COMPANY PRESENTATION. Thomas Gutschlag, CEO

Transcription

1 COMPANY PRESENTATION Thomas Gutschlag, CEO May 2017

2 DISCLAIMER This document constitutes neither an offer to sell nor a solicitation of an offer to buy or subscribe to any securities of Deutsche Rohstoff AG, but is for information only. The public offering of the planned bond is solely based on the approved prospectus by the Federal Financial Supervisory Authority (BaFin). The legally relevant prospectus can be found here: The information published in this document is not to be dispersed outside the Federal Republic of Germany, especially not in the United States, to US persons according to Regulation S of US Securities Act of 1933 nor to publications with general dispersion in the United States, as long as such a dispersion outside of Germany is not compulsory according to German laws. Every violation of this constraint can lead to a violation of laws of securities in certain countries, especially in the United States. Bonds of Deutsche Rohstoff AG will not be offered for public sale outside the Federal Republic of Germany. 2

3 AGENDA Overview of the Company Oil and Gas USA Mining Investments Financials Investment Case 3

4 OVERVIEW OF THE COMPANY Founded in March 2006 Focus: Production of oil and gas in the US Significant investments in mining & metals Listed in the Scale market at Frankfurt Stock Exchange Market Cap EUR 110 million (as of May 17, 2017) 2016 investments of over USD 90 million in oil and gas assets Proposed dividend for 2016: EUR 0.60 (dividends paid 2015: EUR 0.55, 2014: EUR 0.50) 4

5 SHAREHOLDING STRUCTURE (AS OF MAY 17, 2017) Shareholder SHARES IN THOUSAND % SHARE Thomas Gutschlag BASF VC Deutsche Rohstoff AG (from Share Buyback) Free Float Total Share Capital Options* Share Capital fully diluted *Cash Settlement possible 5

6 SHARE PRICE LAST 12 MONTHS 6

7 SOLID PERFORMANCE OF BOTH BONDS 115 % Bond 13/18 Bond 16/ % 110 % 110 % 105 % 105 % 100 % 100 % 95 % 95 % 90 % 90 % 7

8 US Öl UND GAS STATUS Oil and OIL DER AND Gas PROJEKTE USA GAS

9 CURRENTLY ACTIVE IN TWO TOP BASINS WA OR NV CA ID AZ UT MT WY Bakken Niobrara/Codell WILLISTON BASIN ND MN SD IA WATTENBERG NE FIELD CO KS OK NM WI IL MO AR MS MI OH IN KY TN AL NY PA WV VA NC SC GA ME TX LA FL 9

10 TEKTON ENERGY SUCCESSFUL DEVELOPMENT AND EXIT OCT 2011 Identification of Windsor Projects, acquisition of 2,000 acres MAR MAY successful horizontal wells, Starting production 1,228 BOEPD SEPT APRIL 2013/2014 Start of extensive drilling program, 80 planned wells JAN 2011 Foundation Tekton Energy successful wells JUN AUG 2013 Planning and financing of larger development program financed by bond 06/2013 proved + prob. Reserves of 15 million BOE MAY 2014 Divestment of acreage for USD 200 million cash and 560 acres prospective leases Financed with debt & equity by Deutsche Rohstoff AG 365% return on equity over 3.5 years 10

11 CUB CREEK IS OPERATOR FOR COLORADO ASSETS CUB CREEK ENERGY Operational management of all activities on own land operated acreage Acquisition of 2,200 acres operated in 2015 and 1,500 acres in 2016 Potential for approx. 150 (1-mile) horizontal wells 21 producing wells Total production of 6,818 BOE per day in March (7,598 BOE per day in Q1 2017) 2017: up to 29 additional wells planned. First 7 wells already drilled Founded: 2014 Share: 80.0 % Investment 2016: USD 35 million Focus: Wattenberg Field (Colorado) 11

12 ELSTER HOLDS NON-OP ASSETS IN COLORADO ELSTER OIL & GAS Development of land by partners non-operated acreage Restart in June 2014 with 560 acres non-op areas and almost the same team First wells (non-op) started production in September 2015 Six new wells commenced production in July 2016 (share 50%, non-op) Q1 net production roughly 600 BOE per day Additional 50 wells approved Founded: 2014 Share: 93.0 % Investment 2016: USD 14 million Focus: Wattenberg Field (Colorado) 12

13 WATTENBERG IS ONE OF THE TOP-BASINS IN THE US Active Oil & Gas Development since the beginning of the 1970s; around 20,000 wells documented Perfect infrastructure: low investment and fast development US private land system allows access for small companies Production data is publicly available after six months Oil and Gas business is an important economic sector in Colorado 13

14 STRONG RETURNS AT CURRENT PRICES Well economics: Wattenberg (Niobrara) - CAPEX USD2.65m* OPEX USD5.0k,WTI differential $4, gas price $3/mmBtu, gas differential $0.00/mmBtu; results after tax and royalties *Ø expected Results of a well into the Niobrara Formation, 100% Working Interest 14

15 TYPICAL SHALE OIL PRODUCTION PATTERN Production pattern of Niobrara 1-mile well* *Average expected production of Niobrara 1 mile well, gross production with a working interest of 100% 15

