Orbit Garant Drilling Inc. · TSX:OGD
Orbit Garant Drilling — Investor Presentation (November 2022)
27 slides from Orbit Garant Drilling's investor presentation, November 2022
Slide 1: Investor Presentation
November 2022 INVESTOR PRESENTATION TSX: OGD
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Information Certain statements contained herein constitute “forward-looking statements” which reflect the current expectations of management regarding the Company’s future growth, results of operations, performance, business prospects and opportunities based on
Slide 3: Company Overview
Company Overview Val-d’Or ~ 1,400 Employees 217 Drill Rigs Underground & Surface Drilling Santiago Burkina Faso Regional offices: Sudbury, ON, Moncton, NB, Chile, Ghana, Guinea, United States, Burkina Faso and Guyana Current field operations: Canada, Burkina Faso, Chile, Guinea and Guyana INVESTOR P
Slide 4: Market Position (by % of revenue)
Market Position (by % of revenue*) Drilling Activity Customers Regions 20% Underground 31% Juniors International 66% 34% Surface Majors & 69% Canada Intermediates 80% Resource Exposure Drilling Services Base Metals / 32% 40% Specialized Other Gold 60% 68% Conventional * Three months ended September
Slide 5: Competitive Strengths
Competitive Strengths • Long-established, leading Canadian-based mineral driller focused on gold projects • Combined surface and underground expertise / specialized drilling / senior management field experience • Focus on continuous innovation • Vertically-integrated manufacturing operations • Stron
Slide 6: Drilling Services & Expertise
Drilling Services & Expertise Surface Underground Specialized Drilling • Standard diamond coring / core rod • Standard rod / core rod • Drilling projects that are in remote • Standard / reverse circulation and locations or, because of the scope, • AWL - HWL calibre grade control complexity or techni
Slide 7: Vertical Integration / Health & Safety / Driller Training
Vertical Integration / Health & Safety / Driller Training • Vertically integrated manufacturing operations provide competitive advantage o Ability to design and manufacture custom drill rigs and equipment for customers at a competitive cost with faster delivery o Key to continuous innovation (e.g. c
Slide 8: Continuous Innovation
Continuous Innovation Computerized Monitoring and Control Technology Performance Highlights Additional Feature Benefits for Customers Greater accuracy Real-time, remote monitoring Improved productivity (+30%) of drilling progress Fewer consumables Ability to view core samples remotely Rig components
Slide 9: Strong Customer Relationships
Strong Customer Relationships Core competitive strengths support long-term customer relationships INVESTOR PRESENTATION – NOVEMBER 2022 9
Slide 10: International Operations
International Operations Chile / South America International Revenue ($ millions) 1 • Operating subsidiary established in Chile (FY 2013) 52.2 50.3 • Acquisition of Captagua in FY 2016 43.3 • Strong platform for growth in Chile / South America 33.3 28.8 • 9 surface drill rigs / 7 underground drill r
Slide 11: Low Global Gold Discovery Rates
Low Global Gold Discovery Rates Global Gold Discoveries vs. Exploration Spending, 1990-2021 Gold in discoveries (millions of ounces) Gold exploration budget (US$ billions) Projected new gold in discoveries Gold in reserves, resources and past production Gold Exploration Budget • Gold discovery rates
Slide 12: Declining Reserves in Global Gold Sector
Declining Reserves in Global Gold Sector Major Gold Producers’ Years of Reserves Remaining, 2010 vs. 2019 Years of reserves remaining 2010 years remaining 2019 years remaining • The mineable reserves of most senior gold producers have dropped sharply, driving the need for significant spending on exp
Slide 13: Global Exploration Budgets
Global Exploration Budgets Annual nonferrous exploration budgets, 1997-2022 20,000 • 2022 aggregate global nonferrous exploration Exploration Budget (US$millions) budgets totaled US$13.0 billion ♦ ~16% increase from US$11.2 billion in 2021 and the 15,000 largest amount since 2013 • Growth driven pri
Slide 14: Global Exploration Budgets by Project Type
