Company Overview Symbol: MDI T Shares Outstanding: 80 M Price*: 7.21 Market Cap.*: 577M Headquarters: Moncton, NB, Canada Registered in 20 countries on 6 continents CEO: Francis McGuire CFO: Denis Larocque * as of February 26,…
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 and expand our specialized capacity. Modernize our conventional fleet and expand our footprint in strategic areas. Diversify our services within the drilling field.…
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. In August 2014, we added underground percussive services to our offerings with the acquisition of Taurus Drilling. At the same time, we will…
Denis Larocque Chief Financial Officer 12
Third Quarter Revenue flat compared to last year: Addition of percussive drilling offset by; Reduction in energy revenue Closures in Australia and DRC Net cash decreased by only 0.4 million to 31.9 million. Margins at 11.2%…
Financial Review (millions except per share information) Q3 2015 Q3 2014 Revenue 69.8 71.8 Gross margin 11.2% 24.7% G&A 11.7 12.1 EBITDA 1 (6.6) 0.6 Net loss (19.0) (12.8) EPS (0.24) (0.16) Total net cash 31.9 33.6 1Earnings before…
Drilling Revenue by Type of Projects 3 months ended January 31, 2015 15
Drilling Revenue by Customer 3 months ended January 31, 2015 16
Drilling Revenue by Commodity 3 months ended January 31, 2015 4% 2% Gold 4% Copper 7% Other Nickel 11% Energy 53% Coal Zinc 19% 17
Francis McGuire President and CEO 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 return to pre-holiday levels. Pricing levels are at a 15-year low.…
Dividend During the downturn, the companys goal is to maintain the strongest balance sheet in the industry. We see opportunity for growth in percussive and underground services. Dividend has been reduced to 0.02 per share in…
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. 21
Our Strategy is on Track Be the world leader in specialized drilling and expand our specialized capacity. Modernize our conventional fleet and expand our footprint in strategic areas. Diversify our services within the drilling…
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