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.