Capital Limited · LSE:CAPD
Capital — Capital Drilling — Investor Presentation (January 2011)
22 slides from Capital's investor presentation, January 2011
Slide 1: Capital Drilling Limited Corporate Presentation
Capital p Drilling g Limited Corporate Presentation J January 2011
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE This document, which is personal to the recipient and has been issued by Capital Drilling Limited (the “Company”), comprises written materials/slides for a presentation in connection with the proposed placing and application for admission to the Official List of the UK
Slide 3: Business Overview
1. Business Overview Fast g growth drilling g company p yp providing g services to mining g and Who We Are exploration companies. Focus on emerging & developing markets. Exploration, development and production drilling in Africa, Asia, and Latin America. What We Do High quality, long standin
Slide 4: Management & Board
Management g & Board Brian Rudd Jamie Boyton David Payne (CEO) (Executive Chairman) (CFO) Executive 24 years experience in the mining 15 years experience in finance industry 15 years experience in the finance industry in Africa and Australia Co-founder of Capital Drilling industry in Africa
Slide 5: Emerging Markets Focus
Emerging g g Markets Focus West Africa Commenced Q4 2010 Middle East, North Africa 5 rigs(1) Since 2005 C Currently Ri (1) tl 23 Rigs Sub-Saharan Africa Since 2005 Currently 35 Rigs(1) Asia Pacific Since 2008 Currently 6 Rigs(1) Latin America Since 2010 Currently 5 rigs(1) Regional Support: SA Corp
Slide 6: Strategy & Strengths
Strategy gy & Strengths g Strategy Competitive Strengths Strong reputation Continued focus on quality Young fleet Experience and presence on the ground in developing countries Focus on emerging markets Expertise in drilling in remote locations Economies of scale and stability Strong local
Slide 7: Quality, Long Term Clients
Quality, y Long g Term Clients Well Capitalised Clients Cash on C Client C (1) Market Cap Location C Commodity Active Since S Type off Drilling(*) Balance Sheet(2) US$3.3bn US$400mn Tanzania Gold December 2008 E, D, P US$16.4bn US$1.0bn* Tanzania Gold April 2007 E, D, P US$2.4bn US$150mn Egypt Gold
Slide 8: Revenue Splits
Revenue Splits p Regional Drilling Type Latam 7% Energy Asia 2% % Exploration 8% 14% Development 51% Production 33% Africa 85% Commodity Client Type Others Junior 16% 14% Major 27% Copper 22% Gold Mid-Tier Mid Tier 62% 59% • Revenue for year ended 31 Dec 2010 Continued focus on majors and mid-tier c
Slide 9: Current Fleet
Current Fleet* Heli-portable Multi-purpose 4 9 Deep Hole Diamond 5 Reverse Circulation 13 Diamond 29 Production 14 * January 2011 Broad fleet profile to support client base 9
Slide 10: Trading Update - Fleet Growth
2. Trading g Update p - Fleet Growth Fleet – average for the quarter 80 70 Rig expansion of 23% in 2010 (14 rigs). 71 60 63 64 62 57 58 59 50 50 40 Maintains solid g growth,, adding g on average g 1 rig g 30 per month since inception. 20 10 Low fleet age maintained, averaging c4 years - 2009 2
Slide 11: Utilisation & ARPOR
Utilisation & ARPOR Utilisation 100% 90% 80% 70% 84% Utilisation improved rapidly over 2010. 60% 50% 57% 59% Demand from existing g customers & the 40% 30% return of the juniors in the second half. 20% 10% Solid backdrop to commence 2011. 0% 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 20
Slide 12: Return of Exploration Drilling
Return of Exploration p Drilling g Exploration as % of Revenue Revenue from Juniors 20% 18% Revenue from Juniors 16% 3,000 14% 2,500 12% 10% $M 2,000 8% 1,500 6% 1,000 4% 2% 500 0% - 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 $,000 2H 09 2H 10 Juniors left the market in late 2
Slide 13: New Rig Arrivals
New Rig g Arrivals Rig 79 Chile Rig 73 Arriving in Tanzania Rig 66 Drilling in Tanzania 13
Slide 14: Pre-Close & Outlook
Pre-Close & Outlook Utilisation trending toward historical peak levels, with ARPOR expected to improve in 2011. Contract renewal season progressed well with increased demand from existing customers & the first signs of rate increases. Market conditions remain robust, with Requests for Quotes c
Slide 15: Appendix
Li. Appendix
Slide 16: Size of the Market
Size of the Market 2010(1) Worldwide Exploration Budgets by Region 2010(1) 2010(1) Fast growth markets Worldwide (non-ferrous) from 2001–2010: exploration market = $12.1bn United States Latin America (48%) Australia 7.8% Africa (29%) 11.9% Pacific / SE Asia 6.7% Latin America Drilling accounts for A
Slide 17: Mineral Drilling Services Industry
Mineral Drilling g Services Industry y Key Activities Requiring Exploration Development Production Drilling g Services Resources Reserves Exploration Greenfield – Discovery of mineral i lddeposits it Project Brownfield – Assess size and quality ue of Minerall Project commissioning Feasibility of
Slide 18: Drilling Services
Drilling g Services Exploration Development Production Barrick Gold, Papua New Guinea Kabanga, Tanzania Sukari, Egypt Wamun, Papua New Guinea Geita Mine, Anglo Ashanti, Tanzania North Mara, Tanzania …from remote locations to producing mines 18
Slide 19: Key Driver #1: Commodity Prices
Key y Driver #1: Commodity y Prices Revenues Split by Commodity – 2010 Others 16% Copper 22% Gold 62% Gold(1) Copper(1) 1 600 1,600 10 000 10,000 1,400 8,000 1,200 1,000 6,000 SD/KT $/oz 800 US 600 4,000 400 2,000 200 0 0 000 001 002 003 004 005 006 007 008 009 010 011 000 001 002 003 004 005 006 00
Slide 20: Key Driver #2: Access to Capital
Key y Driver #2: Access to Capital p Equity raised in past 5 years > Four times the equity raised in 6 years from 2000 to 20005 60 52.8 More than 50 47.9 47.2 US$200 billion in 44.0 equity raisings 40 by mining S$ billions) 30 28.7 companies since 2006 (US 20 13.9 15.3 8.2 9.5 10 4.2 1.3 0 2000 2001
Slide 21: Margins and Returns Metrics
Margins g and Returns Metrics 1 Revenues EBITDA1 and Margins 60 30 50.0% 45.8 38.9% 36.4% 40.0% 40 28.2% 29.7 28.7 20 US$m 28.9 Margin % 29.3 36.6% 25.0% 30.0% US$m 32.2%% 21.7 18.8% 14.3 20.0% 20 10 10.0% 0 0 0.0% 1H07 2H07 1H08 2H08 1H09 2H09 1H10 1H07 2H07 1H08 2H08 1H09 2H09 1H10 Gross Profit(1)
Slide 22: Company Contact Details
Company p y Contact Details Capital Drilling Limited UK Broker Details Jamie Boyton Liberum Capital Limited Executive Chairman Ropemaker Place, Level 12, 25 Ropemaker Street, London, EC2Y 9LY [email protected] Telephone: +44 (0) 20 3100 2000 Brian Rudd Clayton Bush CEO Website: www.liberumca
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