investor presentation, september 2016 we are...

INVESTOR PRESENTATION 2016 |

WE ARE GEODRILL

Investor Presentation, September 2016


Forward Looking Statements

This presentation contains “forward-looking information” and “financial outlook” within the

meaning of applicable Canadian securities laws and may contain forward looking

information attributed to third party industry sources. These statements and information are

predictions only and represent Geodrill’s expectations as of the date of this presentation

and Geodrill does not undertake any obligation to update the forward looking information or

financial outlook to reflect new information, subsequent events or otherwise. By their

nature, forward looking information and financial outlook involve numerous assumptions,

known and unknown risks and uncertainties, both general and specific, that contribute to

the possibility that the predictions, forecasts, and projections made will not occur and

actual events or results may differ materially from such predictions, forecasts, and

projections. Undue reliance should not be placed on such information as there can be no

assurance that the plans, intentions or expectations upon which they are based will occur.

Forward-looking information is also based upon the assumption that none of the identified

risk factors that could cause actual results to differ materially from the forward-looking

information will occur. Accordingly, specific reference should be made to the risk factors

described in the Annual Financial Statements available on SEDAR.

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Corporate Data

MAJOR SHAREHOLDERS CAPITAL STRUCTURE

D. Harper 41.2% Symbol TSX-GEO

Sustainable capital 14.5% Shares Outstanding 42.5 M

Maxam Capital 11.6% Fully Diluted 45.5 M

Aegis Capital 8% 52 Week Range $2.38 - $0.47

AGF 5% IPO Date Dec 16, 2010

ANALYST COVERAGE IPO Price $2.00

Beacon Securities TD Securities Market Capitalization $90 M

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As at September 9, 2016


Hard Core Drillers

4

Mauritania

Senegal

Guinea

Mali

Niger

GhanaIvory Coast

SierraLeone

Burkina

Faso

GuineaBissau

Benin

Togo

WEST AFRICAN

PURE PLAY

24%

CAGR

100%

organic growth

INDUSTRY LEADING

METRICS

Focused stronghold

in mining rich area

Higher than industry

average

EBITDA margin

45

RIGS

1 to 45 rigs

since inception


Positioned for growth

5

HIGH PERFORMANCE RIG FLEET

• Tier-1 rig fleet attracts top tier clients

• Less downtime, more consistent results

FINANCIAL FLEXIBILITY

• Able to maintain pricing discipline

• Remains efficient and maintains margins

FOCUS ON CORE MARKET

• High-growth market

• Trusted management team with strong

geographical knowledge

CUSTOMER MIX

• Well-established, long-term client relationships

• 80% senior mining top-tier customers


Superior Fleet of Multipurpose Rigs

6

HIGH EFFICIENCY

HIGH PERFORMANCE

Multipurpose rigs can switch between

reverse circulation and diamond core

drilling with minimal effort and little

downtime

Multipurpose rigs do not have to be

retooled or retrofitted to drill for different

minerals

Our rig fleet is most modern in industry

Fleet currently consists of 45 rigs


Our Mechanical Advantage

State-of-the-art operations facility ensures our

fleet is well-maintained

• Workshop manufactures up to 300 different

frequently replaced parts including drill rods

Workshops centrally located to client projects:

• Able to reach projects to deliver repaired

parts quickly; reduced need to ship parts

from out-of-country

• Less downtime for rigs awaiting repair

Contingency plan with sufficient inventory and fuel

for a month reduces work stoppages/disruptions

7


Our People Make the Difference

8

HIGHLY TRAINED AND

SKILLED WORKFORCE

DRIVES PRODUCTIVITY

All operations designed to meet the highest

health and safety standards

90% of workforce are contract,

non-unionized employees

Mutual respect, good working

environment means low turnover

Low turnover maintains consistency, delivers

improving results


Top Tier Customer Base 2016

• Newmont (GH)

• Kinross (GH)

• Acacia Mining (BF)

• Centamin (BF)

• Newcrest (CI)

• Roxgold (BF)

• Asanko Gld (GH)

• Endeavour (GH)

• Endeavour (CI)

• Endeavour (BF)

• Avnel Gold (ML)

• Tietto Gold (CI)

• Perseus (CI)

• Perseus (GH)

• Semafo (BF)

• Star Goldfields (GH)

• Cardinal Resources (GH)

• Anglo American (Zambia)

