Slide 1: We Are Geodrill
WE ARE GEODRILL Investor Presentation March 2016
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 predictio
Slide 3: Corporate Data
Corporate Data Major Shareholders Capital Structure D. Harper 41.5% Symbol TSX-GEO Sustainable capital 14.5% Shares Outstanding 42.5 M Maxam Capital 13.6% Fully Diluted 45.5 M Aegis Capital 5% 52 Week Range $0.99 - $0.46 AGF 3% IPO Date Dec 16, 2010 Analyst Coverage IPO Price $2.00 Beacon Securities
Slide 4: Hard Core Drillers
Hard Core Drillers Mauritania Senegal Mali Niger Guinea Burkina Bissau Faso Guinea Benin Sierra Leone Togo Ivory Coast Ghana 24% Pure Industry Leading 42 CAGR Play Metrics Rigs Started in 1998 Geographically condensed On average higher EBITDA 100% with 1 rig; in prospective margin Organic Currently
Slide 5: Volatility is Opportunity
Volatility is Opportunity Maintaining high performance • Tier 1 rig fleet attracts work • Experienced management team with strong reputation Financial flexibility • Pricing discipline • Remains efficient and maintains margins Focus on core market • High-growth market • Geographic knowledge Customer
Slide 6: Superior Fleet of Multipurpose Rigs
Superior Fleet of Multipurpose Rigs High Efficiency High Performance Multipurpose rigs can perform both reverse circulation and diamond core drilling with minimal effort and down-time Multipurpose rigs can drill for any mineral without retooling or retro-fitting Most modern fleet of rigs in the indu
Slide 7: Our Mechanical Advantage
Our Mechanical Advantage State–of-the–art operations facility contributes to the high quality fleet • Workshop manufactures up to 300 different consumables including drill rods Workshop centrally located to client projects: • Shorter distance reduces the time needed to reach projects and deliver the
Slide 8: Highly Trained and Skilled Workforce
Highly Trained and Skilled Workforce Efficient rig operators drive productivity Local drillers with low turnover 90% of workforce are contracted employees Labor force not governed by unions All aspects of Geodrill’s operations are designed to meet the highest health and safety standards 8
Slide 9: Top Tier Customer Base
Top Tier Customer Base 2015 • Newmont (GH) • Kinross (GH) • Centamin (BF) • Newcrest (CI) Senegal • Roxgold (BF) • Asanko Gld (GH) Mali Niger • Endeavour (GH) • Endeavour (CI) Burkina Faso • Endeavour (BF) • Kinross (GH) Guinea • Anvel Gold (ML) Be Ghana • Tietto Gold (CI) Sierra • Perseus (CI) Togo
Slide 10: Geodrill Results Stand in Stark Contrast
GEODRILL RESULTS STAND IN STARK CONTRAST 10
Slide 11: Improved Financial Performance
Improved Financial Performance Q4 2014 to Q4 2015 (all figures in U.S. Dollars) Revenue (US) Gross Profit EBITDA $18 16.0 $16 $14 12.3 $12 10.2 9.7 9.4 $10 $8 6.6 $6 5.3 $4 Millions 2.4 2.5 2.4 1.8 2.0 1.5 1.7 $2 1.2 $0 Q4 2014 Q1 2015 Q2 2015 Q32015 Q4 2015 11
Slide 12: Balance Sheet
Balance Sheet in USD Dec 31, 2015 Inventory $13.9M Current Assets $29.3M 6% Current 20% Receivables $7.9M Non-current Assets 47% $33.7M Assets $29.3M Cash $5.8 M 27% Total Assets $63.1M Prepayments $1.7M Current $9.6M Liabilities1 Total Debt $6.2M Drill rigs $26.3M 3% 6% Non- 13% Plant &Equip. $4.3M
Slide 13: Progressive Balance Sheet / CAPEX
Progressive Balance Sheet CASH $M Total Debt $M Net Debt $M Rigs 12 50 11 45 10 42 40 Total Debt at Q4-15 was 9 38 38 38 39 39 39 35 flat $6.2M but Net Debt DEBT / CASH 8 7 30 was a great result, 0.4M RIGS 6 25 after beginning the year 5 20 at $2.2m; and the two 4 15 qtr’s before Q3-14 was 3 10 $5.6
Slide 14: APOR - The Hole Story!
APOR - The Hole Story! Other drillers Geodrill $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 Highest ARPOR Modern Fleet means GEO Quarterly (Average H
Slide 15: Compelling Valuation
Compelling Valuation TD Securities – Mineral Drillers Comp Table November 2015 Reporting Mkt. EV EBITDA ($mm) EVIEBITDA($mm) Name Ticker Currency Price Cap $mm P/BV Current Yr Next Yr Current Yr Next Yr Metals & Mineral Drillers Boart Longyear BLY-au AS $0.08 $66 $622 46.4x n/a n/a n/a n/a Major Dri
Slide 16: Our Value Proposition
OUR VALUE PROPOSITION • High performance rigs and unrivalled drilling expertise • Focused on high-growth market • Improved revenue, margins, and working pricing working capital • Increased utilization and market share • Attractive valuation