Orbit Garant Drilling Inc. · TSX:OGD
Orbit Garant Drilling — Investor Presentation (February 2025)
25 slides from Orbit Garant Drilling's investor presentation, February 2025
Slide 1: Investor Presentation
February 2025 INVESTOR PRESENTATION TSX: OGD
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Information Certain statements contained herein constitute “forward-looking statements” which reflect the current expectations of management regarding the Company’s future growth, results of operations, performance, business prospects and opportunities based on
Slide 3: Company Overview
Company Overview ~ 1,000 Employees 188 Drill Rigs Underground & Surface Drilling Val-d’Or Current field operations: Canada, Chile and Guyana Santiago Regional offices: Sudbury, ON, Moncton, NB, Santiago, Chile and Georgetown, Guyana 3
Slide 4: Market Position (by % of revenue)
Market Position (by % of revenue*) Customers Regions Resource Exposure Drilling Services 11% 22% 25% 28% 50% 50% 78% 72% 64% Juniors Majors & Intermediates International Canada Copper Gold Other Base Metals Specialized Conventional * For the six months ended December 31, 2024 Diversified revenue mix
Slide 5: Competitive Strengths
Competitive Strengths • Long-established, leading Canadian-based mineral driller focused primarily on gold projects in Canada • Combined surface and underground expertise / specialized drilling • Senior management field experience • Focus on continuous innovation • Vertically-integrated manufacturin
Slide 6: Drilling Services & Expertise
Drilling Services & Expertise Surface Underground Specialized Drilling • Standard diamond coring / core rod • Standard rod / core rod • Drilling projects that are in remote • Standard / reverse circulation and locations or, because of the scope, • AWL - HWL calibre grade control complexity or techni
Slide 7: Continuous Innovation
Continuous Innovation Computerized Monitoring and Control Technology Performance Highlights Additional Benefits for Customers Greater accuracy Real-time, remote monitoring Improved productivity (+30%) of drilling progress Fewer consumables Ability to view core samples remotely Rig components last lo
Slide 8: Vertical Integration / Health & Safety / Driller Training
Vertical Integration / Health & Safety / Driller Training • Vertically integrated manufacturing operations provide competitive advantage o Ability to design and manufacture custom drill rigs and equipment for customers at a competitive cost with faster delivery o Key to continuous innovation (e.g. c
Slide 9: Strong Customer Relationships
Strong Customer Relationships Core competitive strengths support long-term customer relationships 9
Slide 10: International Operations
International Operations Chile / South America International Revenue ($ millions) • Operating subsidiary established in Chile (FY 2013) 52.2 50.3 48.9 48.6 • Acquisition of Captagua in FY 2016 43.3 • Strong platform for growth in Chile / South America 33.3 • Solid customer demand and improving perfo
Slide 11: Low Global Gold Discovery Rates
Low Global Gold Discovery Rates Global Gold Discoveries vs. Exploration Spending, 1990-2023 30 12 25 10 Gold exploration budget (US$ billions) Number of Discoveries1 20 8 Number of Discoveries Gold Exploration Budget 15 6 10 4 5 2 0 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Slide 12: Declining Reserves in Global Gold Sector
Declining Reserves in Global Gold Sector Major Gold Producers’ Years of Reserves Remaining, 2010 vs. 2019 Years of reserves remaining 2010 years remaining 2019 years remaining • The mineable reserves of most senior gold producers have dropped sharply, driving the need for significant spending on exp
Slide 13: Global Exploration Budgets
Global Exploration Budgets Annual nonferrous exploration budgets, 1997-2024 20,000 • 2024 aggregate global nonferrous Exploration Budget (US$millions) exploration budgets were an estimated US$12.5 billion 15,000 ♦ ~2% decline from 2023 levels • Third highest annual level since 2013 despite slight ye
Slide 14: Gold Price
Gold Price (USD$) (February 20, 2025) • Spot gold price reached record high above US$2,950 per ounce in February 2025 • Current price of gold (~US$2,935) has more than doubled from its trailing 5-year low in March 2020 (~$1,451) • Strong price of gold supports access to capital for mining companies,
Slide 15: Copper Price
Copper Price (USD$) (February 20, 2025) • Copper price reached record level above US$5.00 per pound in May 2024 • Strong long-term demand outlook: copper has an important role in the electrification of the global economy needed to achieve “net-zero” emissions targets • Copper supply expected to lag
Slide 16: Utilization Rates
Utilization Rates (Average Annual Utilization Rate %) 69% 62% 63% 58% 59% 56% 54% 58% 55% 57% 43% 45% 40% 35% 386* 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 H1 2025 Fiscal years ended June 30 Targeting utilization rate of ~70% 16
Slide 17: Q2 2025 Financial Review
Q2 2025 Financial Review Revenue Adjusted EBITDA 1 Adjusted Gross Net Earnings ² ($ millions) ($ millions) ($ millions) Margin 1 3.2 48.2 48.4 6.4 6.5 21.7% 21.5% 43.4 45.3 43.5 19.7% 5.6 17.3% 2.0 3.9 12.5% 1.5 1.0 -1.7 -1.2 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q2 24 Q3 24 Q4
Slide 18: First Half Fiscal 2025 Financial Review
First Half Fiscal 2025 Financial Review ($ millions, except margin % and per Six months ended Six months ended share amounts) December 31, 2024 December 31, 2023 Revenue 91.9 87.7 Gross profit 14.8 7.3 Adjusted EBITDA1 12.1 4.0 Adjusted gross margin1 20.8% 14.0% G&A expenses 8.2 8.5 Net earnings (lo
Slide 19: Solid Balance Sheet
Solid Balance Sheet • Credit Facility: $30.0 million ($ millions) As at Dec. 31, 2024 As at June 30, 2024 revolving credit facility, and a US$5.0 million revolving credit facility guaranteed by Export Development Cash and cash equivalents 0.5 0.3 Canada (EDC). The Credit Facility expires on November
Slide 20: Investment Highlights
Investment Highlights • Industry leader in mineral drilling innovation and specialized drilling (underground & surface) • Comprehensive infrastructure with turn-key customer solutions and vertically-integrated manufacturing operations • Long-term relationships with leading senior and intermediate mi
Slide 21: Appendix
APPENDIX FORAGE ORBIT GARANT 7ins/ years DRILLING
Slide 22: Capital Market Profile
Capital Market Profile ANALYST COVERAGE: TSX: OGD Recent close (February 20, 2025): $1.24 52-week high / low: $1.33 / $0.45 Market Cap: ~$46 million Shares Outstanding: 37,303,840 Fully Diluted: 39,732,840 Institutional / retail: ~ 40% / 60% (float) Management own approximately 27% of shares outstan
Slide 23: Board of Directors
Board of Directors • More than 30 years of experience in capital markets, including senior roles in institutional sales André Pagé ¹ ² • Former Managing Director at Desjardins Capital Markets Chair of the Board • Former Managing Director for Institutional Sales at BMO Capital Markets Pierre Alexandr
Slide 24: Senior Management
Senior Management • Joined Orbit Garant in 2010 • Appointed President & CEO in December 2024 Daniel Maheu • Previously served as Orbit Garant’s Chief Financial Officer (2021 – 2024) President & Chief Executive Officer • Held management positions at transport companies from 1998 to 2010, including Co
Slide 25: Reconciliation of Non-IFRS Financial Measures
Reconciliation of Non-IFRS Financial Measures 3 months ended 3 months ended 6 months ended 6 months ended • “EBITDA” and “Adjusted EBITDA”: EBITDA is defined as net earnings (unaudited) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 (loss) before interest, taxes, depreciatio
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