2. FORWARD LOOKING STATEMENTS
This presentation contains certain forward-looking statements and information relating to
Energold that are based on the beliefs of its management as well as assumptions made by and
information currently available to Energold. When used in this document, the words “anticipate”,
“believe”, “estimate”, “expect” and similar expressions, as they relate to the Company or its
management, are intended to identify forward-looking statements.
This presentation contains forward looking statements relating to, among other things, regulatory
compliance, the sufficiency of current working capital, the estimated cost and availability of funding
for the continued exploration and development of the Company’s exploration properties. Such
statements reflect the current views of the Company with respect to future events and are subject
to certain risks, uncertainties and assumptions. Many factors could cause the actual results,
performance or achievements of the Company to be materially different from any future results,
performance or achievements that may be expressed or implied by such forward-looking
statements.
George Gorzynski, P.Eng., a Qualified Person under the meaning of Canadian National Instrument
43-101,is responsible for the IMPACT Silver Corp. technical information in this presentation.
2
3. OUR BUSINESS
• Global Specialty Drilling Contractor
Providing socially & environmentally sensitive drilling Energold’s Highly Mobile
Surface Rig in Operation
services to the international mining & energy sector.
• Market Leaders in ‘Frontier Drilling’
Proprietary mineral drilling rig platform designed for
drilling in remote and diverse sub-terrain locations with
limited infrastructure as well as sensitive environmental
and social issues.
• Global Footprint
Operating 234 rigs in 22 countries across all metal and
mineral targets.
• Proven Track Record of Performance
Compounded annual growth in revenues of >25% over
the last 6 years. Durango, Mexico
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4. OUR BUSINESS SEGMENTS
Mining Energy Manufacturing
Energold Drilling’s Significant presence in With over 150 years of
original and primary line of the Canadian oil sands history, Dando designs,
business. Market leader in coring market manufactures, and maintain
frontier drilling services, rigs for global clients
operating in 22 countries Acquisition in 2011 added
spanning broad spectrum 129 rigs to Energold and Capabilities across all drill
of minerals and resources. paved way into energy types, with specialty focus
drilling market. on water well drilling
Minimizes Energy market peaks when Vertical integration of rig
environmental and social mineral exploration slows sourcing for EGD
impact with proprietary Tremendous new growth Stable revenue in
man-portable drills market with oil sands boom maintenance and parts
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5. OUR TECHNOLOGY
• Modular Component Design
– Easy to transport within country, across
challenging terrain as well as rapid
mobilization globally to reduce downtime
• Proprietary Technology
– Depth capabilities of over 850m with
¼ inch greater core diameter using
Thin Wall rod system
– Competitive portable rigs only reach
depths between 200–300m BTW
• Rigs Built In-House
– Ensures proprietary nature of rig designs
– Continual upgrades are implemented
from input of field personnel
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6. WORLD WIDE OPERATIONS
World-Wide Operations Energold has offices and/or operations in 22 countries with complete jurisdictional compliance
and logistical support.
Contractor Of Choice Commence relationships with frontier drilling programs that historically continue through to downstream
stages of development. Current & historic client list includes many of the leading global mining companies.
Rig Fleet Energold has increased its fleet size in response to demand by an average of 70% per year over the last 6 years with
a current rig count of 234 (including diamond and energy drilling). Mobile rig platforms can be re-deployed more efficiently and
cheaper than conventional rigs.
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7. GLOBAL PROJECT EXAMPLES
Frontier Drilling Specialists
Dominican Republic Albania
Peru Guinea
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8. CUSTOMER PROFILE
Energold’s clientele MAJORS
includes many of the world’s • Barrick Gold
• BHP Billiton
largest mining companies. • Goldcorp
• Grupo Mexico
Existing clientele range • Rio Tinto
from early-stage junior • Newmont Mining
explorers to well known, • Penoles
• Vale
mature producers spanning all • AngloGold
base and precious metals, as • Fresnillo
well as industrial commodities. • El Dorado Gold
• Codelco
JUNIORS
• Grayd Resources (now Agnico-Eagle)
• US Gold (now McEwan Mining)
• Great Panther Silver
• First Majestic Silver
• Olympus Pacific Resources
• Magellan
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• GoldQuest Mining Corp.
