Company Presentation May 2021 - Deutsche Rohstoff AG
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Company Presentation
May 2021
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: www.rohstoff.de/anleihe. 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, if 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.
3
AGENDA
COMPANY OVERVIEW
STOCK & BONDS PERFORMANCE
RECENT EVENTS & HALF YEAR HIGHLIGHTS
OIL & GAS
Oil & Gas Market
US E&P Industry
DRAG Oil & Gas
MINING & OTHER INVESTMENTS
FINANCIALS
INVESTMENT HIGHLIGHTS & APPENDIX
4 COMPANY OVERVIEW
5
Founded In 2006 in Frankfurt Stock Exchange listed, Experienced management,
Heidelberg, Germany high transparency for investors analysts and geologists
Focus on oil & gas in the Global portfolio of mining Focus on future revenue and
United States investments EBTIDA growth
6
DEUTSCHE ROHSTOFF IN NUMBERS
10 years EUR 212 million 24 million barrel EUR 300+ million
...of successful development …of total bond volume issued …of proved oil equivalent reserves …total cumulated EBITDA
of oil & gas assets since 2013 with USD 266 million cash flow for the years 2014-2020
potential
Production per day Key financials
Million EUR Q1 2021 2020 2019 2018 2017
9.611 BOE
6.432 BOE REVENUE 18 39 41 109 54
EBITDA 21 24 23 98 36
5.123 BOE
4.213 BOE 4.500 BOE
TOTAL ASSETS 232 207 279 225 214
CASH & EQ* 71 47 96 80 46
LIABILITIES 140 139 166 116 122
Q1 2021 2020 2019 2018 2017 * Cash, cash equivalents and securities in non-current and current assets and receivables
7
OPERATIONS
US Oil & Gas Mining & Other Investments
4 Subsidiaries based in Denver
Experience in Metals & Mining Sector
Acreage position of more than
Previously operated own mines, today focus
35,000 acres across 4 States in the US
on minority investments in the sector
Established Oil &Gas Producer
Mining & Commodity investments
Produced 8.5 million BOE since 2016
Total investment Portfolio with a book value
of 60 million Euro
Significant Investment History
Subsidiaries produce from more than 85
Gold & Tungsten weighted portfolio
wells with total investment of USD 250 million
Successful exit track Record
Experienced team
Divested assets of two subsidiaries
Detailed due diligence on investment targets
for total proceeds of 290 million USD
8
GLOBAL PORTFOLIO
RHEIN PETROLEUM
SOUTH GERMANY
COMPANY HEADQUARTERS
MANNHEIM
ALMONTY INDUSTRIES
LOS SANTOS / PANASQUEIRA /
VALTREIXAL
CUB CREEK ENERGY ALMONTY INDUSTRIES
DJ BASIN - COLORADO SANGDONG
ELSTER OIL & GAS
DJ BASIN - COLORADO
SALT CREEK OIL & GAS
WILLISTON BASIN – NORTH DAKOTA
BRIGHT ROCK ENERGY
UINTA BASIN - UTAH
Oil & Gas projects Mining projects
9
THE GROUP IS MANAGED BY AN EXPERIENCED TEAM
Jared Huckabee: CEO Cub
Creek Energy/Elster Oil & Gas.
20 years experience in the US oil
and gas industry, production
engineer
Chris Sutton: CEO Bright Rock
Energy. 20 years experience in
the US oil and gas industry,
petroleum geologist
Dr. Thomas Gutschlag: Co-founder and CEO Jan-Philipp Weitz: CFO Deutsche Rohstoff, Jerry Sommer: Co-founder
of Deutsche Rohstoff, Chairman of the Board member Salt Creek, Bright Rock, Tin Tekton Energy, board member
US companies, Chairman of the Supervisory International. Joined the company in 2011. Cub Creek and Bright Rock.
Board Tin International & Ceritech, Board Head of Corporate Development until 2016. 40 years experience in the US oil
Member Almonty. 30 years experience in CFO since 2017. and gas industry, petroleum
finance, capital markets and commodities. engineer
23 employees in Mannheim, Leipzig and Close coordination between Deutsche Rohstoff and the operating units. All major
Denver, including five geologists and three decisions made by the boards of the individual companies in which DRAG holds the
engineers majority.
