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IMDEX NEWS Innovative Technologies Integrated Solutions Global Support SHAREHOLDER NEWSLETTER ISSUE 37 | FEBRUARY 2014 Combined 1H14 revenue 25 % down from 1H13 Oil & Gas 1H14 revenue 14 % up from 1H13 Minerals 1H14 revenue 38 % down from 1H13 KEY PERFORMANCE INDICATORS INSIDE THIS ISSUE Group Financial Performance 1 Minerals Division 3 Oil & Gas Division 5 Outlook 5 Operational News 7 About Imdex Limited 12 Shareholder Newsletter 1H14 Dear Shareholders, As this is the first edition of Imdex News for the new calendar year, I would like to wish you all the very best for a happy and successful 2014. The first half of the 2014 financial year (1H14) was challenging. Market conditions within the minerals industry remained subdued due to the cyclical downturn and were exacerbated by an early seasonal shutdown. Such conditions are never pleasing, yet they were not unexpected. In preparation for these conditions, we consolidated efficiency and productivity measures, and continued to focus on enhancing our working capital management, reducing debt, and minimising the cost structure within our Minerals Division. Conversely, activity with the oil and gas sector continued to lift and present significant opportunities for future growth via our drilling fluids, solids control and waste management equipment. It is also encouraging to report that the Oil & Gas Division achieved record revenue for the half. GROUP FINANCIAL PERFORMANCE The headline audit reviewed results for 1H14 were as follows: Combined revenue (including Imdex’s share of VES International joint venture (VES) revenue) of $101.9 million, down 25% (1H13: $127.6 million); EBITA (including equity accounted VES result, and profit on the partial sale of our holding in Sino Gas & Energy Holdings Limited (ASX: SEH)) was $20.0 million, down 24% (1H13: $26.2 million). Excluding the profit on sale of SEH, the 1H14 result was a loss of $0.1 million; Net profit after tax of $15.3 million, down 8% (1H13: $16.6 million); Sound balance sheet with comfortable gearing, net debt / capital ratio of 13% (30 June 2013: 23.1%); and Banking facilities extended to December 2016, with covenants rebased on EBITDA rather than EBITA. AMC, Solids Removal Unit For personal use only

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Page 1: For personal use only - asx.com.au · It is also encouraging to report ... consulting services and software, for the global minerals industry. ... industry. 1Q14 divisional ˜ nancial

I M D E X N E W S

Innovative TechnologiesIntegrated Solutions

Global Support

SHAREHOLDER NEWSLETTER ISSUE 37 | FEBRUARY 2014

Combined 1H14 revenue

25%down from 1H13

Oil & Gas 1H14 revenue

14%up from 1H13

Minerals 1H14 revenue

38%down from 1H13

KEY PERFORMANCE INDICATORSINSIDE THIS ISSUEGroup Financial Performance 1Minerals Division 3Oil & Gas Division 5Outlook 5Operational News 7About Imdex Limited 12

Shareholder Newsletter 1H14Dear Shareholders,

As this is the � rst edition of Imdex News for the new calendar year, I would like to wish you all the very best for a happy and successful 2014.

The � rst half of the 2014 � nancial year (1H14) was challenging. Market conditions within the minerals industry remained subdued due to the cyclical downturn and were exacerbated by an early seasonal shutdown.

Such conditions are never pleasing, yet they were not unexpected. In preparation for these conditions, we consolidated ef� ciency and productivity measures, and continued to focus on enhancing our working capital management, reducing debt, and minimising the cost structure within our Minerals Division.

Conversely, activity with the oil and gas sector continued to lift and present signi� cant opportunities for future growth via our drilling � uids, solids control and waste management equipment. It is also encouraging to report that the Oil & Gas Division achieved record revenue for the half.

GROUP FINANCIAL PERFORMANCE

The headline audit reviewed results for 1H14 were as follows:

• Combined revenue (including Imdex’s share of VES International joint venture (VES) revenue) of $101.9 million, down 25% (1H13: $127.6 million);

• EBITA (including equity accounted VES result, and pro� t on the partial sale of our holding in Sino Gas & Energy Holdings Limited (ASX: SEH)) was $20.0 million, down 24% (1H13: $26.2 million). Excluding the pro� t on sale of SEH, the 1H14 result was a loss of $0.1 million;

• Net pro� t after tax of $15.3 million, down 8% (1H13: $16.6 million);

• Sound balance sheet with comfortable gearing, net debt / capital ratio of 13% (30 June 2013: 23.1%); and

• Banking facilities extended to December 2016, with covenants rebased on EBITDA rather than EBITA.

