Perth-headquartered mining tech company IMDEX expects global resources exploration activity to bounce back next financial year, after lower spend hit its revenue in the half-year.
Perth-headquartered mining tech company IMDEX expects global resources exploration activity to bounce back next financial year, after lower spend hit its revenue in the half-year.
IMDEX reported $212 million worth of revenue in the first half of the financial year, down 10 per cent against the prior corresponding half attributed to a fall in exploration spending around the world.
BDO data released late in 2024 found ASX-listed pre-revenue explorers spent 19 per cent less year-on-year last financial year, while S&P reported global greenfield exploration at a record low in 2024.
IMDEX navigated those headwinds over the half but delivered a normalised net profit after tax figure of $21.9 million – down 24.2 per cent from the first half of the previous financial year.
Managing director and chief executive Paul House said the result reflected sustained pressure on minerals exploration activity globally, but said he was pleased the business had outperformed the broader market.
IMDEX declared a 1.5c dividend and kept research and development spending at 8 per cent of its overall revenue figure.
It also paid debt down to $15.3 million, with a target of achieving a net cash position next financial year. Net debt sat at $45.7 million a year earlier.
Crucially, Mr House said he expected a turnaround in exploration investment expenditure around the world in the coming financial year.
“There’s a number of declared budget increases, particularly with Australian resources companies,” he said.
“There is S&P data where they survey a number of companies around the world, and we expect the next update from them on March 5.
“But more importantly, it’s our network around the world, our engagement with resource companies, our engagement will drillers who also engage with resource companies, who are validating that underlying demand for exploration because of the fundamentals that they are seeing.
“It’s off the back of that and the increased levels of inquiries we are getting in some of these regions that is giving us a slightly more positive outlook into FY2026.”
IMDEX said activity in North America, Africa and Europe remained steady over the period, while South American appetite for copper was driving demand.
The company said activity was on the up in Papua New Guinea and the Philippines in Asia, while Australian interest was steady off the back of brownfields and near-mining projects work.
Forty-nine per cent of IMDEX’s revenue was delivered from the Americas over the period.
Meanwhile, IMDEX’s mining technology unit delivered a 72 per cent revenue uptick on the first half of 2024.
Mr House said mining technology, alongside M&A and its software as a service offerings, would be key to the business’ ambition to grow in all market conditions going forward.
IMDEX shares rose 5.7 per cent to $2.80 this morning.
