Slide 1: 2018 Full Year Results Presentation
For personal use only 2018 Full Year Results Presentation Bernie Ridgeway – IMDEX Managing Director Paul Evans – Chief Financial Officer & Company Secretary Paul House – Chief Operating Officer 20 August| 2018 CONFIDENTIAL – Property of © IMDEX Limited
Slide 2: Leading global METS company
a ) e Foon ‘ © We are a leading global <...---: ) mining equipment, (CP) Our solutions improve the @ technology and services Te process of identifying and Cp) (METS) company extracting what is below =) aD” the earth’s surface ,, © peg 5 We let clients know for drilling Soh w where it is and what con
Slide 3: FY18 Highlights
FY18 Highlights Financial and operational For personal use only 3
Slide 4: Key Financial Metrics
Key Financial Metrics For personal use only FY18 FY17 VAR VAR% $m $m $m Revenue 218.5 176.2 42.3 24% EBITDA (from continuing operations) 42.4 31.5 10.9 35% NPAT 21.1 3.71 17.4 470% EPS (cents) 5.7 1.1 4.6 418% Operating cash flow 15.9 13.1 2.8 21% Net assets 186.1 159.8 26.3 16% 1 Includes $16.2m (n
Slide 5: Minerals Revenue by Region
Minerals Revenue by Region For personal use only $m • Increasing revenue across all regions – highest revenue and growth potential in Americas • Business benefits from global presence and regional expertise • Steady increase in activity throughout FY18 and into FY19 • July 2018 highest monthly reven
Slide 6: Minerals EBITDA
Minerals EBITDA For personal use only $m 42.4 31.5 FY18 EBITDA up 20.3 35% on pcp 15.6 7.4 FY14 FY15 FY16 FY17 FY18 Additional investment in transformational initiatives of ~$6.3 million* during FY18 *Investment includes internal digital transformation program and further development of technologies
Slide 7: Balance Sheet
Balance Sheet For personal use only $m 30 JUN 18 30 JUN 17 Cash 13.9 19.4 Receivables 49.3 41.5 Inventory 33.6 29.9 • Robust balance sheet Fixed assets 36.5 32.2 Intangibles 59.5 60.4 • Net assets increased 16% Other assets / deferred tax 33.3 27.5 • Net cash position maintained TOTAL ASSETS 226.1 2
Slide 8: Reconciliation of EBITDA to cash flow from operations
Reconciliation of EBITDA To cash flow from operations For personal use only $m • Working capital investment normalised in 2H18 – FY18 in line with expectations • Similar working capital ratio expected in FY19 • FY18 cash tax increased due to higher profitability • FY19 investment in core products fo
Slide 9: Established Global Business
Established Global Business Operational Leverage For personal use only 9
Slide 10: FY18 Market Overview
FY18 Market Overview IMDEX Positioned for Sustainable Growth For personal use only 10
Slide 11: World Mineral Exploration Review and Outlook
World Mineral Exploration Review and Outlook For personal use only • 6 countries/regions attracted ~ 60% of spend • Americas attracted >50% of expenditure, Asia/Pacific – Indexed Metals Price (1996 = 1) 17.5%, Africa – 14% • Gold/copper >70% of global expenditure. Gold/base metals >80% • CY18 budget
Slide 12: Gold in Major Discoveries 1990–2017
Gold in Major Discoveries 1990 – 2017 For personal use only • Easy deposits found • 1990 – 2007 US$32.2b spent to yield 1,726m oz – 122 discoveries • 2008 – 2017 US$54.3b spent to yield 215.5m oz – 41 discoveries • New mines – under groundcover, deeper, more drilling, more expensive and longer devel
Slide 13: Copper in Major Discoveries 1990–2017
Copper in Major Discoveries 1990 – 2017 For personal use only • 1990 – 2007 US$12.4b spent – 191 discoveries • 2008 – 2017 US$26.6b spent – 29 discoveries • Mined grades 2005 – 2017 declined (0.74% to 0.59%) • Exploration more challenging and costly • Size of mines increasing as low grade deposits a
Slide 14: Significant Global Financings
Significant Global Financings Gold, base/other metals, number completed For personal use only Gold – June 18Q • Fundraisings ↑ 13% qoq (120 - 136) • Total raised ↓43% (US$1.08b from US$1.89b) • Decline reflected large financings in the March 18Q Base Metals – June 18Q • Financings ↑ 39% qoq (46 – 64
Slide 15: Gold and Base/Other Metals financings by exchange
Gold and Base/Other Metals Significant financing by stock exchange June 18Q For personal use only Gold financings by stock exchange Base/other metals financings by stock exchange Other NYSE Other NYSE 6% 1% 5% 5% LSE Group LSE Group 5% 5% TSX Group ASX 32% 23% TSX Group 65% ASX 53% 72 raising US$559
Slide 16: Exploration Budget Allocation
Exploration Budget Allocation Grassroots, late stage & feasibility, mine site For personal use only • Grassroots – declined from 50% in 1997 to <30% in 2017 • Mine site – increased from 17% to ~40% in same period Source: S&P Global Market Intelligence – Data as of July 25 2018 16
Slide 17: REFLEX Instruments on Hire
REFLEX Instruments on Hire (Number of units) For personal use only REFER TO PAGE 11 17
Slide 18: Summary of Strategy
Summary of Strategy Driving Sustainable Earnings Growth For personal use only Organic – protect and grow core Growth of core business business historically driven by: Transformational – extension into • Cyclical upswing new market segments within the • Introduction of new technologies mining value c
Slide 19: 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 Increase processing intensity Potential for significant additional global revenue, which is more sustainable throughout the cycle Inte
Slide 20: 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 20
Slide 21: CoreVIBE & MagHAMMER
CoreVIBETM & MagHAMMERTM Unique drilling productivity technologies For personal use only Extensive testing and due diligence Technologies are patent protected Option agreement • conducted pre- and align with IMDEX’s rental model executed Jan 2018 signing – including IP protection • Technologies comp
Slide 22: CoreVIBE Client benefits
CoreVIBETM Client benefits For personal use only 22
Slide 23: MagHAMMER Client benefits
MagHAMMERTM Client benefits For personal use only 23
Slide 24: Global Leader: Substantial Competitive Advantage
Global Leader Substantial Competitive Advantage For personal use only 24
Slide 25: Summary & Outlook
Summary & Outlook For personal use only • Positive FY18 – increased revenue by 24% and EBITDA by 35% • REFLEX instruments on hire at 30 June 2018, 10% up on pcp • Strong investment in FY18 – strategic positioning to achieve sustainable earnings growth for shareholders • Robust balance sheet – abilit
Slide 26: Appendices
For personal use only Appendices
Slide 27: Simple Scalable Structure
Simple Scalable Structure Leading Integrated IMDEX Solutions For personal use only • Focused on integrated IMDEX solutions – comprising leading AMC and REFLEX brands • AMC and REFLEX are dominant within minerals industry – strong market share 27
Slide 28: Leading Technologies
Leading Technologies Integrated IMDEX Solutions For personal use only 28
Slide 29: Board of Directors
Board of Directors Professional expertise, business experience & technical knowledge 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 200
Slide 30: Company Snapshot
Company Snapshot As at 30 June 2018 For personal use only Corporate Information Share register Analysis of top 50 shareholders at 30 June 2018 ASX listed IMD Institutions 70.0% Share price (30 June 2018) $ 1.24 Employees, directors & company related parties 2.68% Issued shares m 369.7 Corporate hold
Slide 31: 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