level 10, carillon city office tower t f post office box ... · 3/30/2012 · this presentation...
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ABN 33 149 028 142 Page 1
Level 10, Carillon City Office Tower
207 Murray Street Perth, WA 6000
Post Office Box Z5736
Perth, Western Australia 6831
T 08 6460 0360
F 08 6460 0361
www.resdevgroup.com.au
30 March 2012 Companies Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 Via e-lodgement
BROKER PRESENTATION
Resource Development Group Limited advises that the Managing Director, Mr Jeff Brill, will be in Sydney and Melbourne in the coming week on a roadshow to various institutional investors. The roadshow commences on Monday 2 April 2012. A copy of the presentation is attached. Your Faithfully Ben Donovan Company Secretary
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Disclaimer
This presentation should not be relied on as a representation of any matter that a
potential investor or their adviser should consider in evaluating the Company.
Potential investors must make their own independent assessment and
investigation of the matter contained herein and should not rely on any statement
or the adequacy or accuracy of the information provided.
The Company and its related bodies corporate or any its Directors, agents,
officers or employees do not make any representation or warranty, express or
implied, as to or endorsement of the Company, the accuracy or completeness of
any information, statements or representations contained in the presentation, and
they do not accept any liability whatsoever (including in negligence) for any
information, representation or statement made in or omitted from this
presentation.
This document contains certain forward looking statements which involve known
and unknown risks, delays and uncertainties not under the Company’s control
which may cause actual results performance or Company’s results,
achievements of the Company to be materially different from the results,
performance or expectations implied by these forward looking statements. The
Company makes no representation or warranty, express or implied, as to or
endorsement of the accuracy or completeness of any information, statements or
representations contained in this presentation with respect to the Company.
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Introduction
BUILDING VALUE
• Resource Development Group Limited (RDG) is building a leading vertically
integrated mining services business using a subsidiary model
• RDG owns Engenium (project delivery), Pacer (engineering construction
contractor) and Intellect Systems (specialist engineering), servicing the resource
and infrastructure sectors both domestically and internationally
• RDG has an option agreement and has completed due diligence over Ecologia,
an environmental approvals and biological sciences consultant
• RDG is headquartered in Perth with offices in Brisbane and London
• RDG is targeting a services business with $200m annual turnover at EBITDA
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Capital Structure
Description Amount
Total Shares on Issue (2/3/2012) 118,130,513
Executive Shareholding (previous owners who
still hold executive roles in RDG)
82%
Market capitalisation at $0.23 $27m
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Overview of Directors
Mr Mel Ashton Non-Executive Chairman
Mr Ashton is a national director of the Institute of Chartered Accountants, director
of The Hawaiian Group of Companies and chairman of Cullen Wines (Australia)
Pty Ltd. He is currently the chairman for Empired Limited (ASX:EPD), Gryphon
Minerals Limited (ASX:GRY) and Venture Minerals Limited (ASX:VMS) and a
director of Barra Resources Limited (ASX:BAR).
Mr Jeff Brill Managing Director
Mr Brill has over 19 years experience in project management and engineering
and was a founding partner of Engenium. Mr Brill was Engenium’s managing
director from inception in July 2003 until June 2010.
Mr Damir Panzich Executive Director
Mr Panzich has over 19 years experience in project management and
engineering and was a founding partner of Engenium. Mr Panzich was also an
executive director of Calibre Engenium Joint Venture Pty Ltd.
Mr Chris Ryan Non-Executive Director
Mr Ryan has over 20 years experience in senior HR roles, including general
manager of human resources for Wesfarmers Limited where he was responsible
for the HR aspects of acquisitions. He currently provides corporate advisory
services and is a member of Curtin University’s School of Management Advisory
Board.
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Business Overview (continued)
Resource Project Development Life Cycle
Identification
approvals
exploration
drilling
Definition Assessment Development Production
approvals
mett. test work
process design
studies
design &
specialist eng.
