Company Overview Symbol: MDI T Shares Outstanding: 80 M Price*: 6.39 Market Cap.*: 511M Headquarters: Moncton, NB, Canada Registered in 20 countries on 6 continents CEO: Francis McGuire CFO: Denis Larocque * as of June 1, 2015…
Business Overview A leading provider of drilling services to the mining industry, registered in 20 countries. Only mineral drilling company on the TSX Composite Index. Senior management has over 1,000 years of combined drilling…
The Emergence of Specialized Drilling We are depleting the more easily accessible mineral reserves all over the world, which were developed in the 1980s. Our business premise is that the new deposits over the next 20 years will be in…
Our Strategy Be the world leader in specialized drilling. Diversify our services within the drilling field. Maintain a strong balance sheet. Be the best in class in safety and human resources. Modernize our conventional fleet and…
What is Specialized Drilling Exploration/definition drilling services with significant barriers to entry: deep holes permafrost helicopter portability directional drilling high altitude drilling remote locations top safety…
Short-Term Market Trends Most work is centered around existing mines, especially production-related activities. The result is greater focus on less expensive underground drilling. Customers are deferring more expensive…
Impact on Majors Activities We are putting increased focus on underground projects. The gains from our underground percussive group were offset by the loss of revenue from the closure of the branches in Australia and the DRC as…
Balance Sheet Strongest balance sheet in the industry with net cash of 29.6 million at year-end. During the year, 20.7 million in cash was used for the Taurus acquisition, 14.8 million for capex and 15.9 million on dividend…
Denis Larocque Chief Financial Officer 13
Fourth Quarter Revenue flat compared to last year: Addition of percussive drilling offset by: Reduction in energy revenue Closures in Australia and the DRC Capex in Q4 of 2.1 million with half going to percussive division. Net…
Financial Review (millions except per share information) Q4 2015 Q4 2014 Revenue 81.2 82.6 Gross margin 25.5% 26.0% G&A 11.0 12.7 EBITDA 1 6.8 8.4 Net loss (13.1) (24.9) EPS (0.16) (0.31) Total net cash 29.6 46.5 1Earnings before…
Drilling Revenue by Type of Projects 3 months ended April 30, 2015 16
Drilling Revenue by Customer 3 months ended April 30, 2015 17
Drilling Revenue by Commodity 3 months ended April 30, 2015 2% 2% Gold 12% Copper Other 10% Nickel 55% Coal 19% Zinc 18
Going Forward Very difficult to forecast demand over next 12 months as seniors still very cautious about investing. In short-term, revenue and margins expected to remain in the current range. For the company, finding the right…
Capex In the year just finished, we spent 14.8 million in capex. We expect similar capex levels in the coming year, although we may require more to grow our percussive group. 21
Customer Value Perception Three Brand Pillars Quality of people, of equipment, of systems. Results the resolve to overcome difficult obstacles in order to get the job done. Relationships Partners on the ground. 22
Our Strategy is on Track Be the world leader in specialized drilling. Diversify our services within the drilling field. Maintain a strong balance sheet. Be the best in class in safety and human resources. Modernize our…
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