As a provider of drilling fluid products, downhole instrumentation and geo-analytic services to exploration, development and resources production companies, Imdex Limited is highly leveraged to any uptick in key commodity prices such as gold and/or base metals.
It's a business we know and understand well, having been a holder of the stock during previous cyclical upswings, and we remained in touch with management throughout the most recent cyclical lows to ensure we were well positioned to identify the early stages of the next cycle.
We reinitiated our position in Imdex at much lower share price levels over the last six to 12 months as evidence built around the strengthening business outlook.
Given key leading indicators (such as Imdex's instruments on hire data) are trending strongly positive and commodity prices continue to firm, we believe Imdex is well positioned to continue to outperform over the medium term.
During August, Imdex's share price moved strongly as it reported its full-year numbers and provided a bullish outlook on its short to medium-term prospects in key markets.
Robert was appointed Head of Investments in 2009 and has been a Portfolio Manager since joining OC Funds Management in 2001. Robert is also an Executive Director of parent company, Copia Investment Partners. Robert is responsible for the...
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