Cabo Drilling Corp · OTC:CBEEF
Cabo Drilling — Investor Presentation (March 2014)
23 slides from Cabo Drilling's investor presentation, Mar 4, 2014
Slide 1: Corporate Presentation
CABO Drilling CORPORATE PRESENTATION
Slide 2: Forward Looking Statements
CABO Drilling FORWARD LOOKING STATEMENTS Certain information set forth in this presentation contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties. All statements within, other than statements of historical fact, are to be con
Slide 3: Serving the International Mining & Mineral Exploration Communities
CABO Serving the International Mining & Mineral Exploration Communities Drilling Cabo Division Cabo Field Operation FOCUSED ON DELIVERING THE BEST VALUE FOR ALL OF OUR CLIENTS IN NORTH AMERICA, CENTRAL AMERICA AND EUROPE 3
Slide 4: Board of Directors
CABO Drilling Board of Directors John A. Versfelt, Chairman, President, Chief Executive Officer & Director Mr. Versfelt has over 32 years experience providing leadership, management consulting, chief financial office, administration and paralegal/regulatory services to private and public companies
Slide 5: History
CABO Drilling History Acquired five drilling services companies in 2004 and 2005 Revenue bottomed in 2010 at $28.99 million 2012 revenues increased 36% from 2011 to a record of $58.95 million and exceeded 2008’s record revenue of $58.65 million 2013 revenue decreased 28% from 2012 to $42.53
Slide 6: Corporate Overview
CABO Drilling Corporate Overview Key Highlights as at February 27, 2014 Share Price: $0.06 52 Week High/Low: $0.07 - $0.03 Shares Outstanding: 78,968,175 Fully Diluted: 85,478,175 Market Cap: $4,738,090 As at December 31, 2013 Working Capital: $11,532,809 Assets: $35,425,908 Liabilities: $13,870,368
Slide 7: Global Presence & Diversified Commodity Exposure
CABO Drilling Global Presence & Diversified Commodity Exposure Fiscal Year 2013 Revenue Sources 5% 4% 63% 18% 59% 18% 33% Canada & US Gold Copper Iron Other Base Metals Latin America *As a Percentage of FY’13 Revenue Europe Cabo’s clients include: Kirkland Lake Gold Inc. Minera Panama SA (First
Slide 8: Key Drivers for Exploration
CABO Drilling Key Drivers for Exploration Exploration Expenditures: Global by Commodity* US$30 B in 2012 Key Drivers Current discovery rates are not sustainable, as a general rule – to be sustainable the exploration industry needs to find at least 2x as much as is mined Low conversion rate for R
Slide 9: Market Environment
CABO Drilling Market Environment Mining Industry Capital Expenditure (US$ million) * Global mining capital spending peaked in 2012, and remains well above 2008 levels Over the last decade exploration spend rose 10-fold, reaching US$30billion in 2012 for the World. Canada made up 13% of this (US$
Slide 10: Drill Fleet
CABO Drilling Drill Fleet FY’13 Revenue Mix 100 Total Drill Rigs 11% 27 Conventional Surface 17% Reverse Circulation Underground Geotechnical 15 Deep Hole Surface 70% Surface 14 Helicopter Support 2% 5 Man Portable Drill Rig Age* 30.0% 30.5% 6 Reverse Circulation 25.0% 20.0% 21.1% 17.9% 16.8% 27 Und
Slide 11: Operations
CABO Drilling Operations (CDN $000s except earnings per share) FY2010 FY2011 FY2012 FY2013 EBITDA per Share (Basic)(1) $ 0.03 $ 0.04 $ 0.08 $ 0.05 Earnings (Loss) per Share (Basic) $ (0.03) $ (0.01) $ 0.02 $ (0.01) Cash from Operations(2) $ 1,057 $ 1,402 $ 3,348 $ 2,606 Gross Margin % Adjusted(3) 25
Slide 12: Cash Management Focus
CABO Drilling Cash Management Focus Capital expenditures are controlled Stable working capital Continuing to implement field cost control systems Secure new credit facilities for growth Working Capital C$ millions 12.72 13.45 8.14 5.74 4.59 FY2009 FY2010 FY2011 FY2012 FY2013 12
Slide 13: Quarterly Balance Sheet
CABO Drilling Quarterly Balance Sheet (CDN $000s) December 31, 2013 Cash & cash equivalents $ 435 Current assets $ 21,042 Non-current assets $ 13,949 Total assets $ 35,426 Current liabilities (including current portion of long-term debt) $ 9,944 Long-term debt $ 3,433 Deferred income tax $ 493 Equit
Slide 14: Quarterly Results
CABO Drilling Quarterly Results 3rd QTR 2013 4th QTR 2013 1st QTR 2014 2nd QTR 2014 (CDN $000s except earnings per share) Ended Ended Ended Ended Mar 31, 2013 Jun 30, 2013 Sep 30, 2013 Dec 31, 2013 Revenue $ 10,616 $ 8,914 $ 6,648 $ 6,824 EBITDA(1) as a % of gross 10.1% 4.8% 0.8% (0.8)% revenue EBIT
Slide 15: Objectives and Achievements
CABO Drilling Objectives and Achievements Expand effective capacity per drill Establish and maintain long term relationships with our clients Build and maintain a highly cost effective organization Retain skilled workers and enforce high safety standards Increase community training program
Slide 16: Prepared for Future Growth
CABO Drilling Prepared for Future Growth Cabo Drilling is in a position to move forward despite the stressed global financial and economic environment High capital expenditures in fiscal 2006-2008 and 2011 have positioned Cabo to respond to market changes in 2014 Offering a variety of drilling
Slide 17: The Cabo Advantage
CABO Drilling The Cabo Advantage Raving Fans Raving Fans is an initiative to deliver consistent high-quality services based on customers’ needs Cabo is committed to building relationships with its customers – discovering how we can meet and exceed our customers’ requirements for each drill proje
Slide 18: Key Differentiators: Safety and Community Support
CABO Drilling Key Differentiators: Safety and Community Support Safety First Culture Cabo - Communities Cabo is committed to keeping safety front and Cabo has entered into alliance agreements with a center through education, engineering and number of Canadian aboriginal bands, which enforcement
Slide 19: Near-term Growth Opportunities
CABO Drilling Near-term Growth Opportunities European Expansion Acquisition of Blasting Services Company Expansion into Europe began in 2007 in Spain Cabo is evaluating opportunities to acquire an and continued into Albania in 2008 explosives and blasting services business Cabo is currently in
Slide 20: Mission Statement
CABO Drilling Mission Statement To be the first choice for mineral exploration, mining & geotechnical customers by offering the best value in the drilling services industry To partner with our clients and the community, fostering a culture of sensitivity and responsibility to the communities and
Slide 21: Relative Size of Contract Drillers
CABO Drilling Relative Size of Contract Drillers Tier 1 Boart Longyear(1) 1,030 Layne Christensen(1) 710 Major Drilling(1) 717 Tier 2 Ausdrill(1) 371 Foraco(1) 308 Energold Drilling(1) 260 Orbit Garant 214 Cabo Drilling Corp. 100 Drill fleet includes water well and hammer drills (1) 21
Slide 22: Summary
CABO Drilling Summary Expanding global market presence Focused on long-term growth in the mineral drilling services sector through exposure to mid-tier and major mining and exploration companies Revolutionary approach to customer service Improved operational efficiencies Increased capacity
Slide 23: Professionals to the Core
CABO Drilling PROFESSIONALS TO THE CORE 23