financial
modelling
construction
commissioning
operations
maintenance
sustaining works
Engenium Pacer
Company Acquisition (Stage 1) Company Acquisition (Stage 2)
Project Development Partnerships
Intellect Systems
Ecologia
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RDG Breakdown - Turnover
FY12 Breakdown of Revenue by Turnover ($m)
47%
26%
14%
14%
Engenium
Pacer
Intellect Systems
Ecologia
Note : based on a full year run rate
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RDG Breakdown - Commodity
FY12 Breakdown of Revenue by Commodity
57.86%
0.20%
0.34%
10.47%
10.82%
6.29%
3.74%
5.81%
0.09%
2.49% 1.88%
Iron ore
Manganese
Coal
Mineral Sands
Gold
Rail
Oil & Gas
Vanadium/ Rare Earths
Uranium
Alt Energy
Misc
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RDG Financial History
1.3 6.3
14.5
24.1
37.0
68.8
37.0
13.910.9
0.2 1.4 2.44.5
8.512.4
4.82.0 1.4
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
Turnover ($m)
EBITDA ($m)
Engenium Engenium including CEJV RDGEngenium
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Engenium Overview
Engenium : Smart Project Delivery
• Engenium is a progressive project delivery company servicing the domestic and
international resource and rail sectors
• Key clients include BHPBIO, RioTinto, FMG, Atlas Iron
• Scope of services include:
– metallurgical testwork management
– development of process solutions
– project assessment (scoping, pre-feasibility and feasibility studies)
– Project delivery (EPCM, integrated team, owners engineer)
– heavy haul rail
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Engenium Rail Overview
Engenium Rail : Rebuilding a Rail Business
• In 2005, Engenium formed an incorporated 50:50 joint venture (Calibre Engenium
JV) to pursue rail infrastructure opportunities, which grew to dominate the rail
infrastructure EPCM space in WA and entered the QLD market with 2 significant
clients. At the time of Engenium’s divestment of its joint venture interest in Feb
2010, the JV had over 300 personnel and was turning over in excess of $100
million dollars in annual revenue
• The non-compete for Engenium in rail ended early Feb 2012 and Engenium has
restarted its rail service offering with key personnel hires
• Engenium Rail is working for a QLD client and is now tendering WA and QLD
based work for the majors in their sustaining works and expansion projects
divisions
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Pacer Overview
Pacer: Engineering Construction Contractor
• Pacer is an engineering construction contractor servicing the domestic and
international resource sectors, with a clear focus on process plants, materials
handling systems and supporting non-process infrastructure
• Key clients include Silver Lake Resources, Iluka, Shark Bay Resources, Doral
• Key project is Silver Lake Resources Murchison project which is a $35m cost
plus EPC contract for the design, procurement, refurbishment and construction of
a new CIL processing plant to be delivered over the 2012 calendar year
• Scope of services include:
– Engineering design
– Procurement (including 2nd hand and refurbishment)
– Construction management
– EPC (design & construct) lump sum contracting (up to $50m packages)
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Intellect Systems Overview
Intellect Systems: Specialist Engineering Services
• Intellect Systems is a specialist control systems, industrial IT and electrical
engineering company servicing the domestic resources sector plus energy,
utilities, oil and gas and industrial clients
• Key clients include FMG, BHPBIO, Rio Tinto, TyssenKrupp, Sandvick, Banlaw,
Sandfire Resources, St Barbara Resources and Arafura Resources
• Scope of services include:
– Control systems and electrical engineering, instrumentation
– Industrial IT
– Control systems support and maintenance
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Ecologia Overview
Ecologia: Environmental Consultancy
• Ecologia is an environmental consultancy firm servicing the domestic resource
sector plus oil and gas, construction, local and federal government, utilities and
infrastructure clients
• Key clients include FMG, BHPBIO, Rio Tinto, Woodside and Tier 1 EPCM’s
• Scope of services include:
– Environmental management (approvals, impact assessments, auditing,
training, management plans, due diligence)
– Biological science consultancy services (zoology, botany, flora and fauna
surveys, groundwater, environmentally sensitive areas)
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The Future
GROWTH STRATEGY
• Organic growth opportunities
– Existing RDG clients have well developed expansion plans which provides
an excellent future pipeline of work
– Synergies between subsidiaries are being exploited to expand opportunities
and support step changes in scale of projects being undertaken
– Pacer has moved into delivery of larger projects via the Silver Lake
Resources Murchison project which is a $35m cost plus EPC contract
– Engenium is restarting rail capability
• Growth by acquisition
– Option agreement over Ecologia in place with targeted completion in FY12
– Other potential acquisitions identified and progressing
• Combining Capabilities to Fast Track Projects
– RDG is pursuing opportunities to fast track projects for clients by combining
capabilities of subsidiaries
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Any questions?
Resource Development Group Limited L10, Carillion City Office Towers, 207 Murray St, Perth, WA www.resdevgroup.com.au
[email protected] (08) 6460 0360
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