Vysarn Ltd · ASX:VYS
Vysarn — Investor Presentation (September 2020)
20 slides from Vysarn's investor presentation, Sep 22, 2020
Slide 1: Investor Presentation September 2020
INVESTOR PRESENTATION SEPTEMBER 2020
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Vysarn Limited ("Vysarn" or the "Company") outcomes may have on Vysarn. Before making an investment decision prospective ("Presentation") and contains general and background information about Vysarn activities investors should consider the appropriat
Slide 3: Corporate Snapshot
Corporate Snapshot About Vysarn Limited (ASX:VYS) Vysarn Limited (‘Vysarn’ or ‘the Company’) via its wholly owned subsidiary Share Price Performance Pentium Hydro Pty Ltd (‘Pentium’) commenced operations in September 2019, 9.0 $0.09 quickly establishing itself as a leading provider of production cri
Slide 4: Highly Experienced Board
Highly Experienced Board Peter Hutchinson James Clement Sheldon Burt Chris Brophy Non-Executive Chairman CEO & MD Executive Director Non-Executive Director Business leader with over 30 years’ James is an experienced manager and Drilling industry professional with over 30 Accomplished business leader
Slide 5: Investment Highlights
Investment Highlights Delivering Profits Strong Growth Thematic Grown monthly revenue from zero to $2.5m in under 12 months Demand for hydrogeological services to grow as a greater during FY20. Expected to exceed $6m EBITDA in FY21 proportion of resources lie below the water table Critical to Produc
Slide 6: Asset Acquisition to Profit: FY20 Results – A Strong First Year
Asset Acquisition to Profit FY20 Results – A Strong First Year Monthly Revenue Growth Since commencing operations (Sept 2019), Vysarn’s operational revenue has grown from zero to $11.91m: $3.0 ▪ 1HFY2020 – $1.78m 7 drill rigs utilised ▪ 2HFY2020 – $10.13m – The majority of operational revenue was $2
Slide 7: Asset Acquisition to Profit
Asset Acquisition to Profit 29 AUG 2019 DEC 2019 24 April 2020 June 2020 Ausdrill asset Established safety systems to MSAs with FMG, RHIO, and Achieved monthly revenue of acquisition satisfy requirements of major Hancock Prospecting and $2.5m completed clients Multi-rig dry hire contract Maintained
Slide 8: Services and Customers
Services and Customers Sector Current Services Key Customers* Mine Dewatering Raw and saline water dewatering bores to limit ingress to mine Production Related Drilling Drilling wells into aquifers to assist mining operation water demand RESOURCES Brackish Water Reinjection Reinjection or recycling
Slide 9: Critical to Production
Critical to Production Hydrogeological drilling services are critical to production Iron Ore Production vs. Price (1990 – 2019)* ▪ Vysarn’s iron ore customers face significant dewatering requirements 1,000 $250 ▪ Demand for dewatering is amplifying as a greater proportion of economic resources lie b
Slide 10: Water in the Pilbara
Water in the Pilbara Dewatering is an Operational Pilbara Production is Heading Under Water ▪ Nearly all Pilbara iron ore mines established post 2000 have a Imperative significant portion of their ore body below the water table ▪ Dewatering has become an operational imperative with water table issue
Slide 11: Iron Ore Dewatering Requirements
Iron Ore Dewatering Requirements Pilbara Iron Ore Producers FY21 Bore Hole Estimate Total 33 Mines 75% 1,200 + Mines with drilled bore holes Dewatering Vysarn estimates FY21 Pilbara dewatering Requirements requirements may exceed 1,200 bore holes. Up to 25 mines Source: RPS - Pilbara Dewatering Mark
Slide 12: The Dewatering Process
The Dewatering Process Dewatering must be vigilantly planned and executed to ensure successful drawdown The Dewatering Process ▪ Drill and case multiple bore holes using specialised Step 1 equipment ▪ Install pumps, begin abstracting water away from pit for Must Maintain Step 2 reuse or disposal Dra
Slide 13: Competitive Landscape
Competitive Landscape Concentrated number of hydrogeological service providers ▪ Three prominent players – Vysarn – Easternwell – Boart Longyear ▪ Only Vysarn and Easternwell possess strong fleets of dual rotatory rigs ▪ Vysarn is the only pure hydrogeological services provider on the ASX ▪ Easternw
Slide 14: FY21 Rig Deployment Targets
FY21 Rig Deployment Targets Sep Qtr Dec Qtr Mar Qtr Jun Qtr Foremost DR24HD 1 – DR24HD Market leading dual rotary rigs capable of drilling and 2 – DR24HD casing holes in the toughest environments 3 – DR24HD 4 – DR24HD 5 – DR24HD 6 – DR24 Vysarn is equipped with one of the largest, newest and most ad
Slide 15: Safety Implementation
Safety Implementation Safety of our staff and clients is the bedrock of the Company’s operations ▪ Since inception, Vysarn has focused on the highest standards of training and implementation of group safety management systems ▪ Program has culminated in a ‘Verification of Competency’ rate of more th
Slide 16: Growth Strategy & Outlook
Growth Strategy & Outlook 16 VYSARN LIMITED ASX:VYS
Slide 17: Growth Strategy
Growth Strategy ESTABLISH FOUNDATION VERTICAL INTEGRATION M&A OPPORTUNITIES Establish robust operational systems, Staged expansion via vertical integration Highly experienced Board and advisors with processes and a highly qualified workforce deep networks to source and execute M&A ▪ Downstream ancil
Slide 18: Growth Via Vertical Integration
Growth Via Vertical Integration Stage Stage Growth Strategy DR drilling Staged Vertical Integration 1 Reinjection Pump Testing 4 Strategy: Organic / M&A Water as a Resource Vysarn has formed a three staged strategy to vertically integrate downstream ancillary services. Stage Successful transformatio
Slide 19: Outlook
Outlook Growth Strategy Strong Demand “The hydrogeological drilling sector is looking promising for the foreseeable Vysarn is well positioned entering the future and there continues to be strong demand for the Company’s assets and new financial year with a strong services” Balance Sheet, a strong ma
Slide 20: Key Contacts
Key Contacts Mr Peter Hutchinson Registered Office Pentium Hydro Office Chairman 108 Outram Street, 11 Gavranich Way, Mr James Clement West Perth WA 6005 Wangara WA 6065 Managing Director Telephone: +61 8 9486 7244 Telephone: +61 8 6144 9777 ASX Code: VYS Website: www.pentiumhydro.com.au Website: ww