IMD - Imdex Limited

[finicky]

IMD @ 1.06

That 'confirmed daily trend' I pointed to in the prior post didn't last long
In fact it didn't last at all. Strange, Mitsubishi Financial Group (MUFG) declared a change of substantial holding today and I assumed that might throw light on the 10% drop in IMD's share price today but upon opening the announcement I see that MUFG has increased its holding recently.


A few days ago IMD put out a presentation for UBS that I thought was pretty good.
Held
Sentiment: Hold

6 Mth Dly

 

[sptrawler]

Imdex buys out AusSpec, which owns a spectural infra red interpretation system.

https://www.asx.com.au/asxpdf/20200707/pdf/44k9chhf9p9jx3.pdf

Sounds like a good move and should integrate well with Imdex business model.IMO

 

[finicky]

IMD @ $1.10

Announcement's got some buzz words: AI, SaaS, seamless integration, scaling

"“Every mine in the world makes decisions on the four components of rock knowledge – location, texture, grade and mineralogy.
Imdex's technology stack currently addresses three of these components and aiSIRIS satisfies the fourth – mineralogy."

Auspec already cash flow positive 4 years but won't become earnings accretive for IMD till year 2 or 3.

The market for the acquired aiSIRIS technology will suddenly expand through Imdex's global network as an integrated part of Imdex's service. Development of aiSIRIS should forge ahead with collaboration between the two staffs and Imdex's greater capital capacity.

A concern for me is the IMD equity portion of the deal. Wouldn't want that to be settled during the general market crash that I am expecting around September. It is $5.5m worth of IMD shares to be issued, based on the 10 days volume weighted price of IMD prior to date of calculation. Pick the wrong time and that could be 4x as many shares issued than would be currently expected! It says "A$5.0m of the IMDEX shares will be issued on completion". And further down says "completion is expected to be effective .. late July 2020", so should be ok I hope.

7 July 2020

IMDEX enhances real-time rock knowledge offering with strategic acquisition of AusSpec

Key Acquisition Benefits for IMDEX

• aiSIRIS is a unique industry leading low-touch SaaS product with high barriers to entry;

• As a SaaS product, aiSIRIS delivers premium gross margins consistent with IMDEX’s strategy;

• aiSIRIS is a proven product ready to be scaled via IMDEX’s global distribution network;

• AusSpec co-founder Dr Sasha Pontual is the world-leading spectral mineralogy expert who has built an extensive spectral library over the past five years. Dr Pontual and other AusSpec personnel will join the IMDEX team;

• AusSpec enhances IMDEX’s rock knowledge offering with spectral mineralogy and AI technologies;

• aiSIRIS complements IMDEX’s existing In-Field GeoAnalysis solution and integrates with IMDEX geochemistry analysis software (IMDEX ioGAS™);

• AusSpec has well-established relationships with major resource companies

• Plus we get nice looking AusSpec founder Dr Sasha Pontual and her egg-head staff!

The New Zealand-based company AusSpec was co-founded by Dr Sasha Pontual – the world-leading spectral mineralogy expert – who has built an extensive spectral library over the past five years. Dr Pontual holds a PhD in Geology and Remote Sensing. She has more than 30 years’ experience in the application of spectral data to mining and exploration and her vision ‘has always been to make spectral geology available to all geologists.’

Dr Pontual and her team commenced development of aiSIRIS – Artificial Intelligence Spectral InfraRed Interpretation System – in 2013. Since then, the third-generation SaaS product has processed over 2 million spectra on some 1000 projects with major resource companies and early technology adopters.

It is now ready to be scaled via IMDEX’s global distribution network.

 

[Miner]

IMD @ $1.10

Announcement's got some buzz words: AI, SaaS, seamless integration, scaling

"“Every mine in the world makes decisions on the four components of rock knowledge – location, texture, grade and mineralogy.
Imdex's technology stack currently addresses three of these components and aiSIRIS satisfies the fourth – mineralogy."

