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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 and directional drilling for
engineering and telecom industry
clients.
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 (May 2016) $1.40
Shares Outstanding 47.6 Million
Shares Fully Diluted 50.9 Million
Market Cap $66.7 Million
Institutional Ownership 15%
Insider Ownership 10%
Cash $13.6 Million
Working Capital $72.6 Million
5
CDN$ (000’s) 2010 2011 2012 2013 2014 2015
Revenue $54,591 $133,482 $141,514 $122,807 $101,301 $81,976
Net Earnings /
(Loss)
$1,449 $26,428 ($8,650)* ($17,319) ($14,534) ($23,733)
Cash $28,225 $22,782 $28,493 $26,608 $15,100 $13,563
Working Capital $61,461 $69,341 $91,249 $65,450 $77,100 $72,568
Adjusted
Earnings*
$1,505 $14,143 $2,339 ($9,143) ($10,876) ($18,886)
Adjusted EPS* $0.04 $0.35 $0.05 ($0.19) ($0.23) ($0.39)
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.
SUSTAINED
BUSINESS
THROUGH CYCLES
$15.40 $14.90
$25.40 $26.18
$42.26
$23.70
$54.49
$133.48 $141.52
$122.80
$101.30
$81.98
0
20
40
60
80
100
120
140
160
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Revenue Growth ($Millions) CDN
6
ANNUAL METRICS
Revenue
$0.09 $0.01 $0.04
$0.35
-$0.19
-$0.36
-$0.28
-$0.39 -0.5
-0.4
-0.3
-0.2
-0.1
0
0.1
0.2
0.3
0.4
2008 2009 2010 2011 2012 2013 2014 2015
Adj Earnings/Share
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2009 2010 2011 2012 2013 2014 2015
Mining Meters Drilled Energy Meters Drilled
$23,719,000
$54,591,000
$133,482,000
$141,514,000
$122,807,000
$101,301,000
$81,976,000
2009 2010 2011 2012 2013 2014 2015
Meters Drilled
80 103
125 133 138 138 137
243 253 264 264 265
0
50
100
150
200
250
300
2009 2010 2011 2012 2013 2014 2015
Mining Rigs
Total Rig Count
Rig Count
• Global Drilling Solutions Provider Providing socially & environmentally sensitive drilling services to the international mining & energy sector.
• Market Leaders in ‘Frontier Drilling’ Proprietary 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 260+ rigs in 24 countries across a wide range of
drilling 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
GLOBAL 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. 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 Q3 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
CYCLICAL SECTOR PUNCTUATED BY
STRONG RECOVERIES • New sizable discoveries are
increasingly difficult to find, forcing
traditional miners to seek assets in
frontier regions that require specialized
equipment Energold.
• Producers seeking to replenish reserves
through acquisitions as lower metal
prices forces their reserves lower.
• Lack of funding since 2011 for junior
miners/developers result in less quality
assets for takeover
Source: SNL Metals & Mining 2015Dec
10
MINING INDUSTRY
$21.5B
$15.2B
$18.3B
$12.1B
$1.9B
$5.1B $9.2B
Energold’s clientele includes many of the world’s largest natural resource 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
• 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
Global Energy Drilling 14 Rigs
12%
75 Seismic 62%
32 Rigs 26%
Energy Services Fleet
Oil Sands Coring Rigs
Seismic Rigs
Speciality Rigs (RC,Geothermal,Geotech)
• HDD (Horizontal Directional Drilling) is used
to install telecommunication, power cables,
water lines, gas lines – an environmental
approach for the infrastructure industry.
• Software steered borehole accuracy and
targeting – bore hole range from 1” to 20” in
diameter.
• Hydro Vac is used to expose underground
utilities to get depth and profile of utility
before drilling to not damage existing
telecom, gas, water, and other lines most
cities have in place.
• Profitable and growing business with
potential to expand into US and booming
defense sector.
13
ENERGOLD INFRASTRUCTURE SERVICES CROS-MAN UNDERGROUND
Directional Drilling & Hydro Vac
Fleet of EGD Hydrovac Trucks
• 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 170+ years
Water Well Drilling Watertec® Rigs
Geotechnical Drilling Rigs Geotec® Rigs
• Continued growth with reputable name brand Difficult 2-3 years but improvements
began in 2014 & continuing today
• Different categories of clients Dando caters to the WorldBank, UN,
UNICEF, and Oxfams of the world.
