De.mem’s Core Chemicals Integration Yields $675k in November Revenue
De.mem Limited has successfully integrated Core Chemicals Pty Ltd, exceeding initial revenue expectations and setting the stage for geographic and sector expansion in the Australian gold mining chemicals market.
- Core Chemicals acquisition fully integrated into De.mem’s Perth operations
- November revenue of $675k surpasses expectations
- Revenue diversification underway beyond Western Australia
- Pro-forma combined EBITDA of approximately $1.6 million
- Significant growth opportunities in Australian gold mining sector and Asia/Pacific
Successful Integration and Early Performance
De.mem Limited (ASX, DEM), a leader in decentralized water and wastewater treatment, has announced the successful integration of Core Chemicals Pty Ltd into its operations following the acquisition completed on 31 October 2025. Core Chemicals, a specialty chemicals supplier servicing Western Australia's gold mining sector, has already exceeded revenue expectations by generating $675,000 in November alone, a strong start compared to its approximately $4 million annual revenue pre-acquisition.
Strategic Expansion and Revenue Diversification
The acquisition aligns with De.mem’s strategy to diversify revenue streams and expand its geographic footprint. While Core Chemicals currently serves 18 gold mining clients exclusively in Western Australia, De.mem is leveraging its existing customer network to pursue new opportunities in Queensland, Tasmania, and the broader Asia/Pacific region. This geographic expansion is expected to unlock access to up to 142 additional gold mines across Australia, significantly broadening the combined group’s market reach.
Financial Impact and Synergies
On a pro-forma basis, the combined entity is projected to deliver approximately $1.6 million in EBITDA for the 12 months ended 30 June 2025. The integration has also realized anticipated cost synergies through the consolidation of overheads and logistics, with Core Chemicals now managed from De.mem’s Canning Vale workshop in Perth. These efficiencies underscore the financial rationale behind the acquisition, enhancing De.mem’s profitability and operational scale.
Market Outlook and Growth Potential
De.mem’s CEO Andreas Kroell highlighted the strong early performance of Core Chemicals as validation of the acquisition’s strategic value. The combined business offers a comprehensive suite of water treatment products, chemicals, and services tailored to the gold mining industry. With the gold sector experiencing a positive outlook, De.mem is well positioned to capitalize on growing demand for specialized chemical solutions that improve gold extraction and recovery.
Looking Ahead
While the initial results are promising, the company’s ability to sustain revenue growth outside Western Australia and successfully penetrate new markets will be critical. The integration sets a solid foundation, but execution risks remain as De.mem navigates expansion into Eastern Australia and international territories.
Bottom Line?
De.mem’s acquisition of Core Chemicals is off to a strong start, but the next challenge lies in scaling growth beyond Western Australia.
Questions in the middle?
- How quickly can De.mem convert prospects in Queensland, Tasmania, and Asia/Pacific into revenue?
- What are the operational risks associated with expanding Core Chemicals’ footprint beyond its established base?
- Will the combined group maintain or improve its profit margins amid geographic diversification?
