Gold and treasure detector Codan says booty to drop 32pc in H1
Metal detector seller Codan says first half profit will be around $15 million, down 32 per cent on last year.
They had an exceptional first half in 2017 where they made $22.2 million on the back of high sales of gold detectors in Africa, up 219 per cent on the year before.
The Adelaide-based company (ASX:CDA) largely provides GPS and communications technologies to the mining sector and to the Australian Defence Force.
But it also sells metal detectors to gold bugs and for landmine clearing.
“The Equinox coin and treasure detector, with new technology that will enable detectorists to find even more targets, will be available for sale early in the New Year,” the company said on Thursday.
In 2012, Chinese hackers stole the Codan’s detector designs and used them to make, then sell, cheap imitations in Africa, an act that had a devastating effect on sales.
Through its MineLab business is sells gold pans, a “waterproof all-terrain… high performance treasure detector”, and the Gold Monster 1000, a metal detector wand for the amateur prospector.
Codan has been contacted to find out whether the Pilbara gold rush has had an impact on sales.
Codan’s shares closed Thursday up 3.3 per cent at $2.20.