Digging for value in a high-tech mining company
When it comes to investing in small caps, Australian investors are spoiled for choice with around 2,000 small caps listed on the ASX. For us at Montgomery, there are realistically around 400 small caps that meets our investment criteria. Out of those, we invest in 30 to 50 stocks at any one time. In the Montgomery Small Caps Management Video Series, I talk with companies we own in the fund to help investors get under the hood of the small and emerging companies we invest in.
In our first video, we welcome Paul House, the recently announced Chief Executive Officer at IMDEX Limited (ASX:IMD). We like small companies with strong growth potential and IMDEX has grown substantially with a market cap over $550 million and sales in 102 countries across the world. Founded in 1980 and listed on the ASX in 1987, IMDEX has established a dominant market position within its niche industry segment.
“IMDEX has solutions that we offer across the entire mining value chain, everyone right from exploration right through to extraction. We place technology leadership as the number one differentiator or priority within our business.” Paul House
In this video, you will learn about the business model, how IMDEX navigates the cyclical nature of mining, and the scale of the opportunity looking at the addressable market.
As a global mining-tech company, with a strong management team, an attractive product suite, high returns, and a net cash position, IMDEX could be set for a significant step-up in earnings growth.
We look forward to your comments on the video.
The Montgomery Small Companies Fund owns shares in Imdex. This video was prepared 27 November with the information we have today, and our view may change. It does not constitute formal advice or professional investment advice. If you wish to trade Imdex you should seek financial advice.