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ASX:IMD
Imdex Ltd
Investment Summary
The fund managers believe that Imdex Ltd is strategically positioned for long-term growth despite recent fluctuations in its share price, which has seen a high of approximately $3.02 and a low of around $1.58. They assert that the recent acquisition of Devico, a leading global mining technology company, will significantly accelerate the company’s global growth strategy and enhance its industry-leading suite of new products. In their opinion, Imdex has demonstrated resilience and superior technology, which can drive enhanced drilling efficiency amidst a challenging market. Despite facing subdued exploration activity recently, fund managers remain optimistic about Imdex's long-term earnings potential and market share growth, particularly in relation to copper and gold exploration. Recent results indicate Imdex is well-positioned to capitalize on eventual improvements in market activity, showing confidence in continued progress and profitability.
Commentary From The Managers
Blackwattle Investment Partners
28 Feb 2025
$3.02
- Blackwattle Investment Partners recognizes Imdex as a global market leader in mining-tech solutions for drilling.
- Shares increased 14.8% in the month following management's 1H25 results, meeting consensus expectations.
- Positive outlook commentary from management suggests potential for growth this year.
- Mineral deposits are becoming deeper and more complex, necessitating advanced analysis for profitable extraction.
- Imdex’s sales are primarily linked to copper and gold exploration, benefiting from rising exploration budgets.
- The increasing demand for copper and gold suggests favorable conditions for future sales.
L1 Capital
28 Feb 2025
$3.02
- L1 Capital has updated its investment thesis on Imdex as shares gained +15% following strong performance.
- First half 2025 results exceeded market expectations.
- Imdex showed increased market share and maintained resilient margins despite a declining revenue backdrop.
- Strong cost management and industry-leading product offerings were key factors in performance.
- Positive commentary for FY26 highlighted expectations for continued growth.
- Growth is projected to be driven by market share gains, margin expansion, and digital penetration.
- While recent exploration activity has been muted, early signs of improvement are emerging.
Endeavor Asset Management
31 Aug 2024
$2.24
- Endeavor Asset Management exited their position in Imdex.
- Decision made over the previous two months.
- Attributed to a stretched valuation.
- Concerns over a weakening commodities outlook.
Endeavor Asset Management
31 May 2024
$2.22
- Endeavor Asset Management has re-initiated a position in Imdex, a leading provider of drilling technology and services.
- The fund manager has previously traded IMD profitably during varying market conditions.
- Imdex's innovative solutions and robust market presence in the mining sector are seen as key growth drivers.
- The fund manager is particularly interested in Imdex's exposure to key commodities, Copper and Gold, which constitute approximately 75% of their exposure.
Endeavor Asset Management
30 Apr 2024
$2.10
- Endeavor Asset Management sold their investment in Imdex (IMD) in April.
- The decision followed a 37% cumulative increase in February and March, aligning with their 1H24 financial results.
- The valuation became stretched given the company's weaker outlook.
- They anticipate buying Imdex back at lower levels in the future.
L1 Capital
31 Mar 2024
$2.37
- Imdex shares up +24% following H1 2024 results.
- Results exceeded consensus expectations, showcasing business resilience.
- Operating in a challenging market with difficult funding availability for junior explorers.
- Strong performance driven by Devico business acquisition in H2 2023.
- Devico has materially beaten expectations and enhanced product cross-selling.
- Exploration activity remains muted, but Imdex is poised for growth.
- L1 Capital believes Imdex is well-positioned to capitalize on improved activity during the recovery cycle.
L1 Capital
28 Feb 2024
$2.03
- Imdex has seen a strong performance with shares up +25% following H1 2024 results exceeding consensus expectations.
- Demonstrated business resilience in a challenging market with limited funding for junior explorers.
- The acquisition of Devico in H2 2023 significantly boosted results and enhanced product cross-selling.
- Exploration activity remains muted, but Imdex is well-positioned for recovery as market conditions improve.
- L1 Capital continues to hold as they recognize the potential for growth in a recovering cycle.
