Mitchell Services Limited · ASX:MSV
Mitchell Services — Shareholder Meeting (November 2017)
15 slides from Mitchell Services's shareholder meeting presentation, Nov 22, 2017
Slide 1: Annual General Meeting - Chief Executive Officer Presentation
For personal use only ANNUAL GENERAL MEETING 22 NOVEMBER 2017 Chief Executive Officer Presentation 1 www.mitchellservices.com.au
Slide 2: Disclaimer
DISCLAIMER For personal use only This investor presentation has been prepared by Mitchell Services Limited (“the Company”). Information in this presentation is of a general nature only and should be read in conjunction with the Company’s other periodic and continuous disclosure announcements to the
Slide 3: Mitchell Services Market Profile
MITCHELL SERVICES MARKET PROFILE For personal use only ASX Information Board of Directors ASX Stock Symbol: MSV Executive Chairman – Nathan Mitchell Shares Issued: 1,734,965,831 Non-Executive Director – Peter Miller Share Price (at 21/11/2017): A$0.042 Non-Executive Director – Robert Douglas Market
Slide 4: Safety Update
SAFETY UPDATE For personal use only • Finishing each day without harm is a core Mitchell Services value • Key initiatives implemented to strengthen safety culture and performance have primarily focused on key risks and field leadership • 35.9% improvement in Total Recordable Injury Frequency rate ye
Slide 5: 2017 Business Overview
2017 BUSINESS OVERVIEW For personal use only 8,357 shifts in FY2017 Total recordable injury 200+ frequency rate improved by ↑ 28% from FY2016 7.8% experienced employees from FY2016 Total revenue of $40.30m 330% increase 22% Major project wins increase geographical diversity and in EBITDA to ↑ materi
Slide 6: Operating Revenue by Client Type
OPERATING REVENUE BY CLIENT TYPE For personal use only Strong year on year revenue growth Tier 1 Revenue $40.30m Other Revenue VALUE OF TIER 1 $32.97m • Large / multinational mining and energy companies $25.17m • Very high safety and 92.5% business system 87.5% requirements $15.02m 64.6% 36.7% •
Slide 7: Impact of Increased Utilisation on Revenue
IMPACT OF INCREASED UTILISATION ON REVENUE For personal use only $40.30m • At less than 30% annual rig utilisation, $32.97m Mitchell Services was EBITDA positive in $25.17m 40 FY16 rigs operating in Average Operating October 2017 Rig Count • Rig utilisation now at Average Operating Rig Count 21.6 gr
Slide 8: FY17 Operating Revenue by Commodity
FY17 OPERATING REVENUE BY COMMODITY For personal use only FY15 $25.17m FY16 $32.97m FY17 $40.30m 1.3% 3.1% 5.3% 6.8% 12.6% 14.0% 18.7% 28.6% 20.4% 32.8% 2.6% 13.2% 21.2% 44.4% 18.5% 4.8% 46.0% 50.9% 48.7% 5.5% Gold Copper Coal Lead/Zinc/Silver Other Management remains mindful of the importance of di
Slide 9: FY17 Operating Revenue by Drilling Type
FY17 OPERATING REVENUE BY DRILLING TYPE For personal use only FY15 $25.17m FY16 $32.97m FY17 $40.30m 3.8% 4.6% 2.0% 1.3% 22.6 % 33.9 % 64.8 75.4 % 91.7 % % Surface Underground Non-Drilling Increase in underground revenue strengthens overall revenue diversity Management remains mindful of the importa
Slide 10: Month Utilisation to Oct
12 MONTH UTILISATION TO OCT 17 For personal use only Rig Count 40 35 30 25 20 15 10 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Last Year This Year Number of Shifts 1400 1200 1000 800 600 400 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-1
Slide 11: Where Are We in the Cycle?
WHERE ARE WE IN THE CYCLE? ABS 8412.0 Mineral and Petroleum Exploration, Australia. Released 4 September 2017 for June 2017 Quarter. For personal use only June quarter mineral exploration 2017 spend is 23.5% higher than June quarter 2016 spend 11 www.mitchellservices.com.au
Slide 12: Leverage in an Improving Market
LEVERAGE IN AN IMPROVING MARKET For personal use only • STAGE 1: UTILISATION INCREASES • More rigs start working (This is happening) • STAGE 2: PRODUCTIVITY IMPROVES AS UTILISED RIGS WORK MORE SHIFTS • Seasonality impact reduces as rigs work through the wet season (This is starting to happen in limi
Slide 13: Market Outlook
MARKET OUTLOOK For personal use only • Competitive Profile of the market has improved but has now stabilised. • New entrants are still faced with barriers to entry such as high capital cost and inability to secure financing. • Copper and zinc are strengthening in Queensland. • Gold in Western Austra
Slide 14: Summary
SUMMARY For personal use only • Mitchell Services vision is to be Australia’s leading provider of drilling services to the global exploration, mining and energy industries • Significant increase in rig utilisation to 40 rigs as at the end of October 17. • Successful geographical expansion to date an
Slide 15: Conclusion - Questions?
CONCLUSION For personal use only Questions? 15 www.mitchellservices.com.au
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