Auspec already cash flow positive 4 years but won't become earnings accretive for IMD till year 2 or 3.

The market for the acquired aiSIRIS technology will suddenly expand through Imdex's global network as an integrated part of Imdex's service. Development of aiSIRIS should forge ahead with collaboration between the two staffs and Imdex's greater capital capacity.

A concern for me is the IMD equity portion of the deal. Wouldn't want that to be settled during the general market crash that I am expecting around September. It is $5.5m worth of IMD shares to be issued, based on the 10 days volume weighted price of IMD prior to date of calculation. Pick the wrong time and that could be 4x as many shares issued than would be currently expected! It says "A$5.0m of the IMDEX shares will be issued on completion". And further down says "completion is expected to be effective .. late July 2020", so should be ok I hope.

7 July 2020

IMDEX enhances real-time rock knowledge offering with strategic acquisition of AusSpec

Key Acquisition Benefits for IMDEX

• aiSIRIS is a unique industry leading low-touch SaaS product with high barriers to entry;

• As a SaaS product, aiSIRIS delivers premium gross margins consistent with IMDEX’s strategy;

• aiSIRIS is a proven product ready to be scaled via IMDEX’s global distribution network;

• AusSpec co-founder Dr Sasha Pontual is the world-leading spectral mineralogy expert who has built an extensive spectral library over the past five years. Dr Pontual and other AusSpec personnel will join the IMDEX team;

• AusSpec enhances IMDEX’s rock knowledge offering with spectral mineralogy and AI technologies;

• aiSIRIS complements IMDEX’s existing In-Field GeoAnalysis solution and integrates with IMDEX geochemistry analysis software (IMDEX ioGAS™);

• AusSpec has well-established relationships with major resource companies

• Plus we get nice looking AusSpec founder Dr Sasha Pontual and her egg-head staff!

View attachment 105680

The New Zealand-based company AusSpec was co-founded by Dr Sasha Pontual – the world-leading spectral mineralogy expert – who has built an extensive spectral library over the past five years. Dr Pontual holds a PhD in Geology and Remote Sensing. She has more than 30 years’ experience in the application of spectral data to mining and exploration and her vision ‘has always been to make spectral geology available to all geologists.’

Dr Pontual and her team commenced development of aiSIRIS – Artificial Intelligence Spectral InfraRed Interpretation System – in 2013. Since then, the third-generation SaaS product has processed over 2 million spectra on some 1000 projects with major resource companies and early technology adopters.

It is now ready to be scaled via IMDEX’s global distribution network.

Index got a new CEO i believe.
Let's watch this space.
At least tomeet first hurdles on kpi there will be some visible outcomes in first 12 months.
Holding.

 

[sptrawler]

Index got a new CEO i believe.
Let's watch this space.
At least tomeet first hurdles on kpi there will be some visible outcomes in first 12 months.
Holding.

Big shoes to fill, Bernie did a good job.

 

[Miner]

Big shoes to fill, Bernie did a good job.

Just remember the poem Rainbow by Wordsworth" a child is a father of a man".
Those days gender complications were not there.
All growing feet gradually fill the big shoes.

 

[Beaches]

Index got a new CEO i believe.
Let's watch this space.
At least tomeet first hurdles on kpi there will be some visible outcomes in first 12 months.
Holding.

The new CEO (Paul House) has been working for Imdex since 2017 and became the COO in 2018. The board announced on 25 November 2019 that he was to become the CEO upon the retirement of Bernie Ridgeway in July 2020.

As it was a planned succession and he has been the CEO elect for the last 7 months, I imagine he has had a big hand in the overall management of the company for most of that time, including the latest acquisition.

Reporting date is approaching and I am expecting improved results. Whether this brings a rerating of the SP or just a short term bounce will be interesting. Currently I cant see any reason for their earnings to be negatively affected by the economic effects of Covid in the short to medium term.

