Orbit Garant Drilling Inc. · TSX:OGD
Orbit Garant Drilling — Investor Presentation (March 2012)
22 slides from Orbit Garant Drilling's investor presentation, March 2012
Slide 1: Investor Presentation March 2012
Investor Presentation March 2012 Investor Presentation March 2012 Building On Our Core Strengths TSX: OGD
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained herein constitute “forward-looking statements” which reflect the current expectations of management regarding the Company’s future growth, results of operations, performance, business prospects and opportunities based on information currently a
Slide 3: Capital Market Profile
Capital Market Profile TSX: OGD 52-week high / low: $6.25 / $4.70 Recent close (March 15, 2012): $5.14 Shares Issued: 33.3 Million Fully Diluted: 35.9 Million Market Capitalization: ~ $180 Million Analyst Coverage: 3
Slide 4: History of Orbit Garant
History of Orbit Garant The Merger – January 31, 2007 Orbit and Garant Drilling merge to become one of the largest surface and underground drilling companies in Canada. Acquisition – April 16, 2007 Orbit Garant acquires Drift Exploration Drilling, expanding the company’s geographic reach to Nevada,
Slide 5: Company Overview
Company Overview Premium Drilling Services ♦ Surface & underground drilling services ♦ Focus on high margin specialty drilling (~ 60% of revenue) ♦ Geotechnical services Operating 40+ project sites ♦ Canada, US, Mexico, South America, West Africa ♦ Dominant presence in Quebec ♦ Rapidly expanding mar
Slide 6: Strong Customer Base
Strong Customer Base ♦ 65% major and intermediate mining companies ♦ Long-term relationships ♦ More than 90% of revenue in stable jurisdictions 6
Slide 7: Business Diversification
Business Diversification* Base Metals Juniors Gold Majors & Intermediates International Underground Canada Surface *Six months ended Dec. 31, 2011 7
Slide 8: Core Strengths
Core Strengths Specialized Drilling Vertical Integration Workplace Health & Safety Driller Training & Certification 8
Slide 9: Historical Growth
Historical Growth 127.7 110.0 105.2 82.1 (12 months ended June 30) 9
Slide 10: Growth Momentum
Growth Momentum Number of Drills Meters Drilled 10
Slide 11: FY2011 Financial Results
FY2011 Financial Results* *In accordance with Canadian GAAP, as reported in FY2011 year-end filings 12 months ended June 30th (C$ millions, except per share amounts) FY2011 FY2010 Revenue $127.7 $110.0 Gross Profit $35.3 $33.6 Gross Margin (%) 27.6% 30.6% G&A Expense $9.2 $6.6 Net earnings $12.1 $12
Slide 12: FY2012 Financial Review
FY2012 Financial Review* *Initial periods reporting in IFRS (C$ millions, except per share 3 mos. ended 3 mos. ended 6 mos. ended 6 mos. ended amounts) Dec. 31, 2011 Dec. 31, 2010 Dec. 31, 2011 Dec. 31, 2010 Revenue $32.4 $25.9 $69.5 $53.3 Gross Profit¹ $7.1 $5.9 $16.0 $11.5 Gross Margin (%)¹ 21.7 2
Slide 13: Average Revenue Per Meter
Average Revenue Per Meter 120 100 96 100 94 Average Revenue ($ / m) 87 86 85 88 82 82 84 80 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 13
Slide 14: Balance Sheet
Balance Sheet (C$ millions) Dec. 31, 2011 June 30, 2011 Cash $0.8 -- Total current assets $81.1 $70.6 Total assets $168.5 $142.6 Total current liabilities $23.2 $20.6 Long term debt $29.9 $14.7 Total shareholder equity $110.3 $103.3 • Working Capital: $58.0 Million • $40 Million Credit Facility − $2
Slide 15: Non Ferrous Metals Prices (Past five years)
Non Ferrous Metals Prices (Past five years) Base Metals Gold • Strong recovery following financial crisis Recent record price levels • Recent volatility amid global economic concerns 15
Slide 16: Market Conditions
Market Conditions Estimated Global Nonferrous Exploration Significant Junior and Intermediate Budgets and Indexed Metals Price, 1993-2011* Financings Completed* *Source: Metals Economics Group (MEG) *Source: Metals Economics Group (MEG) MEG has forecasted 5% to 15% growth Gold financings completed i
Slide 17: Market Conditions
Market Conditions 2012 projected total: C$4.2 Billion 2011 estimated total: C$3.9 Billion 17
Slide 18: Growth Strategy
Growth Strategy Acquisitions ♦ Tuck-in acquisitions of regional / international operations ♦ Acquire new customers ♦ Grow where our key customers are growing ♦ Establish additional “hubs” in prolific mining regions Organic Growth ♦ Continued focus on specialized drilling ♦ Geographic expansion / lev
Slide 19: Recent Acquisitions
Recent Acquisitions Advantage Control Technologies (Nov. 2010): ♦ New OGD hub in Sudbury, Ontario ♦ Computerized monitoring and control solutions Morris Drilling Inc. (Dec. 2010): ♦ Added 5 drills to fleet ♦ Contract with Osisko Mining at Hammond Reef ♦ Managed out of new Sudbury branch Lantech Dril
Slide 20: Radius Strategy
Radius Strategy ♦ Operating majority of drills within close proximity to base operations ♦ Optimized inventories / capacity utilization Val d’Or ♦ Efficient deployment of personnel ♦ Replicating ‘Radius’ strategy in Sudbury ♦ Strong position in Abitibi Greenstone belt ♦ Ontario / Quebec: largest pro
Slide 21: Computerized Drilling
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Slide 22: Investment Highlights
Investment Highlights Strong market position ♦ Focus on high-margin specialized drilling ♦ > 80% exposure to gold ♦ Long-term customer relationships Low cost operator ♦ Geographic proximity to customers ♦ Vertical integration Growth momentum ♦ High industry demand / pricing ♦ New ‘hubs’ in Ontario a
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