Mining tech company IMDEX (ASX: IMD) is set to turn a decision making process that would normally take weeks, into one that can be done in just hours via acquisition of AusSpec and their AI technology developed for spectral mineralogy in the mining and resources sector.
The core functionality around AusSpec’s unique aiSIRIS platform is its Artificial Intelligence (AI) Spectral InfraRed Interpretation System which has been developed by co-founder Dr Sasha Pontual who has built an extensive spectral library over the past five years.
Measuring the reflectance of near infrared light on rock surfaces (spectra), aiSIRUS uploads the data to cloud-based machine algorithms which are then validated by spectral mineralogy experts. The process is considerably faster, more economical and carries less risk than human-led interpretation.
“AusSpec is a strong strategic fit for IMDEX that is consistent with IMDEX’s acquisition and development strategies,” said Imsex CEO, Paul House.
“The acquisition provides a compelling opportunity to build on our total rock knowledge offering for clients – from the rig to the core farm and the mill.
“Every mine in the world makes decisions on the four components of rock knowledge – location, texture, grade and mineralogy. Our technology stack currently addresses three of these components and aiSIRIS satisfies the fourth – mineralogy.”
“In line with our value proposition, aiSIRIS also enables the timely delivery of critical data. This allows real-time decisions to be made, rather than having to wait weeks or months”
Operating with a Software-as-a-Service business model, AusSpec will be immediately cashflow positive for IMDEX which will also gain exposure to AusSpec’s well established relationship with major resource companies.
The $8.5 million acquisition will be funded as three annual $1m cash installments with a further $5.5m in IMD shares to be issued. Of the shares to be issued, a bulk $5m share issue will be processed at IMD’s 10-day VWAP price at time of issue in July 2022.
As part AusSpec’s integration into Imdex, they will work together with Dr Pontual to develop and commercialise the next generation aiSIRIS-X, which removes the need for expert validation and enables mineralogy results to be accessed in real-time, anywhere and at any time.
For the half-year ending 31 December 2019, IMDEX reported $127.9m in revenue and $18.2m NPAT which represented a 37% increase from the corresponding FY19 period.