9. FINANCIAL HIGHLIGHTS
CONTINUED GROWTH OVERALL
CDN$ (000’s) 2009 (GAAP) 2010 (IFRS) 2011 (IFRS) End of Sept, 2012
Revenue 23,719 54,591 133,482 $115,810
Net Earnings (1,951) 1,586 26,428 ($3,655)*
EPS (0.06) 0.05 0.65 ($0.08)*
Cash 18,460 28,225 $22,782 $27,800
Working Capital 46,319 61,461 $69,341 $96,549
EBITDA (Adjusted) $305 $1,505 $14,143 $6,731
* Note adjustment for Bonus Payment to Energold Energy of $7.5 million up to June 2012 on meeting EBITDA targets of
over $5 million. Annual payment capped at $10,500,000. Additional amortization expense due to IFRS gain on
acquisition (refer to Q4 figures) of $3,25 million YTD. Pre-2009 figures are GAAP while 2010+ is under IFRS.
Q2 2012 Q3 2012 % Change
Revenue
Mineral 22,273 17,253 (22)%
Energy 4,438 9,037 203%
Manufacturing 5,939 3,603 (39)%
Total Revenue 32,650 29,890 (8.4)%
• Energy division mobilizing and has seen record quarterly revenues, Q4/Q1 is its peak season
• Revenue allocation has shifted from mining (majority) to a balance with energy and
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manufacturing
11. DIVERSIFIED GLOBAL GROWTH
AND VALUE PRICED VS PEERS
Rig Count Growth (2010-2011) Global Presence (Countries)
Market Cap & Average Volume Revenue Growth (2009-2012)
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12. CORPORATE SUMMARY
TRADING SYMBOL EGD : TSX.V
SHARE PRICE $2.40
ISIN CA29268A1030
SHARES O/S 46.2 MILLION
SHARES F/D 47.1 MILLION
MARKET CAP $110 MILLION
INSTITUTIONAL OWNERSHIP 25%
MANAGEMENT OWNERSHIP 10%
Fred Davidson CA MBA – President, CEO and Director
James Coleman LLB – Chairman and Director
Steven Gold CFA – Chief Financial Officer
Craig Geier HBA – Managing Director (Dando Drilling Services)
H. Walter Sellmer – Director
Michael J. Beley – Director
12
Wayne Lenton – Director
13. MINING INDUSTRY
– POSITIVE OUTLOOK
STRONG INDUSTRY
FUNDAMENTALS
• Raw material prices vs. production
cost favors continued exploration
• New sizable discoveries are
increasingly difficult to find,
forcing traditional miners to seek
assets in frontier regions that
require specialized equipment
• Producers with record cash levels
seeking to replenish reserves
(evident by recent M&A activities Source: MEG, PriceWaterhouseCoopers
in market)
World needs new
• GDP Growth 2011-2025 forecast by discoveries = more
BHP is +7% for China and +2% for frontier drilling
13 US driving by urbanization Source: BHP Biliton Dec 2012 Macquarie Conference
14. ENERGOLD ENERGY
BERTRAM INTERNATIONAL CORP.
• Proven player in sizable oil sands
market dating back to 1963
• Niche, high-margin market with
short and long-term growth
• Oil Sands coring – smooth out
Energold traditional slow mineral
seasons (Q4/Q1)
Bertram TH60
• Re-allocation under-utilized drill Coring Rig
fleet (seismic and specialty) within
Energold’s global network
• Synergy from people – trained LIS GT1
Seismic Drilling Rig
drillers in coring can transition to
mineral drilling and vice-versa
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15. ENERGY INDUSTRY
(OIL SANDS) OUTLOOK
World Class Resources
• Oil sands represent
97% Canada’s oil reserves1
Sizable expenditures expected
• About $84 billion per year
investment for next 25 years
Oil Sands project are long-term
• Less susceptible to short term
pricing fluctuations as compared to
metal markets
1. Environmental Canada May 2011 Oil Sands Report
2. CAPP http://www.capp.ca/getdoc.aspx?DocId=191939&DT=NTV
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3. Canada National Energy Board – Energy Oil Sands Assessment 2006
16. ENERGOLD MANUFACTURING
DANDO INTERNATIONAL LTD.
• Over 150 years of
experience in designing
and manufacturing
of larger rigs in the UK
Mineral Multipurpose
• Maintenance, servicing,
and sales of rigs and
Waterwell
parts to third parties
• Expertise in water well
drilling
• Building a new services
division that can leverage
the existing Energold
logistics network
Geotechnical
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17. MANUFACTURING
INDUSTRY DEMAND CONTINUES
• Growth: The manufacturing
and equipment demand for
resource industry is growing,
13% YOY for Caterpillar. Flat
2012 with improvements in
2013 in US, China, and most of
developing world. 1
• Potential: Global mining
equipment market is $61 billion.
