A strong first quarter performance sets IMD up for another good year
- Imdex has the vision to become the leading provider of real-time subsurface intelligence solutions to the global minerals industry and has offices located around the world. Its technology can improve the process of identifying and extracting information from below the earth’s surface for drilling contractors and resource companies. This can help in critical decision making from exploration through to mining and can allow its customers to control costs and increase productivity.
- AMC business: IMD provide drilling fluids, equipment, technology and software solutions to maximise productivity with a strong presence within the horizontal directional drilling, waterwell and civil construction sectors.
- Reflex business: Provides real-time subsurface intelligence technologies for downhole instrumentation, data management, and analytical software for geological modelling.
- Cloud-based platforms: Resource companies and drilling contractors can connect to the IMDEXHUB-IQ cloud-based web portal which can connect Imdex products and technologies to the platform. The portal allows the collection and storage of operational information in a secure database which can be accessed from any internet connection via a smartphone, tablet or pc. The ease of access to data which is available anywhere and anytime can provide the following benefits to resources companies and contractors, through:
- Faster decision making
- Access to trusted field data
- Reduced costs and increased efficiencies
- Automated workflows
- Turning data into intelligence
- IMD has a very strong share registry with around 75% of its issued share capital owned by institutional investors.
Imdex is well placed to see the changing market conditions in the resources sector
- Imdex has seen that its REFLEX rental fleet has traditionally been a reliable indicator of market conditions within the resources industry, with the requirement for more instruments as more rigs return to work. IMD’s number of instruments on hire increased by 27% over the year to 30 September 2017 with the largest driver of rental activity seen in the gold and copper markets. The increased demand for instruments has been for traditional survey and core instrumentation along with its newer technologies. The newer technologies tend to yield higher rentals rates for IMD due to the greater value-add for their clients.
- Activity has been recovering globally with increased activity seen particularly in Canada, Western USA, Latin America, West Africa and Australia. Initially, the activity uplift was seen in 4Q16 due to the pickup in the gold price, but they have now seen a broad-based recovery with all sizes of mining companies well-funded and with increased budgets.
- The larger sized resource companies have been focussing on increasing efficiencies and reducing costs, which has seen newer technologies gaining momentum in an effort to lift productivity. Junior companies have been able to raise cash via equity markets and are now actively exploring. Both larger and smaller sized companies are on a mission to replace diminishing reserves and resources.
- IMD sees that the robust activity within the major mining areas shows signs that we are currently in the early stages of a cyclical upswing, with the broader-based recovery likely to be steady and sustainable.
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