AMC, Solids Removal Unit

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IMDEX LIMITED SHAREHOLDER NEWSLETTER | ISSUE 37 | FEBRUARY 2014 2

REVENUE

The principal negative in� uence on our half year revenue was the challenging market conditions faced by our Minerals Division. This business currently represents 62% of our combined revenue.

Cyclical downturns are characteristic of the minerals sector and activity levels will normalise. In the meantime, growth opportunities have been identi� ed in underpenetrated mining regions including Europe, USA and Peru, non-mining sectors, together with the introduction of new technologies to the market.

Our share of the 1H14 VES joint venture revenue was $9.7 million (1H13: $8.0 million).

EBITA

With a view to building long-term shareholder value, the 1H14 EBITA result re� ected our ongoing commitment to diversi� cation strategies designed to counter industry cycles. These strategies include investment in innovative products and technologies, together with positioning our Oil & Gas Division for substantial growth.

There were also one-off factors that negatively affected our EBITA result in 1H14 including one-off adjustments totalling $2.4 million.

As announced to the ASX on the 13 September 2013, our partial sale of the company’s investment in SEH yielded a pro� t of $20.1 million. Imdex’s SEH shareholding is a non-core asset and the sell-down was considered prudent in light of our future growth initiatives.

VES recorded a strong EBITDA performance for 1H14; however the equity accounted result was affected by high amortisation, depreciation and tax charges.

Gross margins remained robust throughout the period.

During 2H14, Imdex will focus on the following initiatives to improve revenue and EBITA in the future including:

• Increasing AMC Minerals market share in previously underpenetrated mining regions;

• Expansion of non-mining business (HDD, civil and construction);

• Global utilisation of SRUs and new REFLEX technologies;

• Continuing to grow our oil and gas business in key markets including Europe, East Africa, the Middle East and Asia Paci� c; and

• Aggressively advancing our development of innovative products and leading technologies for both the minerals and oil and gas industries.

*Includes equity accounted VES International JV result but excludes the gain arising on the disposal of Sino Gas & Energy Holdings Limited (SEH) during the period.

EBITA ($m)*

1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14

19.819.0

20.0

4.5

7.5

13.2

21.2

26.9

38.336.9

26.2

8.0

(0.1)

Re� ex Rental FleetNumber of instruments on rent

Mar08

Aug08

Jan09

Jun09

Nov09

Apr10

Sep10

Feb11

Jul11

Dec11

May12

Oct12

Mar13

Aug13

Jan14

tells you more, faster.

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IMDEX LIMITED SHAREHOLDER NEWSLETTER | ISSUE 37 | FEBRUARY 2014 3

MINERALS DIVISION

Imdex’s Minerals Division consists of the AMC and REFLEX businesses. These businesses market innovative drilling � uids, chemicals, solids removal technologies, data management solutions, together with geo-analytical consulting services and software, for the global minerals industry. AMC is the leading provider of drilling � uids to the global industry and REFLEX is a global provider of data management and data analysis solutions to that industry.

1Q14 divisional � nancial performance

Re� ecting the challenging market conditions, revenue from Imdex’s Minerals Division was down 38% to $63.7 million (1H13: $102.3 million). This Division contributed 62% of the company’s combined 1H14 revenue.

As anticipated, the Division’s results were negatively affected by continued subdued activity within the minerals sector throughout 1H14 and an early seasonal shutdown.

The combination of these challenging trading conditions reduced the number of REFLEX’s instruments on active hire. However, numbers are expected to return to September/October 2013 levels by end March and remain around those levels for the balance of FY14.

Despite these dif� cult conditions, the Division accomplished a great deal during 1H14 and I encourage you to review the summary of operating highlights and achievements. While we cannot change market conditions, continuing investment in initiatives and technologies to drive future growth is strengthening the Division’s global competitive advantage and its ability to yield additional returns from current trading conditions and when any upturn occurs.

