Master Drilling Group Ltd. · JSE:MDI
Master Drilling — H1 2025 Earnings Presentation
41 slides from Master Drilling's earnings presentation, June 2025
Slide 1: Master Drilling
m™. _ MASTER DRILLING
Slide 2: Interim Consolidated Results for the 6 Months Ended 30 June 2025
INTERIM CONSOLIDATED RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2025
Slide 3: Agenda
AGENDA 1 BUSINESS OVERVIEW Danie Pretorius CEO 2 TECHNOLOGY OVERVIEW Koos Jordaan Director 3 OPERATIONAL OVERVIEW Roelof Swanepoel COO 4 FINANCIAL OVERVIEW André van Deventer CFO 5 CLOSING AND Q&A
Slide 4: Business Overview
BUSINESS OVERVIEW DANIE PRETORIUS, CEO
Slide 5: Key Highlights
01 USD Revenue increased by 4.9% to record high USD133.2 million Strong pipeline of USD515.3 million and strong 02 order book KEY HIGHLIGHTS 03 Significant progress on technology road map 04 Further geographic expansion
Slide 6: Strategy and Future Investment
STRATEGY AND FUTURE INVESTMENT Disruptive technology and innovation Strategic pillars Diversification and growth Raise boring Slim Future mechanical Future and support drilling rock excavation digitalisation Operational services and cutting and smart mining excellence Positive sustainable impacts 6
Slide 7: Technology Overview
TECHNOLOGY OVERVIEW KOOS JORDAAN, DIRECTOR
Slide 8: What Does the Future Look Like?
WHAT DOES THE FUTURE LOOK LIKE? Infrastructure (Rock Boring) • Faster, deeper and more complex access • Higher grade, selective mining • Rig Automation and Remote operation Exploration • Robotics • Geophysics • AI and Big data geological processing Digitisation • Operational Technology • Big data pr
Slide 9: Technology Investment and Development
TECHNOLOGY INVESTMENT AND DEVELOPMENT Business divisions / Affiliated Technology Types Maturity / segments entities projects of technologies contribution Raise Boring Incl. Future acquisitions Bluebot Automation, remote operation, digitisation 1 x Unit in FAT (Complete) RD6 DC LP 3 x Unit build (Com
Slide 10: Raise Boring
RAISE BORING Image: RD6 LP Rig Image: Bluebot Rig 10 FULL-YEAR CONSOLIDATED RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2024
Slide 11: Shaft Sinking
SHAFT SINKING Image: SBS machine sunk through surface collar. 11 FULL-YEAR CONSOLIDATED RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2024
Slide 12: Tunnel Boring
TUNNEL BORING Image: MTB FAT commissioning. 12 FULL-YEAR CONSOLIDATED RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2024
Slide 13: Reef Boring
REEF BORING Image: Reef Boring during testing. 13 FULL-YEAR CONSOLIDATED RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2024
Slide 14: Digital
DIGITAL Image: A&R Data reporting. 14 FULL-YEAR CONSOLIDATED RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2024
Slide 15: Operational Overview
OPERATIONAL OVERVIEW ROELOF SWANEPOEL, COO
Slide 16: Safety
SAFETY LTIFR 1,65 1,38 0,83 0,81 0,50 2021 2022 2023 2024 2025H1 LTIFR – Lost Time Injury Frequency Rate | per 1 million hours 16 FULL-YEAR CONSOLIDATED RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2024
Slide 17: Our People
OUR PEOPLE R ESPECT Workforce Gender Diversity 2 986 21% A CCOUNTABILITY (2024H1: 2 940) (2024H1: 20%) Investment I in training Differently abled NNOVATION employees: 3.87% USD1.4m (Industry best) (2024H1: USD1.1m) S AFETY Local Employment Leadership and 95% Apprenticeship training E FFICIENCY 95.2%
Slide 18: Geographic Revenue Diversification
