IMDEX is a publicly traded mining technology company that enhances the efficiency and accuracy of drilling across the mining value chain. They offer drilling optimization, data insights, and analytics for all types of exploration. Their software is used on drill sites in every continent, and is optimized for any commodity.
Could you run us through the different portfolios that IMDEX currently has?
Our product portfolios span three main areas. The first is called drilling optimization. Within this portfolio, we help mining and resource companies efficiently and safely reach specific drill targets, crucial for exploring resources like copper. Our complex fluid and chemical engineering business, directional drilling business, and products enhancing drilling speed and accuracy, play key roles in this.
The second portfolio is called rock knowledge and it addresses two key aspects of the mining value chain; data collected in the hole, either during the drilling process or directly after the hole has been drilled, and data collected in the core shed.
IMDEX specializes in driller operable sensors that can be deployed during the drilling process to collect data such as hole survey, core orientation data and geophysical data about the rock. The benefit of this workflow is that it does not require a third-party wireline logging company to run these surveys and provides data and answers to the driller and Geologist in near-real time.
The third portfolio is data insights and analytics. Here, we take data from drilling optimization and rock knowledge sensors, clean it, contextualize it, and generate insights to aid decision-making in exploration and mining programs. The third area involves applying this knowledge across the mining value chain—from exploration through production to processing and tailings reclamation. Information collected early on is valuable at every stage downstream.
Do your clients tend to buy the full package?
This touches on one of our biggest challenges. Historically, the mining industry has been procurement-led, purchasing products individually. With IMDEX's extensive portfolio, we have traditionally sold products on a piece-rate basis. The current opportunity and challenge lie in bundling these products into comprehensive solutions. We are transitioning from selling individual products to offering bundled solutions, sharing risks and holding ourselves accountable for improving drilling productivity and ore body outcomes. This significant change management challenge presents a substantial opportunity for industry impact.
What do you actually do to have that impact and convince the industry to adopt such bundled solutions?
Historically, we supplied products to drilling contractors once a project was identified. Now, we aim to engage with chief or exploration geologists early in the program. By understanding project challenges upfront, we can design the perfect solution from the beginning, informing how tenders are set up and guiding drillers on desired outcomes. This proactive approach allows us to tailor solutions to specific project needs, ensuring better performance and efficiency.
Do your solutions apply to all types of ores?
IMDEX is commodity-agnostic. Our solutions are used on sites exploring for, or mining, Gold, Copper, Lithium and other ores. Our goal is to enable the effective execution of a drilling program and help Geologists understand the orebody regardless of the commodity.
Which metals or ores make up the most of your activity or demand presently?
Our revenue portfolio closely matches global mining spend. Gold accounts for about 50% of our activity, Copper 25%, and another 10-15% comes from Cobalt, Nickel, and Lithium. These critical metals are essential for the global energy transition, with significant supply-demand gaps presenting substantial growth opportunities, particularly in Copper where there is an anticipated deficit in the concentrate market of around 2.2MMt by 2032. Our mission is to help resource companies discover new deposits more quickly and reduce the time taken from discovery to production, currently at around 16 years!
Last year you acquired Devico, a significant competitor. Could you tell us why that was important and how it helped you achieve record revenue?
Devico, based in Trondheim, Norway, has been a significant player in the industry since 1988. The acquisition was motivated by Devico's leadership in directional drilling technology, their reference gyro technology, and their strong market presence in Europe—areas where IMDEX was underweight. Combining our complementary technologies and market strengths has enhanced our capabilities, leading to significant revenue growth and expanding our market reach, particularly in the European mining sector.
Do you plan for further expansion and envisage future mergers and acquisitions?
Yes, M&A is a crucial growth strategy for IMDEX. We follow the ABCs of growth: Acquire, Build, and Collaborate. We see opportunities to acquire both emerging and established technologies, build complementary and next-generation products through our R&D process, and collaborate with other technology providers. This multi-faceted approach enables us to enhance our offerings and drive significant growth.
Are mining companies receptive to your tech and software offerings?
There is a growing demand for data to generate insights by resource companies. The challenge lies in ensuring the data is trustworthy and high-quality, and then effectively using it to make informed decisions. Quality and quantity of data, along with generating actionable insights, are key areas driving discussions across the mining value chain.
We collaborate closely with our clients, who know what information will aid their decisions. We build our products around their needs but the challenge is in redefining mining processes to take advantage of new data. Understanding what data is required is the first step; however, leveraging this data effectively to improve workflows is the next major change management challenge.
Could you tell us about the role IMDEX plays in the recovering and re-mining of mine waste?
Tailings present significant opportunities, not just challenges. Understanding material rock properties before production helps in managing tailings dams effectively. This knowledge informs exploration, production, processing, and tailings management. Moreover, many old tailings dams contain economically viable critical metals like copper, which were not considered valuable decades ago but are now. By applying our expertise to these tailings, we can help meet the growing demand for critical metals from existing waste deposits, contributing to more sustainable mining practices.
In which geography is your biggest presence currently?
Today, IMDEX operates globally, with sales in 106 countries. However, the Americas collectively contribute over 50% of our revenue, with North America alone accounting for over 33%. Both North and South America are the fastest-growing regions in our business, driven by significant demand.
What drives that growth specifically in North America?
Several factors contribute to our growth in North America. IMDEX was relatively late to enter this market, which has led to some catch-up growth. More importantly, the high quality of ore body potential in accessible jurisdictions and substantial capital from Canada and the US are key drivers. Additionally, recent initiatives like the Inflation Reduction Act are stimulating ongoing activity within the US, promising continued growth for the next decade.
Where do you picture IMDEX three years from now?
We are very excited about our strategic direction. Our goal is to provide maximum productivity and insights to drillers and resource companies. Through investments in R&D and acquisitions, we are building a robust portfolio that offers value across commodities, geographies, and stakeholders. As we expand from exploration into the larger and less cyclical production market, we anticipate significant growth.
This growth foundation is strong because it aligns with the industry's need for critical metals. Mining companies are addressing essential challenges that require these metals, reinforcing the importance of our contributions to the mining value chain.