Global Exploration Budgets Annual nonferrous exploration budgets by project type, 1997-2022 25,000 20,000 Exploration Budget (US$millions) 15,000 10,000 5,000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Grassroot
Slide 15: Global Exploration Budgets by Company Type
Global Exploration Budgets Annual nonferrous exploration budgets by company type, 1997-2022 25,000 Exploration Budget (US$millions) 20,000 15,000 10,000 5,000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Major Int
Slide 16: Gold Price
Gold Price (USD$) (November 17, 2022) • Spot gold price reached record high of ~US$2,075 per ounce in August 2020 and has remained at historically elevated levels • Current price of gold (~US$1,761) is ~50% above its trailing 5-year low in August 2018 • Strong price of gold supports access to capita
Slide 17: Copper Price
Copper Price (USD$) (November 17, 2022) • Copper price reached record level above US$4.90 per pound in March 2022, and remains elevated despite recent pullback • Strong long-term demand outlook • Copper has an important role in the electrification of the global economy needed to achieve “net-zero” e
Slide 18: Historical Metres Drilled and Utilization Rates
Historical Metres Drilled and Utilization Rates (in thousands of metres and average annual utilization rate %) 69% 58% 62% 56% 54% 58% 63% 63% 43% 45% 35% 40% 1,814 1,661 1,490 1,537 1,428 1,293 1,298 1,152 997 893 825 386* 410 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1 2023 Fiscal ye
Slide 19: Q1 2023 Financial Review
Q1 2023 Financial Review Revenue EBITDA¹ Adjusted Gross Margin¹ ($ millions) ($ millions) 53.8 53.2 5.7 5.8 50.6 17.2% 45.9 45.2 16.3% 12.3% 11.5% 2.7 2.0 6.7% -0.5 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 2023 G&A Expense: Q1 2022 G&A Expense: Q1
Slide 20: Fiscal 2022 Financial Review
Fiscal 2022 Financial Review 12 months ended 12 months ended June 30, 2022 June 30, 2021 Revenue (millions) $195.5 $163.3 Gross Profit (millions) $13.7 $20.3 EBITDA1 (millions) $10.0 $17.6 Adjusted Gross Margin1 12.2% 17.9% G&A expenses (millions) $14.5 $14.5 Net earnings (loss) (millions) $(6.6) $2
Slide 21: Solid Balance Sheet
Solid Balance Sheet ($ millions) As at September 30, 2022 As at June 30, 2022 Cash 1.7 1.0 Total current assets 95.2 91.2 Total assets 142.0 137.1 Total current liabilities 41.5 37.8 Long-term debt and lease liabilities 36.6 36.1 Total shareholder equity 63.1 62.5 Working capital 53.7 53.4 On Septem
Slide 22: COVID-19
COVID-19 • OGD’s drilling activity in Canada, Chile and West Africa has either returned to, or surpassed, pre-pandemic levels • Omicron variant impacted operations beginning late in Q2 2022 and throughout Q3 2022 o Omicron-related work interruptions in Canada resulted in ~16,000 lost hours of labour
Slide 23: Investment Highlights
Investment Highlights • Industry leader in innovation and specialized drilling (underground & surface) • Comprehensive infrastructure with vertically-integrated manufacturing operations • Low-risk, diversified exposure to mining sector • High exposure to gold-related projects – gold prices remain st
Slide 24: Appendix
APPENDIX FORAGE ORBIT GARANT DRILLING
Slide 25: Capital Market Profile
Capital Market Profile ANALYST COVERAGE: TSX: OGD Recent close (November 17, 2022): $0.52 52-week high / low: $1.05 / $0.43 Market Cap: ~$19 million Shares Outstanding: 37,372,756 Fully Diluted: 40,616,256 Institutional / retail: ~ 40% / 60% (float) Management own approximately 27% of shares outstan
Slide 26: Board of Directors & Senior Management
Board of Directors & Senior Management • More than 25 years of experience in finance and accounting with extensive experience in the mining sector Jean-Yves Laliberté ¹ ² ³ • Chair of Cartier Resources Inc. (previously served as Chief Financial Officer) Chair of the Board of • Former Chief Financial
Slide 27: Reconciliation of Non-IFRS Financial Measures
Reconciliation of Non-IFRS Financial Measures • “EBITDA”: Net earnings (loss) before interest, taxes, (unaudited) Three months ended Three months ended depreciation and amortization. Management believes that (in millions of dollars) September 30, 2022 September 30, 2021 EBITDA is an important measur
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