GEOGRAPHIC REVENUE DIVERSIFICATION 2025H1 8% 2024H1 14% Central & North America 2025H1 19% 2024H1 18% 10.5m Rest of the world 2025H1 32% 2024H1 25m 25% 2025H1 South 23% 2024H1 America 27% 2025H1 43.3m 2024H1 18% FOOTPRINT 16% South TRAIN Africa MAINTAIN Operating profit margin 2025H1 2024H1 Africa 3
Slide 19: Revenue by Business Pillar
REVENUE BY BUSINESS PILLAR 2025H1 2024H1 3% 2% 3% 1% 11% 14% 84% 82% Raise boring and support services Digitalisation and smart mining Slim drilling Mechanical rock excavation and cutting 19 FULL-YEAR CONSOLIDATED RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2024
Slide 20: Commodity Revenue Diversification
COMMODITY REVENUE DIVERSIFICATION 2025H1 2024H1 Silver/Lead/Zinc Silver/Lead/Zinc 31% 32% Copper Gold 23% 20% Gold Copper 20% 18% PGMs PGMs 9% 10% Civils Civils 7% 5% Chrome Diamonds 3% 4% Diamonds Chrome 3% 3% Coal Coal 1% 1% Water Water 0% 1% Nickel Nickel 0% 1% Tin Tin 0% 1% Other Commodities Oth
Slide 21: ARPOR Summary per Annum
ARPOR SUMMARY PER ANNUM 2025H1 2024 2024H1 Total Raise bore rigs 148 143 140 Utilisation % 65% 73% 75% Fleet Mix ARPOR (USD) 186 783 167 244 162 984 > Large Raise bore rigs 101 96 95 Utilisation % 70% 79% 79% ARPOR (USD) 210 065 192 742 183 955 < Large Raise bore rigs 47 47 45 Utilisation % 53% 62%
Slide 22: Orderbook Movement
ORDERBOOK MOVEMENT USDm 500 450 104 400 350 332 5 305 300 (134) (2) 250 200 150 100 50 0 Orderbook - 1 Jan 2025 New orders Revenue Cancelled orders Foreign exchange differences Orderbook - 30 Jun 2025 22 FULL-YEAR CONSOLIDATED RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2024
Slide 23: Awarded Orders by Commodity
AWARDED ORDERS BY COMMODITY 2025H1 2024 Silver/Lead/Zinc Silver/Lead/Zinc 26% 30% Copper 25% Copper 25% Gold 19% Gold 23% PGMs 15% PGMs 11% Diamond 4% Diamond 5% Tin 3% Civils 2% Hydro 2% Nickel 1% Nickel 2% Tin 1% Polimetalic 1% Coal <1% Civils 1% Water <1% Coal 0% Iron Ore 0% Other 2% Other 1% 0%
Slide 24: Pipeline
PIPELINE USDm Total pipeline 2027 and USD515m 73 54 20 beyond 2026 100 72 12 Rest of 2025 133 39 12 0 50 100 150 200 Awarded (100%) Awaiting adjudication (>70% probability) Proposal (>50% probability) 24 FULL-YEAR CONSOLIDATED RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2024
Slide 25: Financial Overview
FINANCIAL OVERVIEW ANDRÉ VAN DEVENTER, CFO
Slide 26: Highlights for the Period
HIGHLIGHTS FOR THE PERIOD USD revenue Net asset value Partial reversal of Return on capital increased by 4.9% per share in impairment loss of employed (EBIT) from USD127.0 million to USD up 9.6% from USD4.6 million 17.5%* USD133.2 million USD135 cents to USD148 cents * Normalised 26 FULL-YEAR CONSOL
Slide 27: Headline Earnings per Share
HEADLINE EARNINGS PER SHARE HEPS (USDc) HEPS (ZARc) 2025H1 9.6 2025H1 176,6 2024 (Restated) 17.7 2024 324,5 2023 14.5 2023 267,7 2022 14.2 2022 232,5 2021 13.6 2021 201,2 27 FULL-YEAR CONSOLIDATED RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2024
Slide 28: EBITDA Margin
EBITDA MARGIN REVENUE (USDm) EBITDA (USDm) 2025H1 133.2 2025H1 28.1 2024 270.8 2024 58.3 EBITDA 2023 242.8 21.1% 2023 50.4 2022 (2024: 2022 50.3 226.4 21.5%) 2021 171.8 2021 39.1 28 FULL-YEAR CONSOLIDATED RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2024
Slide 29: Compounded Annual Growth Rate
COMPOUNDED ANNUAL GROWTH RATE REVENUE (ZARm) EBITDA (ZARm) REVENUE *2025 4 902 17,9%* *2025 1 035 2024 4 966 2024 1 067 2023 4 482 2023 934 2022 3 701 EBITDA 2022 822 2021 2 541 15,8%* 2021 575 * Annualised 29 FULL-YEAR CONSOLIDATED RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2024
