Page 67 - gmj145-Oct-Dec-mag-web_Neat

A great number of companies
initiated digital transformation

when COVID came along, and we
“lready set up and ready to go.
were a
IMDEX also improved its model for new product development
through FY2021, signing three joint development agreements
with major resource companies for greater collaboration
around the design and delivery of new technologies. A
further four joint development agreements are currently
being negotiated.
House recounted how IMDEX’s decision to invest $3 million
annually into its digital transformation project, Digital 1.0,
almost four years ago had given the company an unexpected
upper hand in navigating the pandemic.
“At the time, we did not include in our business case that
we would be ready for a pandemic if it came, but ironically,
our ability to move very quickly, service our customers and
look after our employees from anywhere on the planet, in
a remote sense, we were already well prepared,” House
explained.
“A great number of companies initiated digital transformation The IMDEX BLAST DOG is a semi-autonomous system which
helps optimise blasting based on high-resolution 3D material
when COVID came along, and we were already set up and
models built from sensor data
ready to go. Now what that really looks like is…when we’re
renting tools to our customers, our cost to serve reduced
significantly, was way more efficient, we could do it from increasing demands around sustainability, safety and
anywhere in the world, which was its original intent, and productivity improvements, and to solve industry problems.
then of course, it played out perfectly with the constraints However, House warned against any form of complacency.
that COVID-19 placed on us.
“We make sure internally that whilst we own that [leader in
“As a result of that you saw a significant growth in our innovation] as our aspiration, we certainly don’t take it for
business and we didn’t have to add significant cost at the granted,” he said.
frontline to be able to service that growth. You also saw gross
“We have competitors everywhere and we also have
margin and net margin improvements directly attributable to
changing client demands every day. If we ever ignore our
that digital transformation work and I think they are wonderful
competitors, or if we ever stop listening to our customers, we
highlights of our business and will stay well beyond COVID.”
place that leadership position at risk.”
IMDEX has long been at the forefront of enabling digital
House noted that while gold typically accounts for about
transformation across the resources sector to meet
50% of the global exploration spend, in FY2021 that total
potentially dipped as low as 30% amid the growing hype
Paul House around battery minerals and the decarbonisation thematic.
In saying that, he also sees no downside in the outlook for
the safe haven precious metal.
“We don’t see the growth in demand for battery metals is
going to be to the detriment of gold,” House said. “We still
think the outlook for gold remains very strong. The gold price
is high and at any amplitude in its current range it remains
attractive for investment.
“If you look at the key economic drivers, there are two other
thoughts; the first is gold reserves are still being depleted at a
much faster rate than they’re being replaced, so gold miners
will want to replace those reserves and that requires more
exploration. The second is gold prices are likely to remain
higher, so whether you see it as a hedge against inflationary
pressures moving into the business, or a safety net against
deep economic uncertainty for those still struggling to deal
with COVID and its implications, I think both of those create
a positive outlook for gold.”

Page 67