GEODRILL LIMITED WE ARE GEODRILL
TSX: GEO.T | OTCQX: GEODF |
121 Mining Conference London
Investor Presentation, November 2023 | | | 1 |
November 20-21, 2023 |
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 predictions only and represent Geodrill's expectations as of the date of this presentation and Geodrill does not undertake any obligation to update the forward looking information or financial outlook to reflect new information, subsequent events or otherwise. By their nature, forward looking information and financial outlook involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, and projections made will not occur and actual events or results may differ materially from such predictions, forecasts, and projections. Undue reliance should not be placed on such information as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.
Forward-looking information is also based upon the assumption that none of the identified risk factors that could cause actual results to differ materially from the forward-looking information will occur. Accordingly, specific reference should be made to the risk factors described in the Annual Financial Statements available on
SEDAR.
Presentation, November 2023 | 2
HARD CORE MINERAL DRILLERS
Uniquely Positioned
ESSENTIAL
TO THE MINING INDUSTRY
25 years operating in exploration drilling
Tier-1 rig Fleet
drives profitability
Innovative & Founder-led
business
Investor Presentation, November 2023 | 3
The Mineral Drilling Business
Discovery | In-fill Drilling | |||
Drilling | for Resource Modeling | |||
$2-5M | $10-25M | |||
Drilling activity | ||||
Greenfield exploration | Pre-feasibility study | Feasibility study | Mine construction | |
~2 to 3 years | ~2 to 3 years | ~2 to 3 years | ~2 to 5 years |
Mine Drilling
De-risking & Resource Expansion
LIFE OF MINE $10-25M
ANNUALLY
Life of mine extension ~5 to 30+ years
Investor Presentation, November 2023 | 4
What Sets Geodrill Apart
HIGH PERFORMANCE RIG FLEET
- Multi-purposerig fleet attracts top tier clients
- High performance rigs drive high value results
STATE-OF-THE-ART FACILITY
- Network of maintenance and support facilities ensures our fleet is well-maintained
- Workshop manufactures 1,200 different frequently replaced parts including drill rods
EXPERIENCED LEADERSHIP TEAM
- 25 years establish business
- Highly skilled workforce
Investor Presentation, November 2023 | 5
Strong Balance Sheet Supports Growth
Working
Capital
USD 51.2M
ROE 11%
ROCE 19%
Shareholders
Equity
USD 111.3M
Net Tangible
Book Value
CAD 3.20 per share
Net Cash USD $3.5M
100% Organic
Growth
Total Rig Count
Debt USD 12.6M Debt/Equity 11%
Investor Presentation, November 2023 | 6
We Invested in the Cycle
We invested in modern equipment and world-class operations to strategically position Geodrill for this upcycle
We stand to benefit from industry growth drivers
- Diminishing mineral reserves, drives demand
- Increasing demand for drilling, pricing power
- Strong Commodity prices
- Geographical expansion
ORGANIC GROWTH PROFILE
Revenue | EBITDA | Rig Count | |
140 | 138.6 | ||||
120 | 115.2 | 76 | |||
Millions | 100 | ||||
88.5 | 87.4 | 82.4 | |||
80 | 71 | ||||
USD | |||||
60 | 67 | 68 | |||
40 | 64 | 38.4 | |||
29.5 | |||||
20 | 16.3 | 20.0 | 19.0 | ||
0 |
Investor Presentation, November 2023 |
7
Long-Term Contracts Drives Revenue Visibility
Major Customers
& World Class Projects
West Africa | Egypt |
9 Rigs (includes 4 leased) | |
66 Rigs | |
Peru | Chile |
2 Rigs | 4 Rigs |
Investor Presentation, November 2023 |
8
Strong Fundamentals Drives Drilling Demand
Global Minerals Exploration Spend US$Bn
Source S&P Global Market Intelligence, MST
24.0
20.0
16.0
12.0
8.0
4.0
0.0
1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
1 | New Wave of Demand |
Exploration spend well |
below previous cycles
2 | Industrial Metals |
Demand to grow | |
infrastructure spend | |
Inflation | |
3 | Recent Central bank gold |
purchases spiked up by | |
300% | |
Lag in the Commodities | |
4 | Supply |
Capex in mining has been |
modest driving shortages
Source: Sprott, Bloomberg
Investor Presentation, November 2023 | 9
Key Financial Metrics Reflects Strategic Re-location of Fleet
All figures in
USD
Revenue (MM)
Gross Margin
Adj. EBITDA (MM)
Adj. EBITDA Margin
EPS
Cash (MM)
Debt (MM)
Net Cash (MM)
Q2/22 | Q3/22 | Q4/22 | Q1/23 | Q2/23 | Q3/23 |
$39.2 | $35.2 | $30.9 | $37.6 | $32.6 | $30.3 |
32% | 31% | 24% | 32% | 24% | 19% |
$12.4 | $9.5 | $6.5 | $10.1 | $6.6 | $4.5 |
32% | 27% | 21% | 27% | 20% | 2% |
$0.13 | $0.08 | $0.07 | $0.13 | $0.04 | (.0 |
$11.8 | $19.1 | $14.4 | $17.2 | $17.7 | 9.1M |
$8.9 | $13.9 | $4.6 | $8.0 | $11.3 | $12.6 |
$2.9 | $5.2 | $9.8 | $9.2 | $6.4 | $3.5 |
- Business remains strong
- Strong revenue growth for 2024
- Repositioning rigs into new attractive markets
As of September 30,2023
Investor Presentation, November 2023 | 10
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Disclaimer
Geodrill Ltd. published this content on 20 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 November 2023 21:01:03 UTC.
