EDMS ROADSHOW PRESENTATION OCT · Options 2.22m Fully DilutedFully Diluted 68 47m68.47m Implied Mkt...
Transcript of EDMS ROADSHOW PRESENTATION OCT · Options 2.22m Fully DilutedFully Diluted 68 47m68.47m Implied Mkt...
DISCLAIMER
This presentation was prepared by Every Day Mine Services Limited (the “Company”) and should be viewed solely inThis presentation was prepared by Every Day Mine Services Limited (the Company ) and should be viewed solely in conjunction with, and is incomplete without, the oral briefing to be provided by the Company on or about the date of this presentation. This presentation is provided for information purposes only and is not an offer, invitation, solicitation or recommended with respect to the subscription for, purchase or sale of any security, and neither this document nor anything in it shall form the basis of any contract or commitment. Accordingly, no action should be taken on the basis of, or in reliance on, this presentation.taken on the basis of, or in reliance on, this presentation.
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The forward looking statements included in this presentation involve subjective judgement and analysis and areThe forward looking statements included in this presentation involve subjective judgement and analysis and are subject to significant uncertainties, risks, and contingencies, many of which are outside the control of, and are unknown to, the Company. In particular, they speak only as of the date of these materials, they assume the success of the Company’s business strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which those statements are based. Given these uncertainties, readers are cautioned to not p ,place undue reliance on such forward looking statements.
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Overview• Integrated Australian based mining services company • Operations in contract surface and underground drilling• Operations in contract surface and underground drilling,
down-the-hole hammer drilling, general mine services and fibrecrete production
• Currently servicing clients in Vic, NSW, SA and QLD• Cobar, NSW based company established in 1995• Fleet of 17 commissioned drill rigs servicing both surface
and underground applications and 3 DTH rigs• Combined staff of more than 150 people• Market cap of $44.2m at as 30 October 07 at 64c/share• $16m added to market cap since listing
High quality customer list
P k G ld A R
High quality customer list
• Peak Gold• CBH Resources
• Auzex Resources• Tri Origin Minerals
• CSA (Glencore)• Cobar Consolidated
• Augur Resources• Ironclad ResourcesCobar Consolidated
Resources• Lihir Gold
Ironclad Resources• Platsearch
B di Mi i• Lihir Gold• Icon Resources
• Bondi Mining• Anglo Gold
Contracts under negotiation with other majors in NSW and SA for DTH work
What do we do?
Every Day MineServices LimitedServices Limited
Every Day Mine Services Operations
Pty Ltd (EDMSO)
G.O.S DrillingPty Ltd (GOS) Pty Ltd (EDMSO)
Fibrecrete Contracting Surface AirDrilling
Under GroundDiamond Rigs
Fabrication
Labour Hire
Down the Hole Hammer
Drilling
Surface Diamond Drilling
CombinationDrilling
Diamond Rigs
Labour Hire
Pumps
gg
Experienced Board
Peter Bradfield – Non Exec Chairman Former ERA CEO and Elders Mining Group MD including Eltin Ltd and Kaiser Engineers Australia
Roger Jackson – MD, Company Founder Geologist, Driller, Mine Services, equipment hire
Declan Franzmann – NED Mine Engineer, highly regarded mining consultant
Joshua Rogers NED Corporate Advisory andJoshua Rogers – NED Corporate Advisory and Funds Mgt principal
J h B ll CFO & C S t FCMA E t i li t dJohn Bell – CFO & Company Secretary FCMA, Extensive listed company board and management experience
Why invest in EDMS?• Established company in the mining
services industry• Focused on Australia providing aFocused on Australia providing a
strong platform for expansion• Exposure to the strongly performing
resources and outsourced servicesresources and outsourced services markets
• Group has track records of strong revenue growth profitability and cashrevenue growth, profitability and cash flow
• Secured base contracts with blue chip clientsclients
• Track record of successful long term operating contractsE i d B d d t• Experienced Board and management team
Why invest in EDMS?• Favorable dividend policy• Mature businesses with established
reputation and procedures• Ability to expand through various
economic cycleseconomic cycles• Strong outlook for growth in key
operating sectors• Proven integration capacity for
complementary business units• Strict acquisition and growthStrict acquisition and growth
parameters
Achievements since IPO
• Acquisition and integration of an underground diamond drilling business from Silver City Drilling Pty Ltd.
E i f th t t l i fl t (f 7 i t 17 i )• Expansion of the total rig fleet (from 7 rigs to 17 rigs) plus three down-the-hole hammer rigs.
• Strengthened management team.
• Establishment of an in-house safety and training department.
Achievements since IPO
New Major Contracts secured with:j
• Tri Origin Minerals Limited – 9,500 metres of primarily diamond core drillingprimarily diamond core drilling
• Ironclad Mining Limited - initially 20,000 metres with g ythe possibility of extending this to 35,000 metres
• Auzex Resources - 15 000 metres of shallow RCAuzex Resources 15,000 metres of shallow RC drilling
• Augur Resources 3000 metres of RC drilling plus• Augur Resources – 3000 metres of RC drilling plus 7,000 metres multi purpose – can extend by 3,000/5,000 metres respectively.