Two signi� cant differentiators for our Minerals Division are the Solids Removal Units (SRUs) and REFLEX’s leading range of data management technologies.

As reported in the October 2013 edition of Imdex News, the number of SRUs on active hire is increasingly gradually. The proven economic and environmental bene� ts of our SRUs are becoming more widely known, resulting in greater industry acceptance and signi� cant customer interest. During 2H14, AMC will focus on capitalising on our investment in this unique equipment and the growth opportunities within the global minerals market.

The bene� ts of REFLEX HUB are also becoming evident with increasing throughput and an expanding customer base – largely stemming from greater exposure to resource companies and the production phase of mining.

Early in 2H14, REFLEX will complement its integrated range of data management technologies with the of� cial launch of three new value adding products at the Indaba and PDAC expos held in South Africa and Canada respectively. This is an exciting and pivotal time for RELFEX as it now has the platform to lead substantial industry change and drive earnings growth.

We have continued to progress our product development pipeline and we are committed to becoming the minerals industry standard in the provision of innovative, simple to use technologies, which improve the effectiveness and ef� ciency of customers’ day to day operations.

Opportunities also exist for organic growth in underpenetrated markets and in non-mining sectors including civil construction, water well and HDD activities.

^Comparative purposes only. Regional structure adopted 1 July 10

Minerals Division - Revenue($m)

1H08^ 2H08 ^ 1H09^ 2H09^ 1H10^ 2H10^ 1H11^ 2H11^ 1H12^ 2H12^ 1H13^ 2H13^ 1H14^

61.4 63.668.4

40.546.5

64.8

81.5

96.2

124.0117.7

102.1

80.6

63.7

Americas 31%

Asia Paci� c 45%

Europe 5%

Africa 19%

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IMDEX LIMITED SHAREHOLDER NEWSLETTER | ISSUE 37 | FEBRUARY 2014 4

Key operating highlights and achievements – 1H14

• Industry acceptance of SRUs increased the number of units on hire before the seasonal holiday shutdown;

• Development of Imdex’s underground SRUs, with units to be deployed in 3Q14;

• Ongoing development of Imdex’s heli-portable SRUs to meet customer demand – these units are currently in prototype;

• Broadening of REFLEX’s product offering to incorporate ioGlobal technologies;

• Increased throughput and continuing positive feedback with the marketing of REFLEX HUB;

• Completion of three new value adding REFLEX technologies, which will be of� cially launched during 2H14;

• Commercialisation of new � uid products and the ongoing success of AMC’s innovative Corewell and Clay Doctor products;

• Continued product development during the minerals sector downturn producing an exciting pipeline of AMC � uids and REFLEX technologies;

• Expansion of the Division’s customer base, together with greater exposure to resource companies and the production phase of the mining cycle; and

• Commissioning of a new REFLEX repair centre in Ghana, West Africa to enhance customer service in this growth area.

SHAREHOLDER NEWSLETTER | ISSUE 37 | FEBRUARY 2014 4

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IMDEX LIMITED SHAREHOLDER NEWSLETTER | ISSUE 37 | FEBRUARY 2014 5

OIL & GAS DIVISION

Imdex’s Oil & Gas Division includes AMC Oil & Gas and a 30% share of Vaughn Energy Services (VES). The VES joint venture is the third largest provider of downhole survey services to the oil and gas market, operating primarily in the USA, Middle East and Latin America.

The AMC Oil & Gas and VES businesses provide drilling � uids, production and completion chemicals, and downhole survey services to the conventional and unconventional oil and gas markets.

1H14 divisional � nancial performance

Imdex’s Oil & Gas Division performed at record levels, with revenue up 14% to $38.2 million (1H13: $33.5 million). This Division contributed 38% of the company’s combined 1H14 revenue.

The Division’s record revenue and year-on-year growth since FY10, aligns with Imdex’s diversi� cation strategies to off-set cyclical downturns in the Minerals Division, which are characteristic of the minerals industry generally.

While such diversi� cation strategies do not offset cyclical lows in the short-term, our continued investment in equipment, working capital and personnel with extensive oil and gas industry experience is developing a strong global Oil & Gas Division with the management depth to support future growth in the business.

