Cabo Drilling Corp · OTC:CBEEF

Cabo Drilling — Investor Presentation (August 2011)

18 slides from Cabo Drilling's investor presentation, Aug 31, 2011

  1. Slide 1: Professionals to the Core

    PROFESSIONALS TO THE CORE TSX-V: CBE

  2. Slide 2: Forward Looking Statements

    FORWARD LOOKING STATEMENTS Certain information set forth in this presentation contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forwar

  3. Slide 3: Serving the International Mining & Mineral Exploration Communities

    SERVING THE INTERNATIONAL MINING & MINERAL EXPLORATION COMMUNITIES Focused on Delivering the Best Value for all our Clients in: North America, Central America and Europe 3

  4. Slide 4: Cabo Drilling Corp.

    CABO DRILLING CORP.  Acquired five drilling services companies in 2004 and 2005  Achieved year-over-year revenue growth to 2008 of C$58.64 million  Fiscal years 2009 and 2010 revenues decreased to C$41.16 million and $28.99 million respectively  2011 revenues on track to achieve annual targeted

  5. Slide 5: Corporate Overview

    CORPORATE OVERVIEW (As at August 31, 2011) Symbol: CBE - TSX-V DHL - FWB Price: $0.12 52 Week High / Low: $0.26 - $0.10 Market Cap: $8,928,990 Shares Outstanding: 74,408,246 Fully Diluted: 90,791,238 August 31, 2010 – August 31, 2011 5

  6. Slide 6: Operating in 7 Countries

    OPERATING IN 7 COUNTRIES CANADA ALBANIA USA SPAIN TURKEY PANAMA COLOMBIA Cabo’s clients include: Teck Resources Limited Kirkland Lake Gold Inc. Minera Panama SA (Inmet Mining) Galway Resources Ltd. Alderon Resources Corp. Queenston Mining Inc. Goldcorp Inc. Grand Century Iron Ore Mining Lab

  7. Slide 7: Cabo's Drill Fleet

    CABO’S DRILL FLEET Drilling Revenue Fiscal Year 2010 9% Drills: 21% Underground Surface 26 Conventional Surface Geotechnical 70% 14 Deep Hole Surface 18 Helicopter Support 3 Man Portable 6 Reverse Circulation Canada & US 25% 30 Underground Other Foreign 75% Countries 7 Geotechnical 7

  8. Slide 8: Cabo Drilling – Operations

    CABO DRILLING – OPERATIONS (CDN $000s except earnings per share) FY2010 FY2009 FY2008 EBITDA per Share (Basic)** $ 0.03 $ 0.08 $ 0.15 Earnings (Loss) per Share (Basic) $ (0.03) $ (0.02) $ 0.07 Cash from Operations*** $ 1,057 $ 2,060 $ 5,149 Gross Margin % 25.3 26.7 23.4 REVENUE C$ millions * * 2011

  9. Slide 9: Cash Management Focus

    CASH MANAGEMENT FOCUS  Capital expenditures are controlled  Stable working capital  Debt rationalization is a priority  Implementing new field cost control systems  Negotiating new bank credit facilities C$ millions 9

  10. Slide 10: Strong Balance Sheet

    STRONG BALANCE SHEET (CDN $000s) March 31, 2011 Cash & cash equivalents $ 418 Current assets $ 23,137 Non-current assets $ 15,489 Total assets $ 39,044 Current liabilities (including current portion of long-term debt) $ 15,514 Long-term debt $ 1,040 Future income tax $ 439 Equity $ 22,051 Total equi

  11. Slide 11: Cabo Drilling 1st - 3rd Qtr 2011 Results

    CABO DRILLING 1st - 3rd QTR 2011 RESULTS (CDN $000s except earnings 1st QTR 2011 2nd QTR 2011 3rd QTR 2011 Ended Ended Ended per share) Sep 30, 2010 Dec 31, 2010 Mar 31, 2011 Revenue $ 10,272 $ 10,583 $ 9,540 EBITDA as a % of gross 10.16 11.74 (3.15) revenue EBITDA per Share (Basic)** $ 0.02 $ 0.02

  12. Slide 12: 2011 Objectives / Milestones

    2011 OBJECTIVES / MILESTONES  Debt reduction  Reduce costs, inventory and capital expenditures  Improve cash flow  Expand effective capacity per drill and increase drill utilization  Retain skilled workers and enforce high safety standards  Negotiate new bank credit facilities Achievements to

  13. Slide 13: Prepared for Future Growth

    PREPARED FOR FUTURE GROWTH Cabo Drilling is in position to move forward despite the stressed global financial and economic environment:  Capital expenditures, in fiscal 2006 through 2008, have positioned Cabo for the projected growth of the mining markets in 2011 and 2012  Offering a variety of dr

  14. Slide 14: The Cabo Advantage

    THE CABO ADVANTAGE “Raving Fans”  Raving Fans is an initiative to deliver consistent high-quality services based on customers’ needs  Cabo is committed to building relationships with its customers – discovering how we can meet and exceed our customers’ requirements for each drill project “Human Re

  15. Slide 15: Cabo's Mission Statement

    CABO’S MISSION STATEMENT  To be the first choice for mineral exploration, mining & geotechnical customers by offering the best value in the drilling services industry  To be the first choice among employees by offering the most stable, safe and rewarding workplace in the drilling services industry

  16. Slide 16: Relative Size of Contract Drillers

    CABO DRILLING CORP. Relative Size of Contract Drillers Tier 1 Boart Longyear 1,200 Layne Christensen 750 Major Drilling 547 Tier 2 Ausdrill/Brandrill 275 Energold Drilling 219 Foraco 180 Orbit Garant 176 Cabo Drilling Corp. 104 16

  17. Slide 17: Summary

    SUMMARY  Expanding global market presence  Long-term growth in the mineral drilling services sector through exposure to mid-tier and major mining and exploration companies  Revolutionary approach to customer service  Improved operational efficiencies  Increased capacity per drill 17

  18. Slide 18: Professionals to the Core

    PROFESSIONALS TO THE CORE TSX-V: CBE 18

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