Mitchell Services Limited · ASX:MSV
Mitchell Services — Wilsons Rapid Insights Conference 2022
11 slides from Mitchell Services's conference presentation, May 26, 2022
Slide 1: Wilsons Rapid Insights Conference 2022 Presentation
For personal use only WILSONS RAPID INSIGHTS CONFERENCE 2022 PRESENTATION 26 May 2022 1 www.mitchellservices.com.au
Slide 2: 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 3: Mitchell Services Market Profile
MITCHELL SERVICES MARKET PROFILE For personal use only ASX Information Major Holders ASX Stock Symbol MSV Mitchell Group 18.4% Shares Issued 224,948,905 Dream Challenge Pty Ltd 7.2% Share Price (at 19/05/2022) A$0.305 Market Capitalisation A$68.61m Washington H Soul Pattinson 5.4% Board of Directors
Slide 4: 1H22 Financial Highlights
1H22 FINANCIAL HIGHLIGHTS For personal use only Revenue of $103m EBITDA of $17.5m Net Debt of $22.2m ↑ 3% from 1H21 ↑ 41%from 1H21 ↑ 12% reduction from June 21 Based on the size of the fleet Revenue guidance FY22 post implementation of the EBITDA guidance FY22 growth strategy (expected 30 $200m-$220
Slide 5: MSV's Demonstrated Ability to Deliver Growth
MSV’S DEMONSTRATED ABILITY TO DELIVER GROWTH For personal use only Annual Average Operating Rig Count vs Revenue $200-$220m $191.4m $175.56m Forecast Average Operating Rig $120.21m Count Average Operating Rig 74 Count Average Operating Rig 71.6 Count $72.69m Average 67.7 Operating Rig Count $40.30m
Slide 6: Revenue Quality and Diversity
REVENUE QUALITY AND DIVERSITY For personal use only 1H22 Revenue by State and Commodity Revenue by Client and Drilling Type Surface Underground 30.1% 44.2% 45.2% 50.5% 49.2% 68.1% 62.0% 5.6% 48.5% 55.7% 54.7% 15.1% 31.9% 38.0% QLD NSW WA VIC 1H18 1H19 1H20 1H21 1H22 Tier 1 Clients 3.6% 7.4% Other Cl
Slide 7: Organic Growth Strategy Update
ORGANIC GROWTH STRATEGY UPDATE For personal use only • Implementation now well underway • 12 state of the art LF160 drill rigs (underpinned by increasing levels of demand for drilling services) • 12 rigs expected to be delivered by 30 June 2022 • 9 of the 12 rigs already assigned to customer contrac
Slide 8: Reasons for Optimism
REASONS FOR OPTIMISM For personal use only • Strongest demand for drilling services since 2008 with positive industry fundamentals • Commodity prices are strong • Resource capital raisings continue, and quality drilling results are being recognised by the market • Quality of Australia as a jurisdict
Slide 9: Capital Management
CAPITAL MANAGEMENT For personal use only • The material organic growth strategy is well underway with all 12 rigs expected to be delivered by 30 June 2022. • Following completion of the organic growth strategy, peak gross debt is expected to be circa $40m. • Post implementation, the business will li
Slide 10: Outlook
OUTLOOK For personal use only • Pipeline of identified opportunities remains strong as does the demand for drilling services particularly from Tier 1 clients • Mitchell Services expects to generate full year FY22 revenue and EBITDA of $200m-$220m and $31m-$35m respectively • The increased run rate h
Slide 11: Summary
SUMMARY For personal use only • Mitchell Services has a diversified revenue stream by different drilling types and commodities. • Mitchell Services has a high quality client base with a majority of work related to mine site resource definition, development and production. • The business has had oper
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