egd sept2-12
TRANSCRIPT
CORPORATE PRESENTATION SEPTEMBER 2012
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
• Global Specialty Drilling Contractor
Providing socially & environmentally sensitive drilling
services to the international mining & energy sector.
• Market Leaders in ‘Frontier Drilling’
Proprietary rig platform designed for drilling in
remote and diverse sub terrain locations with
limited infrastructure and/or sensitive environmental
and social issues in the mining industry.
• Global Footprint
Operating 234 rigs in over 22 countries worldwide
searching & mapping a broad spectrum of target
resources.
• Proven Track Record of Performance
Driving compounded annual growth in revenues
of over 25% over the last 6 years.
Energold’s Highly Mobile Surface Rig in Operation
Durango, Mexico
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OUR BUSINESS
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Mining
Energold Drilling’s
main line of business
Operating in 22 countries
globally spanning broad
spectrum of minerals
and resources
Minimized
environmental impact
Frontier Drilling service
with Man Portable drills
Energy
Significant presence in
the Canadian Oil Sands
Bertram acquisition of
2011 added 129 rigs to
Energold and paved way
into major industry
Adds stability to
operation cash flow and
risk diversification from
pure metals
Manufacturing
Dando Drilling UK
provides manufacturing,
engineering, and
maintenance of
next generation
multi-purpose rigs
Capabilities in
water well drilling
United Nations approved
vendor in Africa
OUR BUSINESS SEGMENTS
• Modular Component Design
– Easy transport globally and within country with quick turnaround times between rig setups
• Proprietary Technology
– Depth capabilities of over 850m with ¼” more in core diameter using Thin Wall rod system
– Competitive portable rigs only reach depths between 200–300m BTW
• Rigs Built In-House
– Ensures proprietary designs are not copied and we have the capability to drive further enhancements
– Continual upgrades are implemented from input of field personnel
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OUR TECHNOLOGY
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WORLD WIDE OPERATIONS
World-Wide Operations Energold has offices and/or operations in over 22 countries with complete jurisdictional compliance
and logistical support.
Contractor Of Choice Commence relationship on frontier program that historically follow the project through downstream
stages of development. Current & historic client list includes most 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 234. Mobile rig platform can be more easily re-deployed more easily and cheaper than conventional rigs.
Dominican Republic
Peru
Albania
Guinea
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GLOBAL PROJECT EXAMPLES
Frontier Drilling Specialists
Energold’s clientele
includes a wide selection
of mining companies.
Existing clientele range
from early stage junior
explorers to well known,
mature producers spanning
nearly every base and
precious metal commodity.
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
• Magellan
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CUSTOMER PROFILE
CDN$ (000’s) 2009 2010 Dec 31, 2011 YTD (Year to Date) 2012
Revenue 23,719 54,591 133,482 $85,920
Net Earnings (1,951) 1,449 26,428 ($1,147)*
EPS (0.06) 0.04 0.65 ($0.02)*
Cash 18,460 28,225 $22,782 $36,465
Working Capital 46,319 61,461 $69,341 $93,429
• 3 Months Ended June 30, 2012 Traditional busy quarter quieter due to muted capital markets for
juniors and overall cautious market sentiments.
• Business continue to be profitable operationally, with continued revenue growth
• Maintaining average revenue per meters of over $193/metre. 9
FINANCIAL HIGHLIGHTS
* Note adjustment for Bonus Payment to Energold Energy of $7.5 million up to June 2012 on meeting EBITDA targets of
over $5 million. Annual payment capped at $10,500,000. Additional amortization expense due to IFRS gain on
acquisition (refer to Q4 figures) of $3,25 million YTD. Adjusted EPS with just Bonus Expense would be $0.14 YTD.
Q2 2011 Q2 2012 % Change
Revenue
Mineral 26,059 22,273 (14.5)% Energy N/A 4,438 N/A Manufacturing 1,350 5,939 152%
Total Revenue 28,417 32,650 14.9%
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FINANCIAL REFLECTS GROWTH
Rig Count EPS Growth*
Revenue
Meters Drilled
Rig Count Growth (2010-2011) Global Presence (Countries)
Market Cap and Liquidity Revenue Growth (2010-2011)
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DIVERSIFIED GLOBAL GROWTH
AND VALUE PRICED VS PEERS
TRADING SYMBOL EGD : TSX.V
SHARE PRICE $3.45
ISIN CA29268A1030
SHARES O/S 46.2 MILLION
SHARES F/D 47.1 MILLION
MARKET CAP $160 MILLION
INSTITUTIONAL OWNERSHIP 25%
MANAGEMENT OWNERSHIP 10%
Fred Davidson CA MBA – President, CEO and Director
James Coleman LLB – Chairman and Director
Craig Geier HBA – Chief Financial Officer
H. Walter Sellmer – Director
Michael J. Beley – Director
Wayne Lenton – Director
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CORPORATE SUMMARY
STRONG INDUSTRY
FUNDAMENTALS
• Historic high level of
commodity prices vs.
production cost
• New sizable discoveries are
increasingly difficult to find
• Producers with record cash
levels seeking to replenish
reserves (evident by recent
M&A activities in market)
• Frontier drilling activity is
needed for new discoveries Source: MEG, PriceWaterhouseCoopers
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MINING INDUSTRY
– POSITIVE OUTLOOK
• Proven player in sizable oil
sands market dating back to
1963
• Niche high margin market with
tremendous growth prospects
• Re-allocate under utilized drill
fleet (seismic and specialty)
within Energold’s global network
• Oil Sands coring – smooth out
Energold traditional slow mineral
seasons (Q4/Q1)
• Synergy from people – trained
drillers in coring can transition
to mineral drilling to sustain
growth
Bertram TH60
Coring Rig
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ENERGOLD ENERGY
BERTRAM INTERNATIONAL CORP.
