Orbit Garant Drilling Inc. · TSX:OGD
Orbit Garant Drilling — Investor Presentation (May 2022)
27 slides from Orbit Garant Drilling's investor presentation, May 2022
Slide 1: Investor Presentation May 2022
May 2022 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 Val-d’Or ~ 1,500 Employees 217 Drill Rigs Underground & Surface Drilling Santiago Burkina Faso Regional offices: Sudbury, ON, Moncton, NB, Chile, Ghana, Guinea, United States, Burkina Faso and Guyana Current field operations: Canada, Burkina Faso, Chile, Guinea and Guyana INVESTOR P
Slide 4: Market Position (by % of revenue)
Market Position (by % of revenue*) Drilling Activity Customers Regions Underground 29% Juniors 27% International 66% 34% Surface Majors & 71% 73% Canada Intermediates Resource Exposure Drilling Services 29% Base Metals / 31% Specialized Other Gold 71% 69% Conventional * For the nine months ended Mar
Slide 5: Competitive Strengths
Competitive Strengths • Long-established, leading Canadian-based mineral driller focused on gold projects • Combined surface and underground expertise / specialized drilling / senior management field experience • Focus on continuous innovation • Vertically-integrated manufacturing operations • Stron
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: 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 8: Continuous Innovation
Continuous Innovation Computerized Monitoring and Control Technology Performance Highlights Additional Feature 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
Slide 9: Strong Customer Relationships
Strong Customer Relationships Core competitive strengths support long-term customer relationships INVESTOR PRESENTATION – MAY 2022 9
Slide 10: International Operations
International Operations Chile / South America International Revenue ($ millions) 1 • Operating subsidiary established in Chile (FY 2013) • Acquisition of Captagua in FY 2016 52.2 • Strong platform for growth in Chile / South America 43.3 38.5 33.3 • 16 surface drill rigs / 8 underground drill rigs
Slide 11: Low Global Gold Discovery Rates
Low Global Gold Discovery Rates Global Gold Discoveries vs. Exploration Spending, 1990-2021 Gold in discoveries (millions of ounces) Gold exploration budget (US$ billions) Projected new gold in discoveries Gold in reserves, resources and past production Gold Exploration Budget • Gold discovery rates
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, 1997-2021 20,000 • 2021 aggregate global nonferrous exploration Exploration Budget (US$millions) budgets totaled US$11.2 billion ♦ ~35% increase from US$8.3 billion in 2020 15,000 • Reflects strong recovery in market conditions follow
Slide 14: Global Exploration Budgets by Project Type
Global Exploration Budgets Annual nonferrous exploration budgets by project type, 1997-2021 25,000 20,000 Exploration Budget (US$millions) 15,000 10,000 5,000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Grassroots Lat
Slide 15: Global Exploration Budgets by Company Type
Global Exploration Budgets Annual nonferrous exploration budgets by company type, 1997-2021 25,000 Exploration Budget (US$millions) 20,000 15,000 10,000 5,000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Major Intermed
Slide 16: Gold Price
Gold Price (USD$) (May 13, 2022) • Spot gold price reached record high of ~US$2,075 per ounce in August 2020 and has remained elevated • Current price of gold (~US$1,809) is ~54% above its trailing 5-year low in August 2018 • Strong price of gold supports improved access to capital for mining compan
Slide 17: Copper Price
Copper Price (USD$) (May 13, 2022) • Copper price reached record level above US$4.90 per pound in March 2022 • Strong post-pandemic demand outlook • Short-term COVID-related stimulus measures have also boosted demand • Copper supply expected to lag demand over next several years • Current price prov
Slide 18: Historical Metres Drilled and Utilization Rates
Historical Metres Drilled and Utilization Rates (in thousands of metres and average annual utilization rate %) 69% 58% 62% 56% 54% 58% 64% 43% 45% 35% 40% 1,661 1,490 1,537 1,428 1,293 1,339 1,298 1,152 997 893 825 386* 1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD 2022 1) Nine months ende
Slide 19: Q3 2022 Financial Review
Q3 2022 Financial Review Revenue Adjusted Gross Margin¹ ($ millions) EBITDA¹ 51.1 50.6 ($ millions) 13.1% 45.9 12.3% 45.2 3.6 11.5% 40.5 9.8% 2.7 2.0 6.7% 1.2 -0.5 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q3 2022 G&A Expense: Q3 2021 G&A Expense: Q3 2
Slide 20: YTD 2022 Financial Review
YTD 2022 Financial Review Nine months ended Nine months ended March 31, 2022 March 31, 2021 Revenue (millions) $141.6 $112.2 Gross Profit (millions) $6.8 $17.3 EBITDA1 (millions) $4.3 $16.3 Adjusted Gross Margin1 10.3% 21.5% G&A expenses (millions) $10.8 $10.6 Net earnings (loss) (millions) $(7.1) $
Slide 21: Solid Balance Sheet
Solid Balance Sheet ($ millions) As at March 31, 2022 As at June 30, 2021 Cash 1.4 3.3 Total current assets 88.5 90.6 Total assets 135.1 138.1 Total current liabilities 41.6 36.5 Long-term debt and lease liabilities 31.8 31.3 Total shareholder equity 61.7 70.3 Working capital 46.9 54.0 On November 2
Slide 22: COVID-19 Update
COVID-19 Update • OGD’s drilling activity in Canada, Chile and West Africa has either returned to, or surpassed, pre-pandemic levels o Expanding drill fleet in West Africa to accommodate rising demand • Omicron variant impacted operations beginning late in Q2 2022 and throughout Q3 2022 o Omicron-re
Slide 23: Investment Highlights
Investment Highlights • Industry leader in innovation and specialized drilling (underground & surface) • Comprehensive infrastructure with vertically-integrated manufacturing operations • Low-risk, diversified exposure to mining sector • High exposure to gold-related projects – gold prices remain st
Slide 24: Appendix
APPENDIX FORAGE ORBIT GARANT DRILLING
Slide 25: Capital Market Profile
Capital Market Profile ANALYST COVERAGE: TSX: OGD Recent close (May 13, 2022): $0.73 52-week high / low: $1.44 / $0.65 Market Cap: ~$27 million Shares Outstanding: 37,372,756 Fully Diluted: 40,616,256 Institutional / retail: ~ 40% / 60% (float) Management own approximately 27% of shares outstanding
Slide 26: Board of Directors & Senior Management
Board of Directors & Senior Management • More than 25 years of experience in finance and accounting with extensive experience in the mining sector Jean-Yves Laliberté ¹ ² ³ • Chair of Cartier Resources Inc. (previously served as Chief Financial Officer) Chair of the Board of Directors • Former Chief
Slide 27: Reconciliation of Non-IFRS Financial Measures
Reconciliation of Non-IFRS Financial Measures • “EBITDA”: Net earnings (loss) before interest, taxes, (unaudited) 3 months ended 3 months ended 9 months ended 9 months ended depreciation and amortization. Management believes that (in millions of dollars) March 31, 2022 March 31, 2021 March 31, 2022
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