Earnings momentum lifts at Imdex

Andrew Smith

Perennial Value Management

Today’s third quarter update highlights a pick-up in momentum with third quarter revenue growth of 39% compared to second quarter growth of 13.4% and first quarter growth of 6.0%. Indicators from March were also strong with a 44% lift in tools on hire foreshadowing strong revenue growth in the coming quarter.

Source: Imdex April 2017 Letter to Shareholders

Such a lift in activity is not surprising considering how far exploration budgets have fallen over the last few years. The current recovery is consistent with the chart below and shows we are still in the early recovery phase on this cycle.

Source: MinEx Consulting March 2017

Imdex is held as a high conviction idea across both our Small and Microcap Trusts.


1 stock mentioned

Andrew Smith
Head of Smaller Companies and Microcaps
Perennial Value Management

Andrew commenced with Perennial Value in July 2008. Prior to joining Perennial Value, Andrew was Head of Research at Linwar Securities, a boutique broker specialising in smaller company research. Andrew joined Linwar in 2003 and during this...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.