented later today. Yours faithfully Im
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: Morgan Stanley Conference
For personal use only Morgan Stanley Conference Update on IMDEX Growth Strategy Update on Market Outlook PAUL HOUSE – CEO 8 June 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 retention of projections provided by or on behalf of IMDEX Limited (IMDEX). Forward key business relationships,
Slide 5: Presentation Overview
UPDATE ON IMDEX GROWTH STRATEGY For personal use only OUR MINING-TECH STRATEGY OUR PERFORMANCE AS A GROWTH COMPANY DEVICO TRANSACTION Presentation KRUX ANALYTICS INVESTMENT Overview IMDEX MINING TECHNOLOGIES BUSINESS UPDATE ON MARKET OUTLOOK FY23 OPERATING ENVIRONMENT FY24 OUTLOOK IMDEX FOCUS AREAS
Slide 6: IMDEX is a leading global mining-tech company
IMDEX is a leading For personal use only global mining-tech company. We are uniquely positioned to enable clients to find, define and mine orebodies with precision, confidence and at speed. 4
Slide 7: Update on IMDEX Growth Strategy
For personal use only Update on IMDEX Growth Strategy 5
Slide 8: Our Mining-Tech Strategy: Growth Drivers
Our Mining-Tech Strategy GROWTH DRIVERS For personal use only TECHNOLOGY INTEGRATED EXTENSION INTO COMPLEMENTARY LEADERSHIP SOLUTION MINING ACQUISITIONS SELLING PRODUCTION • Targeted R&D to win • Focusing on optimised • Leveraging capabilities in this • Building on components of global market share
Slide 9: Our Mining-Tech Strategy
Our Mining-Tech Strategy D R I L L I N G O P T I M I S AT I O N ROCK KNOWLEDGE PRODUCTS SENSORS For personal use only R E AL - T I M E D AT A AN D AN AL Y T I C S TIMELY INFORMATION FOR CRITICAL DECISION MAKING QUALITY DATA REPRESENTIVITY TIME SAVINGS • Industry leading sensors • Cost effective meth
Slide 10: Our Mining-Tech Strategy: Drilling Optimisation Products
Our Mining-Tech Strategy For personal use only CATEGORY CUSTOMER RANGE REVENUE BENEFIT MODEL Our Drilling • Drilling Fluids SALES AND PERFORMANCE • Solids Removal Units Optimisation suite BASED RENTAL • Remote Fluid Testing REVENUE of products enhance Technologies drilling productivity • Rig Alignme
Slide 11: Our Mining-Tech Strategy: Rock Knowledge Sensors
Our Mining-Tech Strategy For personal use only CATEGORY CUSTOMER RANGE REVENUE BENEFIT MODEL Our best-in-class • Devico Reference RECURRING Gyro Sensor RENTAL sensors originate • Downhole Survey Sensors REVENUE critical data on the • Core Orientation Sensors PRODUCT AS A four elements of • Gamma Log
Slide 12: Our Mining-Tech Strategy: Real-Time Data and Analytics
Our Mining-Tech Strategy For personal use only CATEGORY CUSTOMER RANGE REVENUE BENEFIT MODEL Our cloud platform • Devico Survey Data Management LICENSING AND System (DeviCloud) SUBSCRIPTION and market leading • Krux Drilling Analytics Software REVENUE geoscience • Cloud-based Data Collection and SOF
Slide 13: Our Performance as a Growth Company
Our Performance as a Growth Company A STRONG FINANCIAL OUTPERFORMING ABILITY TO ESTABLISHED PLATFORM INDUSTRY GROWTH ACCELERATE GLOBAL CLIENT For personal use only ORGANIC GROWTH NETWORK EBITDA margin expansion YOY 5-year revenue CAGR 13% Maintain technology leadership An unparalleled global footpri
Slide 14: Outperforming Industry Growth
Our Performance as a Growth Company OUTPERFORMING INDUSTRY GROWTH For personal use only S&P Non-Ferrous Global S&P IMDEX Revenue IMDEX IMDEX EBITDA IMDEX Exploration Budget EXPLORATION BUDGETS ▲60% REVENUE ▲94% EBITDA ▲233% 341.8 104.9 13.0 8.1 176.2 31.5 US$B $M $M CY17 CY22 FY17 FY22 FY17 FY22 • T
Slide 15: Devico Transaction: Integration Progressing Well
