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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.
2
FORWARD LOOKING STATEMENTS
3
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.
4
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 (June 2014) $0.70
Shares Outstanding 47.6 Million
Shares Fully Diluted 50.9 Million
Market Cap $33.3 Million
Institutional Ownership 25%
Insider Ownership 10%
Cash $11.5 Million
Working Capital $75.4 Million
5
CDN$ (000’s) 2010 2011 2012 2013 2014 2015 Q2 YTD
Revenue $54,591 $133,482 $141,514 $122,807 $101,301 $39,862
Net Earnings /
(Loss)
$1,449 $26,428 ($8,650)* ($17,319) ($14,534) ($8,165)
Cash $28,225 $22,782 $28,493 $26,608 $15,100 $11,449
Working Capital $61,461 $69,341 $91,249 $65,450 $77,100 $75,404
Adjusted
Earnings*
$1,505 $14,143 $2,339 ($9,143) ($10,876) ($7,649)
Adjusted EPS* $0.04 $0.35 $0.05 ($0.19) ($0.23) ($0.16)
Note 2011-2013 Q4 had a maximum earn out expense related to Bertram acquisition of $10.5M per year
* 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.
Financial
Highlights
$15.40 $14.90 $25.40 $26.18
$42.26
$23.70
$54.49
$133.48 $141.51
$122.80
$100.30
0
20
40
60
80
100
120
140
160
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Revenue Growth ($Millions CDN)
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
2009 2010 2011 2012 2013
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2009 2010 2011 2012 2013
Mineral Drilling Meters Drilled (Energy)
6
OPERATING IN CHALLENGING TIMES
Meters Drilled Revenue
0
50
100
150
200
250
300
2007 2008 2009 2010 2011 2012 2013
Rig Count
-0.3
-0.2
-0.1
0
0.1
0.2
0.3
0.4
2008 2009 2010 2011 2012 2013
Adj Earnings/Share
• 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
7
OUR BUSINESS
8
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 264(mineral and energy rigs). Mobile rig platforms can be re-deployed more efficiently and cheaper than conventional rigs.
19.3%
10.5%
18.5% 25.8%
17.3%
8.6%
Revenue by Region/Division Q2 2015
Drilling Mexico &Central AmericaDrilling South America
Drilling Africa, Asia &OthersCanada
United States ofAmericaUnited Kingdom &Europe
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
9
OUR TECHNOLOGY
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: SNL Metals & Mining 2014 Oct
10
MINING INDUSTRY POSITIVE OUTLOOK
World needs new discoveries = more frontier drilling
Source: BHP Biliton Dec 2012 Macquarie Conference
$21.5B
$15.2B
$18.3B
$12.1B
$1.9B
$5.1B
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.
11
CUSTOMER PROFILE
• 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
• 2013 addition of 2 new oil sands coring
rigs to address market demand
Bertram TH60 Coring Rig
12
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)
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
• Over 170 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
14
ENERGOLD MANUFACTURING DANDO INTERNATIONAL LTD.
Trusted Name in Drills for 172 years
Water Well Drilling Watertec® Rigs
Geotechnical Drilling Rigs Geotec® Rigs
• Continued growth with reputable name brand Difficult 2-3 years but improvements
in 2013 in US, China, and most of
developing world. 1
• Different categories of clients Dando caters to the WorldBank, UN,
UNICEF, and Oxfams of the world.
• Market Potential Global mining equipment market is
$61 billion. At $22.9 million (2013
record high revenue), Energold is just
0.01% of the market. 2
1. Caterpillar Q2 2013 Earnings http://www.caterpillar.com/investors/events-and-presentations/presentations 2. Standard & Poors – Credit Week Feb 2012
15
INDUSTRY DEMAND SOFTENED BUT ROOM FOR GROWTH FOR DANDO
• 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
New discoveries of high grade silver and gold at San Jose
Zacualpan Processing Plant
SYMBOL IPT-TSX.V SHARE PRICE $0.15 MARKET CAP $10.5 M CASH $0.7M + $7M Receivables DEBT $0
16
INVESTMENT HOLDINGS: IMPACT SILVER CORP.
