Paul House CEO IMDEX
Can you provide an overview of recent developments and milestones at IMDEX?
The acquisition of Devico, strategic investment in Krux Analytics, and the ongoing success of our new product development and R&D initiatives made it an eventful year for the company. IMDEX experienced robust growth in both revenue and EBITDA. It is worth noting that this success occurred against the backdrop of a steadily increasing cost environment throughout 2023 Can you discuss the strategy behind the recent acquisition of Devico?
Devico, a Norwegian industry leader, initially focused on adapting its directional drilling technology from the oil and gas sector to hard rock minerals. This evolution in directional drilling is seen as pivotal for unlocking increased productivity in the mining industry.
Devico's acquisition has fortified IMDEX's position in the worldwide market, establishing IMDEX as the number one directional drilling company globally and strengthening our position as the leading provider of advanced rock knowledge sensors. Can you provide an overview of the recent OMNIx Gyro launch and any other notable product releases?
The OMNIx, our latest survey tool, represents a significant advancement, offering a smaller, lighter design with enhanced communication, speed, and accuracy. The OMNIx strengthens our survey tool technology stack and complements our continuous software upgrades, including the recently launched LOGRx — the next generation of our IQ-LOGGER tool. Can you provide insights into your partnership with Krux?
Krux, a Canadian company, excels in translating successes from the oil and gas sector using analytics software and applying them to hard rock minerals. By consolidating real-time measurement while drilling (MWD) and drilling activity data, Krux provides comprehensive datasets that enable optimization and informed decision-making. Can you outline your plans for 2024?
In 2024, our focus is on addressing rising global costs with a shift towards productivity, particularly through our investment in Devico and directional drilling. This strategic move allows us to optimize exploration budgets, tackle complex targets efficiently, and maintain quality.
Dustin Angelo President, CEO and Co-Founder NOVAMERA
Can you provide an update on the key developments at Novamera in 2023?
On the customer development front, we signed five MoUs with juniors expressing interest in deploying surgical mining. This segment is a strong early adopter market for us, contributing significantly to our growing momentum. Additionally, we established a strategic alliance with Stantec, adding to our existing one with WSP, to collaborate on potential surgical mining projects. Another noteworthy development involves our engagement with Epiroc through the Combient Foundry, where we proposed a pilot project for the joint deployment of our technology and Epiroc’s equipment at a client site. While it is still in progress, the collaboration is heading in a positive direction.
We completed a trial with the Canada Mining Innovation Council, facilitated by OZ Minerals, and Vale. This trial, conducted at the Romeo and Juliet deposit in Newfoundland, included taking our guidance tool underground for the first time, marking a crucial milestone. Subsequently, we initiated a financing round and secured government amounting to over C$3 million. Combined with MICA funds received earlier in the year, these finances will support a full production demonstration scheduled for 2024. Can you identify common themes in the players that show interest in surgical mining?
The current economic climate has made it increasingly difficult to raise mining capital, this is particularly true for juniors. Their reliance on capital markets, coupled with smaller deposits, makes conventional mining less feasible. Our surgical mining method offers a solution to unlock relatively smaller deposits, with scalable capex, ensuring revenue generation at a lower cost. This addresses a critical need for juniors by allowing them to generate cash to execute exploration on their terms while reducing dependence on volatile capital markets.
For juniors dependent on external funding, our technology provides a secondary cash source, empowering them to control their destiny.
Moreover, mid-tier operators express interest in optimizing existing operations and infrastructure through surgical mining. They seek to extract more resources efficiently, especially from stranded deposits that conventional methods cannot exploit. This technology proves valuable during production dips, enabling operators to enhance output. Additionally, surgical mining is beneficial in addressing crown pillars and extracting overlooked portions of deposits left behind in previous mining operations.