2016 Annual Results 16 March 2017
Disclaimer IMPORTANT NOTICE This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Capital Drilling Ltd. (the “Company”), nor shall any part of it nor the • fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company. This document is being supplied to you solely for your information. No reliance may be placed for any purposes whatsoever on the information or opinions contained in this document or on its completeness. No representation or • warranty, express or implied, is given by or on behalf of the Company or any of its directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of its members, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. This document and its contents are confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. This document is only addressed to • and directed at persons in member states of the European Economic Area who are “qualified investors” within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC) (“Qualified Investors”). In addition, in the United Kingdom, this document is being distributed only to, and is directed only at, Qualified Investors (i) who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) and Qualified Investors falling within Article 49(2)(a) to (d) of the Order, and (ii) to whom it may otherwise lawfully be communicated (all such persons together being referred to as “relevant persons”). This document must not be acted on or relied on (i) in the United Kingdom, by persons who are not relevant persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, by persons who are not Qualified Investors. 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The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. The securities mentioned herein have not been, and will not be, registered under the US Securities Act of 1933 (the “Securities Act”), or under the applicable securities laws of Canada, Australia, Japan or the Republic of South Africa, and • may not be offered or sold in the United States (as such term is defined in Regulation S under the Securities Act) unless they are registered under the Securities Act or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and, subject to certain exceptions, may not be offered or sold within Canada, Australia, Japan or the Republic of South Africa or to any national, resident or citizen of Canada, Australia, Japan or the Republic of South Africa. No public offer of securities in the Company is being made in the United States, Canada, Australia, Japan or the Republic of South Africa. Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Company’s or, as appropriate, the Company’s directors’ current expectations and projections about future events. By their nature, • forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this document. By attending the presentation to which this document relates or by accepting this document you will be taken to have represented, warranted and undertaken that: (i) you are a relevant person (as defined above); (ii) you have read and • agree to comply with the contents of this notice; and (iii) you will use the information in this document solely for evaluating your possible interest in the Company and for no other purpose. 2
Section 1 – Introduction 3
Introducing Capital Drilling SERVICES OVERVIEW STRATEGIC FOCUS Cap apital D l Drill illin ing p provid ides Exploration drilling Mineral drilling company Africa and emerging markets complete d drillin illing • • • focussed (Africa c90% of revenue) Grade control drilling Commenced operations in Tanzania • • solutions to to in 2005 Blue chip and mid tier clients • Blast hole drilling • Listed on LSE in 2010 Long term production contracts customer ers within • • Underground drilling • African focussed, headquartered in Gold and base metals focus • • the g glob lobal min inerals ls Technical services Mauritius • industry REVENUE BY CUSTOMER REVENUE BY CUSTOMER REVENUE BY MINING PHASE MAJOR CUSTOMERS Acacia Mining • AngloGold Ashanti • Barrick Gold Corporation • 75% 89% Centamin • Production Mid tiers & 2016 Majors 2016 Kinross Gold • Nevsun • Resolute • 4 Majors Mid-Tiers Juniors Production Development Exploration Underground 4
Client History Serbia Armenia Dundee Lydian Pakistan Egypt Antofagasta Barrick Gold Mauritania Gippsland Thani Dubai Redblack (AngloGold Ashanti) Eritrea Knight Piesold Ethiopia Mali Andiamo Chalice Gold BHP Billiton Ghana Sunridge Ethiopia Potash Kenya Kinross DRC PNG & Solomon Islands Anvil Allied Gold Tanzania Peru Tiger Barrick Gold Barrick Gold Oil Search MRL BHP Zambia Cradle Santa Barbara Albidon Glencore Barrick Gold IMX Mozambique Chile Botswana Equinox Liontown Boabab First Quantam Magnis Antofagasta Riversdale MMG Mantra BHP Rio Tinto Omega MMG CMP Rift Valley Glencore MMG Polar Star 2016 Active Locations Regional Offices 5 Previous Registered Offices & Operations
Rig Fleet DIAMOND (EXPLORATION & DELINEATION) BLAST HOLE Number of rigs Number of rigs 51 21 Average contract length Average contract length 3 months to 1 year 4 to 5 years 2H16 utilisation 2H16 utilisation 22% 95% REVERSE CIRCULATION (RC) & GRADE CONTROL (GC) UNDERGROUND Number of rigs Number of rigs 16 4 Average contract length Average contract length 3 months to 1 year (RC) 1 year 4 to 5 years (GC) 2H16 utilisation 2H16 utilisation 70% 88% INDUSTRY LEADER IN EQUIPMENT STANDARDS AND FLEET AGE 6
Commodity prices & capital markets GOLD PRICE INDEX 1 BASE METALS 1 IRON ORE 2 1400 85 Copper Nickel Zinc 0.80 80 1350 75 1300 0.60 70 Gold price ($/oz) 65 1250 $/tonne 0.40 60 1200 55 50 1150 0.20 45 1100 40 0.00 1050 35 30 -0.20 1000 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 1. Source: Bloomberg (as at 04 Jan 2017) EQUITY RAISINGS BY JUNIOR MINERS (USD$M) 2 3000 2500 2000 1500 1000 500 0 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Australia Canada US Other 2. Source: Bloomberg IMPROVING MACRO CONDITIONS DRIVING AN IMPROVEMENT IN DEMAND 7
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