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22 HIGH PROVEN RESERVES & VALUE RESERVE CATEGORY BOE barrel oil equivalent (million barrel) REVENUES (million USD) NET INCOME** (million USD) NPV 10% OF NET INCOME ELSTER OIL & GAS* PROVED 1.95 $ $ $ PROBABLE 3.32 $ $ $ CUB CREEK ENERGY* PROVED $ $ $ PROBABLE 8.43 $ $ $ SUM 100% PROVED $ $ $ SUM 100% PROBABLE $ $ $ Ryder Scott Report (February 2017) Tier 1 reserve consultant, Customers: Exxon, BP, Anadarko,... Reserve Evaluation of Elster includes all approved wells * DRAG holds a 93% stake in Elster and an 80% stake in Cub Creek ** Net Income: Future Net Income FNI is defined as revenue minus partners shares, royalties, development and operating cost as well as production taxes. 22

23 SALT CREEK WITH STRONG ASSETS IN NORTH DAKOTA SALT CREEK OIL & GAS non-operated acreage in the Williston Basin Purchase price: USD 38.1 million Expected total revenue above USD 200 million EBITDA of over USD 140 million expected 60 producing wells 95 additional infill development wells 12 well proposals received in 2017 initial wells currently drilling Average working interest about 8% Average Q net production roughly 700 BOE per day Reserved based lending facility USD 12.5 million Founded: 2015 Share: 90.0 % Investment 2016: USD 31 million (post closing) Focus: Williston Basin (North Dakota) 23

24 WILLISTON BASIN IS ONE OF THE TOP-BASINS IN THE US Most mature play within the US shale oil basins North Dakota accounts for 14% of US onshore oil production US Geological Survey (2013) estimates a resource in Bakken and Three Forks formation of 7.38 billion barrels Bakken well productivity continues to improve with advanced technologies Production data is published by North Dakota Industrial Commission 24

25 RETURNS SLIGHTLY BELOW WATTENBERG BUT VERY PREDICTABLE Well economics: Williston (Bakken) - CAPEX USD7.82m* OPEX USD15.45k, WTI differential $8, gas price $3/mmBtu, gas differential $1.85/mmBtu; results after tax and royalties *Ø expected Results of a well into the Bakken Formation, 100% Working Interest 25

26 PRODUCTION PATTERN COMPARABLE TO WATTENBERG Production pattern Bakken Formation* *Average expected production of Bakken well, gross production with a working interest of 100% 26

27 HIGH PROVEN RESERVES & VALUE RESERVE CATEGORY BOE barrel oil equivalent (million barrel) REVENUES (million USD) NET INCOME** (million USD) NPV 10% OF NET INCOME SALT CREEK OIL & GAS* PROVED 2.95 $ $ $ PROBABLE 1.65 $ $ $ 9.99 Netherland, Sewell & Associates, Inc. Report * DRAG holds a 90% stake in Salt Creek Oil & Gas ** Net Income: Future Net Income FNI is defined as revenue minus partners shares, royalties, development and operating cost as well as production taxes. 27

28 75% OF 2017 PRODUCTION HEDGED AROUND 47 $/BBL Deutsche Rohstoff Hedge Profile 28

29 US Öl UND GAS STATUS Mining Öl OIL und DER Investments AND Gas PROJEKTE USA GAS

30 MINING: EXPERIENCED TEAM, MANY GROWTH OPPORTUNITIES Deutsche Rohstoff invests in mining since 2006 Experienced teams in the segments exploration, development and production Operated Georgetown gold mine from 2010 to 2012 and Wolfram Camp Mine from 2011 to 2014 (both in Queensland, Australia) Sale of both mines in 2012 and 2014 due to strategic reasons Currently two major investments: Almonty Industries and Hammer Metals 30

31 CURRENT INVESTMENT PORTFOLIO Almonty Industries: Becoming the largest tungsten producer outside of China Hammer Metals: Copper/Gold exploration within the world class district Mount Isa/Australia Ceritech AG: Innovative method for extraction of rare earth elements Tin International AG: Tin/Lithium Joint Venture with Lithium Australia ahead Devonian Metals: Joint Venture with Glencore for the Wrigley zinc/lead project in Canada Rhein Petroleum: Oil and gas exploration in Southern Germany Book value of all Investments: around EUR 20 million 31

32 AUSBLICK Financials

33 KEY INDICATORS FROM P&L GROUP, GERMAN GAAP in MILLION EUR 31 March Revenue Other operating income Cost of material Salaries & Personal Other operating expenses EBITDA Depreciation EBIT Financial result Tax Net Income for the Group

34 KEY INDICATORS FROM BALANCE SHEET GROUP, GERMAN GAAP in MILLION EUR 31 March Total assets Intangible assets Property, plant & equipment Financial assets of which securities listed non-current assets Inventories Receivables and other assets Securities and other current financial assets Bank balances Deferred taxes Equity Provisions Liabilities Deferred tax liabilities

35 Investment AUSBLICK Case BOND STORY

36 INVESTMENT CASE WITH A LOT OF UPSIDE Predictable, high-margin oil and gas business Significant revenue and earnings growth expected for 2017 and 2018 Strong leverage from higher than expected production and oil price Significant assets in mining without funding commitment Excellent track record in the capital market; successful equity and bond funding 36

37 DEUTSCHE ROHSTOFF Deutsche Rohstoff identifies, develops and divests attractive mineral assets in North America, Australia and Europe. We create sustainable shareholder value by utilizing the opportunities presented in the commodity market. AUSBLICK