LIS GT1
Seismic Drilling Rig
Top oil resource in the world
• Oil sands accounts for
55% of Canada’s crude oil
production and represents
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 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 15
ENERGY INDUSTRY
(OIL SANDS) OUTLOOK
• Over 150 years of
experience in designing
and manufacturing
of larger rigs
• Maintenance, servicing,
and sales of rigs to
third parties
• Expertise in water well
drilling to build a new
services division that
can leverage the existing
Energold logistics
Mineral Multipurpose
Geotechnical
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ENERGOLD MANUFACTURING
DANDO INTERNATIONAL LTD.
Waterwell
• Growth: The manufacturing
and equipment demand for
commodity industry is growing
at CAGR of 8%, order backlog
up 11%.1
• Backlog of Demand
Boart Longyear’s drilling
products order backlog
corresponds to strong
precious metal prices 2
• Potential: Global mining
equipment market is $61
billion. At $14.2 million
(2011), Energold is just 0.02%
of the market.
1. Caterpillar Global 2012 Outlook http://www.reuters.com/article/2012/07/25/us-caterpillar-results-
idUSBRE86O0NM20120725
2. Boart Longyear 2012 First Half Outlook (Chart)
3. Standard & Poors – Credit Week Feb 2012 17
MANUFACTURING
INDUSTRY DEMAND CONTINUES
• Positive SOCIAL Impact
– Employment opportunities provided to local communities
– Helpers are trained in work-safety and acquire mechanical experience
• Positive ENVIRONMENTAL Impact
– Highly portable rigs leave a small environmental footprint
– Jobs completed without cutting down trees or creating access roads
• Third Party Recognition for Positive Approach
– PDAC Environmental Excellence in Exploration Case Study (E3 Initiative)
A social and environmental approach to
any drilling program leads to a more
successful outcome for all parties involved.
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SOCIAL & ENVIRONMENTAL
Haiti Bridge
Infrastructure Project
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EXPANSION OF “CORE BUSINESS” MINERAL
DRILL FLEET
• 128 mineral drilling rigs as of April 2012 – solidify existing markets
• Continued growth of frontier drilling and transitioning mature projects with larger conventional drills
• Organic Growth and lookout for acquisitions
• Continual 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.
• Expand drilling services such as multi-purpose and reverse circulation (RC)
GROW ENERGY AND MANUFACTURING
DIVISIONS
• Grow Manufacturing service further and utilize capabilities for larger rigs for larger Energold clients (multi-purpose rigs)
• Energold Energy division poised for strong growth as oil/gas demand continues
• Grow new business divisions water well drilling and manufacturing
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GROWTH STRATEGY:
LEADING GLOBAL SPECIALTY DRILLER
• IMPACT Silver Corp is a profitable
silver producer in Mexico
• ENERGOLD DRILLING CORP
owns 6.87 million shares (11%~)
• OPERATIONS
Three profitable, operating mines
at Royal Mines of Zacualpan
• EXPLORATION
Huge exploration potential in
623 sq km composed of two
under-explored Silver districts
• DEVELOPMENT
Capire open pit mine
scheduled for production
Zacualpan Processing Plant
SYMBOL IPT-TSX.V
SHARE PRICE $1.30
MARKET CAP $91 M
CASH $34 M
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INVESTMENT HOLDINGS:
IMPACT SILVER CORP.
-5,000
0
5,000
10,000
15,000
20,000
25,000
30,000
2006 2007 2008 2009 2010 2011
Revenues
Net Earnings
Operating Cash Flow
CD
N$ 0
00
’s
Year 21
IMPACT SILVER CORP.
PROFITABLE GROWING PRODUCER
2011 2010 2009 2008 2007 2006 %
2006-2011
Total tonnes processed (t) 154,289 131,348 114,340 102,426 99,918 68,173 +126%
Tonnes processed per day (t) 424 360 313 280 274 196 +116%
Silver (oz) Production 833,607 750,259* 823,571 645,668 349,949 465,673 +79%
Lead (t) Production 731 734 969 813 601 375 +95%
Zinc (t) Production 1,248 1,212 1,098 1,053 976 725 +72%
Revenue per tonne sold $171 $123 $110 $90 - - +90%
Direct cost per tonne sold $70 $63 $60 $55 $44 $60 +17%
Analyst Company Contacts Updates
Michael Mills Beacon Securities 416-643-3871 Aug 30, 2012
Maggie Johnson Cormark
Securities
416-362-7485 Aug 30, 2012
Peter Prattas Fraser Mackenzie 416-682-4243 Aug 30, 2012
Russell Stanley Haywood
Securities
416-304-2198 Sept 5, 2012
Kam Mangat Salman Partners 416-861-1270 Aug 30, 2012
Scott Parsons Toronto Dominion
(TD)
416-307-9360 Aug 30, 2012
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ANALYST COVERAGE
• Energold presents a compelling opportunity to invest in a broad range of commodities
and projects worldwide
• Continued revenue and earnings growth will reflect in share prices
• Diversified revenue streams, strong balance sheet, and strong growth 23
INVEST IN ENERGOLD TODAY
