Mitchell Services Limited · ASX:MSV
Mitchell Services — Shareholder Meeting (October 2021)
12 slides from Mitchell Services's shareholder meeting presentation, Oct 21, 2021
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING 21 OCTOBER 2021 Chief Executive Officer 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 12/10/2021) A$0.475 Market Capitalisation A$106.85m Washington H Soul Pattinson 6.0% Board of Directors Executive Management
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: FY21 Business Overview
FY21 BUSINESS OVERVIEW 42,633 shifts in FY21 650+ Industry leading safety ↑ 20%from FY20 performance driven by critical risk control verification program experienced employees Total revenue of $191m $29.6m gross bank debt Underlying FY21 EBITDA of $35.7m at 30 June 21 representing a 25% decrease ↑ 9
Slide 6: MSV's Demonstrated Ability to Deliver Growth
MSV’S 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
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. • This investment includes the purchase of 9 LF160 drill rigs that are expected to be delivered by 31 De
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 • 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 the remainder of FY22 as additional rigs are deployed and ramp up costs begin to reduce • MSV
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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