Mining upswing lifts Imdex

The share price of Balcatta-based Imdex hit its highest level in four years today after the mining equipment and technology company reported a strong improvement in earnings.

The stock jumped 6 cents to 86 cents, a level not reached since mid-2013.

Managing director Bernie Ridgeway said the company exceeded its financial targets for the year to June 2017.

Its results included a net profit of $3.7 million, compared with a loss of $56.2 million in the prior year.

Revenue from continuing operations was up 23 per cent to $176 million, while earnings before interest, tax, depreciation and amortisation was up 55 per cent to $31.5 million.

“This positive outcome was due to improving market conditions globally, our regional expertise and further market penetration for our differentiated technologies,” Mr Ridgeway said.

Another positive indicator for the company was a 42 per cent increase in the number of REFLEX instruments on hire at 30 June 2017, compared with one year earlier.

Imdex said this reflected the early stages of a mining industry cyclical upswing across all major mining regions globally.

It added there was a fundamental need for the industry to replace diminishing reserves, after it cut back on exploration and development expenditure over recent years.

Imdex completed a significant restructure last year, with the sale of its oil and gas business leaving it focused solely on minerals.