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Earnings momentum lifts at Imdex

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.

Disclaimer: Please note that these are the views of the writer and not necessarily the views of Perennial. This article does not take into account your investment objectives, particular needs or financial situation.

 

Andrew Smith
aws@perennial.net.au