Major Drilling Group International Inc. · TSX:MDI
Major Drilling Group International — Investor Presentation (December 2024)
24 slides from Major Drilling Group International's investor presentation, December 2024
Slide 1: Investor Presentation
Investor Presentation December 2024 TSX: MDI QUALITY - SAFETY - RESULTS majordrilling.com QUALITY - SAFETY - RESULTS
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. All statements, other than statements of historical facts, included in this presentation that address future events, developme
Slide 3: Major Drilling: Company Overview
Major Drilling: Company Overview • Leading provider of specialized drilling FUNDAMENTALS services to the mining industry, registered in TSX: MDI REGISTERED IN OVER ACROSS over 20 countries, with a fleet of approx. 700 drills. 52 Week Range: $6.98 - $10.39 Market Cap: ~$730M 20 (3) 6 (3) • Diversifie
Slide 4: Investment Proposition
Investment Proposition Ideally positioned to capture the mining upturn Specialized • Significant barriers to entry met with right experience & modern fleet Operations • Operating in challenging environments where largest new discoveries likely found Aligned To • Leverage to multi-year exploration
Slide 5: Diversified, Sustainable Revenue Sources
Diversified, Sustainable Revenue Sources Broad range of services, customers and leverage to Drilling Revenue by Customer premium commodities ensures sustainable revenue sources 12% • Major Drilling has historically been driven by a gold customer base, but the emergence of the battery metal demand
Slide 6: Contractor of Choice
Contractor of Choice Providing repeat services to the highest quality, investment grade customers • Diversified repeat customer base with low turnover. • Many larger customers consist of multiple ‘independent’ regional subsidiaries/projects. • 88% of Major Drilling revenue is sourced from operatio
Slide 7: Operational Diversification
Operational Diversification Diversified operations spread globally in highest-return regions • Registered in over 20 countries Key Projects across 6 continents. Oyu Tolgoi • MDI’s operations and customers Op: Rio Tinto Gobi Desert, Mongolia provide protection against market volatility through dive
Slide 8: Specialized Drilling
Specialized Drilling Surpassing customer expectations, industry leader in operational excellence and on-site safety • Specialized drilling services have significant barriers to entry, focus on areas more difficult to access. • Examples include: • Deep hole drilling • Arctic drilling • Helicopter p
Slide 9: Gold Reserves Need to be Replenished
Gold Reserves Need to be Replenished • Senior gold companies generating strong cash flows, however, gold reserves declining due to lack of material “While we look closely at all exploration. new business opportunities, • Prioritizing value-adding grassroots exploration and development programs. we b
Slide 10: Copper Demand Rising, Reserves Declining
Copper Demand Rising, Reserves Declining BHP Forecasting a 70% Increase in Demand by 2050... ...while a Supply Crunch is on the Horizon Source – BHP (https://www.bhp.com/-/media/project/bhp1ip/bhp-com-en/documents/news/2024/240930_bhpinsights_howcopperwillshapeourfuture.pdf) QUALITY - SAFETY - RESUL
Slide 11: Upcycle Unfolding like Previous One…
Upcycle Unfolding like Previous One… Industry backdrop mirrors early 2000’s upcycle • Only at 60% of peak exploration. • Excluding inflation, at same level of efforts as 2006. • Industry still in discovery phase, with intense infill drilling needed to develop new mines. • New deposits will come fr
Slide 12: Upcycle Unfolding like Previous One…
Upcycle Unfolding like Previous One… Last cycle escalation 1998-2004 2004 2005 2006 2007-2012 6-year lack of Senior gold companies Junior gold financing Increased copper and Extensive definition exploration increase exploration to available; increased base metal budgets to drilling campaigns to buil
Slide 13: …and MDI is Optimally Positioned
…and MDI is Optimally Positioned What’s different for Major Drilling this time? Today 2002 Entered downturn net cash on hand. • $28M net debt, $2M EBITDA and $0 to invest. Invested in fleet during downturn, kept infrastructure in place. • Minimal capex spent through downturn and fleet not main
Slide 14: Strategic Acquisition: Explomin Perforaciones
Strategic Acquisition: Explomin Perforaciones • Strong reputation with ~90% of revenue derived from senior mining customers. • Addition of 92 rigs o 49 underground + 43 surface • Focus on underground & specialized drilling (high-altitude, deep hole, directional, etc.). • Expands South American footp
Slide 15: Explomin Perforaciones: Financials
Explomin Perforaciones: Financials • Over the trailing twelve months (ended October 31, 2024), Explomin generated: o Revenue of US$95M o EBITDA of US$16M • Purchase price consists of: o US$63M upfront cash payment, funded through balance sheet strength. o Earnout payment of up to US$22M should Explo
Slide 16: Drillside Geosolutions
Optimizing drill performance and safety by providing real-time data, including the ability to track drill function pressures, water usage, and much more. Drilling Analytics Using turn-key data acquisition and interpretation services to meet each project’s specific needs and objectives. Drillside Geo
Slide 17: Balance Sheet Strength
Balance Sheet Strength Clean balance sheet Robust Liquidity Position • Strong cash flow generation. • No long-term debt. Net Cash (Net Debt) Position 110 100 $200M $100.4M 90 80 LIQUIDITY NET CASH POSITION 70 60 BALANCE SHEET Q2 2025 Q1 2025 50 40 Cash ($M) 100.4 85.9 30 Total Liquidity ($M) 200.0
Slide 18: ESG: Culture of Sustainability
ESG: Culture of Sustainability Set a target to reduce scope 1 and scope 2 GHG Launched our Decarbonization Began deploying the Trailblazer emissions by 5% by 2030 Action Plan AquaLink Remote Water Pump system 72% increase of women in the 56% of our Board of Directors field during calendar 2023 was r
Slide 19: Ryan Hanley, Director, Corporate Development & IR
Ryan Hanley Director, Corporate Development & IR IR@majordrilling.com 19 QUALITY - SAFETY - RESULTS
Slide 20: Q2 2025: Financial Review
Q2 2025: Financial Review Q2 2025 Q2 2024 Revenue $189.3 $207.0 Gross Margin 23.4% 25.3% Adjusted Gross Margin1 30.5% 31.0% General & Administrative Costs $18.4 $17.6 EBITDA2 $38.7 $43.6 Net Earnings $18.2 $23.7 Earnings per Share $0.22 $0.29 Note - All values in millions $CAD, except EPS, unless ot
Slide 21: Utilization
Utilization Q2 2025 Q2 2025 # Rigs Utilization Specialized 296 41% Conventional 119 43% Underground 195 47% Total 610 43% QUALITY - SAFETY - RESULTS 21
Slide 22: Majority of Activity Focused on Specialized
Majority of Activity Focused on Specialized Fleet activity reflects both market dynamics and Major Drilling strategy • With future deposits coming from areas more Drilling Revenue by Project Type difficult to access, there will be an increased need for specialized services in the future. 11% Speci
Slide 23: Revenue Breakdown
Revenue Breakdown Drilling Revenue by Customer Drilling Revenue by Commodity Seniors and intermediates continued with their Historically high % of copper drilling as demand expanded exploration. from battery metals drives business. 12% 11% 8% 12% 15% 21% 5% 4% 4% 13% 10% 15% 4% 3% 4% 2% 6% 3% 25% 23
Slide 24: High Quality Customer Base
High Quality Aligned To Balance Sheet Specialized Experienced Customer Base Market Sustainability Operations Management QUALITY - SAFETY - RESULTS 24
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