The Division’s growth is expected to gain further momentum as a result of increasing organic growth by AMC Oil & Gas and a focus on opportunities in the expanding East African/Middle Eastern, European and Asia/Paci� c markets with Drilling Fluids, Solids Control Equipment and Drilled Waste Management.

Our VES joint venture should also continue to build both revenue and EBITDA through calendar 2014.

Key operating highlights and achievements

Highlights and achievements for Imdex’s Oil & Gas Division during 1H14 included:

• Record half-yearly revenue, re� ecting ongoing investment in the development of the Division;

• Continuing strong revenues and EBITDA performance by Imdex’s VES joint venture;

• Further investment in equipment, working capital and personnel to support ongoing growth in the business; and

• Continuing growth from the coal bed methane industry in Australia with an increased demand for equipment solutions to ensure environmental disturbance by drilling activities is minimised.

OUTLOOK

The outlook for our industries remains largely the same as outlined in our October 2013 edition of Imdex News.

The fundamentals affecting our minerals business suggest this market will remain subdued for the balance of FY14. Global rig utilisation is estimated to be between 20% - 30%.

Conversely, activity within the energy sector remains high and offers substantial growth opportunities for our Oil and Gas Division.

These opportunities can be quanti� ed by reference to data taken from Spears & Associates – Oil� eld Market Report (October 2013), which forecasts the global drilling and completion � uids market will increase by >20% to US$13.5bn in 2014. The Oil� eld Market Report also suggests the solids control and waste management market will grow by >15% to US$4.3bn in 2014.

*Includes 30% of VES International JV revenue

Oil & GasCombined Revenue * ($m)

1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14

7.7

9.3

11.8

38.2

11.911.1

14.431.1

15.9

21.3

33.5 33.2

16.2

VES International JV revenue

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IMDEX LIMITED SHAREHOLDER NEWSLETTER | ISSUE 37 | FEBRUARY 2014 6

Bernie Ridgeway

Managing Director

How have we responded to market conditions?

• Costs have been taken out of the Minerals Division;

• Invested in developing a strong Oil & Gas Division with the products, infrastructure and personnel in place to capitalise on global growth opportunities;

• Successfully developed new value adding products and technologies, which are being released early in 2H14, generating additional revenue and expanding the company’s customer base;

• Continued investment in the pipeline of development projects for the Minerals and Oil & Gas Divisions, with a focus on meeting customer demand for greater operational ef� ciencies; and

• Continued to diversify revenue streams – non-traditional markets and growing oil and gas business.

Throughout the period we have been able to maintain a sound balance sheet. Gearing continues to be at comfortable levels and following the partial sale of our interest in Sino stood at 13% net debt / capital.

Our continued commitment to invest in the business through the cycle has proven to be of signi� cant bene� t in the past as the cycle turned. We are positioning the company for the medium to long-term, providing products and services to increase revenue in current trading conditions and be at the forefront when any upswing of the minerals industry occurs.

While the downturn within the minerals industry is challenging in the short-term, these challenges also present additional opportunities for our company. Large resource companies and drilling companies are continuing to reduce expenditure, cut costs and increase the ef� ciencies of their operations – our technologies can assist those companies achieve their objectives.

The cyclical nature of the minerals industry is the key motivator behind our diversi� cation strategy, which aims to increase our global customer base and derive more annuity style revenues. We are also developing a strong Oil & Gas Division to take advantage of the substantial growth opportunities within the global energy sector.

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IMDEX LIMITED SHAREHOLDER NEWSLETTER | ISSUE 37 | FEBRUARY 2014 7

THE NEW REFLEX

The successful integration of ioGlobal into the REFLEX brand, together with our exciting pipeline of technology developments, has changed signi� cantly the nature of REFLEX’s product and service offering.

Accordingly, we have repositioned the REFLEX brand to accurately communicate the additional bene� ts it now provides customers. This repositioning included a new tagline and a clear de� nition of REFLEX’s integrated range of product and service categories:

• REFLEX downhole, rig and � eld portable instrumentation provides a comprehensive range of products delivering accurate data, while maintaining the company’s global reputation for ease of use and reliability on site.

• REFLEX data management and analytical tools provide fast, real-time sharing of information from rig to of� ce. The tools enable timely decision making and data interpretation by streamlining the information � ow over the life of a project.

