Egd nov2013

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Nov 2013

Transcript of Egd nov2013

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Nov 2013

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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.

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FORWARD LOOKING STATEMENTS

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Mining

Energold Drilling’s original and primary line

of business. Market leader in frontier drilling services, operating 133

rigs in 24 countries spanning broad

spectrum of minerals.

Minimizes environmental and social impact with proprietary man-

portable drills.

Energy

Over 50 years of experience in the

Energy Services space catering to oil sands coring and oil/gas

seismic needs. This business division also handles geotechnical

drilling for engineering and construction for

larger extractive projects.

Manufacturing

A drilling brand with heritage of more than a

century, we design, manufacture, and maintain rigs and

supplies for clients globally.

Specializing in mineral, multi-purpose, water

wells, and geotechnical drilling machines and

parts. Manufactured and designed in UK.

BUSINESS SEGMENTS

Water

From the first water wells drilled more than 150 years ago during the cholera

outbreak in UK, Energold’s water

drilling division brings water related services such as de-watering,

water recycling, & fresh water well

drilling to existing clients across the

globe.

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CORPORATE SUMMARY

Fred Davidson CA MBA President, CEO and Director

James Coleman LLB Chairman and Director

Steven Gold CFA Chief Financial Officer

Martin Fitch-Roy Managing Director (Dando Drilling Services)|

Brian Bertram Managing Director (Energold Energy Services)

H. Walter Sellmer Director

Michael J. Beley Director

Wayne Lenton Director

Trading Symbol EGD:TSXV

Share Price (Nov 2013) $1.90

Shares Outstanding 47.6 Million

Shares Fully Diluted 47.6 Million

Market Cap $90.4 Million

Institutional Ownership 25%

Insider Ownership 10%

Cash $30.8 Million

Debt $12.6 Million

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CDN$ (000’s) 2010 2011 2012 June 31, 2013 (Q1-Q2)

Revenue $54,591 $133,482 $141,514 $77,137

Net Earnings $1,449 $26,428 ($8,650)* $2,162

Cash $28,225 $22,782 $28,493 $30,738

Working Capital $61,461 $69,341 $91,249 $85,601

Adjusted Earnings* $1,505 $14,143 $2,339 $4,542

Adjusted EPS* $0.04 $0.35 $0.05 $0.10

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FINANCIAL HIGHLIGHTS

Note Bonus Payment to Energold Energy of $1.1 million at June 2013 on meeting EBITDA targets of over $5 million. Annual payment capped at $10,500,000 with additional amortization expense due to IFRS gain on acquisition.

* Adjusted Earnings - Excludes earn-out payment and non-cash items which include accretion expense on debenture, finance cost related to sales-leaseback finance lease, share-based payments, foreign exchange, dilution and equity gain/loss on IMPACT, impairment/write-down of assets, gain on acquisition.

Q2 2012 Q2 2013 % Change

Revenue

Mineral 22,273 16,180 (27%) Energy 4,438 2,402 (46%) Manufacturing 5,939 4,691 (21%

Total Revenue $32,650 $23,273 (29%)

Challenging Mineral Market Persists – signs of stabilization

Energy segment quiet without seismic and geothermal

Solid quarter for Manufacturing – growth expected in 2013 still

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FINANCIAL GROWTH

EPS Growth* Rig Count

Meters Drilled Revenue

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• Global Drilling Solutions Provider Providing socially & environmentally sensitive drilling 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 240 rigs in 24 countries across a wide range of

metals and energy projects.

• Proven Track Record of Performance

Strong continued growth with diversified business in mineral

contract drilling, energy services, and rig manufacturing and sales.

Energold’s Highly Mobile Surface Rig in Operation

Durango, Mexico

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OUR BUSINESS

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WORLD WIDE OPERATIONS

World-Wide Operations Energold has offices and/or operations in 24 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 258 (mineral and energy rigs). Mobile rig platforms can be re-deployed more efficiently and cheaper than conventional rigs.

