Slide 1: Noosa Mining Conference
For personal use only NOOSA MINING CONFERENCE 16 July 2021 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 Share Price Movement ASX Stock Symbol MSV Share price movement rolling 12 months Shares Issued 199,954,290 Share Price (at 14/07/2021) A$0.47 Market Capitalisation A$93.97m Board of Directors Executive Management Team Nathan Mitc
Slide 4: People, Risk and Sustainability
PEOPLE, RISK AND SUSTAINABILITY For personal use only • Implemented critical risk management program. Infield program designed to verify the presence and effectiveness of critical control measures to prevent life changing injuries and fatalities • Covid 19 has continued to present logistical changes
Slide 5: Highlights
HIGHLIGHTS For personal use only • Strong underlying performance excluding impairment loss on trade receivables. Solid operating base to move forward on in a strong market • Safe and efficient demobilisation from SMS project. Three Epiroc D65 drill rigs from this project were sold for approximately
Slide 6: Impact of Increased Utilisation on Revenue
IMPACT OF INCREASED UTILISATION ON REVENUE For personal use only • Average operating $175.56m revenue per rig continued to increase due to improved 2nd Half productivity, pricing and $120.21m 2nd Half drilling mix • Mitchell Services 2nd Half anticipates further $72.69m increases in operating rig co
Slide 7: High Quality Revenue Streams
HIGH QUALITY REVENUE STREAMS For personal use only Revenue by Client Type • Tier 1 Clients are large / multinational mining & energy companies • A majority of Mitchell Services revenue comes from Tier 1 Clients operating on long life, low cost mine sites. Approximately 80% of revenue is at the mine
Slide 8: Reasons for Optimism
REASONS FOR OPTIMISM For personal use only • Strong commodity prices for our clients • Resource capital raisings increasing, and quality drilling results are being recognised by the market • Both factors are driving demand and increasing utilisation across the industry • Evidence of rate improvement
Slide 9: Outlook
OUTLOOK For personal use only • Pipeline of identified opportunities remains strong as does the demand for drilling services particularly from Tier 1 clients. • Rig utilisation is likely to reach capacity at some stage in calendar year 2021. • We will invest in organic growth to take advantage of ad
Slide 10: Summary
SUMMARY For personal use only • Mitchell Services’ vision is to be Australia’s leading provider of drilling services to the global exploration, mining and energy industries • Mitchell Services has a diversified revenue stream by different drilling types and clients • Mitchell Services has a high qua