Cabo Drilling Corp · OTC:CBEEF
Cabo Drilling — Investor Presentation (February 2012)
20 slides from Cabo Drilling's investor presentation, Feb 28, 2012
Slide 1: Cabo Drilling Corp. Corporate Presentation
CABO DRILLING CORP. CORPORATE PRESENTATION Professionals to the Core TSX-V: CBE
Slide 2: 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 considered forward-looking. Such forward-lo
Slide 3: Focused on Delivering the Best Value for all our Clients
Focused on Delivering the Best Value for all our Clients in: North America, Central America and Europe 3
Slide 4: Cabo Drilling Corp.
CABO DRILLING CORP. Acquired five drilling services companies in 2004 and 2005 Achieved year-over-year revenue growth to 2008 of C$58.64 million Fiscal years 2009 and 2010 revenues decreased to C$41.16 million and $28.99 million respectively 2011 revenues increased 50% from 2010 to $43.42 milli
Slide 5: Share structure and trading
Symbol: CBE - TSX-V DHL - FWB Price: $0.14 Week High / Low: $0.23 - $0.07 Market Cap: $10,654,644 Shares Outstanding: 76,104,600 Fully Diluted: 90,569,430 February 28, 2011 – February 28, 2012 5
Slide 6: Locations and clients
CANADA ALBANIA USA TURKEY PANAMA COLOMBIA Cabo’s clients include: Kirkland Lake Gold Inc. Minera Panama SA (Inmet Mining) Galway Resources Ltd. Armistice Resources Corp. Queenston Mining Inc. Goldcorp Inc. Century Iron Ore Mining Corp. Labrador Iron Mines Limited Teck Resources Limited 6
Slide 7: Strong Industry Fundamentals
Source: MEG STRONG INDUSTRY FUNDAMENTALS Base & precious metals demand & pricing have experienced record growth over the past 4 years Total 2011 budget for nonferrous metals exploration was estimated at $18.2 billion, up 50% from 2010, a new all time high $2.29 billion was raised by junior and in
Slide 8: Global Mining Industry Facing Major Supply/Demand Imbalance
GLOBAL MINING INDUSTRY IS FACING A MAJOR SUPPLY/DEMAND IMBALANCE FOR PRECIOUS & BASE METALS Rising commodity prices continue in 2012 to positively impact the revenue and profit margins of mining companies, as well as the availability of equity financings for the intermediate mining and more advanc
Slide 9: Drill fleet and fiscal 2011 mix
Fiscal Year Fiscal 2011 Year 2011 Undergro und Geotechn 15% ical Drills: 4% Surface 84% 27 Conventional Surface 15 Deep Hole Surface 18 Helicopter Support 3 Man Portable Other Fiscal Year 2011 Canada & Foreign United 6 Reverse Circulation Countries States 24% 76% 27 Underground 6 Geotechnical 9
Slide 10: Revenue and annual financial results
(CDN $000s except earnings per share) FY2011 FY2010 FY2009 FY2008 EBITDA per Share (Basic)* $ 0.04 $ 0.03 $ 0.08 $ 0.15 Earnings (Loss) per Share (Basic) $ (0.01) $ (0.03) $ (0.02) $ 0.07 Cash from Operations** $ 1,402 $ 1,057 $ 2,060 $ 5,149 Gross Margin % 22.1 25.3 26.7 23.4 *Net Earnings before i
Slide 11: Working capital and debt priorities
Capital expenditures are controlled Stable working capital Debt rationalization is a priority Implementing new field cost control systems Negotiating new bank credit facilities Working Capital C$ millions 8.86* 8.14 7.28 5.74 4.59 FY2008 FY2009 FY2010 FY2011 FY2012 *FY2012 – For the six mo
Slide 12: Balance sheet at Dec 31, 2011
(CDN $000s) Dec 31, 2011 Cash & cash equivalents $ 815 Current assets $ 25,337 Non-current assets $ 15,575 Total assets $ 41,727 Current liabilities (including current portion of long-term debt) $ 17,298 Long-term debt $ 1,165 Future income tax $ 436 Equity $ 22,828 Total equity and liabilities $ 41
Slide 13: Quarterly results
(CDN $000s except earnings per share) 1st QTR 2012 2nd QTR 2012 Ended Ended Sep 30, 2011 Dec 31, 2011 Revenue $ 16,929 $ 14,363 EBITDA as a % of gross revenue 18.04 10.23 EBITDA per Share (Basic)* $ 0.04 $ 0.02 Earnings before Taxes $ 1,520 $ 637 Earnings per Share (Basic) $ 0.02 $ 0.01 Cash from Op
Slide 14: Achievements to Date
Debt reduction Expand effective capacity per drill and increase drill utilization Increase profit margins Retain skilled workers and enforce high safety standards Achievements to Date Increased overall revenue by 50% Increased international revenues by 65% 59% of drills turning on gold
Slide 15: Positioned to move forward
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 for the projected growth of the mining markets in 2012 Offering a variety of drilling services – including
Slide 16: Raving Fans and Human Resources
“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 project “Human Resources” Employee
Slide 17: To be the first choice for customers, employees and investors
To be the first choice for mineral exploration, mining & geotechnical customers by offering the best value in the drilling services industry To be the first choice among employees by offering the most stable, safe and rewarding workplace in the drilling services industry To be the first choice
Slide 18: Relative Size of Contract Drillers
Relative Size of Contract Drillers 18
Slide 19: Expanding global market presence
Expanding global market presence 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 per drill 19
Slide 20: Professionals to the Core
PROFESSIONALS TO THE CORE he! TSX-V: CBE — 20
Cabo Drilling — Investor Presentation (February 2012) on 6ix