17
IMPACT SILVER CORP. PROFITABLE GROWING PRODUCER
2014 2013 2012 2011 2010 2009 2008
CAGR
2008-
2014
Total tonnes processed (t) 162,266 159,270 168,826 154,289 131,348 114,340 102,426 +8.02%
Tonnes processed per day (t) 445 436 463 424 360 313 280 +8.03%
Silver (oz) Production 725,733 682,526 620,515 833,607 750,259 823,571 645,668
Revenue per tonne sold $74 $84 $94 $171 $123 $110 $90
Direct cost per tonne sold $69 $68 $65 $70 $63 $60 $55
(CDN$000’000’s except EPS) Q2 2015 YTD 2015 YE 2014 YE 2013 YE 2012
Revenues $2.74 $6.65 $12.0 $14.1 $15.9
Operating expenses $2.96 $6.1 $12.0 11.4 $10.3
Mine operating earnings (loss)* ($0.76) ($0.55) ($0.0) $2.7 $5.6
EBITDA ($0.23) $0.50 ($2.1) ($4.6) $1.6
Net earnings (loss) ($1.19) ($1.32) ($3.5) ($8.5) ($1.1)
Operating cash flow** $0.62 $1.05 ($0.7) $0.6 $3.3
Debt Nil Nil Nil Nil Nil
Earnings (loss) per share – basic $0.02 ($0.02) ($0.05) ($0.13) ($0.02)
Cash and cash equivalents $0.74 N/A $0.6 $3.5 $16.0
Working capital $2.4 N/A $3.7 $6.9 $21.4
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
18
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
19
PRESERVE MARGINS AND CAPITAL IN MINING
• 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.
• Seek new markets for under utilized platforms such as seismic drills in Alberta
• 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
19
CONTINUED GROWTH STRATEGY
Analyst Company Contacts
Michael Mills CFA MBA Beacon Securities 416-643-3871
Stephen Kammermayer Clarus Securities
416-343-2782
Kam Mangat CFA Salman Partners 416-861-1270
Steve Green CFA Toronto Dominion (TD) 416-983-3276
20
ANALYST COVERAGE
• 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 30% net book value and under 50% of one year revenue 21
INVEST IN ENERGOLD TODAY
5 Year Chart on EGD:TSXV
Appendix
Income Stmt
Income Statement Highlights 2010-2013
Dec 31, 2014 2013 2012 2011 2010
Net Revenues ($Millions) $100,301 $122.81 $ 141.51 $ 133.48 $ 54.59
Net Income ($Millions) (14.053) $ (17.32) $ (8.65) $ 26.43 $ 1.59
Earnings Per Share (EPS) - Basic (0.28) $ (0.36) $ (0.19) $ 0.65 $ 0.04 Earnings Per Share (EPS) - Diluted (0.28) $ (0.36) $ (0.19) $ 0.64 $ 0.05
Cash Per Share (CPS) $0.37 $ 0.56 $ 0.62 $ 0.62 $ 0.77
Net Working Capital ($Millions) $77.00 65.45 81.85 69.34 63.65
Minerals Metres Drilled (Meters) 236,600 296,500 428,300 587,544 346,328
Energy Meters Drilled (Meters) 383,200 335,200 630,600 444,400 N/A
Appendix
Balance Sheet
Balance Sheet Highlights 2010-2013 2014 2013 2012 2011 2010
Current Assets ($Millions) $99.64 $107.74 112.1 99.58 71.88
Total Assets ($Millions) $148.86 $163.65 172.816 163.49 91.02
Cash and Cash Equivalents ($Millions) $15.00 $26.61 28.493 25.267 30.7
Current Liabilities ($Millions) $18.47 $42.28 30.253 30.24 8.23
Long-Term Debt ($Millions) $17.92 $4.97 9.4 9.079 0.17
Shareholder Equity ($M) $112.47 $116.85 129.861 111.895 78.32
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