Imdex's Mining Technology Transformation Faces a Valuation Test

A decade-long shift from commodity fluids into global mining technology keeps delivering strong growth, though some fund managers now question whether the stock has run too far.

30 Sep 2026 · 2 min read

Imdex delivered a genuine transformation from a commodity drilling fluids supplier into a global leader in mining technology, upgrading earnings guidance after first-half profit jumped 32 percent, riding a boom in exploration capital raising by smaller gold and copper companies, even as fund managers increasingly debate whether the Devico acquisition-expanded capital base is generating adequate returns at a now fuller valuation.

Strong results, upgraded guidance

Pengana Capital Group said Imdex rose 12 percent and upgraded its earnings outlook after a 32 percent rise in first-half profits, noting increased confidence in exploration-based products and services given the recent boom in capital raising by smaller gold companies. Yarra Capital Management, overweight, said the mining technology company outperformed driven by strong financial performance and supportive industry conditions including higher gold and copper prices, with first-half FY26 results showing revenue up 16 percent year on year and EBITDA up 22 percent, with a continued positive outlook underpinned by significant global market share opportunity.

Imdex also upgraded its earnings outlook after a 32% rise in first-half profits, noting increased confidence in exploration-based products and services, given the recent boom in capital raising by smaller gold companies.

— Pengana Capital Group, Monthly Report, February 2026

A genuine transformation into mining technology

Investors Mutual Limited rated the stock a buy, acknowledging the valuation is not cheap but calling Imdex one of the highest-quality names in its portfolio, describing an amazing transformation over the past decade from a commodity fluid supplier into a global leader in mining technology with a market-leading suite of products.

It's really been quite an amazing transformation over the last decade from a commodity fluid supplier into a global leader in mining technology with a really interesting and market-leading suite of products.

— Investors Mutual Limited, Article, May 2026

A valuation and capital-return debate emerges

Hayborough Investment Partners held at hold, saying Imdex has had a good run and the valuation is starting to look a little full, noting that since acquiring the Devico business, the capital base has expanded quite a bit, and the company should probably be earning a little more from that capital base than it currently is, while still acknowledging Imdex is doing a good job overall.

What fund managers say they are watching next is whether returns on the expanded Devico-driven capital base improve, continued benefit from the exploration and gold capital-raising boom, delivery of the strong revenue and EBITDA growth trajectory, and whether the now fuller valuation proves justified by continued global market share gains.