• REFLEX data analysis offers access to world class geochemical and geometallurgical consultants who provide superior exploration advice, mine optimisation and greater returns.

REFLEX’s new product and service range is transforming the way our customers operate and improving operational productivity with industry leading, real time access to data that the industry has not had before.

Operational News

REFLEX tells you more, faster.

KNOW MORE SHARE FASTER MINE SMARTER

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IMDEX LIMITED SHAREHOLDER NEWSLETTER | ISSUE 37 | FEBRUARY 2014 8

A FIRST FOR REFLEX HUB IN NORTH AMERICA

REFLEX HUB Data Manager in North America met recently with the General Manager of Rodren Drilling Ltd (Rodren) to discuss our innovative REFLEX HUB product. Rodren was impressed by the bene� ts and signed a contract – the � rst in the North American region.

Rodren President and Owner, Mr Rod Cyr, said the industry is de� nitely embracing new technologies like REFLEX HUB and sees the bene� ts of having the company’s information all in one central database.

Mr Cyr started Rodren thirty-six years ago with one drill rig and one crew. Today the company operates more than twenty-two drill rigs and employees some 150 people.

REFLEX HUB

ACCURATE FIELD DATA, WITH REAL TIME ACCESS FROM ANY LOCATION.

REFLEX HUB is a complete Software-as-a-Service solution for the collection, storage and reporting of critical operational data.

REFLEX HUB incorporates mobile data collection to ensure accurate capture of � eld data. Data is seamlessly transferred from the drill site to a secure, central database where it can be accessed via a web browser from any location worldwide.

It is ideal for applications spanning the mining cycle, providing ef� cient drill hole and sample data management. Applications include: daily reporting requirements (shift reports, pre-starts, safety reports, site inspections and employee accreditation); geochemical logging; analysis; and QA reporting.

REFLEX HUB provides a single source of truth, is accessible globally and improves data quality and control by minimising issues with downstream data management. These features, together with real time data access, dramatically improve operational ef� ciency.

• Integrated system REFLEX HUB collects and manages data from selected REFLEX downhole survey and core orientation tools, REFLEX TN14 GYROCOMPASS rig aligner and REFLEX XRF, providing the option for greater visibility of all data associated with a single drill hole, or an entire operation, and improv¬ing management decision making.

• Paperless Solution Field data is captured, transmitted and stored electronically in REFLEX HUB’s secure database. No paperwork is required, removing associated errors and inef� ciencies from the work� ow.

• Instant data Once data is transmitted into REFLEX HUB, it is available instantly to browse, export, report or map, from any internet connection worldwide. Data can be reviewed in real-time and decisions can be made immediately.

Recently, Don Dupuis, Reflex Hub Data Manager North America met with Dave Standrick (left), General Manager - Rodren Drilling Ltd, and Donald Huston (right) - Bayfield Resources to promote the Reflex Hub. Rod Cyr, President & Owner, started the company 36 years ago with one drill and one crew. Today, Rodren operates over 22 drills and employs over 150 people. Their mission is to operate the best diamond drill contracting service in North America. They continually strive to update their equipment and train their people - working safely, profitably and growing responsibly. Rodren listens to their customers needs to meet and exceed their expectations.In keeping with their mission, Rodren has signed a contract with Reflex Hub. Rod commented the industry is definitely heading in this direction and sees the benefits of having their information all in one place. Rodren is the first company to sign up with Reflex Hub in North America.

Dave Standrick, GM – Rodren Drillilng Ltd (left) and Donald Huston, Bay� eld Resources (right)

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IMDEX LIMITED SHAREHOLDER NEWSLETTER | ISSUE 37 | FEBRUARY 2014 9

STRATEGIC PARTNERSHIP DRAMATICALLY IMPROVES EFFICIENCY AND TIMELINESS

In December 2013, REFLEX and Olympus NDT were pleased to announce their strategic partnership to bring the REFLEX XRF Connect and REFLEX HUB Data Management solution to the global minerals market and associated industries.

REFLEX and Olympus, both innovation leaders in their � elds, have combined their technologies to launch the XRF and Data Management solution, which incorporates immediate on-site geochemical data analysis with seamless data aggregation, QAQC and remote access through REFLEX HUB.

