Orbit Garant Drilling Inc. · TSX:OGD
Orbit Garant Drilling — Investor Presentation (May 2023)
26 slides from Orbit Garant Drilling's investor presentation, May 2023
Slide 1: Investor Presentation May 2023
May 2023 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 ~ 1,300 Employees 212 Drill Rigs Underground & Surface Drilling Chile 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 PRES
Slide 4: Market Position (by % of revenue)
Market Position (by % of revenue*) Drilling Activity Customers Regions 22% Underground 30% Juniors International 64% 36% Surface Majors & 70% Canada Intermediates 78% Resource Exposure Drilling Services Base Metals / 40% Specialized 34% Other 66% Gold 60% Conventional * Nine months ended March 31, 2
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: 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 2023 9
Slide 10: International Operations
International Operations Chile / South America International Revenue ($ millions) 1 • Operating subsidiary established in Chile (FY 2013) 52.2 50.3 • Acquisition of Captagua in FY 2016 43.3 • Strong platform for growth in Chile / South America 33.3 34.6 • 11 surface drill rigs / 7 underground drill
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, 1997-2022 20,000 • 2022 aggregate global nonferrous exploration Exploration Budget (US$millions) budgets totaled US$13.0 billion ♦ ~16% increase from US$11.2 billion in 2021 and the 15,000 largest amount since 2013 • Growth driven pri
Slide 14: Gold Price
Gold Price (USD$) (May 15, 2023) • Spot gold price reached record high of ~US$2,075 per ounce in August 2020 and is currently trading at near-record levels • Current price of gold (~US$2,016) is ~72% above its trailing 5-year low in August 2018 • Strong price of gold supports access to capital for m
Slide 15: Copper Price
Copper Price (USD$) (May 15, 2023) • Copper price reached record level above US$4.90 per pound in March 2022, and remains elevated • Strong long-term demand outlook • Copper has an important role in the electrification of the global economy needed to achieve “net-zero” emissions targets • Copper sup
Slide 16: Utilization Rates
Utilization Rates (Average Annual Utilization Rate %) 69% 62% 63% 61% 58% 56% 58% 54% 43% 45% 40% 35% 386* 1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD 2023 1) Nine months ended March 31, 2023 Fiscal years ended September 30 Target utilization rate of ~75% INVESTOR PRESENTATION – MAY
Slide 17: Q3 2023 Financial Review
Q3 2023 Financial Review Revenue EBITDA¹ Adjusted Gross Margin¹ ($ millions) ($ millions) 6.9 53.8 53.2 18.1% 51.6 17.2% 49.3 5.8 16.3% 45.2 5.7 14.4% 4.5 6.7% -0.5 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 2023 G&A Expense: Q3 2022 G&A Expense: Q3
Slide 18: YTD 2023 Financial Review
YTD 2023 Financial Review ($ millions, except margin % and per Nine months ended Nine months ended share amounts) March 31, 2023 March 31, 2022 Revenue 154.2 141.6 Gross Profit 17.7 6.8 EBITDA1 17.3 4.3 Adjusted Gross Margin1 16.3% 10.3% G&A expenses 11.3 10.8 Net earnings (loss) 3.4 (7.1) Net earni
Slide 19: Solid Balance Sheet
Solid Balance Sheet ($ millions) As at March 31, 2023 As at June 30, 2022 Cash (including restricted cash) 2.4 1.0 Total current assets 94.1 91.2 Total assets 140.2 137.1 Total current liabilities 38.2 37.8 Long-term debt and lease liabilities 35.3 36.1 Total shareholder equity 65.6 62.5 Working cap
Slide 20: Strategic Direction: Bottom Line Orientation
Strategic Direction: Bottom Line Orientation Five-Point Plan for Fiscal 2023/2024 1. Primary focus on Canadian gold drilling operations 2. Prioritize longer-term, specialized drilling contracts with major and intermediate customers 3. Opportunistic international contracts with high degree of cost an
Slide 21: 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 22: Appendix
APPENDIX FORAGE ORBIT GARANT DRILLING
Slide 23: Capital Market Profile
Capital Market Profile ANALYST COVERAGE: TSX: OGD Recent close (May 15, 2023): $0.86 52-week high / low: $0.97 / $0.43 Market Cap: ~$32 million Shares Outstanding: 37,372,756 Fully Diluted: 39,332,756 Institutional / retail: ~ 40% / 60% (float) Management own approximately 27% of shares outstanding
Slide 24: Board of Directors
Board of Directors • More than 25 years of experience in finance and accounting with extensive experience in the mining sector Jean-Yves Laliberté ¹ ² • Chair of Cartier Resources Inc. (previously served as Chief Financial Officer) Chair of the Board of Directors • Former Chief Financial Officer of
Slide 25: Senior Management
Senior Management • Co-founder and largest shareholder of Orbit Garant Pierre Alexandre • More than 36 years of experience in diamond drilling President & CEO • Expertise in operational planning and business development • Joined Orbit Garant in 2006, assumed COO duties in December 2022 Sylvain Laroc
Slide 26: 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, 2023 March 31, 2022 March 31, 2023
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