Mining technology firm Imdex reported a 70 per cent year-on-year net profit increase to $55 million last financial year, driven by strong performance in its drilling technology business.
Mining technology firm Imdex reported a 70 per cent year-on-year net profit increase to $55 million last financial year, driven by strong performance in its drilling technology business.
The result came despite a 3 per cent drop in revenue and was credited to Imdex’s 2023 move to acquire directional core-drilling specialist Devico and strong digital growth.
Imdex said the fourth quarter of the financial year had been particularly positive, with record revenue reported at $119 million across the three months to the end of June despite tough market conditions for explorers.
Imdex managing director and chief executive Paul House said the company was wary that conditions remained tough for explorers.
We are greatly encouraged by our fourth quarter record revenue performance,” he said.
“That said, we remain cautious about the broader market outlook.
“There is positive market sentiment in key regions, with rising demand for near-mine and brownfields drilling, however the downward pressures that have dampened exploration activity over the past three years persist, although they are increasingly being counterbalanced by the upward forces driving demand for metals.”
Imdex reported net profit of $32.4 million in the 2024 financial year, weighed by the costs of integrating Devico into its portfolio and an impairment expense incurred after it sold a technology called Maghammer.
The company used its cash position to improve its debt profile. Net debt fell by 63 per cent last year to $12.9 million at June 30 this year.
A global operator, Imdex reported its strongest revenue result in the Americas market, with almost 50 per cent of its $431.4 million full-year revenue coming from that region, at $213 million.
Asia Pacific accounted for $107 million, or 25 per cent of group revenue, outdone by markets in Europe, the Middle East and Africa returned 26 per cent of group revenue at $111 million.
Imdex noted a recovery of exploration activity within Western Australia and said a 21 per cent increase in Asia Pacific revenue between the third and fourth quarters of the financial year was the result of higher sensor revenue and uptake of next generation products.
The full acquisition of Norwegian firm Earth Science Analytics will be completed by April 2026, with Imdex flagging that it was “highly likely” to be an all-cash move.
The company’s share price was up 1.8 per cent to $3.43.
