IMDEX’s big bet on the next exploration cycle

The global resources industry is gearing up to deploy about US$15 billion in capital for an exploration cycle that will likely find and define the next generation of globally significant minerals deposits.

This time around, the productivity equation has shifted. The same exploration spend accomplishes less than it did three years ago, with the accumulative effect of inflation having a direct impacting the ability of companies to drill the metres needed to define resources and prove up reserves.

The growing demand for solutions that combat inflation through clear demonstrable improvements in productivity is at the front of every board member’s, every exploration manager’s and every procurement team’s mind. 

The backdrop supporting a multi-year exploration cycle is also the strongest in recent history. Reserves are depleting while commodity prices surge. Shoring up critical minerals supply is now a well-established pillar of our national security and energy agenda. Geologists are looking deeper, in more complex geology and for lower grades. And rising labour costs are compounded by the complexities of shifting regulatory and policy environments. 

The challenge, then, is not so much access to capital, but how to extract more value out of each metre of drilling, and how to do it at pace.

Connected technology creates speed to decision

Data can and should compound in value instead of losing utility at every handoff. 

The technological advantage for resources companies starts with the right tools and data quality, but too much geological data sits in disconnected systems. When companies capture information from one tool, export it, reformat it, and re-enter it into another, it can create bottlenecks and productivity value is often lost.

The competitive edge comes with speed to decision, and speed to decision comes by connecting the data those tools produce into a unified subsurface intelligence platform across the entire mining lifecycle.

Our next phase of growth lies in solving that problem, and we’re investing heavily across our business to make it a reality.

A strategy to grow through the exploration and commodities cycles

Through three tough years for explorers, we invested strategically in the future of our business – in new acquisitions that complement our portfolio, and in market-leading R&D initiatives. It is this commitment to focus on what we can control and meet the market where it is that has seen us join the ASX200 just over 12 months ago and continue our sustained growth trajectory into FY27.

In the last half of FY26 alone, we completed four acquisitions, including Datarock, downhole logging specialists Advanced Logic Technology and Mt. Sopris Instruments, and geological modelling company Krux Analytics. 

These sit alongside the earlier acquisition of Earth Science Analytics and its EarthNET platform – which integrates and ingests vast, disparate datasets in a cloud-agnostic environment.

From predrilling geophysical surveys, drillhole sensor data, corefarm image data, sensor data, through to laboratory data, our customers now have the ability to apply machine learning models across their disparate datasets to unlock value.

And our commitment to invest at least 8% of our revenue in R&D is unchanged. As digital uptake grows, the nature of our R&D spend has naturally shifted to more software development, data analytics and cloud infrastructure – which may require higher upfront investment to drive growth at the rapid pace we expect as these solutions gain market acceptance.

Looking to FY27 

The ability to trust the data underpinning decisions is essential, but the ability to connect that data is where the compounding value advantage lies. For IMDEX, it is the crystallisation of a shift in mindset many years in the making – from suppliers of equipment to providers of subsurface intelligence systems. That means giving our customers the access to connected technology and software solutions that drive efficiencies and optimise productivity across the mining lifecycle.

As we head into FY27, the fundamentals underpinning our business and the drivers of the resources industry – in Australia and abroad – are encouraging.

Strong commodity prices, resource security initiatives, critical minerals trade agreements, and record exploration capital raised in H2FY26 are all pointing to an uptick in exploration activity. 

The deposits are getting deeper, the margins are getting tighter and those who can turn data to decisions fastest stand to get the most out of every dollar they put behind the drill bit.