Slide 1: ASX Release: Presentation – RIU Sydney Resources Conference
For personal use only 13 May 2015 ASX RELEASE Mitchell Services Limited (ASX: MSV) Presentation – RIU Sydney Resources Conference Please find attached presentation being made today by Mitchell Services CEO Andrew Elf at the RIU Sydney Resources Conference. Greg Switala Company Secretary
Slide 2: RIU Sydney Resources Conference Corporate Presentation
For personal use only RIU SYDNEY RESOURCES CONFERENCE Corporate Presentation May 2015 1 www.mitchellservices.com.au
Slide 3: Disclaimer
DISCLAIMER For personal use only 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
Slide 4: Mitchell Services Market Profile
MITCHELL SERVICES MARKET PROFILE For personal use only ASX Stock Symbol: MSV Senior Management Team Major Shareholders Shares Issued: 867,000,022 Executive Chairman – Nathan Mitchell 1 Mitchell Group 19.98% Performance Options: 98,700,000 Chief Executive Officer – Andrew Elf 2 Acorn Capital 9.89% Sh
Slide 5: Mitchell Services Vision
MITCHELL SERVICES VISION For personal use only To be Australia’s leading provider of drilling services to the global exploration, mining and energy industries Be Sure. Be Safe Our people are your success Management Safety Leading Systems Operational Value Find a better way Team Technology Capability
Slide 6: Business Progression
BUSINESS PROGRESSION For personal use only Phase 1: Post reverse merger Nov 2013 – 30 Jun 2014 Phase 2 : Financial Year Targets 2015 Business Ready Ramp Up • ISO certification and implementation of electronic • Implement initiatives to improve safety culture and safety, training and human resources
Slide 7: Safety Update
SAFETY UPDATE For personal use only • Continued reduction in severity and occurrence of incidents has continued • Numerous initiatives implemented to further strengthen safety culture and performance • Lifejacket “Cardinal Rules” and Employee Assistance programs are examples of initiatives that have
Slide 8: Revenue by Client Type
REVENUE BY CLIENT TYPE For personal use only Tier 1* Operating Income Target $24m Other Operating Income Non-Operating Income VALUE OF TIER 1 • Multinational mining and energy companies Actual $15m • Very high safety and business system requirements • Generally brownfield work for existing mining op
Slide 9: Rig Utilisation
RIG UTILISATION For personal use only 60 60% 50 50% 40 40% 30 30% 20 20% 10 12 11 10 9 13 18 19 20 10% 13 15 11 6 of of of of of of of of of of of of 29 29 29 29 52 52 52 52 52 52 51 50 0 0% July August September October November December January February March April May June * * • Increase post Chr
Slide 10: Where Are We in the Cycle?
WHERE ARE WE IN THE CYCLE? Listed Drilling Company – Share Price Movements (Average is a non weighted average of daily close prices) For personal use only GROWTH DECLINE GROWTH DECLINE -> Boart Longyear Major Drilling Foraco Orbit Garant AusDrill Capital Drilling Layne Christiansen Geo Drill Indexed
Slide 11: Competitive Profile of Market Has Improved
COMPETITIVE PROFILE OF MARKET HAS IMPROVED For personal use only Numerous competitors have exited the market • Major Drilling • Macquarie Drilling • Nitro Drilling • Tec Drill • Pinnacle Drilling • AJ Hickey Contractors Mitchell Services Competitor 1 Competitor 2 Competitor 3 Competitor 4 Tom Browne
Slide 12: Market Outlook
MARKET OUTLOOK For personal use only • Tier 1 major resource and energy companies slowly becoming more active after a prolonged period of cost reduction • Greenfield exploration sector remains subdued • Competitive Profile of market has improved • Pipeline of identified opportunities for business gr