At $12.2 million (2012 YTD),
Energold is just 0.01% of the
2 Boart’s Drilling Product Backlog 2012
market. 3
1. Caterpillar Q3 2012 Earnings http://www.caterpillar.com/investors/events-and-presentations/presentations
2. Boart Longyear 2012 Full Year Earnings – February 18, 2013
3. Standard & Poors – Credit Week Feb 2012
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18. SOCIAL & ENVIRONMENTAL
BENEFITING AREAS WHERE WE WORK
Case Study
– Provide jobs for locals Energold’s approach is win-win
for clients and local communities
– Training in work-safety
and mechanical experience
Minimal Environmental Impact
– Portable rigs leave a small
environmental footprint
– Avoid tree clearcuts and
save cost on road building
Third Party Recognition
– PDAC Environmental
Excellence in Exploration
Case Study (E3 Initiative)
Donated Waterwell Haiti Bridge
– BC Business Innovators of
in Chihuahua, Mexico Infrastructure Project
Year 2012
– “Success Without Limits
Bizz” Awards in Houston, TX
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19. INVESTMENT HOLDINGS:
IMPACT SILVER CORP.
• IMPACT Silver Corp is a profitable
silver producer in Mexico
• ENERGOLD DRILLING CORP
owns 6.87 million shares (11%~) SYMBOL IPT-TSX.V
SHARE PRICE $1.02
• OPERATIONS MARKET CAP $70 M
Three profitable, operating mines CASH $18 M
at the Royal Mines of Zacualpan
• EXPLORATION
Huge exploration potential in
623 sq. km composed of two
under-explored Silver districts
• DEVELOPMENT
Zacualpan Processing Plant
Capire open pit mine
200 tons/day operation
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commenced March 2013
20. IMPACT SILVER CORP.
PROFITABLE GROWING PRODUCER
%
2012 2011 2010 2009 2008 2007 2006
Growth
Total tonnes processed (t) 168,826 154,289 131,348 114,340 102,426 99,918 68,173 +126%
Tonnes processed per day (t) 463 424 360 313 280 274 196 +116%
Silver (oz) Production 620,515 833,607 750,259* 823,571 645,668 349,949 465,673 +79%
Lead (t) Production 430 731 734 969 813 601 375 +95%
Zinc (t) Production 721 1,248 1,212 1,098 1,053 976 725 +72%
Revenue per tonne sold $94.32 $171 $123 $110 $90 - - +90%
Direct cost per tonne sold $64.55 $70 $63 $60 $55 $44 $60 +17%
30,000
Revenues
25,000
Net Earnings
20,000
Operating Cash Flow
CDN$ 000’s
15,000
10,000
5,000
0 Year
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2006 2007 2008 2009 2010 2011 2012
21. 2013 AND BEYOND
CONTINUED GROWTH IN ALL KEY MARKETS
EXPANSION OF “CORE GROW ENERGY AND
SEED AND EXPAND
BUSINESS” MINERAL MANUFACTURING
INTO NEW MARKETS
DRILL FLEET DIVISIONS
• Grow mineral drilling rig fleet • Capitalize on high growth • Energold Energy division
to solidify existing markets frontier regions such as continues to benefit from
South/Central America, niche market expertise in
• Continued growth of frontier Southeast Asia & Africa. unconventional and
conventional markets
drilling and transitioning with • Pursue additional ‘bolt-on’
clients to mature projects with acquisitions in target regions. • Grow manufacturing services
larger conventional drills and utilize capabilities to build
• Grow underground drilling larger rigs over time
services.
• Organic growth and search • Grow new business divisions
for acquisitions in existing • Grow water well drilling including the historical Dando
and new markets business footprint in water well activity
• Expand drilling services and
• Continue technological multi-purpose and reverse
advancements in rig design circulation (RC)
and capabilities.
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22. ANALYST COVERAGE
Analyst Company Contacts
Michael Mills CFA MBA Beacon Securities 416-643-3871
Maggie MacDougall BBA Cormark Securities 416-362-7485
Mona Nazir Fraser Mackenzie 416-682-4208
Russell Stanley CFA MBA Haywood Securities 416-507-2328
Ben Jekic CFA Industrial Alliance 416-203-5826
Kam Mangat CFA Salman Partners 416-861-1270
Neil Forster CFA Scotiabank 416-863-2899
Daryl Young CA Toronto Dominion (TD) 416-983-3276
Steve Green CFA
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23. INVEST IN ENERGOLD TODAY
5 Year Chart on EGD:TSXV
• Energold presents a compelling opportunity to invest in a broad range of commodities
and projects worldwide
• Catalysts for growth – commodities remain strong and significant potential in energy
• Favorable balance sheet allows EGD to capitalize on opportunities
23 • Value play on commodities – trading at 52 week low despite continued growth
24. Contact info
Jerry Huang MBA
Manager Investor Relations
jhuang@ energold.com 604-681-9501
