Orbit Garant Drilling Inc. · TSX:OGD
Orbit Garant Drilling — Investor Presentation (September 2024)
26 slides from Orbit Garant Drilling's investor presentation, September 2024
Slide 1: Investor Presentation
September 2024 INVESTOR PRESENTATION TSX: OGD
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Information 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
Slide 3: Company Overview
Company Overview Val-d’Or ~ 1,000 Employees 188 Drill Rigs Underground & Surface Drilling Chile Current field operations: Canada, Chile and Guyana Regional offices: Sudbury, ON, Moncton, NB, Chile and Guyana 3
Slide 4: Market Position (by % of revenue)
Market Position (by % of revenue*) Customers Regions Resource Exposure Drilling Services 13% 27% 34% 42% 66% 58% 73% 87% Juniors Majors & Intermediates International Canada Base Metals / Other Gold Specialized Conventional * For the 12 months ended June 30, 2024 Diversified revenue mix with a weight
Slide 5: Competitive Strengths
Competitive Strengths • Long-established, leading Canadian-based mineral driller focused primarily on gold projects in Canada • Combined surface and underground expertise / specialized drilling • Senior management field experience • Focus on continuous innovation • Vertically-integrated manufacturin
Slide 6: Drilling Services & Expertise
Drilling Services & Expertise Surface Underground Specialized Drilling • Standard diamond coring / core rod • Standard rod / core rod • Drilling projects that are in remote • Standard / reverse circulation and locations or, because of the scope, • AWL - HWL calibre grade control complexity or techni
Slide 7: Continuous Innovation
Continuous Innovation Computerized Monitoring and Control Technology Performance Highlights Additional Feature Benefits for Customers Greater accuracy Real-time, remote monitoring Improved productivity (+30%) of drilling progress Fewer consumables Ability to view core samples remotely Rig components
Slide 8: Vertical Integration / Health & Safety / Driller Training
Vertical Integration / Health & Safety / Driller Training • Vertically integrated manufacturing operations provide competitive advantage o Ability to design and manufacture custom drill rigs and equipment for customers at a competitive cost with faster delivery o Key to continuous innovation (e.g. c
Slide 9: Strong Customer Relationships
Strong Customer Relationships Core competitive strengths support long-term customer relationships 9
Slide 10: International Operations
International Operations Chile / South America International Revenue ($ millions) • Operating subsidiary established in Chile (FY 2013) 52.2 50.3 • Acquisition of Captagua in FY 2016 48.9 48.6 43.3 • Strong platform for growth in Chile / South America 33.3 • Increasing customer demand and improving
Slide 11: Low Global Gold Discovery Rates
Low Global Gold Discovery Rates Global Gold Discoveries vs. Exploration Spending, 1990-2023 250 12 10 Gold exploration budget (US$ billions) Gold in reserves, resources and past 200 Gold in initial resources production (millions of ounces) 8 Gold in reserves, resources and past production 150 6 Gold
Slide 12: Declining Reserves in Global Gold Sector
Declining Reserves in Global Gold Sector Major Gold Producers’ Years of Reserves Remaining, 2010 vs. 2019 Years of reserves remaining 2010 years remaining 2019 years remaining • The mineable reserves of most senior gold producers have dropped sharply, driving the need for significant spending on exp
Slide 13: Global Exploration Budgets
Global Exploration Budgets Annual nonferrous exploration budgets, 1997-2023 20,000 • 2023 aggregate global nonferrous exploration Exploration Budget (US$millions) budgets were an estimated US$12.8 billion ♦ ~3% decline from 2022 levels 15,000 • Second highest annual level since 2013 despite slight y
Slide 14: Gold Price
