Mitchell Services Limited · ASX:MSV
Mitchell Services — Noosa Mining Investor Conference 2021
12 slides from Mitchell Services's conference presentation, Nov 12, 2021
Slide 1: Noosa Mining Investor Conference
NOOSA MINING INVESTOR CONFERENCE 12 NOVEMBER 2021 General Manager Commercial – Todd Wild 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 Holders ASX Stock Symbol MSV Mitchell Group 18.4% Shares Issued 224,948,905 Dream Challenge Pty Ltd 7.2% Share Price (at 09/11/2021) A$0.42 Market Capitalisation A$94.48m Washington H Soul Pattinson 6.0% Board of Directors Executive Management T
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 en
Slide 5: Business Overview
BUSINESS OVERVIEW 90% of revenue from Tier 1 global Industry leading safety performance driven by critical risk control verification 720+ program experienced employees mining clients in FY22 92 rigs in the fleet The Mitchell brand has over fifty years of experience 100% with 8 more to be in the dril
Slide 6: Demonstrated Ability to Deliver Growth
DEMONSTRATED ABILITY TO DELIVER GROWTH Annual Average Operating Rig Count vs Revenue $200-$220m $191.4m $175.56m $120.21m Average Operating Rig Count Average Operating Rig 71.6 Count $72.69m Average 67.7 Operating Rig Count $40.30m 48.9 $32.97m Average Operating $25.17m Rig Count 37.4 $15.02m Averag
Slide 7: Revenue Quality and Diversity
REVENUE QUALITY AND DIVERSITY FY21 Revenue by State and Commodity Revenue by Drilling and Client Type Surface Drilling 30.0% Underground Drilling 50% 46.3% 44% 45% 5.4% 55% 56% 50% 16.8% 63% 55% 1.6% 65% 45% 75% 37% 92% 93% 34% QLD SA NSW WA VIC FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 F T
Slide 8: Organic Growth Strategy
ORGANIC GROWTH STRATEGY • Mitchell Services is embarking on an organic growth strategy including a material capital investment program to deliver anticipated FY22 EBITDA of between $40m and $44m. • 1 out of 9 LF160 drill rigs that have been committed to have been delivered. These first 9 rigs are bo
Slide 9: Opportunity to Leverage the Cycle
OPPORTUNITY TO LEVERAGE THE CYCLE Significant increase in demand in the gold and base metals sectors with a positive long-term industry outlook. Global government stimulus and subsequent investment into infrastructure and other projects will drive demand for copper and other base metals. In a
Slide 10: Significant Barriers to Entry
SIGNIFICANT BARRIERS TO ENTRY Access to funding for new mining services providers is challenging given limited lender appetite to the mining services sector. Complex and highly regulated industry. Increasing lead time in relation to the supply of rigs, ancillary equipment and consumables. Si
Slide 11: FY22 Q1 Update and Outlook
FY22 Q1 UPDATE AND OUTLOOK Material opportunity to leverage the cycle with supply and demand strongly in our favour. FY22 Q1 revenue was $52.7m representing a 14% increase from the FY21 Q4 figure of $46.2m. Solid FY22 Q1 EBITDA of $8.1m. EBITDA is expected to increase quarter on quarter for
Slide 12: 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 is embarking on an organic growth strategy including a material capital investment program to deliver anticipated FY22 EBITDA of
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