Niger

Burkina Faso

Benin

Togo

Ghana

Mali

Senegal

Guinea

Sierra

Leone

Ivory Coast

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http://en.wikipedia.org/wiki/File:Kinross_Gold_logo.svg

http://en.wikipedia.org/wiki/File:Kinross_Gold_logo.svg


Improved Financial Performance

10

16.0

10.2

12.3

15.5

19.4

6.6

2.5 2.4

6.6

7.8

5.3

1.5 1.7

4.85.4

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

Q2 2015 Q32015 Q4 2015 Q1 2016 Q2 2016

Revenue (US) Gross Profit EBITDA

Mill

ion

s

Q2 2015 – Q2 2016 Year to Date

All figures in U.S. Dollars


Balance Sheet

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In USD June 30, 2016

Current Assets $36.3M

Non-current

Assets$34.8M

Total Assets $71.1M

Current Liabilities $15.8M

Total Debt $5.6M

Total Liabilities $13.6M

Total Equity $51.9M

NTBV$1.22 USD

$1.59 CDN

Receivables $12.9M

Inventory $15.7M

Cash $6.7 M

Prepayments $1.0M

41%

39%

17%

3%

77%

12%

8%3%

Plant &Equip. $3.7M

Drill rigs $26.1M

CWIP $4.0M

Vehicles & $1.0M

Leasehold

Improvements

1. Excludes current debt

NON-CURRENT ASSETS

$34.8M

CURRENT ASSETS

$36.3M


Progressive Balance Sheet

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38 38 38 39 39 3942 42

45

-$6.0-$5.0-$4.0-$3.0-$2.0-$1.0$0.0$1.0$2.0$3.0$4.0$5.0$6.0$7.0$8.0$9.0

$10.0

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

DE

BT

/ C

AS

H

CASH $M Total Debt $M Net Debt/Cash $M Rigs

38 38 38 39 39 3942 42

45

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

CA

PE

X

CAPEX $M Rigs

Since 2014:

Total Debt down 20%

$5.6M

Cash increased 450% to

$6.7M

Net Cash $1.2M an

increase of 550%

We invested $9M in

Capex

Grew rig fleet 18% from

38 rigs to 45

Added 3 operational

bases in Burkina Faso,

Ivory Coast, and Zambia


Our Metrics are Leading the Industry

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We drilled the most metres

with our modern high performance

fleet

Highest ARPOR

(Average Revenue

Per Operating Rig)

GEO Quarterly

ARPOR US$ 700k = twice

competitors C$ 400k

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Other Geodrill


Compelling Valuation

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TD SECURITIES – MINERAL DRILLERS COMP TABLE

August 2016

Reporting Mkt. EV EBITDA ($mm) EVIEBITDA($mm)

Name Ticker Currency Price Cap $mm P/BV Current Yr Next Yr Current Yr Next Yr

METALS & MINERAL DRILLERS

Boart Longyear BLY-au AS $0.17 $158 $734 -0.9x nmf nmf nmf nmf

Major Drilling MDI-t C$ $7.50 $601 $563 1.4x $33.7 $52.5 16.7x 10.7x

Layne

ChristensenLAYN-us US$ $8.30 $164 $264 1.3x $33.5 $49.6 7.9x 5.3x

Ausdrill ASL-au A$ $1.13 $353 $672 0.4x $130.7 $133.7 5.1x 5.0x

Foraco Intl FAR-t C$ $0.40 $36 $137 0.3x nmf nmf nmf nmf

Orbit Garant O GD-t C$ $1.63 $57 $69 0.8x nmf nmf nmf nmf

Energold EGD-v C$ $1.05 $55 $63 0.6x -$3.4 $5.7 nmf 11.1x

GEODRILL GEO-t US$ C$2.10 C$89 C$88 1.3x $16.2 $18.6 4.1x 3.6x

Average 0.7x 8.5x 7.2x

Notes: Consensus Estimates, except for GEO, EGD and MDI, which are TD estimates

ASL and OGD's Results are FY Ending June 30; LAYN's Results are FY Ending Jan. 31; MDI's Results are FY Ending Apr. 30.

Current Yr estimates are based on FY2016, with the exception of LAYN and MDI which are FY2017


A Dearth of New Discoveries

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GOLD IN MAJOR NEW DISCOVERIES

AND EXPLORATION BUDGETS

1990

0

1992 1992 1996 1992 2000 2002 2004 2006 2008 2010 2012 2014

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2,000

3,000

4,000

5,000

6,000

7,000

1,000

0

To

nn

es

US

$m

n

*A significant discovery is classified as a deposit containing at least 2 moz of gold in reserves, resources and past production, or at least 1 moz of

gold in reserves. **Includes 100% of grassroots and 75% of late-stage gold exploration budgets

Source: SNL Metals & Mining; World Gold Council

3-year running average AU in discoveries* Discovery-oriented gold budget** (rhs)


• High performance rigs and unrivalled

drilling expertise

• Strong foothold and good reputation in

high-growth market

• Leading utilization rates and growing market share

• Strong demand and pricing

• Attractive valuation relative to peers

WHY GEODRILL?

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WE ARE GEODRILL

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Investor Presentation, September 2016

investor presentation, september 2016 we are...

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