10 STOCK & BONDS PERFORMANCE
11
ESTABLISHED CAPITAL MARKET ISSUER
SHAREHOLDER REGISTER WITH LARGE FREEFLOAT SHARE DETAILS
Shares outstanding 5,081,747
Share capital EUR 5,081,747.00
Institutional Management 10%
23% Investors
XETRA, Tradegate,
Stock exchange Frankfurt, Berlin,
Düsseldorf, Stuttgart
ISIN/WKN DE000A0XYG76/A0XYG7
Scale Standard (since
Stock exchange
1 March 2017),
Private segment
67% Member of Scale 30
Investors
Designated Sponsor ICF Bank AG12
FOCUS ON SHAREHOLDER RETURN
RETURNED 20 MILLION EUR TO SHAREHOLDERS SINCE 2013
5.00
Total Dividend Paid
EUR 12 m
2.00
0.55 € 0.60 € 0.65 € 0.70 €
0.50 €
0.10 € 0.10 €
2013 2014 2015 2016 2017 2018 2019 2020
Share Buyback in million Dividends in cent
Total Dividend
EUR 3.20
per share13
PEER OUTPERFORMANCE DESPITE A CHALLENGED OIL & GAS MARKET
DEUTSCHE ROHSTOFF VS MAJOR INDICES SINCE 2010/IPO
400%
300%
200%
100%
0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
DRAG DAX Corecommodity CRB Index14
PEER OUTPERFORMANCE DESPITE A CHALLENGED OIL & GAS MARKET
DEUTSCHE ROHSTOFF VS MAJOR INDICES SINCE 2015
200%
150%
100%
50%
0%
2015 2016 2017 2018 2019 2020 2021
DRAG DAX Corecommodity CRB Index15
OUR STOCK HAS OUTPERFORMED THE US OIL AND GAS SECTOR FOR YEARS
DEUTSCHE ROHSTOFF VS US OIL AND GAS SECTOR INDICES SINCE 2010
400%
300%
200%
100%
0%
2010 2012 2014 2016 2018 2020
DRAG DJ US Select E&P DJ US Oil & Gas16
ERFOLGREICHER ANLEIHEEMITTENT IN DEUTSCHLAND
KEY FACTS ISSUED BONDS (in mEUR)
100
▪ 3 successful bond issues
75
▪ Good access to German capital market
▪ After Corona crash, bond prices have returned to normal levels 50
▪ NOTE 16/21 trades at par and matures in July 25
▪ NOTE 19/24 is above the nominal value (103%)
0
ANLEIHE 13/18 ANLEIHE 16/21 ANLEIHE 19/24
NOTE 16/21 NOTE 19/24
125% 100% 125% 103%
100% 100%
75% 75%
50% 50%
25% 25%
2019 2020 2021 2020 2021
Ø Price since issue: 102% Maturity: 20. July 2021 Ø Price since issue: 95% Maturity: 06. December 2024
Coupon: 5,625% Issue Volume: EUR 67 million Coupon: 5,25% Issue Volume: EUR 87 million17
THE MATURITY PROFILE OF OUR BONDS ALLOWS US TO FINANCE
FURTHER GROWTH
CURRENT CASH &
CASH EQUIVALENTS* NOTE MATURITIES
m EUR m EUR
NOTE 19/24 Dez 2024
70.8 87.0
NOTE 16/21 Juli 2021
Convertible note
16.8 18/23 March 2023
10.6
2021-03-31
31/03/2021 Jul 2021 2023 2024 2025
* Cash, securities held as fixed and current assets, receivables18
HIGHLIGHTS OF THE FIRST
QUARTER 202119
WE HAVE STARTED THE NEW YEAR VERY WELL
▪ Oil production running at full capacity again since early January
▪ Q1 2021: Total 578,912 BOE or 329,309 BO: well above the expectation from the beginning of the year.