$12,770

$37,968,449

$24,534,708

$8,791

$33,837

Revenue by Region/Division YTD 2013

Mexico, Caribbean, Central America Drilling South AmericaDrilling Africa, Asia and Other ManufacturingEnergy

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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 1,000m with ¼ inch greater core diameter using (TW) 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

– Ability to upgrade portable rigs seamlessly to conventional drill rig as project evolves

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OUR TECHNOLOGY

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LONGTERM SOUND 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 in market)

• GDP Growth 2011-2025 forecast by

BHP is +6% for China and +2% for US

driving by urbanization

Source: MEG, PriceWaterhouseCoopers

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MINING INDUSTRY POSITIVE OUTLOOK

World needs new discoveries = more frontier drilling

Source: BHP Biliton Dec 2012 Macquarie Conference

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Energold’s clientele includes many of the world’s largest mining companies.

Existing clientele range from early-stage junior explorers to well known, mature producers spanning all base and precious metals, as well as industrial commodities.

MAJORS • Barrick Gold • BHP Billiton • Goldcorp • Grupo Mexico • Rio Tinto • Newmont Mining • Penoles • Vale • AngloGold • Fresnillo • El Dorado Gold • Codelco JUNIORS • Grayd Resources (now Agnico-Eagle) • US Gold (now McEwan Mining) • Great Panther Silver • First Majestic Silver • Olympus Pacific Resources (now Besra Gold) • Magellan • GoldQuest Mining Corp.

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CUSTOMER PROFILE

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• 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)

• Re-allocation under-utilized drill fleet

(seismic and specialty) within Energold’s

global network

• Synergy of talents – trained

drillers in energy drilling can transition to

mineral drilling and vice-versa

• Recent 2013 addition of 2 new oil sands

coring rigs to address market demand

Bertram TH60 Coring Rig

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ENERGOLD ENERGY BERTRAM INTERNATIONAL CORP.

LIS GT1 Seismic Drilling Rig

Quality name in Oil Sands 14 Rigs

12%

75 Seismic 62%

32 Rigs 26%

Energy Services Fleet

Oil Sands Coring Rigs

Seismic Rigs

Speciality Rigs (RC,Geothermal,Geotech)

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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 3. Canada National Energy Board – Energy Oil Sands Assessment 2006 13

ENERGY INDUSTRY OIL SANDS OUTLOOK

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• Over 150 years of experience in designing and manufacturing of larger rigs in the UK

• Maintenance, servicing, and sales of rigs and parts to third parties

• Expertise in water well drilling

• Building a new services division that can leverage the existing Energold logistics network

Mineral Multipurpose Mintec® Rigs

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ENERGOLD MANUFACTURING DANDO INTERNATIONAL LTD.

Trusted Name in Drills for 150 years

Water Well Drilling Watertec® Rigs

Geotechnical Drilling Rigs Geotec® Rigs

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• Growing Segment The manufacturing and equipment demand for resource industry has slowed mid 2013 for the sector but long term prospect is solid. Tepid 2012 with improvements in 2013 in US, China, and most of developing world. 1

• Market Potential Global mining equipment market is $61 billion. At $11.3 million (2013 YTD revenue), Energold is just 0.01% of the market. 3

1. Caterpillar Q2 2013 Earnings http://www.caterpillar.com/investors/events-and-presentations/presentations 2. Boart Longyear 2013 First Half Earnings – Aug 26 2013 3. Standard & Poors – Credit Week Feb 2012

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INDUSTRY DEMAND SOFTENED BUT ROOM FOR GROWTH FOR DANDO

2 Declining Order Backlog but Signs of stabilization

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• IMPACT Silver Corp is a profitable silver producer and explorer in Mexico

• ENERGOLD DRILLING CORP owns 6.87 million shares (11%~)

• OPERATIONS

Four mines in production

• EXPLORATION

Tremendous exploration potential with 623km2 and over 3,000 mine workings mapped to drive new developments

• DEVELOPMENT

Capire Mine is now in initial production with 200TPD mill

Zacualpan Processing Plant

SYMBOL IPT-TSX.V SHARE PRICE $0.55 MARKET CAP $55 M CASH $12 M DEBT $0

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INVESTMENT HOLDINGS: IMPACT SILVER CORP.

