Imdex has internally developed a fleet of tools and products which it leases to drillers for use during exploration. Imdex have had significant success with their traditional core orientation tools and are progressively seeing increased demand for newer cost-saving technologies. Current R&D expenditure is focused on developing tools for the production phase in order to be able to provide end-to-end solutions across the full mining life cycle.
Over the past year, we have seen early signs of increased activity in the mining sector, and management is now confident of a sustainable, broad-based recovery. Imdex continues to be a beneficiary, as evidenced by the continued momentum in the number of Reflex instruments on hire.
The balance sheet is now in a net cash position with outstanding debt being paid down on a quarterly basis. Additional cash inflow is expected from the sale of a minority stake in Vesture Limited (ASX:VES) and the option to sell internally developed technology at some point in the future. Investors are likely to see a return to dividend payments this financial year.