The breakthrough delivering signi� cant improvements in ef� ciency comes from the geochemical analysis built into REFLEX HUB, providing results in real-time as new data is generated on site. Data from the Olympus DELTA handheld XRF analyser is transformed into information immediately for effective, timely decision making without the delays and inef� ciencies associated with off-site assay testing. Olympus’ range of DELTA handheld XRF’s provide rapid in-situ elemental concentrations in exploration, mining, process control and environmental samples saving companies considerable amounts of time and money.

REFLEX Geochemistry, the company’s global team of experienced geochemistry consultants, will provide further analytical support to enhance operational success. Commenting on the key bene� ts of the combined technologies, REFLEX’s Chief Executive, Mr. Derek Loughlin, said:

“Customers will receive the XRF’s remarkable instant geochemistry results and access to data from any location via REFLEX HUB’s central database. This will dramatically improve the ef� ciency and timeliness of analysis and decision making for geologists and resource companies.

“REFLEX focuses on new product development that improves productivity for its customers. We are excited about the opportunities the Olympus partnership presents to create faster, more effective ways for geochemical data to be collected in real time and interpreted. We are particularly excited about developing Lab-at-Rig technologies, which leverages both companies experience and skill sets and will dramatically transform the mineral exploration industry.”

Both REFLEX and Olympus are enthusiastic about the partnership and the potential for future development projects. Mr. Todd Houlahan, Director International Mining Group, Olympus Analytical Instruments Division said:

“This partnership between our companies is a natural alliance between two market leaders in the � eld of geochemistry. The role of Olympus as the geochemical data collector (via Handheld XRF) and REFLEX’s role as data manager (via HUB), each party can continue to focus on its core strengths. However, by combining our expertise through this alliance, the market is provided with the holistic � eld data management solution that it has been seeking for some time. We anticipate that the improved work� ows and ef� ciencies that will be obvious to the exploration and mining market can be applied to multiple industries and customers worldwide.”

REFLEX and Olympus will continue to collaborate on additional research and development projects, new initiatives and training programs, bringing the ef� ciencies of Lab-at-Rig technology and the expertise of REFLEX Geochemistry directly to the drill site.

The partnership will also signi� cantly bene� t from their association with the Deep Exploration Technologies Cooperative Research Centre’s projects, which aim to develop transformational technologies for more successful, cheaper and safer ways to drill, analyse and target deep mineral deposits in the mineral exploration industry.

New developments will be supported by REFLEX Geochemistry and Olympus’ specialist International Mining Group of experienced geological industry professionals.

Both REFLEX and Olympus have extensive global distribution networks and strategic operational centres in all key mining regions of the world.

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IMDEX LIMITED SHAREHOLDER NEWSLETTER | ISSUE 37 | FEBRUARY 2014 10

MOBILE AMC MUD LAB

During 1H14, AMC designed a mobile mud lab to support the company’s CBM work in Queensland, Australia with Origin Energy (Origin).

The mobile lab enables our mud engineers to travel between rigs and be totally independent of rig power. The lab also overcomes the need for multiple and costly mud kits at each rig; saves time setting up and rigging down mud kits when travelling; eliminates heavy lifting; and is more cost effective than renting additional vehicles.

Customer feedback has been really positive. AMC Manager for East Coast CBM operations, Mr. Bruce Bickerton, said “they love it. All our clients want it if possible – it reduces costs for the operator as the day rate of the engineer is spread across multiple rigs.”

AMC currently has two mobile labs in the � eld supporting 5 – 6 Origin rigs. As contracts grow with our CBM customers we expect to add units to the � eet.

AMC mobile mud laboratory.

REFLEX GYRO SUPPORTS CIVIL CONSTRUCTION PROJECTS

The success of REFLEX’s technologies in non-mining applications was demonstrated at civil construction sites in the United Kingdom and Hong Kong.

CAN Geotechnical (CAN), a Civil Engineering company specialising in slope stabilisation, rock bolts and anchor drilling, contacted REFLEX to assist at a costal project located at Lyme Regis in Dorset, England.

