Mitchell Services Limited · ASX:MSV
Mitchell Services — Noosa Mining & Exploration Conference 2016
13 slides from Mitchell Services's conference presentation, Jul 22, 2016
Slide 1: Presentation – Noosa Mining & Exploration Conference
For personal use only 22 July 2016 ASX Release Mitchell Services Limited (ASX: MSV) Presentation – Noosa Mining & Exploration Conference Please find attached presentation being made today by Mitchell Services CEO Andrew Elf at the 2016 Noosa Mining and Exploration Conference. Greg Switala Company Se
Slide 2: Noosa Mining & Exploration Conference Corporate Presentation
For personal use only NOOSA MINING & EXPLORATION CONFERENCE Corporate Presentation July 2016 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: Mitchell Services Market Profile
MITCHELL SERVICES MARKET PROFILE For personal use only ASX Information Major Shareholders ASX Stock Symbol: MSV 1 Mitchell Group 21.39% Shares Issued: 1,471,498,973 2 Washington H Soul Pattinson 12.26% Share Price (at 14/7/2016): A$0.017 3 Acorn Capital 8.69% Market Capitalisation: A$25.02m 4 CVC 8.
Slide 5: Mitchell Services Strategy - 'Timing'
MITCHELL SERVICES STRATEGY- ‘TIMING’ For personal use only Board and management have a strong understanding of the cyclical nature of the industry which drives investment decisions In 1969 Mitchell Drilling commenced operations In 1992 Drill Torque commenced operations In 2013 the two busine
Slide 6: 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 Be Sure. Be Safe Our people are your success Management Safety Leading Systems Operational Value Find a better way Team Technology Capability
Slide 7: FY16 Business Overview (Unaudited)
FY16 BUSINESS OVERVIEW (UNAUDITED) For personal use only $32m+ EBITDA positive Circa 90% of income is No lost time injuries in from Tier 1 * mining and FY16 energy companies FY16 revenue in FY16 Other Operating Shifts Rig count Q4 FY15 1,446 58 Nitro acquisition completed on time and on budget Opera
Slide 8: Business Optimisation Strategy
BUSINESS OPTIMISATION STRATEGY For personal use only Phase 1: Business Ready Phase 2: Ramp Up Phase 3: Refinement COMPLETE COMPLETE COMPLETE • ISO certification and • Implement initiatives to improve • Take advantage of strong position implementation of electronic safety culture and performance in k
Slide 9: Year on Year Revenue Growth
YEAR ON YEAR REVENUE GROWTH For personal use only $32m+ Tier 1 operating income* (Unaudited) Other operating income VALUE OF TIER 1 $24.69m • Large / multinational mining and energy companies • Very high safety and business 89% system requirements 66% $14.07m • Generally brownfield work for existing
Slide 10: Business Development
BUSINESS DEVELOPMENT For personal use only Annual revenue from existing Tier one contracts Circa $30million based on current workloads • Highly focused on lead generation • Strong tender pipeline across Tier 1 and other clients requires equipment that MSV already owns • Increase in revenue growth de
Slide 11: Market Outlook
MARKET OUTLOOK For personal use only • Competitive Profile of the market has continued to improve. • New entrants are faced with barriers to entry such as high capital cost and inability to secure financing. • Pipeline of identified opportunities continues to grow. • Greenfield exploration sector sh
Slide 12: Cyclical Industry Presents Opportunity
CYCLICAL INDUSTRY PRESENTS OPPORTUNITY For personal use only Listed Drilling Company –Share Price Movements* (Average is a non weighted average of daily close prices) Boart Longyear Major Drilling Foraco Orbit Garant AusDrill Capital Drilling Layne Christiansen Geo Drill Indexed Average * Indexed to
Slide 13: 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 • Tender pipeline provides opportunity for further revenue growth • Mitchell Services can utilise acquired assets and generate a
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