Slide 1: Noosa Mining Conference 11-13 November 2020
For personal use only NOOSA MINING CONFERENCE 11-13 November 2020 1 www.mitchellservices.com.au
Slide 2: Disclaimer
DISCLAIMER For personal use only This 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 ASX, whic
Slide 3: Mitchell Services Market Profile
MITCHELL SERVICES MARKET PROFILE For personal use only ASX Information Major Shareholders ASX Stock Symbol MSV Mitchell Group 17.9% Scott Tumbridge 7.2% Shares Issued 199,238,740 Other Directors & Management 3.4% Share Price (at 09/11/2020) A$0.52 Institutions 21.0% Market Capitalisation A$103.6m Ot
Slide 4: COVID Response
COVID 19 RESPONSE For personal use only • Detailed response and contingency plans • 10% of our workforce relocated temporarily to keep rigs operational • 20% of our workforce changed rosters on a temporary basis to keep rigs operational • Credit to our entire team who have continued to deliver safe
Slide 5: FY20 Business Overview
FY20 BUSINESS OVERVIEW For personal use only Revenue of $175.5m EBITDA of $35m Net Debt of $27.6m ↑ 46% from FY19 ↑ 45% from FY19 ↑ 28% reduction from Dec 19 Quality of business Fully franked special Strong balance sheet model proven during dividend provides flexibility global pandemic paid July 202
Slide 6: Operational Highlights
OPERATIONAL HIGHLIGHTS For personal use only • Achieved revenue and EBITDA guidance during a global pandemic proving the quality of the business model • Rig utilisation has been marginally impacted by Covid-19 but utilisation is now increasing again • Revenue diversity continues to improve by commod
Slide 7: Impact of Increased Utilisation on Revenue
IMPACT OF INCREASED UTILISATION ON REVENUE For personal use only Annual Average Operating Rig Count vs Revenue • Average operating $175.56m revenue per rig continued to increase due to improved productivity, pricing and drilling mix $120.21m • Mitchell Services Average Operating Rig anticipates furt
Slide 8: High Quality Revenue Streams
HIGH QUALITY REVENUE STREAMS For personal use only Revenue by Client Type • Tier 1 Clients are large / multinational mining & energy companies • A significant majority of Mitchell Services revenue comes from Tier 1 Clients operating on long life, low cost mine sites 89.7% 86.2% 91.8% • Approximately
Slide 9: FY21 Q1 Overview
FY21 Q1 OVERVIEW For personal use only Strong FY21 Q1 performance Monthly Number of Rigs Operating (over the past 24 months) 90 Revenue EBITDA 70 $53.2m $10.4m 50 30 10 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Year to 30 Sept 2019 Year to 30 Sept 2020 EBITDA to operating Operating Cash Flow c
Slide 10: Reasons for Optimism
REASONS FOR OPTIMISM For personal use only • Usually a reliable lead indicator for drilling activity levels, the value of capital raisings for gold projects completed by ASX listed junior Gold project financings for junior/intermediate and intermediate mining and exploration miners & explorers ASX c
Slide 11: Outlook
OUTLOOK For personal use only • Pipeline of identified opportunities remains strong as does the demand for drilling services particularly from Tier 1 clients • Demand for drilling services in gold is very strong and gold as a percentage of revenue will increase in FY21 • Based on current market cond
Slide 12: 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 • Mitchell Services has a diversified revenue stream by different drilling types and commodities • Mitchell Services has a high