Capital Drilling Limited 2013 Annual Results Presentation 18 March 2014
2013 Operational & Strategic Highlights Youngest scale fleet in the industry. Maintained utilisation levels above industry average at 55% for 2013. Increased exposure to production drilling contracts. Exposure to major mining…
Financial Performance
Financial Overview Revenue down 27% to 116.3 million (2012: 158.9 million) Revenue KPIs FY 2013 FY 2012 Change % Softer utilisation due to prevailing sector-wide contraction; Average Fleet Size 95 88 ARPOR decrease modest despite…
Balance Sheet FY 2013 FY 2012 Change Lower returns in line with weaker operating performance Balance Sheet m m % Return on total assets -0.2% (2012 : 16.2%); Cash and cash equivalents 12.3 9.1 35 Return on invested capital -0.2% (2012…
Net Debt Movement Net Debt Movement Net Debt FY12 EBITDA Capex Working Capital Other Net Debt FY14 - (5.0) (10.0) (15.0) (20.0) (25.0) FY 2013 FY 2012 Cash Flow m m EBITDA 17.0 37.1 Non-cash expenses 1.3 0.8 Working…
Capital Expenditure CAPITAL EXPENDITURE - ANNUAL USm 2013 gross capital expenditure of 5.7 million - substantial 35.0 reduction in line with prevailing demand environment 30.0 Well capitalized fleet with over 60m spent over the…
Key Cost Initiatives 2013 Labour and Management Stock & Labour & Mgt Consumables (36%) Reduced headcount in line with weaker demand environment. (24%) Restructured employment contracts to align more closely with General contract…
Strategy and Outlook
Capital Drilling Strategy REHABILITATION EXPLORATION DEVELOPMENT MINING / CLOSURE Cash Cost Regulatory / View on Mining Cycle IRR of a Project Production vs Related Prices Reputational Highest Risk Exploration delayed High…
Outlook Continued volatility in the external environment, cautious spending from mining companies & juniors remain absent from the market. Cost reductions and capital discipline remain the key focus of mining companies, while…
Appendices Company Overview Safety Market Corporate
Quality Service: Excellence in Drilling People Our key asset, strong focus on KPI goals and career path progression. Training and career development programs provided by Capital Support Services (training division). Hire from local…
Quality Partners & Projects 100% Quality Clients 6% 7% 4% 13% 14% 90% 23% Exposure to major and mid tier mining houses with strong balance sheets, quality assets & 80% 30% positive cash flows. 41% 70% 35% 60% 53% Majors…
Quality, Long Term Clients Well Capitalised Clients Client Market Caps1 Location Commodity Active Since Type of Drilling US1.9bn Tanzania Gold December 2008 E, D, P, U US7.7bn Tanzania Gold April 2007 E, D, P US166.3bn…
Countries of Operations MAURITANIA EGYPT Since 2010 Since 2005 GHANA SOLOMONS Since 2011 Since 2008 CHILE Since 2010 10 rigs ZAMBIA TANZANIA Since 2005 Since 2005 Current Operations Regional Offices * December…
Safety Performance Capital Drilling Progressive AIFR Capital Drilling Groups primary KPI pertaining to incident frequency rates is the All Injury Frequency Rate (AIFR). 7 6 5.92 Strong safety culture & commitment driven from Senior…
Size of the Market 20131 Worldwide Exploration Budgets by Region 20131 20131 Worldwide (non-ferrous) Increased relative exploration market = 14.4bn spend in Africa in 2013 Pacific/SE Asia 6.7% United States 7.2% Other Areas…
Key Demand Drivers 60.0 Gold1 52.8 US/oz 2,000 50.0 47.9 1,600 47.2 More than 44.0 1,200 US250 billion in 42.1 800 equity raisings by 40.0 mining companies 400 since 2006 0 2000 2001 2002 2003 2004 2005…
Management & Board Executive Over 15 years experience in finance industry 25 years experience in the mining industry in Africa Co-founder of Capital Drilling and Australia Previously Executive Director and Head of Asian Co-founder…
Corporate Snapshot Capital Structure Shareholding Blocks Fully paid ordinary shares 134,592,800 Share price (as at 14 March 2014) USD 0.50 Free float Market capitalisation (undiluted) USD 67.12m 30% Cash (as at 31 Dec 2012) USD…
Glossary The following words used in the presentation have the following meaning: ARPOR Average Revenue Per Operating Rig KPI Key Performance Indicator Measured by taking reported operating cash flow and adding LTI Loss Time…
Company Contact Details Capital Drilling Limited UK Broker Details Jamie Boyton Liberum Capital Limited Executive Chairman and Interim CEO Ropemaker Place, Level 12, 25 Ropemaker Street, London, EC2Y 9LY jamie.boytoncapdrill.com…
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