CAN’s project involved stabilising an eroding sea wall by inserting a large number of 25m soil nails and forty-� ve drainage pipes. CAN’s contract also stipulated the company must evidence the pipes are on a dip of +5 degrees and do not fall below +1 degree.

Two holes were surveyed in and out utilising the REFLEX Gyro as it is not affected by magnetic disturbance. The results were excellent and CAN has since rented the Gyro to assist with the balance of the project.

Another success story is a project undertaken for INTRAFOR, a company specialising in ground engineering and foundation contraction works within Asia Paci� c and the Middle East.

INTRAFOR engaged REFLEX to assist with its Hong Kong-Zhuhai, China- Macao Bridge project – particularly the section of tunnelling underneath the operating MTR railway.

This section of the project required drilling grouting holes on either side of the railway, which link up in a fan-like pattern to strengthen and stabilise the ground.

In order to minimise disturbance to the railway, holes are drilled with casing and � tted with polly pipe to enable grouting to be pumped into the 20 – 40m holes.

The REFLEX Gyro was utilised to ensure the numerous drill holes are correctly spaced.

Macao Bridge project, Grouting holes to be drilled with railway on the left.

Macao Bridge project, rig on site with manual winch

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IMDEX LIMITED SHAREHOLDER NEWSLETTER | ISSUE 37 | FEBRUARY 2014 11

THE LITTLE CENTRIFUGE THAT COULD

After great success with the core and diamond drills at a project in Canada, the mine management asked if the AMC SRU could assist with a rotary core (RC) rig, which was experiencing signi� cant challenges with mud condition.

The RC rig was located on a congested pad with little room. The options for the mine management team included trying the SRU for several shifts, or vacuum out the tanks and replace 36,000 gallons of mud, which could take 2 – 3 days due to the location and truck turnaround times.

The AMC SRU was set up on the site and it started to process mud. The weight was 10.1lbs going into the centrifuge and 8.8lbs coming out – approximately 18 gallons per minute was being processed.

Following 24 hours of circulation a substantial amount of the cuttings had been removed and the drill was able to recommence on the 30” hole through mudstone and clays.

The rig foreman named the SRU The Little Centrifuge that Could as it allowed the rig to keep working. The SRU remained on site for three additional days and the drill hole was completed to depth.

POSITIVE FEEDBACK FROM FIRST AFRICAN SRU

In September 2013, the � rst AMC SRU was commissioned in Africa – the highly mobile unit was then transported 736km via truck to a drill site in Chavuma, Zambia.

Feedback from the resource company and drill crews has been very positive. The crews were particularly pleased with the reduction in chemical and water requirements. Prior to SRU arriving on site, 3 – 4 10KL water trucks were used each day. The SRU reduced this requirement to 1 – 2 trucks.

AMC SRU at drill site in Chavuma, Zambia.

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Page 12: For personal use only - asx.com.au · It is also encouraging to report ... consulting services and software, for the global minerals industry. ... industry. 1Q14 divisional ˜ nancial

Innovative TechnologiesIntegrated Solutions

Global Support

About Imdex Limited Imdex is an ASX listed industrial company (ASX: IMD) with a market capitalisation of approximately $170 million and 561 employees (as at 31 December 2013).

Imdex delivers leading innovative technologies to the global minerals industry and niche oil and gas markets, focusing on integrated solutions that enhance customers’ operations and deliver value for its shareholders. The company achieves this by its extensive industry knowledge and commitment to product development, ensuring innovative, simple to use and � t-for-purpose technologies.

Imdex supports a diverse range of customers at all stages of the mining cycle, from junior explorers to major producers across a wide range of commodities. To provide optimal service to these customers, Imdex has operational centres in key mining regions of the world, including: Asia-Paci� c, Africa, Europe and the Americas.

Further information can be found at www.imdexlimited.com

IMDEX NEWS - SHAREHOLDER NEWSLETTER

Imdex News is published quarterly to keep Imdex’s valued shareholders informed of the company’s performance and operational highlights.

Your feedback and questions are always welcome. Please send all investor communication to Imdex’s Marketing Manager, Ms Kylie Kniepf at [email protected].

Alternatively contact Managing Director, Mr Bernie Ridgeway or the Chief Financial Of� cer and Company Secretary, Mr Paul Evans on +61 8 9445 4010.

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