Cabo presentation feb282011ppt(f)

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Cabo presentation feb282011ppt(f)

  1. 1. CABO DRILLING CORP. CORPORATE PRESENTATION Professionals to the Core TSX-V: CBE
  2. 2. Certain information set forth in this presentation containsforward-looking statements. By their nature, forward-looking statements are subject to numerous risks anduncertainties. All statements within, other than statementsof historical fact, are to be considered forward-looking.Such forward-looking information and statements arebased on current expectations, estimates and projectionsabout global and regional economic conditions as well asindustries that are major markets for Cabo Drilling Corp.The Company does not guarantee that any of the forwardlooking statements will materialize and accordingly thereader is cautioned not to place reliance on these forward-looking statements. February 28, 2012 2
  3. 3. Focused on Delivering the Best Value for all our Clients in: North America, Central America and Europe 3
  4. 4. 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 increased 50% from 2010 to $43.42 million 2012 revenues targeted to be $52 million 100+ Drill Rigs 500+ Employees C$22.8 Million Shareholders’ Equity 4
  5. 5. Symbol: CBE - TSX-V DHL - FWBPrice: $0.14Week High / Low: $0.23 - $0.07Market Cap: $10,654,644Shares Outstanding: 76,104,600Fully Diluted: 90,569,430 February 28, 2011 – February 28, 2012 5
  6. 6. CANADA ALBANIA USA TURKEY PANAMA COLOMBIACabo’s clients include:Kirkland Lake Gold Inc. Minera Panama SA (Inmet Mining)Galway Resources Ltd. Armistice Resources Corp.Queenston Mining Inc. Goldcorp Inc.Century Iron Ore Mining Corp. Labrador Iron Mines LimitedTeck Resources Limited 6
  7. 7. Source: MEG STRONG INDUSTRY FUNDAMENTALSBase & precious metals demand & pricing have experienced record growth over the past 4 yearsTotal 2011 budget for nonferrous metals exploration was estimated at $18.2 billion, up 50% from 2010, a new all time high$2.29 billion was raised by junior and intermediate companies in December 2011 7
  8. 8. GLOBAL MINING INDUSTRY IS FACING A MAJORSUPPLY/DEMAND IMBALANCE FOR PRECIOUS & BASE METALS Rising commodity prices continue in 2012 to positively impact the revenue and profit margins of mining companies, as well as the availability of equity financings for the intermediate mining and more advanced junior exploration companies, thereby increasing the availability of cash for exploration activities In 2012 drilling budgets, particularly for programs in Canada, United States and Latin America, are expected to increase beyond the 2011 levels for brownfield gold, copper, silver and iron ore projects The pressure is high for more advanced exploration programs to be developed as fast as possible to take advantage of the higher commodity prices, driven by depleting reserves, lower global inventories and improving demand Cabo Drilling has virtually all of its fleet located in Canada, United States and Latin America where the majority of exploration activity is taking place and Cabo is well positioned for growth 8
  9. 9. Fiscal Year 2011 2011 Fiscal Year Undergro und Geotechn 15% icalDrills: 4% Surface 84%27 Conventional Surface15 Deep Hole Surface18 Helicopter Support 3 Man Portable Other Fiscal Year 2011 Canada & Foreign United 6 Reverse Circulation Countries States 24% 76%27 Underground 6 Geotechnical 9
  10. 10. (CDN $000s except earnings per share) FY2011 FY2010 FY2009 FY2008EBITDA per Share (Basic)* $ 0.04 $ 0.03 $ 0.08 $ 0.15Earnings (Loss) per Share (Basic) $ (0.01) $ (0.03) $ (0.02) $ 0.07Cash from Operations** $ 1,402 $ 1,057 $ 2,060 $ 5,149Gross Margin % 22.1 25.3 26.7 23.4*Net Earnings before interest, tax, amortization, stock based compensation and other items (EBITDA)**Before changes in non-cash working capital items C$ millions 58.65 Revenue 41.16 43.42 28.99 31.29* FY2008 FY2009 FY2010 FY2011 FY2012 *FY2012 – For the six month period ended Dec 31 10
  11. 11.  Capital expenditures are controlled Stable working capital Debt rationalization is a priority Implementing new field cost control systems Negotiating new bank credit facilities Working CapitalC$ millions 8.86* 8.14 7.28 5.74 4.59 FY2008 FY2009 FY2010 FY2011 FY2012 *FY2012 – For the six month period ended Dec 31 11
  12. 12. (CDN $000s) Dec 31, 2011Cash & cash equivalents $ 815Current assets $ 25,337Non-current assets $ 15,575Total assets $ 41,727Current liabilities (including current portion of long-term debt) $ 17,298Long-term debt $ 1,165Future income tax $ 436Equity $ 22,828Total equity and liabilities $ 41,727 12
  13. 13. (CDN $000s except earnings per share) 1st QTR 2012 2nd QTR 2012 Ended Ended Sep 30, 2011 Dec 31, 2011Revenue $ 16,929 $ 14,363EBITDA as a % of gross revenue 18.04 10.23EBITDA per Share (Basic)* $ 0.04 $ 0.02Earnings before Taxes $ 1,520 $ 637Earnings per Share (Basic) $ 0.02 $ 0.01Cash from Operations** $ 1,471 $ 1,104Gross Margin % 24.6 24.1*Net Earnings before interest, tax, amortization, stock based compensation and other items (EBITDA)**Before changes in non-cash working capital items December 31, 2011: Working Capital of $8.86 million Assets of $41.73 million Shareholders Equity $22.83 million 13
  14. 14.  Debt reduction Expand effective capacity per drill and increase drill utilization Increase profit margins Retain skilled workers and enforce high safety standards Achievements to Date Increased overall revenue by 50% Increased international revenues by 65% 59% of drills turning on gold projects Strengthened the Company’s client base with long term and multi drill contracts Continued to strengthen the Company’s safety first culture 14
  15. 15.  Cabo Drilling is in a position to move forward despite the stressed global financial and economic environment High capital expenditures, in fiscal 2006-2008 and 2011, have positioned Cabo for the projected growth of the mining markets in 2012 Offering a variety of drilling services – including deep hole, conventional surface, helicopter support and underground drilling. Cabo is equipped to provide drilling services to its customers in its global areas, regardless of location, terrain, geology, depth to target or environmental considerations Cabo can easily “migrate” to meet market demands and needs and has the ability and expertise to shift equipment and personnel to match changing market conditions 15
  16. 16. “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 Resources”  Employee Relations Strategies  Retention Strategies  Training! Training! Training!  Tapping the International Talent Pool  Health and Safety Plans  Fitness for Work Program Retaining qualified staff enables Cabo to provide the results its customers demand and deserve 16
  17. 17.  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 To be the first choice for investors by consistently generating superior value and providing excellent corporate governance to shareholders and stakeholders 17
  18. 18. Relative Size of Contract Drillers 18
  19. 19.  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 19
  20. 20. TSX-V: CBE 20

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