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MASTER DRILLING GROUP LIMITED - Trading Statement

Release Date: 08/06/2020 14:45
Code(s): MDI     PDF:  
 
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Trading Statement

Master Drilling Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 2011/008265/06)
JSE share code: MDI
ISIN: ZAE000171948
(“Master Drilling” or the “Company”)

Trading Statement

In terms of the Listings Requirements of the JSE Limited relating to trading statements, a listed company
is required to publish a trading statement as soon as it becomes reasonably certain that the financial
results for the next period to be reported on will differ by at least 20% from those of the corresponding
prior period.

As shareholders are aware, the Covid-19 pandemic continues to spread, and these trying times come
with a high degree of uncertainty, fluidity, and unexpected challenges. With the Company’s operations
in over 23 countries, including those that are being severely impacted by the virus with various restrictive
measures imposed, we provide shareholders with an update on the current state of our operations at
this time.

Various measures have been announced by governments around the world in response to the Covid-
19 pandemic. The Company is mainly operating in the mining industry and seeks to comply with the
specific government measures in the countries that it operates in as well as with the specific measures
implemented by its customers. The Company remains fully committed to doing its part in limiting the
spread of the Covid-19 virus, with stringent workplace measures currently in place and further measures
to be implemented as required. Ensuring the safety of our staff, their families and communities, and
delivering our service to our clients, businesses and countries that we serve, remain key priorities. As
the Company, we will continue our best endeavours to support all our key stakeholders and the
countries in which we operate.

Shareholders are advised that the Company’s earnings per share (“EPS”) for the 6 months ending 30
June 2020 (“current period”) in ZAR terms are expected to be between 30,30 and 45,70 cents per share
compared to the EPS of 76.70 cents per share for the 6 months ended 30 June 2019 (“comparative
period”), which is between 40,5% and 60,5% lower than the EPS of the comparative period as reported
in ZARwhile the headline earnings per share (“HEPS”) are expected to be between 35,20 and 50,60
cents per share compared to the HEPS of 76,70 cents per share for the 6 months ended 30 June 2019
(“comparative period”), which is between 34,1% and 54,1% lower than the HEPS of the comparative
period as reported in ZAR. This range has been set based on the ZAR exchange rate applicable as at
31 May 2020.

Shareholders are advised that the Company’s EPS for the current period in USD terms are expected
to be between 1.80 and 2.80 cents per share compared to the EPS of 5.40 cents per share for the
comparative period, which is between 47,4% and 67,4% lower than the EPS of the comparative period
as reported in USD while the HEPS are expected to be between 2.10 and 3.10 cents per share
compared to the HEPS of 5.40 cents per share for the comparative period, which is between 41,9%
and 61,9% lower than the HEPS in the comparative period as reported in USD. This range has been
based on the exchange rates applicable to the emerging currencies the Company operates in as at 31
May 2020.

Given the fact that the Company’s results are materially affected by movements in emerging countries’
currency exchange rate, the above forecasts are based on the ruling exchange rates as at 31 May
2020. Movement in these exchange rates up to 30 June may influence the final results.
Whilst the Company has adequate headroom in terms of liquidity, stringent, proactive measures have
been implemented across the business to manage costs, and optimise working capital and capital
expenditure, with a stronger focus on cash flow generation during these uncertain times.

The financial information on which this trading statement is based has not been reviewed or reported
upon by the Company’s auditors. Master Drilling’s interim results are expected to be released on SENS
on or about Tuesday, 25 August 2020.

Fochville
8 June 2020

Sponsor
Investec Bank Limited

Date: 08-06-2020 02:45:00
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