Orbit Garant Drilling Inc. · TSX:OGD
Orbit Garant Drilling — Investor Presentation (March 2021)
25 slides from Orbit Garant Drilling's investor presentation, Mar 1, 2021
Slide 1: Investor Presentation
March 1, 2021 INVESTOR PRESENTATION TSX: OGD
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Information Certain statements contained herein constitute “forward-looking statements” which reflect the current expectations of management regarding the Company’s future growth, results of operations, performance, business prospects and opportunities based on
Slide 3: Company Overview
Company Overview Val-d’Or ~ 1,100 Employees 227 Drill Rigs Underground & Surface Drilling Santiago Burkina Faso Regional offices: Sudbury, ON, Moncton, NB, Chile, Ghana, Guinea, United States, Burkina Faso and Guyana Current field operations: Canada, Burkina Faso, California, Chile, Ghana, Guinea an
Slide 4: Market Position (by % of revenue)
Market Position (by % of revenue*) Drilling Activity Customers Regions 15% 27% Juniors Underground International 66% 34% Surface Majors & 73% Canada Intermediates 85% Resource Exposure Drilling Services 22% Base Metals / 40% Specialized Other Gold 60% Conventional 78% * For the six months ended Dece
Slide 5: Competitive Strengths
Competitive Strengths • Long-established, leading Canadian-based mineral driller focused on gold projects • Combined surface and underground expertise / specialized drilling / senior management field experience • Focus on continuous innovation • Vertically-integrated manufacturing operations • Stron
Slide 6: Drilling Services & Expertise
Drilling Services & Expertise Surface Underground Specialized Drilling • Standard diamond coring / core rod • Standard rod / core rod • Drilling projects that are in remote • Standard / reverse circulation locations or, because of the scope, • AWL - HWL calibre (deep hole) complexity or technical na
Slide 7: Vertical Integration / Health & Safety / Driller Training
Vertical Integration / Health & Safety / Driller Training • Vertically integrated manufacturing operations provide competitive advantage o Ability to design and manufacture custom drill rigs and equipment for customers at a competitive cost with faster delivery o Key to continuous innovation (e.g. c
Slide 8: Continuous Innovation
Continuous Innovation Computerized Monitoring and Control Performance Highlights Additional Feature Benefits for Customers Greater accuracy Real-time, remote monitoring Improved productivity (+30%) of drilling progress Fewer consumables Ability to view core samples remotely Rig components last longe
Slide 9: Strong Customer Relationships
Strong Customer Relationships Core strengths support long-term customer relationships INVESTOR PRESENTATION – MARCH 2021 9
Slide 10: International Operations
International Operations Chile / South America International Revenue ($ millions) 1 • Operating subsidiary established in Chile (FY 2013) • Acquisition of Captagua in FY 2016 52.2 o 17 surface drill rigs / 5 underground drill rigs 43.3 • Strong platform for growth in Chile / South America 28.8 25.9
Slide 11: Declining Global Gold Discoveries
Declining Global Gold Discoveries Global Gold Discoveries vs. Exploration Spending, 1990-2019 Gold in major discoveries (millions of ounces) Gold exploration budget (US$ millions) Gold in major discoveries Projected new gold in major discoveries Gold Exploration Budgets • Gold discovery rates are do
Slide 12: Declining Reserves in Global Gold Sector
Declining Reserves in Global Gold Sector Major Gold Producers’ Years of Reserves Remaining, 2008 vs. 2017 Production years of reserves remaining 2017 production (000s of ounces) 2008 years remaining 2017 years remaining 2017 production • The senior gold producers’ mineable reserves have dropped shar
Slide 13: Global Exploration Budgets
