Slide 1: ASX Release: Presentation – Mining 2014 Resources Convention
30 October 2014 For personal use only ASX RELEASE Mitchell Services Limited (ASX :MSV) Presentation – Mining 2014 Resources Convention Please find attached presentation being made today by Mitchell Services CEO Andrew Elf at the Mining 2014 Resources Convention. Bob Witty Company Secretary
Slide 2: Mining 2014 Resources Convention – Cyclical Market Presents Opportunity
For personal use only MINING 2014 RESOURCES CONVENTION Corporate Presentation – Cyclical Market Presents Opportunity 30 October 2014 1 www.mitchellservices.com.au
Slide 3: 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 4: Contents
CONTENTS For personal use only HISTORY MARKET PROFILE BOARD & MANAGEMENT CYCLICAL MARKET PRESENTS OPPORTUNITY MITCHELL SERVICES VISION CAPABILITY FY14 HIGHLIGHTS THE FUTURE SUMMARY 3 www.mitchellservices.com.au
Slide 5: History
HISTORY For personal use only MITCHELL SERVICES HISTORY DRILL TORQUE HISTORY 1969 Mitchell Drilling commenced 1992 operations 2000 Drill Torque Queensland Mitchell Drilling was at founded with a single rig the forefront of the CSG 2007 2008 Well Drilled industry in QLD Mitchell Drilling established
Slide 6: Mitchell Services Market Profile
MITCHELL SERVICES MARKET PROFILE For personal use only Senior Management Team Major Shareholders ASX Stock Symbol: MSV Shares Issued: 867,000,222 Executive Chairman – Nathan Mitchell 1 Mitchell Group 20% Performance Options: 98,700,000 CEO - Andrew Elf 2 Acorn Capital 10% Share Price (at 27/10/14):
Slide 7: Board and Management
BOARD AND MANAGEMENT For personal use only NATHAN MITCHELL – Executive Chairman ANDREW ELF (B.Com, CPA, MBA, GAICD) – Chief Executive Officer During his tenure as CEO for Mitchell Drilling Contractors the company doubled in Mr. Elf has over 15 years finance, commercial and operation experience. He h
Slide 8: Cyclical Industry Presents Opportunity
CYCLICAL INDUSTRY PRESENTS OPPORTUNITY Listed Drilling Company – Share Price Movements (Average is a non weighted average of daily close prices) For personal use only GROWTH DECLINE GROWTH DECLINE -> Boart Longyear Major Drilling Foraco Orbit Garant AusDrill Capital Drilling Layne Christiansen Geo D
Slide 9: Industry Acquisitions & Divestments
INDUSTRY ACQUISITIONS & DIVESTMENTS For personal use only The drilling industry is highly cyclical and industry majors have tended to make acquisitions at all stages throughout the cycle, often paying high multiples on cyclical earnings. This results in acquisitions at high values which does not
Slide 10: Cyclical Market Presents Opportunity
CYCLICAL MARKET PRESENTS OPPORTUNITY For personal use only Board and management have a strong understanding of the cyclical nature of the industry which drives investment decisions Mitchell Drilling Contractors sells to AJ Lucas for $150m Mitchell Equipment Hire makes Mitchell Group acquires rigs
Slide 11: Mitchell Services Vision
MITCHELL SERVICES VISION For personal use only To be Australia’s leading provider of drilling services to the global exploration, mining and energy industries Find a better way Management Safety Leading Systems Operational Value Team Technology Capability Proposition 10 www.mitchellservices.com.au
Slide 12: Achievements Following Acquisition
ACHIEVEMENTS FOLLOWING ACQUISITION For personal use only • Won in approximately $30m worth of contracts by revenue since acquisition of Mitchell Services including three Tier 1 clients • Rig utilisation increased more than three fold from four to fifteen rigs • Review and implementation of Industria
Slide 13: Material Increase in Capability Post Acquisition
MATERIAL INCREASE IN CAPABILITY POST ACQUISITION For personal use only Significant Fleet in Eastern Australia Mitchell Services Competitor 1 Competitor 2 Competitor 3 Competitor 4 Tom Browne Mitchell Competitor 5 Competitor 6 Competitor 7 Post Acquisition Pre Acquisition 58 rigs 29 rigs 29 rigs 23 T
Slide 14: FY14 Highlights
FY14 HIGHLIGHTS For personal use only Audited financials as at reporting date 30 June 2014 FY15 Outlook Revenue $15.01m Baseline revenue forecast of circa $24m revenue at break even EBITDA ($2.90m) operating cash flow basis NPAT ($4.60m) Significant upside potential in forecast revenue Operating Cas
Slide 15: The Future
THE FUTURE For personal use only Top priorities in the year ahead • Continue to improve the standards in the health and • Integrate the Tom Browne Drilling Services assets and safety of our people inventory • Meet and exceed the high standard of service that our • Increase rig utilisation with a vie
Slide 16: Summary
SUMMARY For personal use only • Major one off expenses incurred to rebuild and position the business to work for Tier 1 clients • Competitive landscape is improving rapidly and barriers to entry for new competitors have increased • Best pricing for assets that Board and Management have seen. TBDS as