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Year 17

IMPACT SILVER CORP. PROFITABLE GROWING PRODUCER

2012 2011 2010 2009 2008 CAGR

2008-2012

Total tonnes processed (t) 168,826 154,289 131,348 114,340 102,426 +10.5%

Tonnes processed per day (t) 463 424 360 313 280 +10.5%

Silver (oz) Production 620,515 833,607 750,259* 823,571 645,668

Lead (t) Production 463 731 734 969 813

Zinc (t) Production 710 1,248 1,212 1,098 1,053

Revenue per tonne sold $94 $171 $123 $110 $90

Direct cost per tonne sold $65 $70 $63 $60 $55

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Positive Social Impact

– Provide jobs for locals

– 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)\

– BC Business Innovators of Year 2012

Energold’s approach is win-win for clients and local communities

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SOCIAL & ENVIRONMENTAL

Haiti Bridge

Infrastructure Project

Donated Waterwell

in Chihuahua, Mexico

Donated backpacks and textbooks to local schools in Dominican Republic

Donated shoes,

clothing, soccer balls, mosquito netting to Guinea

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EXPANSION OF “CORE BUSINESS” MINERAL DRILL

FLEET

• Grow mineral drilling rig fleet to

solidify existing markets

• Continued growth of frontier

drilling and transitioning with

clients to mature projects with

larger conventional drills

• Organic growth and search for

acquisitions in existing and new

markets

• Continue technological

advancements in rig design and

capabilities.

SEED AND EXPAND INTO NEW MARKETS

• Capitalize on high growth frontier regions such as South/Central America, Southeast Asia & Africa.

• Pursue additional ‘bolt-on’ acquisitions in target regions.

• Grow underground drilling services.

• Grow water well drilling business

• Expand drilling services and multi-purpose and reverse circulation (RC)

GROW ENERGY AND MANUFACTURING DIVISIONS

• Energold Energy division continues to benefit from niche market expertise in unconventional and conventional markets

• Grow manufacturing services and utilize capabilities to build larger rigs over time

• Grow new business divisions including the historical Dando footprint in water well activity

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CONTINUED GROWTH STRATEGY

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Analyst Company Contacts

Michael Mills CFA MBA Beacon Securities 416-643-3871

Stephen Kammermayer Clarus Securities

416-343-2782

Maggie MacDougall BBA Cormark Securities 416-362-7485

Ben Jekic CFA Industrial Alliance 416-203-5826

Kam Mangat CFA Salman Partners 416-861-1270

Steve Green CFA Toronto Dominion (TD) 416-983-3276

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ANALYST COVERAGE

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• Energold presents a compelling opportunity to invest in a broad range of commodities and projects worldwide

• Catalysts for growth – diversified business continues to find niche pockets of strength in market

• Favorable balance sheet allows EGD to capitalize on opportunities

• Value play on commodities – trading at 50% discount to one year revenue and low multiples 21

INVEST IN ENERGOLD TODAY

5 Year Chart on EGD:TSXV

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Appendix

Income Stmt

Income Statement Highlights 2010-2013

YTD 2013 (June30) 2012 2011 2010

Net Revenues ($Millions) $ 77.14 $ 141.51 $ 133.48 $ 54.59

Net Income ($Millions) $ 2.16 $ (8.65) $ 26.43 $ 1.59

Earnings Per Share (EPS) - Basic $ 0.05 $ (0.19) $ 0.65 $ 0.04

Earnings Per Share (EPS) - Diluted $ 0.05 $ (0.19) $ 0.64 $ 0.05

Cash Per Share (CPS) $ 0.65 $ 0.62 $ 0.62 $ 0.77

Net Working Capital ($Millions) 85.60 81.85 69.34 63.65

Metres Drilled (Meters) 198,500 428,300 587,544 346,328

Meters Drilled Energy (Meters) 223,800 630,600 444,400 N/A

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Appendix

Balance Sheet

Balance Sheet Highlights 2010-2013 YTD 2013 (June30) 2012 2011 2010

Current Assets ($Millions) 111.534 112.1 99.58 71.88

Total Assets ($Millions) 171.771 172.816 163.49 91.02

Cash and Cash Equivalents ($Millions) 30.738 28.493 25.267 30.7

Current Liabilities ($Millions) 25.935 30.253 30.24 8.23

Long-Term Debt ($Millions) 11.11 9.4 9.079 0.17

134.897 129.861 111.895 78.32

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Contact info

Jerry Huang MBA

Manager Investor Relations

jhuang@ energold.com 604-681-9501