Guess which ASX All Ords share just inked a new deal with Fortescue

Sadly, the deal hasn't been enough to save the ASX All Ordinaries share from the red.

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Key points

  • ASX All Ords share Imdex is slipping lower on Monday despite announcing a new deal with ASX 200 iron ore giant Fortescue Metals
  • The deal will see Fortescue Metals using Imdex's Blast Dog technology at the Iron Bridge Operations
  • The mining services and technology provide also dropped its full-year results today

A brand new deal with S&P/ASX 200 Index (ASX: XJO) giant Fortescue Metals Group Limited (ASX: FMG) hasn't been enough to save one All Ordinaries Index (ASX: XAO) share from the red on Monday.

Mining services and technology provider Imdex Limited (ASX: IMD) released its full-year results alongside news of an agreement with the iron ore goliath this morning.

At the time of writing, the ASX All Ords share is trading for $1.935, 4.68% lower than its previous close.

Let's take a closer look at the latest from Imdex.

ASX All Ords share teams up with Fortescue Metals

ASX All Ords share Imdex has signed a three-year agreement with Fortescue Metals' joint venture Iron Bridge.

The agreement will see Imdex's mining-support technology Blast Dog used at the Iron Bridge Operations in the Pilbara region.

Imdex expects the tech to generate $13 million over its initial term.

Blast Dog is a blast hole sensing and physicals measurement technology. It can be semi-autonomously deployed to log material properties and blast hole characteristics.

Imdex CEO Paul House commented on the news potentially weighing on the ASX All Ords share today:

The commercial success of BLAST DOG reflected in today's announcement is a credit to Imdex's research and development team and their drive to make a difference in the mining industry.

We are not aware of any other technology that has the capacity to produce the same quantity and quality of pre-blast rock data and provide as large an impact on downstream processes.

Imdex share price drops following full-year results

The ASX All Ords share is trading in the red today. That's despite posting record revenue and earnings before interest, tax, depreciation, and amortisation (EBITDA). Here are the highlights of its full-year earnings:

  • $341.8 million of revenue – up 29.3% on that of the prior corresponding period (pcp)
  • $104.9 million of EBITDA – a 38.9% improvement
  • Net profit after tax (NPAT) of $44.7 million – up 41%
  • Earnings per share (EPS) came to 11.3 cents – a 41.3% lift on that of the pcp
  • Announced a 1.9 cent fully-franked final dividend – a 42% improvement

House also commented on the company's earnings, saying:

[Financial year 2022] was defined by a combination of positive market demand, offset by challenging labour and supply chain considerations. Our [full year] results demonstrate the strength of our business model, our objective to outperform industry market growth and the responsiveness of our global teams in all conditions.

The ASX All Ords share also noted demand for its products remains strong, as do long-term drivers for industry activity and development.

Though, it noted absenteeism and supply chain issues may continue to impact its customers in the near term.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Imdex Limited. The Motley Fool Australia has positions in and has recommended Imdex Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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