IMD - Imdex Limited

[Dona Ferentes]

1H24 Financial Highlights
• Revenue of $235.3m up 18.4% (up 16% on a constant currency basis)
• EBITDA normalised of $71.0m up 13.1% (up 14% on a constant currency basis)
• EBITDA margin normalised of 30.2%
• Operating cash conversion of 84%
• NPAT of $16.8m, down 26%
• NPATA normalised of $32.8m, up 7.5%
• Net debt of $45.7m, down $19.2m since 30 June 2023 following accelerated debt repayment
• Declared an interim fully franked dividend of 1.5cps representing a 26% NPAT payout ratio on normalised earnings

1H24 Strategic Highlights
• Completed Devico operational integration
• DeviGyro sensor rentals within IMDEX network up 45% since completion
• Average sensor revenue per unit up 5% excluding Devico
• Top 250 customers with >3 products 41%, up from 37% as end-to-end solutions gain market share
• Directional drilling projects expanded into USA, Africa and Australia
• Number of IMDEX HUB-IQ™ connected customers up 8%
• Krux Analytics revenue increased >2 times
• Datarock revenue increased >2.5 times and metres processed increased 100%
• Additional installed sites and commercial prototype trials with the IMDEX Mining Technology product suite

 

[finicky]

Yeah babe! Never had a moment's doubt. Thank god for normalised NPATA (whatever that is .. I like it)

HODLED

 

[finicky]

NPATA means NPAT adjusted for the tax-effected amortisation of acquisition related intangibles.

 

[finicky]

Lots of insto messing around in one of my fave stocks, including by UBS, MS and MUFG. In fact going back 3 months, during which the company released a brace of H1 announcements, 20 of the total 29 announcements were instos or money managers becoming or ceasing to be substantial. Combined with Bell Potter downgrading Imdex, it was impossible for the retail holder to fathom what was going on. Follows just 1 month of announcements:

WEEKLY - chart could hwve more in it? Allowing for ST setbacks of course. Not that I am buying now..

 

[finicky]

From the same llvewire article that Dona quoted on the SXE thread:

Buy Hold Sell: 5 small stocks with big catalysts on the horizon

In this episode, Elston's Justin Woerner and LSN Capital's Nick Sladen analyse five stocks with possible share price-moving catalysts.

www.livewiremarkets.com

First up today we have Imdex. It's a drilling equipment and software provider. Nick, I'm going to start with you today. What's the catalyst there and is it a buy, hold or sell?

Imdex (ASX: IMD)​

Nick Sladen (BUY): It's a buy from our perspective. Over half of its business is exposed to copper and gold. Gold prices and, more recently, copper prices have had a really strong run and we would expect that to drive tailwinds in terms of exploration. And that's obviously a key component of their business and what they do. Equally, they've put themselves in really good shape with an acquisition of Devico in 2023, which has further strengthened their market position and we think the outlook going forward into FY25 is really good.

Ally Selby: Its share price is up around 13% since the beginning of the year. Justin, over to you, is it a buy, hold or sell?

Justin Woerner (BUY): I'd agree with everything Nick said. It's a buy for us as well, Ally. I think in the short term there are a lot of those catalysts, which Nick was talking about. And then probably more medium to longer term, we're looking at product development, mostly in the form of BLAST DOG. That's been something that they've been talking about for a while - they've been trialling it for a while. Over the next couple of halves, we'll really be looking for additional commercialisation of that BLAST DOG product. We think that'll drive their production-based revenues and just give the market more confidence about an additional growth leg within the business.

 

[finicky]

Have they been on the phone?
Guess I could live with a $2 sp.

• Imdex Cut to Sell at Citi; PT A$2

 

[divs4ever]

Have they been on the phone?
Guess I could live with a $2 sp.

• Imdex Cut to Sell at Citi; PT A$2

View attachment 182632

yes , i will suffer fairly quietly

( my average share price is 82.5 cents )

 

[finicky]

Imdex FY24 result

A dull report but share price only down 5%
There's also an impairment in there which surprisingly includes 'Maghammer', an acquisition that was supposed to bear promise. Maybe we all liked the name:
EBITDA Normalised to exclude significant items including Devico integration and organisational redesign costs ($10.4m) plus MAGHAMMER impairment costs ($7.4m)

Held
Holding

 

[divs4ever]

Outlook

S&P Market Intelligence forecasts exploration spend for CY24 to contract by 5% on CY23.
This contraction is largely due to the high-cost operating environment, funding constraints for junior explorers, and broader macro concerns.5
While FY24 saw a significant decline in exploration activity, the long-term industry fundamentals remain compelling and are signalling increased activity.
The supply shortfall for gold and copper, which represents ~75% of global exploration activity, is predicted to result in substantial demand in the medium to longer term.
Similarly, demand for other battery metals is expected to intensify in the medium term due to increasing decarbonisation targets.
This supply shortfall has resulted in higher commodity prices, particularly gold.
In turn, IMDEX expects increased exploration budgets for producers and capital raisings for juniors.
Historically, there is a six-to-nine-month interval between funds being raised and subsequently deployed on-site.
As these funds are allocated, IMDEX anticipates an uplift in rig activity, new projects being permitted, and a rise in overall exploration expenditure globally.
The Company expects market activity in the near term will remain relatively flat, as customers in some jurisdictions complete cost out programs and reset for the industry upturn.
IMDEX has a unique competitive position to address increasing demand for productivity and greater ore body knowledge.
The Company maintains its clear objective of outperforming industry growth through technology leadership, together with integrated offerings, while pursuing new growth via its Digital and IMT businesses.

This announcement has been approved for lodgement by the Board of Directors.

i hold IMD

hmm it seems the market disagrees

maybe to wider market sees capital drying up

 

[finicky]

Imdex up 3.7% today against the backdrop of a flat ASX.

• Imdex Raised to Hold at Bell Potter; PT A$2.05 fwiw

Chart might be setting up for a mini breakout. That'd be my guess anyway.
Held and Holding
WEEKLY not showing today's rise to 2.20

 

[finicky]

Chances for IMD moving out of its ~6 month consolidation improved with this week's candle?

Held and Holding

WEEKLY

 

[finicky]

52 Week high today. Still trying to break free of ~7 months of consolidation. Testing the upper limit.
Seems fully priced but that doesn't seem to count as much these days. Wouldn't be buying at this price myself but if the market crashed with a prospect of commodities recovering I'd look at it. Combines tech with resources.

Held
Holding

DAILY

 

[finicky]

Another 52 week high. Seems to be confirming breakout from a consolidation pattern? (best viewed on a weekly chart)
Should resonate to the resources sector.

Held
Holding

DAILY