Foraco International (FAR) Corporate Presentation summary

Company overview and market position

• Leading diversified drilling services provider with over 60 years of experience in mining and water sectors.

• Operates a fleet of over 265 rigs, including advanced automated and remote-control units.

• Global presence in countries representing 75% of global exploration spend.

• Serves a world-class customer base, including major mining companies.

• Expertise in deep water wells and complex geological environments.

Financial performance and capital structure

• FY 2024 revenue reached $293M with EBITDA of $66M (23% margin).

• Revenue CAGR of 7% over recent years, with improved margins and disciplined capex.

• Net debt at $60.9M, with a post-refinancing net leverage of 0.92x.

• Completed $87M debt refinancing in 2023, reducing financial expenses.

• Capital allocation plan prioritizes debt service, fleet investment, and potential shareholder distributions.

Service offering and growth strategy

• Provides exploration, development, underground drilling, and water management services.

• Focus on stable jurisdictions and Tier 1 clients, with 90% of revenue from majors.

• Growth driven by innovation, high-tech drilling, and expanding exposure to gold and copper.

• 70% of revenue is recurring from contracts over 10 years old.

• Utilization strategy targets redeployment of rigs to low-risk, high-growth markets.