Global Exploration Budgets Annual nonferrous exploration budgets, 1996-2020 Estimated global nonferrous exploration budget (US$billions) • 2020 aggregate global nonferrous Annual indexed metals price exploration budgets total an estimated US$8.7 billion • ~11% decline from 2019 due to impact of COVI
Slide 14: Gold Price
Gold Price ($US) (March 1, 2021) • Spot gold price reached record high of ~US$2,075 per ounce in August 2020 • Current price of gold is ~52% above its trailing 5-year low in late 2016 • Strengthening price of gold supports: improved access to capital for mining companies, and increased mineral explo
Slide 15: Historical Metres Drilled and Utilization Rates
Historical Metres Drilled and Utilization Rates (in thousands of metres and average annual utilization rate %) 69% 62% 58% 56% 54% 53% 43% 40% 45% 35% 1,490 1,537 1,428 1,293 1,298 1,152 997 893 825 728 386* 2012 2013 2014 2015 2016 2017 2018 2019 2020 H1 2021 Fiscal years ended June 30 Improvement
Slide 16: Historical Pricing
Historical Pricing Revenue per metre drilled ($/metre)* 116 116 118 114 110 108 108 105 103 101 105 99 100 101 95 95 386* Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 * Figures are rounded to the nearest dollar. INVES
Slide 17: Q2 2021 Financial Review
Q2 2021 Financial Review Revenue EBITDA¹ Adjusted Gross Margin¹ ($ millions) ($ millions) 8.4 31.3% 38.3 36.0 35.6 36.1 23.3% 21.3% 4.4 20.2 12.5% 10.2% 1.0 0.4 0.3 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 2021 G&A Expense: Q2 2020 G&A Expense: Q2
Slide 18: H1 2021 Financial Review
H1 2021 Financial Review Six months ended Six months ended December 31, 2020 December 31, 2019 Revenue (millions) $71.7 $81.6 Gross Profit (millions) $14.1 $9.3 EBITDA1 (millions) $12.8 $6.1 Adjusted Gross Margin1 26.3% 17.2% G&A expenses (millions) $6.9 $8.5 Net earnings (loss) (millions) $3.8 ($1.
Slide 19: Balance Sheet
Balance Sheet ($ millions) As at December 31, 2020 As at June 30, 2020 Cash 2.2 5.0 Total current assets 79.3 77.5 Total assets 126.4 129.8 Total current liabilities 47.9 25.4 Long-term debt and lease liabilities 6.3 36.4 Total shareholder equity 72.3 68.0 Working capital 31.4 52.1 The reduction in
Slide 20: COVID-19 Update
COVID-19 Update • Drilling activity in Canada has returned to pre-pandemic levels o Operations in Ontario and Quebec have continued without significant disruption during calendar 2021 amid provincial lockdown orders • Drilling activity in West Africa has increased significantly in recent months, whi
Slide 21: Investment Highlights
Investment Highlights • Industry leader in innovation and specialized drilling (underground & surface) • Comprehensive infrastructure with vertically-integrated manufacturing operations • Low-risk, diversified exposure to mining sector • High exposure to gold-related projects – gold prices near reco
Slide 22: Appendix
APPENDIX FORAGE ORBIT GARANT DRILLING
Slide 23: Capital Market Profile
Capital Market Profile ANALYST COVERAGE: TSX: OGD Recent close (March 1, 2021): $0.89 52-week high / low: $1.10 / $0.40 Market Cap: ~$36 million Shares Outstanding: 37,021,756 Fully Diluted: 40,418,190 Institutional / retail: ~ 40% / 60% (float) Management own approximately 27% of shares outstanding
Slide 24: Board of Directors & Senior Management
Board of Directors & Senior Management • More than 25 years of experience in finance and accounting with extensive experience in the mining sector Jean-Yves Laliberté ¹ ² ³ • Chair of Cartier Resources Inc. (previously served as Chief Financial Officer) Chair of the Board of Directors • Former Chief
Slide 25: Reconciliation of Non-IFRS Financial Measures
Reconciliation of Non-IFRS Financial Measures • “EBITDA”: Net earnings (loss) before interest, taxes, (unaudited) 3 months ended 3 months ended 6 months ended 6 months ended depreciation and amortization. Management believes that (in millions of dollars) December 31, 2020 December 31, 2019 December
Orbit Garant Drilling — Investor Presentation (March 2021) on 6ix