L1 Capital
31 Dec 2023
$1.89
- Imdex has strengthened its global leadership position in mining exploration drilling technology through the recent acquisition of Devico.
- Despite the sector's highly cyclical perception, Imdex's superior technology drives enhanced drilling efficiency.
- The company has achieved an EBITDA growth rate of 24% CAGR over the last five years.
- Imdex possesses the best product portfolio in the market, positioning it well for continued strong earnings growth.
L1 Capital
31 Dec 2023
$1.89
- Imdex (Long +21%) shares showed strong performance following a better-than-expected Q1 FY24 trading update.
- Improved sentiment demonstrated the company's resilience amid volume declines.
- Higher average pricing has helped offset challenges in a weaker market for exploration and junior miner financings.
- Management indicated optimism for FY24, anticipating 'steady growth' across all regions.
- Improved business mix is expected to support better profitability.
- Market activity for junior explorer financings, especially in gold, picked up in November.
- Imdex is well positioned to capitalize on improved exploration activity.
L1 Capital
30 Sept 2023
$1.58
- L1 Capital notes that Imdex (Long -18%) shares fell due to results modestly below consensus expectations.
- Guidance indicates that conditions are expected to remain subdued in the near term.
- L1 Capital believes Imdex will continue to outperform the broader exploration drilling industry due to strong execution.
- The company's roll-out of market-leading new products supports their positive outlook.
- Recent acquisition of Devico, a leading global mining technology company, will accelerate Imdex’s global growth strategy.
- This acquisition will augment Imdex's industry-leading suite of new and improved drilling technology products.
- L1 Capital took advantage of the recent sell-off to add to their position, reflecting a positive long-term outlook for Imdex.
- The fund manager emphasizes Imdex’s strong industry position as a key reason for their investment thesis.
L1 Capital
31 Aug 2023
$1.62
- L1 Capital notes that Imdex shares fell by 17% due to full year 2023 results being modestly below consensus expectations.
- The company has guided for subdued conditions in the near term.
- Despite this, L1 Capital believes Imdex will outperform the broader exploration drilling industry.
- This confidence stems from Imdex's strong execution and the roll-out of market-leading new products.
- Imdex's recent acquisition of Devico, a global mining technology leader, is expected to accelerate global growth.
- The acquisition will also enhance Imdex's suite of new and improved drilling technology products.
- L1 Capital took advantage of the recent share price sell-off to increase its position in Imdex.
- The fund maintains a very positive view on Imdex's long-term outlook and strong industry position.
L1 Capital
30 June 2023
$1.89
- Imdex shares fell 16% due to subdued exploration activity impacting junior miners.
- Company updates indicated flat conditions through April and May, leading to a mid-single-digit reduction in consensus earnings estimates for FY23 and a high single-digit impact for FY24.
- Recent acquisition of Devico aims to accelerate global growth strategy and enhance drilling technology offerings.
- L1 Capital continues to hold its position, viewing the sell-off as an opportunity to increase investment.
- Strong long-term outlook for Imdex remains due to its solid industry position.
L1 Capital
30 Apr 2023
$2.11
- Imdex (Long -8%) was a detractor from portfolio performance in April.
- Shares fell due to subdued exploration activity linked to junior miners' financing challenges.
- Raising capital has been difficult for miners, but L1 Capital believes normalization will occur over time.
- Commodity end markets remain robust, supporting L1 Capital's optimistic outlook.
- Recent acquisition of Devico, a leading global mining technology company, is pivotal.
- Acquisition will enhance Imdex's global growth strategy and improve its drilling technology product suite.
L1 Capital
31 Jan 2023
$2.50
- Imdex shares rose by 16% following first half results that surpassed market expectations.
- Acquisition of Devico, a leading global mining technology company, is seen as strategic and value accretive.
- Acquisition will accelerate Imdex’s global growth strategy.
- Imdex successfully raised $224 million to fund the acquisition, with strong market support.
- Imdex is positioned for long-term growth and is launching an industry-leading suite of new and improved products.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
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