Achievements since IPOAchievements since IPO
• Purchase of two JCB articulated low profile concrete trucks for CSA to increase availability and productiontrucks for CSA to increase availability and production
• Successfully negotiated contract rate increases on y gexisting contracts
• Appointment of key executives:• John Bell – CFO
Ad Ri S f t M• Adam Rice – Safety Manager• Sally Rainbow – HR and Training
Achievements since IPO
• Completion of new main administration offices andCompletion of new main administration offices and training facilities in Cobar
• Successful move of drilling business into larger maintenance facility workshops
• Implemented best practice safety management systems across the entire business
Capital Structure and Share Price Performance
Capital Structure post IPOExisting Shares 66 25m
Share Price PerformanceExisting Shares 66.25mOptions 2.22mFully Diluted 68 47mFully Diluted 68.47m
Implied Mkt Cap at $0.64 is $$43.8m
Debt $2 8mDebt $2.8m
Notes:Existing shares are subject to 6mth (2.3m) and 15mth (43.95m) voluntary escrow
IPO price 40c
Current operationsWeipaWeipa
Surface Aircore
Collerina , Surface Multipurpose
Surface RC2 x Surface Diamond, Surface Multipurpose, 2 DTH
Surface RC
Kimba, SAKimba, SACobarCobar Glen InnesGlen Innes
2 x Surface RCCoomaCooma
GoulburnGoulburnGrenfellGrenfell Surface Multipurpose
YeovalYeoval
BallaratBallarat CoomaCooma
U/G RC Surface RC
Surface Diamond
U/G RC Surface RC
DTH Drilling Division Update• Cubex 6200 working at CSA till end of October 2007.
From Nov 2007 onwards, on long term contract at E dEndeavor
• Cubex Orion – Arrived last week of October. To be commissioned at CSA 2nd week of November. 2008 permanent contract with major being finalised.
• Atlas Copco – Contract pending underground RC trial at Ballarat
CSA UpdateCurrently providing:
• Fibrecrete delivery• Surface RC and Diamond
drilling• DTH Drilling
L b Hi• Labour Hire
Also tendering on a newAlso tendering on a new drill contract at a new CSA projectp j
An EDMS long term client
Endeavor UpdateCurrently providing:• Underground DiamondUnderground Diamond
drilling• Waste Managementg• Bore field drilling• Labour HireLabour Hire
Just announced:• New DTH hammer
drilling contract for C b 6200Cubex 6200
An EDMS long term client
Peak UpdateCurrently providing:
• Underground and surface drillingg
• Labour Hire• Service crew for U/GService crew for U/G
mining
Also tendering on a new fibrecrete production and delivery contract
Financial ProfileFY 2006 FY 2007 FY 2008Actual Forecast Forecast'000s '000s '000s
Sales 8,015 12,601 20,568 EBITDA 1,085 2,385 5,042 EBIT 945 2,088 4,224 NPAT ** 1,362 2,941 EPS ** 0.021 0.044
Dividend Payout ** ** 50.0%Dividend Amount p/share ** ** 0.022 pDividend Yield at IPO price ** ** 5.55%
Shares on Issue ** 66,250 66,250 Mkt Cap at IPO ** 26,500 26,500 p , ,
EBIT Multiple ** 13.4 6.6P/E Multiple ** 19.5 9.0
Strong Revenue / Profit Growth25,000
20,000
10 000
15,000$ '000
5,000
10,000
0 FYA
c FYA
c FFo FFoY 05
ctual
Y 06ctual
FY 07orecast
FY 08orecast
Sales Revenue NPAT
Future Growth Opportunities• Acquisitions where earnings per share accretive (a number being
considered)
• Revenue growth in 2008 through renegotiated contracts at higher rates than previous contracts
• New equipment = better performance and higher revenue
• Relationships with larger mining houses to underpin growth both from p g g p gexisting and new services to existing mines
• Growth locally and potentially offshore with larger mining houses on new mines
• Strong base in Cobar region provides leverage into new mines and regions on the eastern seaboardregions on the eastern seaboard
• Marketing of, and maximisation of value in, DTH drilling, especially production drillingp g
Milestones to MonitorDec Q07 Cubex Orion, Cubex 6200 and Roc
306 machines to hit full capacity
Mar Q08 3 new surface rigs to be brought on-line from in-house constructionline from in house construction
June Q08 All current and planned equipment fully utilisedfully utilised
Sept Q 08 Full year results reportedInaugural dividend payment
ACN 124 279 750
www everydaymineservices comwww.everydaymineservices.com
Winner of the 2007 Cobar Most Outstanding Business AwardMost Outstanding Business Award
Runner-up in the Orana Region Most Outstanding Business Award