Imdex Ltd · ASX:IMD
Imdex — Euroz Rottnest Forum 2019
32 slides from Imdex's conference presentation, Mar 14, 2019
Slide 1: Euroz Rottnest Forum Presentation
For personal use only 14 March 2019 Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam Euroz Rottnest Forum Presentation Please find attached the Euroz Rottnest Forum Presentation to be presented later today. Yours faithfully Imdex Limited Paul E
Slide 2: IMDEX Euroz Rottnest Presentation
For personal use only IMDEX Euroz Rottnest Presentation Bernie Ridgeway – Managing Director Paul Evans – CFO & Company Secretary Paul House – Chief Operating Officer 14 March|2019 CONFIDENTIAL – Property of © IMDEX Limited
Slide 3: For personal use only
2 a ‘= We are a leading global Loose *) © mining equipment, (A) Our solutions improve the @ technology and services Or! process of identifying and w* (METS) company extracting what is below s Ww the earth's surface .. @ jp, ios | Welet clients know fw for drilling “ad © where it is and what contract
Slide 4: Leading Global METS Company
Leading Global METS Company Unique competitive position For personal use only 3
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 1H19 1H18 VAR VAR% $m $m $m Revenue 125.0 104.7 20.3 19% EBITDA 25.2 20.1 5.1 25% NPAT 13.5 10.6 2.9 27% EPS (cents) 3.65 2.89 0.76 26% Operating cash flow 19.0 2.1 16.9 805% Fully-franked interim dividend declared (cents) 0.8 - 0.8 - • Si
Slide 7: Revenue by Region
Revenue by Region For personal use only • 1H19 revenue up 19% on 1H18 • Increasing activity globally, albeit, at a slower rate (S&P: CY19 ~5% - 10%) • FY19 January / February revenue up on pcp • Improving quality and benefits of rental fleet – generally commands higher rates Minerals revenue only ($
Slide 8: EBITDA
EBITDA For personal use only 1H19 EBITDA up 25% on pcp • Strong earnings growthMinerals over last 2-3only EBITDA years ($m) • Gross margins have been maintained • Net investment in transformational initiatives* forecast to be ~$8.0m for FY19. This investment is expected to reduce substantially from
Slide 9: 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 10: 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 9
Slide 11: World Mineral Exploration
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 12: World Mineral Exploration
World Mineral Exploration For personal use only Source: S&P Global Market Intelligence- March 2019 11
Slide 13: Major Discoveries
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 14: Market Overview
Market Overview For personal use only • Steady increase in exploration budgets and activity globally – albeit at a slower pace – S&P 5% - 10% for CY19 • Macro geopolitical concerns – tapering global growth and the US / China trade tensions – are impacting capital markets • The ability for juniors to
Slide 15: 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 16: Transformational Growth
Transformational Growth COREVIBETM & MAGHAMMERTM – Drilling Productivity For personal use only • Entered Secondary Option Period to progress COREVIBE™ & MAGHAMMER™ towards commercialisation • Strong demand from drilling contractors and resource companies, and successful trials at IMDEX’s test site i
Slide 17: Drill & Blast
Drill & Blast IMDEX Mining Solutions For personal use only • Project designed to increase mine to mill efficiency for clients • Progressing well, commercial prototypes expected to be trialled in-pit with clients during 2H19 • Strong support from industry partners including: Orica; Anglo American; Te
Slide 18: Common Challenges: Variability of Fragmentation
Common Challenges Variability of Fragmentation For personal use only 17
Slide 19: Common Challenges: Structure / fault lines
Common Challenges Structure / fault lines For personal use only 18
Slide 20: The Solution
The Solution Material characterisation For personal use only Characterise material pre blast Differentially load blast holes Generate desired rock fragment size Minimise dilution/increase recoveries 19
Slide 21: End-to-End Solutions
End-to-End Solutions Operating across the mining value chain For personal use only Source: CRC-ORE 20
Slide 22: 1H19 Summary & Outlook
1H19 Summary & Outlook For personal use only • Benefiting from steady recovery in exploration spend • Strong earnings growth over last 2-3 years – 1H19 increased revenue by 19% and EBITDA by 25% • Fully-franked interim dividend declared of 0.8 cents per share • Strong cash conversion and robust bala
Slide 23: 1H19 Summary & Outlook Continued
1H19 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
Slide 24: Appendices
For personal use only Appendices
Slide 25: Established Global Business
Established Global Business Operational leverage – we are where the money is being spent For personal use only 24
Slide 26: 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 27: Organic Growth
Organic Growth Real-time 3D visualisation for minerals drilling projects For personal use only 26
Slide 28: COREVIBE Client benefits
COREVIBE™ Client benefits For personal use only 27
Slide 29: MAGHAMMER Client benefits
MAGHAMMER ™ Client benefits For personal use only 28
Slide 30: 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 31: 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 32: 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