Citi flags Australia's IMDEX's potential turn amid green metrics, calls for exploration and financing

Imdex

18/03/2025 19:42

** Citi identifies potential positive trend for mining-tech firm IMDEX IMD.AX, with most drilling and financing metrics showing an upward shift

** IMD's shares might be impacted by future earnings revisions, with possible increase from A$131 mln ($83.34 mln) in FY25 to A$147 mln in FY26 being monitored — brokerage

** Citi warns that rising mine development costs may limit gains from new exploration projects, indicating need for steady exploration and financing

** Brokerage says that positive exploration metrics from the U.S. and Mexico contribute to recent trend, but it seeks significant improvements in Australia and Canada for a better outlook

** Citi notes IMD's junior financing rebounded above $1 bln in February, a trend that should persist given its past volatility, influencing near-term exploration activity levels

** Market's EBITDA expectations of A$131 mln in FY25 and A$147 mln in FY26 would necessitate further exploration acceleration, thus IMD appears resilient but may face potential downside risks — Citi

** Maintains "neutral" rating at PT of A$2.85/shr

** Stock up 26.29% YTD as of last close

($1 = 1.5718 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk))