A record revenue spurred by the acquisition of Devico wasn’t enough to offset tough market conditions for Imdex, which posted a 7 per cent decline in profit.
A record group revenue spurred by the acquisition of Devico wasn’t enough to offset tough market conditions for Imdex, which posted a 7 per cent decline in net profit.
Group revenue at the global mining-tech company rose 8 per cent to $445.3 million for FY24, with earnings before interest, tax, depreciation and amortisation up 12 per cent.
That result followed a 14 per cent uptick in Devico revenue, with Imdex revenue without the Devico figures falling 3.86 per cent to $375.7 million.
However, the earnings figures weren’t enough to nullify the impacts of a weak market, with a drop in exploration activity hindering the company, according to chief executive Paul House.
“We achieved record revenue, with eight per cent growth, against a backdrop where exploration activity contracted by twenty-four per cent,” he said.
“A highlight was the fourteen per cent uplift in revenue from Devico technologies.
“The strategic alignment of Devico’s directional drilling technology and sensors within the broader Imdex technology stack has enabled us to win market share and create new opportunities throughout our global network.”
Imdex revenue was down in all regions it operated except Europe-Africa, with revenue from the Asia-Pacific dropping 11 per cent.
Again, Devico came to the rescue, with growth in revenue across all regions meaning a decline in consolidated revenue was only observed in the Asia-Pacific region, by 2 per cent.
Consolidated revenue from the Americas was up 13 per cent, while Europe-Africa was up 11 per cent.
The company said it anticipated long-term industry fundamentals would remain compelling and an increase in activity was expected.
“The supply shortfall for gold and copper, which represents about seventy-five per cent of global exploration activity, is predicted to result in substantial demand in the medium to longer term,” the FY24 report outlook said.
“Similarly, demand for other battery metals is expected to intensify in the medium term due to increasing decarbonisation targets.
“This supply shortfall has resulted in higher commodity prices, particularly gold. In turn, Imdex expects increased exploration budgets for producers and capital raisings for juniors.”
Meanwhile, Imdex chair Anthony Wooles has announced the company’s head of finance, Linda Lim, would transition to chief financial officer in January 2025.
The company declared a 1.3 cents per share dividend.
Imdex shares were down 4.2 per cent to $2.05 as of 12.30pm AWST.
