Geodrill Limited · TSX:GEO
Geodrill — Investor Presentation (March 2012)
22 slides from Geodrill's investor presentation, March 2012
Slide 1: Investor Presentation
Investor Presentation March 2012 1
Slide 2: Forward Looking Statements
Forward Looking Statements ■ This Presentation contains “forward-looking information” and “financial outlook” within the meaning of applicable Canadian securities laws and may contain forward looking information attributed to third party industry sources. These statements and information are predict
Slide 3: Corporate Data
Corporate Data Major Shareholders Capital Structure D. Harper 41.2% Symbol TSX-GEO ABC Funds 11.77% RBC Global 6.34% Shares Outstanding 42.5 M Dundee 5.64% Fully Diluted 44.1 M Other 35.05% 52 Week Range $1.76-$3.80 Analyst Coverage • TD Securities IPO Date Dec 16, 2010 • Clarus Securities • Beacon
Slide 4: Company Highlights
Company Highlights Leading Provider of Drilling Services in West Africa Revenue per rig 3x more $3.0mm than industry average EBITDA margin FY 2011 32% vs. industry average of 19% 31 Rigs Currently expanding fleet to 40 rigs, all additional rigs fully booked Clients are among biggest names West Afric
Slide 5: Mining Opportunity in West Africa
Mining Opportunity in West Africa Total Estimated West African Expenditures West Africa hosts some of the largest $900 remaining undeveloped mineral $800 $700 deposits in the world $600 26% CAGR Millions $500 ■ West Africa accounted for 5.7% of 2011 total $400 worldwide exploration expenditures $300
Slide 6: Competitive Strengths
Competitive Strengths 6
Slide 7: Superior Fleet of Multipurpose Rigs
Superior Fleet of Multipurpose Rigs Geodrill’s su Higher Capex model than our competitors – it works! ■ Multipurpose rigs can perform both reverse circulation and diamond core drilling with minimal effort and down-time – Provides the efficiency and productivity of reverse circulation and the depth a
Slide 8: Vertically Integrated Operations
Vertically Integrated Operations Geodrill’s su Geodrill’s state-of-the-art operations facility contributes to the high quality fleet ■ Workshop manufactures up to 300 different consumables including drill rods ■ Workshop is within a 12 hour drive to most client projects or deposits – Shorter distanc
Slide 9: Highly Trained and Skilled Workforce
Highly Trained and Skilled Workforce Geodrill’s su operators drive productivity Efficient rig allowing Geodrill to drill faster, deeper and more accurately ■ Highly trained workforce of local drillers ■ Favourable compensation and benefits package has reduced unplanned workforce turnover even during
Slide 10: Diverse Customers: miners, intermediates, and juniors
Diverse Customers: miners, intermediates, and juniors 431,000m DTD 382,000 m DTD 282,000m DTD 267,000 m DTD 210,000 m DTD 219,000 m DTD 150,000 m DTD 335,000 m DTD 113,000 m DTD * Drilled to Date, 31/12/2011 10
Slide 11: Financial Performance
Financial Performance 11
Slide 12: Strong Track Record of Outperformance
Strong Track Record of Outperformance Geodrill Revenue and Growth $80 100% $70.1 $70 90% Geodrill’s multipurpose $60 80% rigs and leadership $50 $45.1 70% position in West Africa $40 60% have supported strong $30 $25.4 $25.6 50% $25 year-over-year growth 40% $20 including slight growth $17.0 18.2% 3
Slide 13: More Rigs, More Meters, More Revenue
More Rigs, More Meters, More Revenue $25M REVENUE $20M METERS DRILLED RC CORE AIRCORE $15M 350,000 $10M REVENUE $20M EBITDA 300,000 38% $5M 30% 32% 250,000 31% $15M $0M Q1 '11 Q2 '11 Q3 '11 Q4 '11 200,000 $10M 150,000 METERS DRILLED 2011 100,000 $5M 50,000 382,919 362,619 0 $0M AIRCORE 42% 39% RC Q1
Slide 14: Above Average Industry Margins
Above Average Industry Margins 2011 Average Revenue per Rig 2011 EBITDA Margin 2011 Gross Margin US$2.7M 32% 54% US$0.85M 19% 23% Industry Geodrill Industry Geodrill Industry Geodrill Average Limited Average Limited Average Limited For the purpose of this analysis, “Drilling Industry” metrics were d
Slide 15: Strong Balance Sheet
Strong Balance Sheet Dec. 31, 2011 22% Cash $8.2M Inventory Current Assets Cash $8,165,394 36% $13.6M 21% Prepayments $7.9M $37.9 M 23% $8.7M Current Assets $37,877,841 Receivables Current Liabilities $12,606,929 Motor 6% Vehicles $2.2M Net Working Capital $25,270,912 Plant and 17% Non-Current Asset
Slide 16: Growth Strategy
Growth Strategy 16
Slide 17: Focused Growth Strategy
Focused Growth Strategy 1. Re-investment – cash flows reinvested to facilitate growth 2. Organic Growth – aggressive rig fleet growth plan – expand current contracts 3. Expansion opportunities – expand geographically – diversify through other commodities 4. Inorganic Growth – identify acquisition op
Slide 18: Achieving Maximum Utilization through Standardization
Achieving Maximum Utilization through Standardization EDM 2000 UDR 900 UDR 650 ASX 300 UDR 200 multipurpose Multipurpose Multipurpose RC/Air-core Core RC/Core RC/Core RC/Core Quantity Quantity Quantity Quantity Quantity X2 X 11 X2 X3 X8 (2 more under (4 more under (6 more under (1 in transit and 1 c
Slide 19: Comparable Companies
Comparable Companies EBITDA1 EV/EBITDA Enterprise Number LTM Revenue Company Value (mm) of Rigs Per Rig Current Yr Next Yr Current Yr Next Yr Boart Longyear Limited $2,132 1158 $1.74 $432.0 $473.7 4.9x 4.5x Energold Drilling Corp. $248 234 $0.23 $50.0 5.8x FORACO International S.A. $396 188 $0.87 $8
Slide 20: Positioned to Deliver Growth
Positioned to Deliver Growth ■ Well positioned in the industry: – 100% West African focused – Modern Fleet – Vertically integrated operations – Customers are miners, intermediate and explorers ■ Strong track-record of financial performance ■ Aggressive rig fleet expansion and growth strategy ■ Prove
Slide 21: Management and Board of Directors
Management and Board of Directors Management Board of Directors Terry Burling John Bingham Chief Operating Officer Non-Exec. Chairman Drilling/Management - 24 years FCIB Ian Lacey David Harper Chief Financial Officer President – CEO F.C.A, C.P.A Drilling /Management - 25 years Roy Sinke Ron Sellwood
Slide 22: Investor Presentation
Investor Presentation March 2012 22