Slide 1: Analyst Site Tour
Analyst Site Tour February 11, 2011 1
Slide 2: Forward Looking Statements
Forward Looking Statements ■ This Presentation contains “forward‐looking information” and “financial outlook” within the meaning of applicable Canadian securities laws and may contain forward looking information attributed to third party industry sources. These statements and information are predict
Slide 3: Leading West African Provider of Drilling Services
Leading West African Provider of Drilling Services $2.7mm Revenue per rig 2.5x more than industry average of $1.0 mm EBITDA margin FY 2009 31% vs. industry average of 18% Utilization factor vs. industry 95% average of 60‐70% 160,000m Average length of drill programs Started in 1998 with 1 rig; expec
Slide 4: One-Stop-Shop Drilling Services
“One‐Stop‐Shop” Drilling Services Reverse Rigs in Operation Circulation Drilling 30 30 27 24 20 29% Diamond 20 CAGR 15 Core 12 Drilling 9 12 8 6 6 3 1 Air- 0 1998 2007 2008 2009 2010 2011 Core Drilling 4
Slide 5: Mining Opportunity in West Africa
Mining Opportunity in West Africa West Africa hosts some of the largest Total Estimated West African Expenditures1 remaining undeveloped mineral deposits in the world $450 Burkina Faso Ghana $400 ■ West Africa accounted for 4.1% of 2009 total Guinea worldwide exploration expenditures $350 Ivory Coas
Slide 6: Competitive Strengths
Competitive Strengths GEODRILL Exploration Drillers in West Africa
Slide 7: Superior Fleet of Multipurpose Rigs
Superior Fleet of Multipurpose Rigs Geodrill’s su Pioneer of the “Multipurpose” drill rig ■ Geodrill’s multipurpose rigs can perform both reverse circulation and diamond core drilling with minimal effort and down‐time – Provides the efficiency and productivity of reverse circulation and the depth an
Slide 8: World-Class Workshop
World‐Class Workshop Geodrill’s su Geodrill’s state‐of‐the‐art operations facility contributes to the high quality fleet ■ Workshop manufactures up to 260 different consumables including drill rods ■ Workshop is within a 12 hour drive to most client projects or deposits – Shorter distance reduces th
Slide 9: Highly Trained and Skilled Workforce
Highly Trained and Skilled Workforce Geodrill’s su operators drive productivity Efficient rig allowing Geodrill to drill faster, deeper and more accurately ■ Highly trained workforce of local drillers ■ Favourable compensation and benefits package has reduced unplanned workforce turnover even during
Slide 10: Productivity = Profitability
Productivity = Profitability “The best equipment and the best people create the best results” – Multi‐purpose rigs can provide both RC and Core $2.7mm Revenue per rig More than 2.5x industry average drilling as well as drill any mineral type – Average age of fleet is less than two years – Saves down
Slide 11: Diverse Customer Base
Diverse Customer Base 262,000 m DTD* 30,000 m DTD 180,000 m DTD 75,000 m DTD 340,000 m DTD 165,000 m DTD 85,000 m DTD 130,000 m DTD * Drilled to Date 11
Slide 12: Testimonials
Testimonials “Geodrill is without exception by far the most able and well equipped drilling company we have employed in West Africa. Its rigs are always maintained to the highest standards, break downs are all but unheard of, lost time incidents are extremely rare and it is completely self sufficien
Slide 13: Financial Performance
Financial Performance GEODRILL Exploration Drillers in West Africa
Slide 14: Leading EBITDA & EBIT Margins
Leading EBITDA & EBIT Margins 2009 Gross Revenue per Rig 2009 EBITDA Margin 2009 Earnings After Tax Margin US$2.7mm 31% 15% US$1.0 mm 18% 3% Industry Geodrill Industry Geodrill Industry Geodrill Average Limited Average Limited Average Limited For the purpose of this analysis, “Drilling Industry” met
Slide 15: Strong Record of Growth
Strong Record of Growth Geodrill’s multipurpose rigs and leadership position in West Africa have supported strong year‐over‐year growth including slight growth through the global recession. Geodrill Revenue and Growth Geodrill EBITDA $50 70% $15 $40 60% $33.1 $30 50% $25.6 As at $25.4 $25 Sept 30th
Slide 16: Increasing Revenue Growth
Increasing Revenue Growth Geodrill Rig Count 30 Geodrill EBITDA1 30 25 $25 20 22 $20 $15 15 $10 $10.2 10 12 $8.3 $8.1 8 $5 5 6 $0 2007 2008 2009 2007 2008 2009 2010 2011 16
Slide 17: Revenue and EBITDA per Rig
Revenue and EBITDA per Rig Geodrill’s revenue model provides scalability as additional rigs are deployed REVENUE PER RIG $2.5 $2.6 $2.7 $2.8 $2.9 $3.0 $3.1 $3.2 $3.3 $3.4 $3.5 15 $12.0 $12.5 $13.0 $13.4 $13.9 $11.4 $14.9 $15.4 $15.8 $16.3 $16.8 NUMBER OF RIGS 18 $14.4 $15.0 $15.6 $16.1 $16.7 $17.3 $
Slide 18: Strong Balance Sheet
Strong Balance Sheet Sept 30, 2010 Pro Forma Offering Cash $2,494,801 $18,494,601 Current Assets $14,714,121 $30,713,921 Current Liabilities $11,257,263 $9,317,063 Net Working Capital $3,456,858 $21,396,858 Fixed Assets $20,640,952 $20,640,952 Debt $1,940,200 $0 Shareholders’ Equity $20,906,104 $38,
Slide 19: Growth Strategy
Growth Strategy GEODRILL Exploration Drillers in West Africa
Slide 20: Growth Strategy
Growth Strategy 1. 29% CAGR – all profits have been reinvested to facilitate growth 2. Organic Growth – currently turning down business – add rigs to meet client demand – cash flows re‐invested back into Geodrill 3. Expansion opportunities – expand geographically – diversify through other commoditie
Slide 21: Management and Directors
Management and Directors David Harper Ian Lacey Terry Burling President, CEO & Director Chief Financial Officer Chief Operating Officer 23 years experience in the drilling Certified Public Accountant Prior to his appointment as Chief industry, including 20 years in (Massachusetts), a Fellow Operatin
Slide 22: Comparable Companies
Comparable Companies LTM EBITDA1 EV/EBITDA Enterprise Number Revenue LTM Net LTM Company Value (mm) of Rigs Per Rig Income % EBITDA % 2009A 2010E 2011E 2010E 2011E Ausdrill Ltd. $966.7 313 $2.0 7.6% 24.1% $124.3 $149.8 $187.6 6.5x 5.2x Boart Longyear Limited $2,047.6 1,150 $1.0 1.9% 13.4% $124.6 $22
Slide 23: Key to Success
Key to Success ■ Well positioned in the industry: – Innovative drilling solutions – Broad customer base ■ Strong track‐record of financial performance ■ Focused growth strategy ■ Proven management team 23
Slide 24: Analyst Site Tour
Analyst Site Tour February 11, 2011 24