▪ Strong performance of oil/gold bond/stock portfolio: EUR 8.5 million realized gain in Q1
▪ Strong increase in cash and cash equivalents to EUR 70.8 million (GC and GCU securities, receivables, cash
and cash equivalents)
▪ Bright Rock receives approval to form federal unit in Wyoming
▪ First well planned for 2021
▪ Almonty makes great progress towards the development of the Sangdong project20
OIL PRICE RECOVERS QUICKLY FROM ITS CORONA CRISIS
80
60
1
3
40
WTI/Barrel in USD
20
0
Jan. 20 Apr. 20 Jul. 20 Okt. 20 Jan. 21 Apr. 21
-20
-40
2
-60
1 8 March 2020: Largest daily loss since 1991 due to the failure of an OPEC deal
2 20 April 2020: Oversupply and demand concerns pushed WTI prices temporarily below -40 USD/barrel
3 November/December 2020: First vaccine developments with high efficiency are published and approved21 FORECAST 2021 NEW FORECAST ▪ Group sales in 2021 in a range of EUR 57 to 62 million ▪ Earnings before interest, taxes, depreciation and amortization (EBITDA) 2020 of EUR 42 to 47 million ▪ Group result clearly positive ▪ Production 2021 between 5,700 - 6,300 BOEPD ASSUMPTIONS ▪ Only currently producing wells considered ▪ WTI 60 USD/BBL / gas price 2.50 USD/MMBTU / EUR/USD 1.20
22
FINANCIAL STANDING OF COMPANY
Forecast FY Q1 2021** 2020 2019 2018 2017
Production in BOEPD* 5,700-6,300 6,432 4,213 4,501 9,062 5,123
Revenue 57-62 17.9 38.7 41.2 109.1 53.8
EBITDA 42-47 21.3 23.9 22.7 97.9 36.1
Net Income Very positive 11.7 -16.1 0.2 17.9 7.7
Balance Sheet Total 231.8 206.7 278.9 224.8 213.6
Cash & Cash Equivalents 70.8 46.9 95.9 79.7 45.5
Equity 61.8 45.6 71.5 73.8 56.7
Bonds 114.4 114.4 131.1 77.3 82.3
Bank Liabilities 9.6 14.0 8.0 16.1 24.2
Equity Ratio in % 27 22 26 33 27
* Barrel of Oil Equivalent per day
** Q1 2021 unaudited
*** Cash, cash equivalents and securities in non-current and current assets23
KEY INCOME RELATIONS AS OF MARCH 31, 2021
EARNINGS in 1Q 2021 in EUR million
EUR 17.9 million in sales were generated mainly from the production of oil and gas in the USA,
Total 1 and EUR 9.5 million from other operating income, of which EUR 8.5 million was attributable to
Performance 27.4 1
the sale of securities.
Of this amount, €3.4 million relates to operating costs for oil and gas production in the USA.
Cost of 2
3.4 2 Total expenses amounted to €5.88 per BOE.
materials
G&A breaks down into personnel expenses of EUR 1.1 million, losses on the sale of
G&A & Other 3 marketable securities of EUR 0.3 million and additions to provisions of EUR 0.2 million. .
Expenses 2.7 3
EBITDA 4 EBITDA amounted to EUR 21.3 million (previous year: EUR 9.5 million).
21.3 4
Depreciation and amortization of EUR 7.0 million, mainly relating to the ongoing operating
5
Depreciation 7.0 5 activities of the manufacturing companies. This corresponds to EUR 11.59 per BOE.
Interest & taxes 2.6 6 The amount of EUR 2.6 million includes interest expenses and income totaling EUR 1.2 million
6
and deferred tax expenses of EUR 1.4 million.
Net income 11.7 7
For the 1st quarter of 2021, net profit amounted to EUR 11.7 million
7
(previous year: net profit EUR 0.9 million)
1 Total operating performance is defined as revenue plus increase or decrease in finished goods and work in process plus
own work capitalized plus other operating income plus income from sale / deconsolidation.24 OIL & GAS MARKET
25
EXISTING POPULATION WILL NEED MORE ENERGY…..
HUMAN DEVELOPMENT INDEX AND ENERGY DEMAND
Yemen Bangladesh India Mexico Spain USA
VERY HIGH
U.N. Human Development Index (HDI) 2017
HIGH
MEDIUM
50% OF WORLD POPULATION
3.7 billion people
LOW 10-year lower life expectancy
35% fewer years of education
25% without access to electricity
10 100 1000
Energy demand per capita [100 BTUs/person/day]
Source: Exxon26
….. DEMAND CONTINUES TO GROW
TOTAL DEMAND FOR PRIMARY ENERGY
Historical Forecast
Other renewable energies
17.500 COVID-19* Hydropower
Global Financial Crisis Nuclear Power
15.000
Bio-Energy
12.500
Million tonnes (equivalent)
Natural gas
10.000
7.500 Coal
5.000
2.500 Crude Oil
0
2000 2010 2020 2030 2040
* Illustrated example of visualized COVID-19 influence
New Policies Scenario: consideration of existing energy policy and an assessment of the results expected from the announced policy measures
Source: IEA, World Energy Outlook 201827
OIL DEMAND GROWS STEADILY
PETROLEUM AND OTHER LIQUIDS CONSUMPTION
120.000
100.000
80.000
REST OF THE World avg. p.a.
WORLD 1.22%
MMbd
60.000
40.000
USA avg. p.a.
UNITED
20.000 STATES 0.43%
China avg. p.a.