Slide 30: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION June 2025 Dec 2024 USDm Restated USDm Comment Assets Total non-current assets 228.3 209.5 Impairment reversal of property, plant and equipment Total current assets 171.4 163.5 Current ratio of 1.2 (2024:1.62) Total assets 399.7 373.0 Working capital days below 100 day
Slide 31: Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME Jun 2025 Jun 2024 Dec 2024 USDm USDm USDm Comment Revenue 133.2 127.0 270.8 Record interim revenue Cost of sales (92.9) (89.5) (189.9) Gross profit 40.3 37.5 83.9 Other operating income 5.2 1.3 2.5 Partial Impairment reversal of property, plant and equipment Other o
Slide 32: Normalised Statement of Comprehensive Income
NORMALISED STATEMENT OF COMPREHENSIVE INCOME Jun 2025 Jun 2024 Dec 2024 USDm USDm USDm Comment Revenue 133.2 127 270.8 Cost of sales (92.9) (89.5) (186.9) Gross profit 40.3 37.5 83.9 Normalised other operating income 5.2 1.3 2.5 Partial Impairment reversal 4.6USDm Normalised other operating expenses
Slide 33: Impact of Currency on Profit Before Taxation
IMPACT OF CURRENCY ON PROFIT BEFORE TAXATION 2025H1 2024H1 100% 100% Operational impact 80% on profit 80% before taxation 47% 52% USD1.3m 67% 66% 60% 60% 40% 40% 53% 48% 20% 20% 33% 34% 0% 0% Costs Revenue Costs Revenue Hard currencies Emerging currencies 33 FULL-YEAR CONSOLIDATED RESULTS FOR THE 12
Slide 34: Revenue Waterfall Breakdown
REVENUE WATERFALL BREAKDOWN USDm 160 6.8 1.4 140 133.2 127.0 0.1 0.8 120 (2.9) 100 80 60 40 20 0 Revenue - 2024 Industrial products Forex New acquisitions Addition to fleet Fleet Mix and Utilisation Revenue - 2025 34 FULL-YEAR CONSOLIDATED RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2024
Slide 35: Working Capital Breakdown
WORKING CAPITAL BREAKDOWN Jun2025 Dec2024 USDm USDm Movement Inventory 48.8 46.9 (1.9) Trade and other receivables 83.3 71.2 (12.1) Trade and other payables 80.2 69.6 10.6 Trade receivable ageing 3 and more months past due 4% 2 months past due 11% Normal terms 1 month past due 52% 33% 35 FULL-YEAR C
Slide 36: Balance Sheet Ratios
BALANCE SHEET RATIOS 2025H1(*) 2025H1(**) 2024 2023 Return on equity (PAT) 16.3% 12.1% 8.8% 10.7% Return on capital employed (EBIT) 20.8% 17.5% 12.1% 12.2% Return on capital employed (EBITDA) 21.9% 21.9% 23.8% 18.2% Working capital ratio (days) 71.2 71.2 65.3 91.3 Gearing ratio (net debt/equity) 10.
Slide 37: Cashflow Waterfall
CASHFLOW WATERFALL USDm Cash at the beginning 34.6 Net cash inflow from operating activities 11.1 Investment in fixed assets (13.2) Investment in subsidiary, associates and joint venture (0.5) Repayment of debt (2.6) Repayment of lease liabilities (0.7) Dividends (6.2) Effect of foreign exchange dif
Slide 38: Capital Spend
CAPITAL SPEND Expansion Maintenance 41% 59% USD13.8m 38 FULL-YEAR CONSOLIDATED RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2024
Slide 39: Closing Q&A
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Slide 40: Disclaimer
DISCLAIMER This document has been compiled from information provided by the Directors of Master Drilling Group Limited(“Master Drilling”, “Master Drilling Group” or the “Company”) and from publicly available sources, and involves elements of subjective judgment and analysis, which may or may not be
Slide 41: Corporate Information
CORPORATE INFORMATION MASTER DRILLING GROUP LIMITED Registration number: 2011/008265/06 COMPANY SECRETARY Incorporated in the Republic of South Africa Andrew Beaven JSE share code: MDI 6 Dwars Street ISIN: ZAE000171948 Krugersdorp LEI: 37890095B2AFC611E529 1739 South Africa REGISTERED AND CORPORATE
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