Industry cost pressures ‘subdue’ demand for mining tech: Imdex

Mining technology firm Imdex is positioning for global decarbonisation but warns of more subdued activity as the industry faces ongoing cost pressures.

The drive towards net-zero emissions is increasing demand for battery minerals that will require new technology as developers look for fresh sources and drill deeper to extract them.

The Balcatta-based company on Monday reported a 20.3 per cent rise in revenue for the year to June 30 of $411.4 million, including four months of revenue from its newly acquired core drilling and sensor technology specialist Devico.

But profit fell 22 per cent to $35m, including acquisition and integration costs.

The result saw shares in the company plummet 12.8 per cent, or 23¢ to $1.57 in afternoon trade.

Daniel Newell

Sean Smith

The rapidly expanding company acquired Norwegian-based mining tech firm Devico, took a 40 per cent investment in drilling software experts Krux Analytics and upped its stake in geoscience analysis company Datarock.

The company’s mining technologies include a “blast dog” that is in a commercial prototype phase with trials in Queensland, South America and at Fortescue Metals Group’s Iron Bridge project.

With the support of industry growth centre METS Ignited, Imdex partnered with Universal Field Robots to create the autonomous robotic platform to improve the quality of ore mined through better blasting practices.

Underground production hole survey technology and blast hole stabiliser commercial prototypes are also being trialled on multiple sites.

Danielle Le Messurier

Chief executive Paul House said the company’s mid to major customers remain well-funded and capital raising for juniors, which represents about 15 per cent of Imdex’s revenue, had gradually improved.

But exploration activity is expected to remain “subdued” as the industry responds to the high-cost operating environment, Imdex warned.

The company declared a fully franked dividend of 2.1¢ a share, taking the full-year total to an increased 3.6¢ per share.