De.mem Acquires Core Chemicals to Expand Gold Sector Services Exposure
De.mem (ASX: DEM) has signed a binding agreement to acquire 100% of Perth-based Core Chemicals, a specialist supplier of process chemicals and services to the gold mining industry, for $2.68 million in cash (85%) and scrip (15%).
The company will fund the acquisition through a $3m equity placement and a $500,000 shareholder loan, with completion expected this quarter.
Chief executive officer Mr Andreas Kroell said the acquisition strengthens De.mem’s recurring-revenue base and adds a high-margin business directly leveraged to record gold prices.
Strategic Fit and Synergies
Core Chemicals services 18 gold mines across Western Australia with average revenue of $222,000, providing products that maximise metal recovery from refining waste streams.
De.mem said the acquisition would create immediate operational synergies with its existing Capic subsidiary in Perth and introduce new cross-selling opportunities across its national portfolio of 15 gold mining clients.
The company will look to improve Core Chemicals’ 28% gross margins toward De.mem’s 43% level through integration and procurement efficiencies.
Mr Kroell said the transaction continues the company’s proven strategy of acquiring profitable, niche water, and chemical businesses that complement its decentralised treatment operations.
Strong Growth Outlook
Core Chemicals recorded approximately $4m in revenue and $730,000 in pre-tax profit in FY2025, with 25% growth forecast in FY2026 prior to any synergies.
De.mem expects the combined group to generate pro-forma EBITDA of approximately $1.6m in FY2025, driven by organic growth, cost savings, and expanding demand from the gold sector.
The acquisition comes as gold prices trade near record highs above US$4,000 per ounce, with major investment banks seeing further strength into 2026.
De.mem believes the transaction positions it to capitalise on increased spending by gold producers on extraction and water treatment solutions, seeing Core Chemicals as a well-priced, accretive addition to its portfolio.
Mr Kroell said the company remains on course to deliver record full-year results in 2025, supported by strong recurring revenues, continued growth across its Australian operations, and rising demand from the gold sector.