Gold Price (USD$) (September 23, 2024) • Spot gold price reached record high above US$2,600 per ounce in September 2024 • Current price of gold (~US$2,630) is ~80% above its trailing 5-year low in November 2019 • Strong price of gold supports access to capital for mining companies, and high levels o
Slide 15: Copper Price
Copper Price (USD$) (September 23, 2024) • Copper price reached record level above US$5.00 per pound in May 2024 • Strong long-term demand outlook • Copper has an important role in the electrification of the global economy needed to achieve “net-zero” emissions targets • Copper supply expected to la
Slide 16: Utilization Rates
Utilization Rates (Average Annual Utilization Rate %) 69% 62% 63% 58% 58% 59% 56% 54% 55% 43% 45% 40% 35% 386* 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Fiscal years ended June 30 Target utilization rate of ~75% 16
Slide 17: Q4 2024 Financial Review
Q4 2024 Financial Review Revenue Adjusted EBITDA 1 Adjusted Gross Net Earnings ($ millions) ($ millions) Margin 1 ($ millions) 21.7% 48.2 6.4 46.8 45.3 44.3 43.4 17.3% 2.0 15.9% 15.2% 3.9 12.2% 3.0 1.8 1.0 -4.1 -0.4 -1.7 -1.2 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2
Slide 18: Fiscal 2024 Financial Review
Fiscal 2024 Financial Review ($ millions, except margin % and per Fiscal year ended Fiscal year ended share amounts) June 30, 2024 June 30, 2023 Revenue 181.2 201.0 Gross Profit 20.4 18.3 Adjusted EBITDA1 14.4 19.1 Adjusted Gross Margin1 16.7% 16.2% G&A expenses 15.6 16.4 Net earnings (loss) (1.3) (
Slide 19: Solid Balance Sheet
Solid Balance Sheet ($ millions) As at June 30, 2024 As at June 30, 2023 Cash and cash equivalents 0.3 2.2 Total current assets 75.6 82.0 Total assets 119.9 127.6 Total current liabilities 27.0 31.6 Long-term debt and lease liabilities 32.6 33.0 Total shareholder equity 60.2 61.6 Working capital 48.
Slide 20: Strategic Direction: Bottom Line Orientation
Strategic Direction: Bottom Line Orientation Five-Point Plan 1. Primary focus on Canadian gold drilling operations 2. Prioritize longer-term, specialized drilling contracts with major and intermediate customers 3. Opportunistic international contracts with high degree of cost and margin certainty 4.
Slide 21: Investment Highlights
Investment Highlights • Industry leader in mineral drilling innovation and specialized drilling (underground & surface) • Comprehensive infrastructure with turn-key customer solutions and vertically-integrated manufacturing operations • Long-term relationships with leading senior and intermediate mi
Slide 22: Appendix
APPENDIX FORAGE ORBIT GARANT DRILLING
Slide 23: Capital Market Profile
Capital Market Profile ANALYST COVERAGE: TSX: OGD Recent close (September 23, 2024): $0.48 52-week high / low: $0.72 / $0.43 Market Cap: ~$18 million Shares Outstanding: 37,372,756 Fully Diluted: 39,562,756 Institutional / retail: ~ 40% / 60% (float) Management own approximately 27% of shares outsta
Slide 24: Board of Directors
Board of Directors • More than 25 years of experience in finance and accounting with extensive experience in the mining sector Jean-Yves Laliberté ¹ ² • Chair of Cartier Resources Inc. (previously served as Chief Financial Officer) Chair of the Board of Directors • Former Chief Financial Officer of
Slide 25: Senior Management
Senior Management • Co-founder and largest shareholder of Orbit Garant Pierre Alexandre • More than 37 years of experience in diamond drilling President & CEO • Expertise in operational planning and business development • Joined Orbit Garant in 2006, assumed COO duties in December 2022 Sylvain Laroc
Slide 26: Reconciliation of Non-IFRS Financial Measures
Reconciliation of Non-IFRS Financial Measures (audited) Q4 2024 Q4 2023 Fiscal 2024 Fiscal 2023 Fiscal 2022 • “EBITDA” and “Adjusted EBITDA”: EBITDA is defined as net (in millions of dollars) earnings (loss) before interest, taxes, depreciation and Net loss for the period (1.2) (4.1) (1.3) (0.7) (6.
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