Mitchell Services Limited · ASX:MSV
Mitchell Services — Wilsons Rapid Insights 2021
11 slides from Mitchell Services's conference presentation, May 26, 2021
Slide 1: Wilsons Rapid Insights 2021 Presentation
WILSONS RAPID INSIGHTS 2021 PRESENTATION 26 May 2021 1 www.mitchellservices.com.au
Slide 2: Disclaimer
DISCLAIMER 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 ASX, which are availab
Slide 3: Mitchell Services Market Profile
MITCHELL SERVICES MARKET PROFILE ASX Information Major Shareholders ASX Stock Symbol MSV Mitchell Group 17.9% Scott Tumbridge 7.2% Shares Issued 199,238,740 Other Directors & Management 3.4% Share Price (at 23/05/2021) A$0.38 Institutions 21.0% Market Capitalisation A$75.71m Other Shareholders 50.5%
Slide 4: People, Risk and Sustainability
PEOPLE, RISK AND SUSTAINABILITY • 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 but credit to our ent
Slide 5: 1H2021 Business Overview
1H2021 BUSINESS OVERVIEW Revenue of $100m Underlying EBITDA of $19.8m Net Debt of $23.4m ↑ 37% from 1H2020 ↑ 40% from 1H2020 ↑ 39% reduction from Dec 19 Underlying EBITDA guidance FY2021 Significant Revenue guidance FY2021 improvement in $190m-$200m $34.6m-$38.6m Statutory EBITDA guidance key operat
Slide 6: Highlights
HIGHLIGHTS • 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 $3.5m with proceeds us
Slide 7: Impact of Increased Utilisation on Revenue
IMPACT OF INCREASED UTILISATION ON REVENUE • Revenue guidance $175.56m FY2021 $190m-$200m • Average operating 2nd Half revenue per rig continued to increase due to $120.21m 2nd Half improved productivity, pricing and drilling mix 2nd Half • Mitchell Services $72.69m anticipates further increases in
Slide 8: High Quality Revenue Streams
HIGH QUALITY REVENUE STREAMS 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 site resource definiti
Slide 9: Reasons for Optimism
REASONS FOR OPTIMISM • 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 improvements • Industry consolida
Slide 10: Outlook
OUTLOOK • 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 additional opportunities
Slide 11: Summary
SUMMARY • 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 quality client base with