Company Overview Symbol: MDI T Shares Outstanding: 80 M Price*: 4.19 Market Cap.*: 335M Headquarters: Moncton, NB, Canada Registered in 20 countries on 6 continents CEO: Denis Larocque * as of September 14, 2015 4
Business Overview A leading provider of drilling services to the mining industry, registered in 20 countries. Senior management has over 1,000 years of combined drilling industry experience. Best balance sheet in the 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 Pricing in the industry remains at a 15-year low. We are putting increased focus on underground and production-related drilling projects. The gains from our underground percussive group more than offset…
Branch Closures With the poor outlook for commodity prices, we made the decision to close our South African and Namibian operations resulting in a restructuring charge of 6.1 million, made up of 5.0 million in non-cash charges and 1.1…
First Quarter Revenue was up 24% compared to the same quarter last year: Addition of percussive division, increased activity in South and Central America and better FX conversion rates offset by: Reduction in energy revenue…
First Quarter G&A down 3% despite the revenue increase. Tax expense for the quarter was 2.8 million versus a recovery of 2.4 million for the same quarter last year. Net loss of 11.2 million including the 6.4 million…
Balance Sheet EBITDA in Q1 2016, at 11.4 million, more than doubled versus Q1 2015. Strongest balance sheet in the drilling industry with a net cash increase of 3.3 million to 32.9 million at quarter-end. Capex in Q1 was 5.3…
Financial Review (millions except per share information) Q1 2016 Q1 2015 Revenue 83.9 67.6 Gross margin 25.8% 24.7% G&A 10.6 11.0 EBITDA 1 11.4 4.8 Net loss (11.2) (7.3) EPS (0.14) (0.09) Total net cash 32.9 42.8 1 Earnings before…
Drilling Revenue by Type of Projects 3 months ended July 31, 2015 17
Drilling Revenue by Customer 3 months ended July 31, 2015 18
Drilling Revenue by Commodity 3 months ended July 31, 2015 2% 2% Gold 11% Copper Other 13% Nickel 55% Coal Zinc 17% 19
Dividend Given our strong balance sheet, the Board of Directors declared a semi-annual dividend of 0.02 per share payable on November 2, 2015 to shareholders of record as of October 9, 2015. 20
Going Forward Very difficult to forecast demand over next 12 months as seniors still very cautious about investing. The company will continue to focus on its ability to generate cash, region by region. With our strong balance…
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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