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CORPORATE PRESENTATION APRIL 2013
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
• Global Specialty Drilling Contractor
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 234 rigs in 22 countries across all metal and
mineral targets.
• Proven Track Record of Performance
Compounded annual growth in revenues of >25% over
the last 6 years.
Energold’s Highly Mobile Surface Rig in Operation
Durango, Mexico
3
OUR BUSINESS
4
Mining
Energold Drilling’s
original and primary line of
business. Market leader in
frontier drilling services,
operating in 22 countries
spanning broad spectrum
of minerals and resources.
Minimizes
environmental and social
impact with proprietary
man-portable drills
Energy
Significant presence in
the Canadian oil sands
coring market
Acquisition in 2011 added
129 rigs to Energold and
paved way into energy
drilling market.
Energy market peaks when
mineral exploration slows
Tremendous new growth
market with oil sands boom
Manufacturing
With over 150 years of
history, Dando designs,
manufactures, and maintain
rigs for global clients
Capabilities across all drill
types, with specialty focus
on water well drilling
Vertical integration of rig
sourcing for EGD
Stable revenue in
maintenance and parts
OUR BUSINESS SEGMENTS
• 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 850m with ¼ inch greater core diameter using 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
5
OUR TECHNOLOGY
6
WORLD WIDE OPERATIONS
World-Wide Operations Energold has offices and/or operations in 22 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 234 (including diamond and energy drilling). Mobile rig platforms can be re-deployed more efficiently and
cheaper than conventional rigs.
Dominican Republic
Peru
Albania
Guinea
7
GLOBAL PROJECT EXAMPLES
Frontier Drilling Specialists
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
• Magellan
• GoldQuest Mining Corp. 8
CUSTOMER PROFILE
CDN$ (000’s) 2009 (GAAP) 2010 (IFRS) 2011 (IFRS) End of Sept, 2012
Revenue 23,719 54,591 133,482 $115,810
Net Earnings (1,951) 1,586 26,428 ($3,655)*
EPS (0.06) 0.05 0.65 ($0.08)*
Cash 18,460 28,225 $22,782 $27,800
Working Capital 46,319 61,461 $69,341 $96,549
EBITDA (Adjusted) $305 $1,505 $14,143 $6,731
• Energy division mobilizing and has seen record quarterly revenues, Q4/Q1 is its peak season
• Revenue allocation has shifted from mining (majority) to a balance with energy and
manufacturing 9
FINANCIAL HIGHLIGHTS
CONTINUED GROWTH OVERALL
* Note adjustment for Bonus Payment to Energold Energy of $7.5 million up to June 2012 on meeting EBITDA targets of
over $5 million. Annual payment capped at $10,500,000. Additional amortization expense due to IFRS gain on
acquisition (refer to Q4 figures) of $3,25 million YTD. Pre-2009 figures are GAAP while 2010+ is under IFRS.
Q2 2012 Q3 2012 % Change
Revenue
Mineral 22,273 17,253 (22)% Energy 4,438 9,037 203% Manufacturing 5,939 3,603 (39)%
Total Revenue 32,650 29,890 (8.4)%
10
FINANCIAL REFLECTS GROWTH
Rig Count EPS Growth*
Revenue
Meters Drilled
Rig Count Growth (2010-2011) Global Presence (Countries)
Revenue Growth (2009-2012)
11
DIVERSIFIED GLOBAL GROWTH
AND VALUE PRICED VS PEERS
Market Cap & Average Volume
TRADING SYMBOL EGD : TSX.V
SHARE PRICE $2.40
ISIN CA29268A1030
SHARES O/S 46.2 MILLION
SHARES F/D 47.1 MILLION
MARKET CAP $110 MILLION
INSTITUTIONAL OWNERSHIP 25%
MANAGEMENT OWNERSHIP 10%
Fred Davidson CA MBA – President, CEO and Director
James Coleman LLB – Chairman and Director
Steven Gold CFA – Chief Financial Officer
Craig Geier HBA – Managing Director (Dando Drilling Services)
H. Walter Sellmer – Director
Michael J. Beley – Director
Wayne Lenton – Director 12
CORPORATE SUMMARY
STRONG INDUSTRY
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 +7% for China and +2% for
US driving by urbanization
Source: MEG, PriceWaterhouseCoopers
13
MINING INDUSTRY
– POSITIVE OUTLOOK
World needs new
discoveries = more
frontier drilling
Source: BHP Biliton Dec 2012 Macquarie Conference
• 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 from people – trained
drillers in coring can transition to
mineral drilling and vice-versa
Bertram TH60
Coring Rig
14
ENERGOLD ENERGY
BERTRAM INTERNATIONAL CORP.
