Slide 1: Cabo Drilling Corp. Corporate Presentation
CABO DRILLING CORP. CORPORATE PRESENTATION
Slide 2: Forward-looking statements
Certain information set forth in this presentation contains forward-looking statements. By their nature, forward- looking statements are subject to numerous risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward-looking. Such forward-lo
Slide 3: Focused on Delivering the Best Value for all our Clients
Focused on Delivering the Best Value for all our Clients in: North America, Central America and Europe 3
Slide 4: Board of Directors
Board of Directors John A. Versfelt, Chairman, President, Chief Executive Officer & Director Mr. Versfelt has over 30 years experience providing leadership, management consulting, chief financial office, administration and paralegal/regulatory services to private and public companies. Serving in a v
Slide 5: Cabo Drilling Corp.
CABO DRILLING CORP. Acquired five drilling services companies in 2004 and 2005 Revenue bottomed in 2010 at $28.99 million after reaching a record $58.65 million in 2008 2011 revenues increased 50% from 2010 to $43.42 million 2012 revenues increased 36% from 2011 and exceeded 2008’s record re
Slide 6: Symbol, Price, Week High / Low
Symbol: CBE - TSX-V DHL - FWB Price: $0.075 Week High / Low $0.18 - $0.06 Market Cap: $5,922,613 Shares Outstanding: 78,968,175 Fully Diluted: 92,348,250 Insider Holdings: President & CEO 5.43% Directors & Senior Management 4.21% February 28, 2012 – February 28, 2013 6
Slide 7: Cabo's clients include
CANADA ALBANIA USA TURKEY PANAMA COLOMBIA Cabo’s clients include: Kirkland Lake Gold Inc. Minera Panama SA (Inmet Mining) Galway Resources Ltd. Cliffs Natural Resources Inc. Queenston Mining Inc. Goldcorp Inc. Century Iron Ore Mining Corp. Labrador Iron Mines Limited Teck Resources
Slide 8: Industry Fundamentals
Source: MEG INDUSTRY FUNDAMENTALS Base & precious metals have experienced record pricing growth over the past 4 years Exploration budgets have risen significantly over the last two years. We anticipate that 2013 will stay on course 8
Slide 9: Global mining industry facing major supply/demand imbalance for precious & base metals
GLOBAL MINING INDUSTRY IS FACING A MAJOR SUPPLY/DEMAND IMBALANCE FOR PRECIOUS & BASE METALS In the longer-term the fundamental drivers of the exploration and mining business remain positive, with worldwide supply for most metals expected to tighten and higher demand coming from the emergence of th
Slide 10: Drill fleet and fiscal 2012 revenue mix
Fiscal FiscalYear Year2011 2012 Revenue Underground Reverse Circulation 15% Geotechnical Drills: 9% 2% 27 Conventional Surface 15 Deep Hole Surface 18 Helicopter Support Surface 76% 3 Man Portable Fiscal Year 2012 Revenue 6 Reverse Circulation Other Foreign Countries 31% 27 Underground 6 Geotechnica
Slide 11: Revenue
(CDN $000s except earnings per share) FY2009 FY2010 FY2011 FY2012 EBITDA per Share (Basic)* $ 0.08 $ 0.03 $ 0.04 $ 0.09 Earnings (Loss) per Share (Basic) $ (0.02) $ (0.03) $ (0.01) $ 0.02 Cash from Operations** $ 2,060 $ 1,057 $ 1,402 $ 3,722 Gross Margin % Adjusted*** 26.7 25.3 22.3 22.7 *Net Earni
Slide 12: Working Capital
Capital expenditures are controlled Stable working capital Continuing to implement field cost control systems Secure further new credit facilities for growth Working Capital C$ millions 12.72 7.28 8.14 4.59 5.74 FY2008 FY2009 FY2010 FY2011 FY2012 12
Slide 13: Balance sheet, Dec 31, 2012
(CDN $000s) Dec 31, 2012 Cash & cash equivalents $ 1,476 Current assets $ 22,150 Non-current assets $ 15,187 Total assets $ 38,813 Current liabilities (including current portion of long-term debt) $ 10,055 Long-term debt $ 4,537 Future income tax $ 363 Equity $ 23,858 Total equity and liabilities $
Slide 14: Quarterly results
(CDN $000s except earnings per share) 1st QTR 2013 2nd QTR 2013 Ended Ended Sep 30, 2012 Dec 31, 2012 Revenue $ 13,843 $ 9,161 EBITDA as a % of gross revenue 13.2% 6.8% EBITDA per Share (Basic)* $ 0.02 $ 0.01 Earnings after Taxes $ 560 $ (435) Earnings per Share (Basic) $ 0.01 $ (0.01) Cash from Ope
Slide 15: Achievements 2012
Expand effective capacity per drill and increase drill utilization Establish and maintain long term relationships with our clients Build and maintain a highly cost effective organization Retain skilled workers and enforce high safety standards Increase community training programs and expan
Slide 16: Positioned to move forward despite stressed economic environment
Cabo Drilling is in a position to move forward despite the stressed global financial and economic environment High capital expenditures in fiscal 2006-2008 and 2011 have positioned Cabo for the projected growth of the mining markets in 2013 Offering a variety of drilling services – including d
Slide 17: Raving Fans and Human Resources
“Raving Fans” Raving Fans is an initiative to deliver consistent high-quality services based on customers’ needs Cabo is committed to building relationships with its customers – discovering how we can meet and exceed our customers’ requirements for each drill project “Human Resources” Employee
Slide 18: Safety
“Safety” Cabo is committed to protect human health, employee safety and the natural environment and to be looked upon as a responsible contractor and good neighbour Cabo is committed to keeping safety front and center through education, engineering and enforcement of best practices Cabo provid
Slide 19: Commitment to communities
Cabo is committed to a culture of sensitivity and responsibility to the communities in which we work Cabo’s goal is to partner with our clients and the community, and to participate within the community and encourage the community to participate with the Company in our drilling programs, whereby
Slide 20: To be the first choice for customers, employees and investors
To be the first choice for mineral exploration, mining & geotechnical customers by offering the best value in the drilling services industry To be the first choice among employees by offering the most stable, safe and rewarding workplace in the drilling services industry To be the first choice
Slide 21: Relative Size of Contract Drillers
Relative Size of Contract Drillers 21
Slide 22: Expanding global market presence
Expanding global market presence Long-term growth in the mineral drilling services sector through exposure to mid-tier and major mining and exploration companies Revolutionary approach to customer service Improved operational efficiencies Increased capacity per drill 22
Slide 23: TSX-V: CBE - Professionals to the Core
PROFESSIONALS TO THE CORE AGAR TSX-V: CBE | os