IMDEX Limited

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Operating Environment

COVID-19

Evolution of COVID-19 Government Mandated Restrictions on IMDEX Mining Regions

This table shows the impact of government mandated COVID-19 lock-downs on our key regions from April 2020. In most jurisdictions mining is considered essential to economic recovery and is exempt from hard lockdowns.

KEY OPPORTUNITIES

  • Acceleration of positive industry structural change
  • New efficient ways of working - beneficial for the long-term
  • Increasing demand for IMDEXHUB-IQ™ cloud-based technologies and software
  • Increasing demand for solutions to support clients to work remotely, efficiently, securely, and safely

KEY CHALLENGES

  • Increasing pressure on industry processes to protect labour and supply chains
  • Corporate restrictions continue to limit access to sites, including for trials of new products
  • Government restrictions continue to be fluid, impacting labour mobility and project continuity
The industry is clearly willing to invest in capital and increase exploration expenditure. The challenge will be the speed at which it can move.

PAUL HOUSE, IMDEX CEO - JUNE 2021 MACQUARIE EMERGING LEADERS CONFERENCE

MARKET AND INDUSTRY REVIEW

  • Broad-based recovery in the minerals sector globally
  • Recovery spanned all key mining areas and was particularly evident in the Americas
  • Strong commodity prices supported by government stimulus, decarbonisation targets and demand across a broad range of sectors including consumer, industrial and government related industries
  • Large, mid-cap and junior resource companies are well funded and increased their expenditure to replace diminishing reserves
  • Short-term supply chain pressure, labour, and rig constraints
  • Exploration was predominantly focused on lower-risk brownfield projects
  • New discoveries are likely to be under cover and at depth resulting in larger drilling campaigns
  • Increasing demand for mining-technologies to deliver real-time orebody knowledge
  • Increasing demand for mining-technologies that support remote working
The industry drivers of depleting reserves, strong commodity pricing and the trend towards decarbonisation, is driving substantially increased industry exploration budgets. Delivery against these targets will require time and investment in labour, drilling rigs, and other supply chain pressures that are a current constraint.

PAUL HOUSE, IMDEX CEO - JUNE 2021 MACQUARIE EMERGING LEADERS CONFERENCE