Slide 1: Noosa Mining Virtual Conference
NOOSA MINING VIRTUAL CONFERENCE 16 JULY 2020 1 www.mitchellservices.com.au
Slide 2: Disclaimer
DISCLAIMER 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 ASX, which are availab
Slide 3: Mitchell Services Market Profile
MITCHELL SERVICES MARKET PROFILE ASX Information Major Shareholders ASX Stock Symbol MSV Mitchell Group 17.9% Scott Tumbridge 7.2% Shares Issued 199,238,740 Other Directors & Management 3.4% Share Price (at 10/07/2020) A$0.56 Institutions 20.6% Market Capitalisation A$111.5m Other Shareholders 50.9%
Slide 4: COVID Response
COVID 19 RESPONSE • Detailed response and contingency plans • 10% of our workforce relocated temporarily to keep rigs operational • 20% of our workforce changed rosters on a temporary basis to keep rigs operational • Credit to our entire team who have continued to deliver safe and efficient services
Slide 5: People and Community
PEOPLE AND COMMUNITY • The health and safety of our people and the well being of our communities are essential • We are focused on creating sound value to grow shareholder value and returns • Social value protects our business today and positions us to take advantage of future opportunities • The Mi
Slide 6: FY20 Business Overview
FY20 BUSINESS OVERVIEW Revenue of $175.5m EBITDA of $35m Net Debt of $27.6m ↑ 46% from FY19 ↑ 45% from FY19 ↑ 28% reduction from Dec 19 Quality of business 1.1cps fully franked Strong balance sheet model proven during special dividend provides flexibility global pandemic payable in July 6 www.mitche
Slide 7: Impact of Increased Utilisation on Revenue
IMPACT OF INCREASED UTILISATION ON REVENUE Annual Average Operating Rig Count vs Revenue • Average operating $175.49m revenue per rig continued to increase due to improved productivity, pricing and drilling mix $120.21m • Mitchell Services Average Operating Rig anticipates further Count increases in
Slide 8: Operational Highlights
OPERATIONAL HIGHLIGHTS • Achieved revenue and EBITDA guidance during a global pandemic proving the quality of the business model • Rig utilisation has been marginally impacted by Covid 19 but utilisation is now increasing again. • Revenue diversity continues to improve by commodity, geography and dr
Slide 9: Revenue Diversity
REVENUE DIVERSITY Diversity in revenue streams sets Mitchell Services apart from competitors Revenue by Commodity Revenue by Drilling Type FY2020 44.5% 33.9% 12.8% FY2020 45.2% 54.3% FY2019 62.0% 14.3% 13.6% FY2019 55.1% 43.7% FY2018 55.6% 14.9% 17.8% 6.0% FY2018 60.3% 38.5% Coking Coal Gold Copper
Slide 10: High Quality Revenue Streams
HIGH QUALITY REVENUE STREAMS Revenue by Client Type • Tier 1 Clients are large / multinational mining & energy companies • A significant majority of Mitchell Services revenue comes from Tier 1 Clients operating on long life, low cost mine sites 89.7% 86.2% 91.8% • Approximately 90% of revenue is at
Slide 11: Outlook
OUTLOOK • Pipeline of identified opportunities remains strong as does the demand for drilling services particularly from Tier 1 clients • Demand for drilling services in gold is very strong particularly in Victoria and New South Wales • Based on current market conditions, commodity prices, current c
Slide 12: Summary
SUMMARY • Mitchell Services’ vision is to be Australia’s leading provider of drilling services to the global exploration, mining and energy industries • Mitchell Services has a diversified revenue stream by different drilling types and commodities • Mitchell Services has a high quality client base w