Imdex reports record revenue, credits Devico deal

Imdex has delivered a record revenue of $235 million for the first half of the year, a result the mining technology company credited to its acquisition of Devico.

The Balcatta-based company today announced its first-half 2024 results, reporting a revenue of $253.3 million, up 18.4 per cent from the same time last year.

In its announcement, Imdex said without the Devico contribution, its revenue was in line with the previous reporting period.

Imdex acquired Devico for $324 million after raising $224 million through an institutional placement in January 2023.

The company said normalised earnings before interest and taxes was up 13 per cent on the same time last year, at $71 million, while net profit after tax was a 7.6 per cent increase at $32.8 million.

Imdex chief executive Paul House said the overall results were significant against the global downturn in exploration activity.

“Against a challenging backdrop, our revenue growth of eighteen per cent, bolstered by a $36.1 million contribution from Devico for the half, is an excellent result,” he said.

“Our normalised EBITDA margin of 30 per cent was up half on half and highlights the strength of our core business, our resilient earnings profile and our ability to perform in all market conditions.

“We are particularly well-placed to respond to the mining industry’s need for improved productivity and efficiency, which is magnified in a high-cost environment.

“With the integration of Devico and investments in Datarock and Krux, Imdex is in its strongest position to leverage the robust long-term industry fundamentals through its unique competitive position created from its global presence and product portfolio.”

According to Imdex’s announcement, there was a 17 per cent increase in Devico directional drilling revenue in the first half and new projects and trials in the US, Africa and Australia.

Mr House said the industry was facing rising costs and geological complexity, with both challenging the looming supply demand gap for the majority of minerals.

“New technologies that simultaneously deliver greater orebody intelligence in real time, and lift overall industry productivity, are increasingly sought to bridge that gap,” he said.

“These challenges have been well signalled, and Imdex has been methodically developing the capability, partnerships and the products to meet these challenges head on.”

Shares in Imdex were trading up 17.45 per cent, at $1.88 each, as of 4.10pm AEDT today.