Maxim Power Corp. · TSX:MXG
Maxim Power — Investor Presentation (September 2019)
18 slides from Maxim Power's investor presentation, Sep 25, 2019
Slide 1: Investor Update – September 25, 2019
Investor Update – September 25, 2019 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained in this presentation constitute forward-looking statements or information (collectively "forward-looking statements") in respect of MAXIM Power Corp. ("MAXIM") within the meaning of applicable securities legislation, including, but not limited
Slide 3: Forward-Looking Statements
Forward-Looking Statements This document also contains Future Oriented Financial Information ("FOFI") within the meaning of applicable securities laws, in particular the information set forth herein in respect of expected indicative consolidated EBITDA for MAXIM upon commissioning of M2, based on ce
Slide 4: Highlights
Highlights Independent Power Producer Alberta based wholesale seller of electricity and generating capacity Strategy Establish sustainable ventures in organized power markets Acquire or develop assets Optimize and enhance existing assets Re-deploy capital when appropriate to realize shareholder valu
Slide 5: Market Profile
Market Profile September 24, 2019 MXG Closing Price 3.00 TSX Listing MXG 2.50 52 Week Range $1.71 - $2.45 2.00 Share Price $1.71 1.50 Shares Outstanding 52.5 million 1.00 Market Capitalization $89.8 million 0.50 Insider Shareholdings 52.6% 0.00 5
Slide 6: Leadership Team
Leadership Team M. Bruce Chernoff W. Brett Wilson Chairman & CEO Vice Chairman Over 30 years of senior corporate Over 30 years of senior corporate experience in oil & gas and power experience in oil & gas, power and sectors. investment banking sectors. Mike Mayder Bob Emmott President & CFO Executiv
Slide 7: History of MAXIM
History of MAXIM Track record of acquiring and developing generation projects during early stages of developing power markets and redeploying capital as markets mature Over the past 15 years MAXIM built up and successfully sold investments in United States, France and Canada Currently focussed on op
Slide 8: MAXIM's Alberta Assets
MAXIM's Alberta Assets Operating Asset – HR Milner (M1) Project in Construction (M2) • 150 MW dual fuel-fired (coal and natural gas-fired) • Currently constructing 204 MW gas-fired power station generation facility on the HR Milner site • To be phased out as M2 development project • Commercial opera
Slide 9: Future of MAXIM
Future of MAXIM Build-out of Alberta based generating capacity Capitalize on the coal phase-out opportunity in the next 5-10 years Focus on natural gas generation, with a compliment of renewables (Buffalo Atlee) Utilize existing permitted projects to obtain “first mover advantage” Achieve “Portfolio
Slide 10: Milner 2 ("M2")
My a ¥ i, + : « “ : : ' r - Power Corp Milner 2 (“M2”)
Slide 11: M2 Project Overview
M2 Project Overview Project Info Milner 2 - SCGT Project Cost $Millions Capacity (MW) 204 Spent to Sept 10, 2019 $68.2M Technology Simple Cycle Remaining $76.3M Heat Rate (GJ/MWh) 10.5 Total (Before Financing Costs) $144.5M Commercial Operation April 2020 Competitive Advantage Construction CAPEX/kW
Slide 12: Construction Progress
Construction Progress Foundation Install Centerline Install Balance of Plant Install Current Construction State 12
Slide 13: Development Schedule
Development Schedule Purchase equipment - Major generation equipment - Site specific equipment Engineering Construction - Site preparation and foundation - Construction Permitting & Approval Upsize Gas Supply Commissioning/First Fire Substantial Completion 2018 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 13
Slide 14: M2 Development Phases
M2 Development Phases Phase I - Simple Cycle Phase II - Combined Cycle Upgrade Option New Equipment New Equipment Existing Milner Installation Heating Loop Exhaust Flow Condenser HRSG Water (heat GT (boiler) exchanger) Steam Steam Stack ST Electricity Electricity Hot Cooling Loop ~ ~ Cooling Cold To
Slide 15: Alberta Power Market - Prices
Alberta Power Market - Prices $100.00 Actual Forecast $90.00 $80.00 $70.00 $60.00 $/MWh $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2016/2017 low price periods resolved by t
Slide 16: MAXIM EBITDA Sensitivities
MAXIM EBITDA Sensitivities Consolidated Indicative Annualized EBITDA Power/Gas Price Forecast ($ millions) Power ($/MWh) Power ($/MWh) Gas ($/GJ) $45 $50 $55 $60 $65 $70 $75 $3.00 $1.50 $19.0 $26.9 $34.8 $42.7 $50.6 $58.5 $70 $2.50 $1.75 $14.9 $22.8 $30.7 $38.6 $46.5 $54.4 Gas ($/GJ) $/MWh $/GJ $2.0
Slide 17: MAXIM Forecast Financing Requirement
MAXIM Forecast Financing Requirement Debt Requirements @ Commissioning April 30, 2020 $ millons M2 Construction 144.5 Start up working capital 4.0 Financing costs 3.7 Maxim operations 2.6 Financing Requirements 154.8 Maxim cash 85.3 Deferred payments to GE 12.4 Sources of financing before debt 97.7
Slide 18: Related Party Loans - Terms
Related Party Loans - Terms Construction Conversion Available ($million) $22 $75 Interest Rate 12% 12% Term 12 months + 6 month 12 months + 6 month extension extension Structure Revolving Revolving Conversion Price Not Applicable $1.90 per share, up to 39.5 million shares Status Currently drawing un