Cabo Drilling Corp · OTC:CBEEF
Cabo Drilling — Investor Presentation (June 2013)
23 slides from Cabo Drilling's investor presentation, June 2013
Slide 1: Corporate Presentation
CABO Drilling CORPORATE PRESENTATION
Slide 2: Forward Looking Statements
CABO Drilling FORWARD LOOKING STATEMENTS Certain information set forth in this presentation contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties. All statements within, other than statements of historical fact, are to be con
Slide 3: Serving the International Mining & Mineral Exploration Communities
CABO Serving the International Mining & Mineral Exploration Communities Drilling Cabo Division Cabo Field Operation FOCUSED ON DELIVERING THE BEST VALUE FOR ALL OF OUR CLIENTS IN NORTH AMERICA, CENTRAL AMERICA AND EUROPE 3
Slide 4: Board of Directors
CABO Drilling Board of Directors John A. Versfelt, Chairman, President, Chief Executive Officer & Director Mr. Versfelt has over 31 years experience providing leadership, management consulting, chief financial office, administration and paralegal/regulatory services to private and public companies
Slide 5: History
CABO Drilling History Acquired five drilling services companies in 2004 and 2005 Revenue bottomed in 2010 at $28.99 million and reached a record of $58.95 million in 2012 2011 revenues increased 50% from 2010 to $43.42 million 2012 revenues increased 36% from 2011 and exceeded 2008’s record
Slide 6: Corporate Overview
CABO Drilling Corporate Overview Key Highlights as at May 31, 2013 Share Price: $0.05 52 Week High/Low: $0.115 - $0.04 Shares Outstanding: 78,968,175 Fully Diluted: 85,473,175 Market Cap: $3,948,409 As at March 31, 2013 Working Capital: $13,840,527 Assets: $39,333,546 Liabilities: $14,996,843 June 1
Slide 7: Global Presence & Diversified Commodity Exposure
CABO Drilling Global Presence & Diversified Commodity Exposure 14% 2% 69% 11% 60% 15% 29% Gold Copper Canada & US Iron Other Base Metals Latin America *As a percentage of FY’12 Revenue Europe Cabo’s clients include: Kirkland Lake Gold Inc. Minera Panama SA (First Quantum) Anglo American Explor
Slide 8: Metals Price Overview
CABO Drilling Metals Price Overview The macro environment has Three-Year Avg. Trailing Gold Price positively impacted prices of $1,800 $1,634 $1,677 $1,700 precious metals in the past $1,600 $1,442 few years: $1,400 $1,258 $1,200 Financial instability in EU $1,024 $1,000 $848 Easy monetary and
Slide 9: Market Environment
CABO Drilling Market Environment Worldwide Exploration Budget 2003 – 2017E Global mining exploration $25 market was worth $22 BB in $22 $21 2012 $19 $20 $18 $16 $17 38% Y/Y increase over $16 $15 2011 US$ Billion $15 $12 $12 Well above 2008 peak $10 $9 $9 levels $6 $4 $5 $3 McKinsey forecasts
Slide 10: Drill Fleet
CABO Drilling Drill Fleet FYE’12 Revenue Mix 104 Total Drill Rigs 9% 27 Conventional Surface 15% Reverse Circulation Underground Geotechnical 15 Deep Hole Surface Surface 76% 18 Helicopter Support 2% 5 Man Portable Drill Rig Age* 30.0% 30.5% 6 Reverse Circulation 25.0% 20.0% 21.1% 17.9% 16.8% 27 Und
Slide 11: Operations
CABO Drilling Operations (CDN $000s except earnings per share) FY2009 FY2010 FY2011 FY2012 EBITDA per Share (Basic)* $ 0.08 $ 0.03 $ 0.04 $ 0.09 Earnings (Loss) per Share (Basic) $ (0.02) $ (0.03) $ (0.01) $ 0.02 Cash from Operations** $ 2,060 $ 1,057 $ 1,402 $ 3,722 Gross Margin % Adjusted*** 26.7
Slide 12: Cash Management Focus
CABO Drilling Cash Management Focus Capital expenditures are controlled Stable working capital Continuing to implement field cost control systems Secure new credit facilities for growth Working Capital C$ millions 12.72 7.28 8.24 4.59 5.74 FY2008 FY2009 FY2010 FY2011 FY2012 12
Slide 13: Strong Balance Sheet
CABO Drilling Strong Balance Sheet (CDN $000s) March 31, 2013 Cash & cash equivalents $ 340 Current assets $ 23,399 Non-current assets $ 15,595 Total assets $ 39,334 Current liabilities (including current portion of long-term debt) $ 9,898 Long-term debt $ 4,695 Future income tax $ 404 Equity $ 24,3
Slide 14: 2013 Quarterly Results
CABO Drilling 2013 Quarterly Results 1st QTR 2013 2nd QTR 2013 3rd QTR 2013 (CDN $000s except earnings per share) Ended Ended Ended Sep 30, 2012 Dec 31, 2012 March 31, 2013 Revenue $ 13,843 $ 9,161 $ 10,616 EBITDA as a % of gross revenue 13.2% 6.8% 10.1% EBITDA per Share (Basic)* $ 0.02 $ 0.01 $ 0.0
Slide 15: Objectives and Achievements
CABO Drilling Objectives and Achievements Expand effective capacity per drill Establish and maintain long term relationships with our clients Build and maintain a highly cost effective organization Retain skilled workers and enforce high safety standards Increase community training program
Slide 16: Prepared for Future Growth
CABO Drilling Prepared for Future Growth Cabo Drilling is in a position to move forward despite the stressed global financial and economic environment High capital expenditures in fiscal 2006-2008 and 2011 have positioned Cabo to respond to market changes in 2014 Offering a variety of drilling
Slide 17: The Cabo Advantage
CABO Drilling The Cabo Advantage Raving Fans Raving Fans is an initiative to deliver consistent high-quality services based on customers’ needs Cabo is committed to building relationships with its customers – discovering how we can meet and exceed our customers’ requirements for each drill proje
Slide 18: Key Differentiators: Safety and Community Support
CABO Drilling Key Differentiators: Safety and Community Support Safety First Culture Cabo - Communities Cabo is committed to keeping safety front and Cabo has entered into alliance agreements with a center through education, engineering and number of Canadian aboriginal bands, which enforcement
Slide 19: Near-term Growth Opportunities
CABO Drilling Near-term Growth Opportunities European Expansion Acquisition of Blasting Services Company Expansion into Europe began in 2007 in Spain Cabo is in early discussions to acquire an and continued into Albania in 2008 explosives and blasting services business Cabo is currently in neg
Slide 20: Mission Statement
CABO Drilling Mission Statement To be the first choice for mineral exploration, mining & geotechnical customers by offering the best value in the drilling services industry To partner with our clients and the community, fostering a culture of sensitivity and responsibility to the communities and
Slide 21: Relative Size of Contract Drillers
CABO Drilling Relative Size of Contract Drillers Tier 1 Boart Longyear 1,200 Layne Christensen 750 Major Drilling 700 Tier 2 Foraco 308 Ausdrill / Bandrill 275 Energold Drilling 244 Orbit Garant 219 Cabo Drilling Corp. 104 21
Slide 22: Summary
CABO Drilling Summary Expanding global market presence Focused on long-term growth in the mineral drilling services sector through exposure to mid-tier and major mining and exploration companies Revolutionary approach to customer service Improved operational efficiencies Increased capacity
Slide 23: Professionals to the Core
CABO Drilling PROFESSIONALS TO THE CORE 23