• Market Potential Global equipment market is worth
$61 billion. At $22.9 million (2013
record), Energold is just 0.01% of the
market. 1
1. Standard & Poors
15
INDUSTRY DEMAND IMPROVING WORLDWIDE
• IMPACT Silver Corp is a explorer-producer and explorer in Mexico operating since 2006
• ENERGOLD DRILLING CORP owns 6.87 million shares (11%~)
• OPERATIONS
Four mines in production
• EXPLORATION
Tremendous exploration potential with 423km2 and over 3,000 mine workings mapped to drive new developments
• DEVELOPMENT
New discoveries of high grade silver and gold at San Ramon
Zacualpan Processing Plant
SYMBOL IPT-TSX.V SHARE PRICE $0.15 MARKET CAP $10.5 M CASH $0.7M + $6M Receivables DEBT $0
16
INVESTMENT HOLDINGS: IMPACT SILVER CORP.
17
IMPACT SILVER CORP. PROFITABLE GROWING PRODUCER
2014 2013 2012 2011 2010 2009 2008 CAGR
2008-2015
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) Q3 2015 YTD 2015 YE 2014 YE 2013 YE 2012
Revenues $4.11 $10.8 $12.0 $14.1 $15.9
Operating expenses $0.29 ($0.26) $12.0 11.4 $10.3
Mine operating earnings (loss) $0.03 ($1.55) ($0.0) $2.7 $5.6
EBITDA $0.65 $0.02 ($2.1) ($4.6) $1.6
Net earnings (loss) ($0.27) ($1.59) ($3.5) ($8.5) ($1.1)
Operating cash flow $0.50 $0.00 ($0.7) $0.6 $3.3
Debt Nil Nil Nil Nil Nil
Earnings (loss) per share – basic $0.00 ($0.02) ($0.05) ($0.13) ($0.02)
Cash and cash equivalents $0.80 N/A $0.6 $3.5 $16.0
Working capital $1.60 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 clear cuts and save cost on road building
Third Party Recognition
– PDAC Environmental Excellence in Exploration Case Study (E3 Initiative)
– BC Business Innovators of Year
– BC Export Business of Year Finalists 2012-2015
Energold’s approach is win-win for clients and local communities
18
SOCIAL & ENVIRONMENTAL
Haiti Bridge
Infrastructure Project
Donated Waterwell
in Chihuahua, Mexico
School Buildings
Soccer team and textbook donations
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
GROWTH STRATEGY
Analyst Company Contacts
N/A Beacon Securities 416-643-3871
Stephen Kammermayer Clarus Securities
416-343-2782
Darryl Young CA CFA Toronto Dominion (TD) 416-983-3276
20
ANALYST COVERAGE
Appendix
Income Stmt
Income Statement Highlights 2010-2015
2015 2014 2013 2012 2011 2010
Net Revenues ($Millions) $81,976 $100,301 $122.81 $ 141.51 $ 133.48 $ 54.59
Net Income ($Millions) $(23.73) (14.05) $ (17.32) $ (8.65) $ 26.43 $ 1.59
Earnings Per Share (EPS) - Basic $(0.49) (0.28) $ (0.36) $ (0.19) $ 0.65 $ 0.04 Earnings Per Share (EPS) - Diluted $(0.49) (0.28) $ (0.36) $ (0.19) $ 0.64 $ 0.05
Cash Per Share (CPS) $0.28 $0.37 $ 0.56 $ 0.62 $ 0.62 $ 0.77
Net Working Capital ($Millions) $72.57 $77.00 65.45 81.85 69.34 63.65
Minerals Metres Drilled (Meters) 202,800 236,600 296,500 428,300 587,544 346,328
Energy Meters Drilled (Meters) 358,300 383,200 335,200 630,600 444,400 N/A
Appendix
Balance Sheet
Balance Sheet Highlights 2010-2015 2015 2014 2013 2012 2011 2010
Current Assets ($Millions) $93.58 $99.64 $107.74 112.1 99.58 71.88
Total Assets ($Millions) $130.31 $148.86 $163.65 172.816 163.49 91.02
Cash and Cash Equivalents ($Millions) $13.56 $15.00 $26.61 28.493 25.267 30.7
Current Liabilities ($Millions) $21.02 $18.47 $42.28 30.253 30.24 8.23
Long-Term Debt ($Millions) $18.25 $17.92 $4.97 9.4 9.079 0.17
Shareholder Equity ($M) $91.05 $112.47 $116.85 129.861 111.895 78.32
Contact info
Jerry Huang MBA
Manager Corporate Development & IR
604-681-9501