LIS GT1
Seismic Drilling Rig
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 15
ENERGY INDUSTRY
(OIL SANDS) OUTLOOK
• Over 150 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
Geotechnical
16
ENERGOLD MANUFACTURING
DANDO INTERNATIONAL LTD.
Waterwell
• Growth: The manufacturing
and equipment demand for
resource industry is growing,
13% YOY for Caterpillar. Flat
2012 with improvements in
2013 in US, China, and most of
developing world. 1
• Potential: Global mining
equipment market is $61 billion.
At $12.2 million (2012 YTD),
Energold is just 0.01% of the
market. 3
1. Caterpillar Q3 2012 Earnings http://www.caterpillar.com/investors/events-and-presentations/presentations
2. Boart Longyear 2012 Full Year Earnings – February 18, 2013
3. Standard & Poors – Credit Week Feb 2012
17
MANUFACTURING
INDUSTRY DEMAND CONTINUES
2 Boart’s Drilling Product Backlog 2012
Case Study
– 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
– “Success Without Limits Bizz” Awards in Houston, TX
Energold’s approach is win-win
for clients and local communities
18
SOCIAL & ENVIRONMENTAL
BENEFITING AREAS WHERE WE WORK
Haiti Bridge
Infrastructure Project
Donated Waterwell
in Chihuahua, Mexico
• IMPACT Silver Corp is a profitable
silver producer in Mexico
• ENERGOLD DRILLING CORP
owns 6.87 million shares (11%~)
• OPERATIONS
Three profitable, operating mines
at the Royal Mines of Zacualpan
• EXPLORATION
Huge exploration potential in
623 sq. km composed of two
under-explored Silver districts
• DEVELOPMENT
Capire open pit mine
200 tons/day operation
commenced March 2013
Zacualpan Processing Plant
SYMBOL IPT-TSX.V
SHARE PRICE $1.02
MARKET CAP $70 M
CASH $18 M
19
INVESTMENT HOLDINGS:
IMPACT SILVER CORP.
-5,000
0
5,000
10,000
15,000
20,000
25,000
30,000
2006 2007 2008 2009 2010 2011 2012
Revenues
Net Earnings
Operating Cash Flow
CD
N$ 0
00
’s
Year 20
IMPACT SILVER CORP.
PROFITABLE GROWING PRODUCER
2012 2011 2010 2009 2008 2007 2006 %
Growth
Total tonnes processed (t) 168,826 154,289 131,348 114,340 102,426 99,918 68,173 +126%
Tonnes processed per day (t) 463 424 360 313 280 274 196 +116%
Silver (oz) Production 620,515 833,607 750,259* 823,571 645,668 349,949 465,673 +79%
Lead (t) Production 430 731 734 969 813 601 375 +95%
Zinc (t) Production 721 1,248 1,212 1,098 1,053 976 725 +72%
Revenue per tonne sold $94.32 $171 $123 $110 $90 - - +90%
Direct cost per tonne sold $64.55 $70 $63 $60 $55 $44 $60 +17%
21
EXPANSION OF “CORE BUSINESS” MINERAL
DRILL FLEET
• 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.
• Grow underground drilling services.
• 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
21
2013 AND BEYOND
CONTINUED GROWTH IN ALL KEY MARKETS
Analyst Company Contacts
Michael Mills CFA MBA Beacon Securities 416-643-3871
Maggie MacDougall BBA Cormark Securities 416-362-7485
Mona Nazir Fraser Mackenzie 416-682-4208
Russell Stanley CFA MBA Haywood Securities 416-507-2328
Ben Jekic CFA Industrial Alliance 416-203-5826
Kam Mangat CFA Salman Partners 416-861-1270
Neil Forster CFA Scotiabank 416-863-2899
Daryl Young CA
Steve Green CFA
Toronto Dominion (TD) 416-983-3276
22
ANALYST COVERAGE
• Energold presents a compelling opportunity to invest in a broad range of commodities
and projects worldwide
• Catalysts for growth – commodities remain strong and significant potential in energy
• Favorable balance sheet allows EGD to capitalize on opportunities
• Value play on commodities – trading at 52 week low despite continued growth 23
INVEST IN ENERGOLD TODAY
5 Year Chart on EGD:TSXV
Contact info
Jerry Huang MBA
Manager Investor Relations
jhuang@ energold.com 604-681-9501