Oz directional drilling5/30/2023 ![]() ![]() The latter is evidenced by an Island Phase Three Expansion study published last year that envisaged a 2,000 t/d operation (currently 1,200 t/d) able to produce 236,000 oz/y starting in 2025. That new valuation factors in a production rise – the company is anticipating gold output of 130,000-145,000 oz this year – and long-term growth prospects for the asset. “In less than three years, we had Island over the 4 Moz reserve and resource threshold – we’re now nearer to 5 Moz – and the consensus valuation for the asset from analysts covering us is around $1.4 billion.” That consensus view considered 1.8 Moz of mineral reserves and resources and production around the 100,000 oz/y mark, among other factors. The consensus view in the market was we had overpaid for the asset.” When discussing the acquisition of Richmont Mines, which included the flagship Island Gold Mine asset in Ontario, he allows himself a brief rumination on the market’s first impressions of the deal: “We acquired the asset for around $620 million in November of 2017. John A McCluskey, President and CEO of Alamos Gold, tends to look forward, not back, when talking about strategic decisions the Toronto- and New York-listed miner has made during his 18 years heading up the company. About 46% of Devico’s revenue is generated from its sensors and 56% from its directional drilling technologies, according to IMDEX. We have commenced integration workstreams and are confident in a smooth transition.”ĭevico has a workforce of 200 personnel across 15 locations around the world, with the existing management and technical team seen as a key asset for IMDEX.ĭevico is expected to deliver 2022 revenue of about $61 million and EBITDA of $29 million and has demonstrated its ability to scale its business over the past three years with a revenue compound annual growth rate of 17% per year. “Devico’s expertise, professionalism and their relentless customer focus matches our own and we are excited about what our teams can achieve together for the mining industry. ![]() “Devico’s flagship facility in Trondheim will become a key asset for IMDEX – providing us a new innovation and manufacturing hub for the European market,” he said. House said IMDEX saw significant value in combining the complementary product portfolios, market-leading R&D capabilities and global presence. “Devico services mining and civil industries globally, has world-class facilities located in a key hub in the Scandinavian mining market, and strong research and development capabilities.”Īlongside this, it has a track record of commercialising innovative mining technologies and a commodity-agnostic product offering which complements IMDEX’s core business, it added. IMDEX said: “Through increased scale and market penetration, particularly in Europe and South America, IMDEX would further expand its presence on mine sites, opening further opportunities for its solutions to be delivered to established customers. The addition of Devico would strengthen IMDEX’s position as the leading provider of advanced rock knowledge sensors and establish the business as the number one directional drilling technology company globally, the company said, with Devico’s portfolio of rock knowledge sensors complementing IMDEX’s existing technology. It follows on from a recent heads of agreement to acquire a 40% interest in Krux Analytics, a developer of drilling analytics software focused on the collection and analysis of exploration and production drilling data in real time, for $6.42 million in cash. IMDEX Chief Executive Officer, Paul House, said the proposed acquisition was a highly significant investment that extended IMDEX’s core business in both geographical reach and technology capability. The proposed acquisition of Devico AS, a provider of advanced sensors and directional drilling technologies, is expected to be completed by late February. Global mining-tech company IMDEX has entered a binding agreement to acquire Norway-based Devico AS in a A$334 million ($230 million) deal that, it says, will reinforce its market-leading position in mining technology and deliver increased market penetration.
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