 

[finicky]

IMD @ 1.135

Imdex 5th best mover in percentage terms on the ASX200 today if I read Nabtrade right.
Don't understand the tepid interest in this stock compared to many others.

Chart might have completed the ~60% retrace of the bounce from the March Covid low?
Price peeping above the downtrend resistance line.
Don't care much, can't buy more and this is one I won't bother trimming before the market bust.

IMD 6 Mth Dly

 

[finicky]

Fund manager increased substantial holding in IMD

Our investment process
L1 Capital invests in high quality businesses trading well below their intrinsic value. Our investment process combines discounted cash flow valuation with qualitative considerations such as management quality, industry & company structure and business trends to identify attractive investment opportunities.
The core of the investment approach is a high level of interaction with a wide range of market participants. This enables us to generate the most complete fundamental, bottom- up assessment of each investment opportunity.

 

[finicky]

258 Capital
@258Capital on twitter

"$IMD Strong set up.. "

 

[finicky]

After breaking through recent double highs around the 1.45 level IMD looks ready to break through the local 1.50 daily resistance level. Doubt it'll shoot the lights out though, slow progress stock.

Daily

 

[finicky]

IMD @ 1.725
Imdex closed at a 12 month high on the last trading day of the year!

Daily

 

[finicky]

Bit of a ho hum H1 result from Imdex I thought, continuing the miserable dividend trend, M.D says they're retaining earnings for more R&D and as a reserve for acquisition opportunities. Surprised by the positive market response so far today.

Revenue went down, mostly due to currency differences, reported earnings went up.

Said Covid disrupted and continues to disrupt physical operations but has "heightened demand for our cloud-connected technologies" - which happen to be higher margin.

 

[Ferret]

Very strong today. A broker upgrade?

 

[finicky]

Moderately strong volume in IMD today.

Also today, the shareholders' newsletter from Wilson Asset Management in which they disclose holdings of IMD by two of Wilson's LICs, saying:

"On the ground insights from Western Australia

Equity Analyst Shaun Weick and Senior Equities Dealer Cooper Rogers recently returned from the resources and energy sector focused Euroz Hartleys Conference on Rottnest Island, where the favourable backdrop for commodities was reconfirmed.

After years of under-investment in exploration budgets, Standard & Poor estimates elevated commodity prices will drive global exploration budgets between 15% and 20% higher in 2021. For example, major miner Rio Tinto (ASX: RIO) stated it will double its Australian and North American exploration budgets.

WAM Capital (ASX: WAM) and WAM Research (ASX: WAX) holding, Imdex (ASX: IMD), a global provider of end-to-end technology solutions for mining exploration and development, is strongly positioned to benefit from this trend."

As an aside, the newsletter also mentions IGO for its 25% investment in the Greenbushes hard rock lithium operaton, along with its good financial condition and an exploration team in 'tier one' locations. Three of Wilson's LICs hold IGO.

 

[finicky]

IMD @ 1.96

Imdex unaccountably up 10% so far today, on modest volume, while ASX is flat. The share price chart suggests to me that it wants to overcome the 8 year high set in February.



One aspect of this company that has attracted me is that it is like buying a R&D technology company that sits atop a thriving meat and potatoes commercial business, although I guess it has not always been thriving, to put it mildly.

The M.D refers to this in the March interview:

“One of the four levers IMDEX pulls as a business is the technical leadership that our products command in the market because of the R&D spending we do. This means we should be able to win market share in any given market.” Paul House, IMDEX CEO

 

[finicky]

 

[finicky]

IMD @ 2.01
12 month high today, might be breaking out higher but early days yet

Daily

 

[Dona Ferentes]

I've been very grateful for the thread... Having a distant past on the drill floor, I'd associated IMD with the previous pre tech iteration of downhole mud / fluids and the like.

Am very impressed with where they've travelled.

 

[finicky]

Imdex cruising - record FY21 results in the face of some covid limitations. Going to get bigger after a market crash I think. One of my top five for buying in a crash.

Held