Devico Transaction I N T E G R AT I O N P R O G R E S S I N G W E L L AN D O N - TR AC K For personal use only 9 0 D AY S • Deal closed on 28 February 2023 as planned • Dedicated Integration Steering Committee • FY23 results (incl. Devico) to be announced 28 August • Cash EPS accretion in first full
Slide 16: Devico Transaction: Integration Progressing Well
Devico Transaction I N T E G R AT I O N P R O G R E S S I N G W E L L AN D O N - TR AC K For personal use only • Engineering teams collaborating well, with reciprocal site visits completed • Shared IP and shared product roadmaps completed • Commercial prototype DeviDrill RSS for directional drilling
Slide 17: Devico Transaction: Case Study Sakatti
Devico Transaction • Total length: 57.4 Km C AS E S T U D Y: S A K AT T I • Actual Drilling: 33.8 Km M U LT I - M E TAL P R O J E C T F I N L AN D • Saved Meters: 23.6 Km For personal use only “Devico’s services and especially directional core drilling (DCD) has been important to conduct accurate di
Slide 18: Krux Analytics Investment
Krux Analytics Investment ESTABLISHING IMDEX AS THE 4 5 D AY S #1 PROVIDER IN THE DRILLING For personal use only ANALYTICS MARKET GLOBALLY • 40% investment in Krux finalised on 24 April 2023 • An IMDEX representative will join Krux’s board as a director • IMDEX and Krux are collaborating to accelera
Slide 19: IMDEX Mining Technology Business
IMDEX Mining Technology Business D R I L L I N G O P T I M I S AT I O N ROCK KNOWLEDGE PRODUCTS SENSORS For personal use only R E AL - T I M E D AT A AN D AN AL Y T I C S SIGNIFICANTLY LARGER TAM AND IMDEX BHS IMDEX BOLT IMDEX BLAST DOG LESS SUBJECT TO Autonomous system for multi- CYCLICAL IMPACTS F
Slide 20: IMDEX Technology Deep Dive: Devico, Krux and Datarock
For personal use only IMDEX Technology Deep Dive: Devico, Krux and Datarock 2nd November 2023 Sydney 18
Slide 21: Update on Market Outlook
For personal use only Update on Market Outlook
Slide 22: FY23 Focus Areas
FY23 Focus Areas PROTECTING AND INTEGRATING For personal use only DEVELOPING OUR DEVICO PEOPLE Enhance safety management COLLABORATING WITH systems and culture KRUX AND DATAROCK Ongoing capability development of our teams INVESTING IN OUR INVESTING IN INVESTING IN OUR CORE BUSINESS MODEL DIGITAL 2.0
Slide 23: FY23 Operating Environment
FY23 Operating Environment • S&P forecasted a 15% to 20% contraction in exploration spend for CY23 For personal use only • Historically we see exploration drilling activity rise from March to June: • Activity remained steady from March through to May • Activity resumed growth (sensors on hire) in la
Slide 24: FY24 Outlook
FY24 Outlook • For personal use only S&P forecast exploration budgets to increase in CY24 • Presently they remain ~40% below the peak in 2012 • Exploration activity expected to be driven by: • Increased demand for critical metals, which are driving a higher % of new project starts • Underlying suppl
Slide 25: How IMDEX is Positioned to Benefit
How IMDEX is Positioned to Benefit CONTINUE TRACK RECORD OF OUTPERFORMING INDUSTRY MARKET GROWTH For personal use only • Strong development pipeline of technologies • Strong global presence to optimise solution selling "The megatrends driving adoption of new • Strong pipeline of revenue opportunitie
Slide 26: For personal use only
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 24
Slide 27: Corporate Calendar
Corporate Calendar KEY FY23 DATES For personal use only • 28 August 2023 Release of FY23 Results including 4 months of Devico • 28 – 1 September 2023 Virtual FY23 Roadshow • 19 October 2023 FY23 Annual General Meeting and 1Q24 Update • 2 November 2023 IMDEX Tech Deep Dive – Devico, Krux & Datarock 2
Slide 28: Thank you
Thank you. For personal use only For further information, please contact: Kym Clements Investor Relations Officer kym.clements@imdexlimited.com