CHINA
0
5.40%
1985 1990 1995 2000 2005 2010 201528
WTI HAS LEFT THE LONG-TERM DOWNWARD TREND TO THE UPSIDE ONE
WTI OIL PRICE - 20 YEARS
$160
$140
$120
Strong breakout from
the long-term trend line.
WTI price in USD
$100
$80
$60
$40
$20
$0
2000 2005 2010 2015 2020
Source: NYMEX29
SHARP DECLINE IN INVESTMENT IN THE GLOBAL OIL SECTOR
GLOBAL UPSTREAM LIQUIDS CAPITAL EXPENDITURES
600
500
-26%
400
Billion USD
-8% -35%
300
OTHER
200 INTERNATIONAL E&P
NORTH AMERICAN E&PS
OTHER INTEGRATED
100 MAJORS
NATIONAL OIL
0 COMPANIES
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: JP Morgan Research30
THE BEGINNING OF THE NEW SUPERCYCLE?
SUPERCYCLES OF COMMODITY PRICES
Price deviation from long-term trend WTI price in USD, inflation-adjusted
80 160
60 140
40 120
20 100
ø 80
-20 60
-40 40
-60 20
TOTAL CAPEX IN OIL INDUSTRY
-80 0
1960 1970 1980 1990 2000 2010 2020 2030
SUPERCYCLE CURVE WTI OIL PRICE GLOBAL UPSTREAM CAPEX
Source: Bank of Canada, Rystad Energy, Deutsche Rohstoff AG31
SHARP DECLINE IN ACTIVE OIL RIGS IN THE USA
UNCONVENTIONAL PRODUCTION PER BASIN AND NUMBER OF DRILLING RIGS
10 1,800
Permian Bakken Eagle Ford Niobrara Anadarko Others unconventional Rigs US
9 1,600
8
1,400
7
Number of active oil drilling rigs
1,200
Oil production in MBO
6
1,000
5
800
4
600
3
400
2
1 200
- -
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Sources :
Active oil drilling rigs based on figures from Baker Hughes
Production figures are forecasts by EIA from May 202132 OIL & GAS – US E&P
33
MORE THAN 2 MILLION OIL & GAS WELLS ACROSS THE UNITED STATES
OIL FIELDS WITH ACTIVITY OF DEUTSCHE ROHSTOFF
WILLISTON BASIN
POWDER RIVER BASIN
DJ BASIN
UINTA BASIN
Quelle: Enverus34
EFFICIENT EXTRACTION PROCESS
1 2 3 4
Fracking fluid (water, sand and
Rocks are fractured to increase Oil and gas is carried out via Fracking liquid is reintroduced
additives) is pumped into drilled
the inflow of oil and gas pipelines or tank trucks. into the cycle or recycled.
well at high pressure
CONVENTIONAL WELL UNCONVENTIONAL WELL
Vertical drilling Horizontal drilling/Hydraulic Fracturing
Oil and Gas 3
1 Fracking Liquid
Drinking water
Depth less than Additional surface protection Average depth
150 meters
collar
2.0 - 6.0 km
(5.000-20.000 ft)
Oil and gas
reservoir
4
2
High-density rock
Depth 1,000-4,000 m
Average lateral length
Source: Deutsche Rohstoff AG, Internet Sources
1.6 – 3.5 km
(1 - 2.3 miles)35
EXPLANATORY EXAMPLE OF A HORIZONTAL WELL
COMPLETED WELL
1
DRILLING
3
4
2
5
1 Land position, “acreage”
2 Drilling rig: Temporary facility for drilling wells on the Pad
3 Production Pad - Above ground facilities
4 First drilling phase: vertical, approx. 2,000 to 3,000m
5 Second drilling phase: Horizontal, typically 1,600 to 3,000m36
CLOSE-UP OF THE WILLISTON BASIN IN THE USA
WILLISTON BASIN McKENZIE - TOWNSHIPS ZOOM TO ONE TOWNSHIP
130 km
80 miles
29 km
18 miles
10 km
6 miles
1 2 3 4
▪ An oil “basin” describes ▪ Here in the example ▪ All states in the US are divided ▪ One section consists of 640
a large, supra-regional the Williston Basin, into so-called townships, which acres, a township therefore of
oil reserve. which extends over are squares marked by 23,040 acres
▪ Oil fields have different North Dakota, north/south and west/east ▪ Most horizontal wells are about
characteristics. They Montana and into orientations 1-2 miles long (lines), points
may have oil or gas Canada ▪ Townships (here 150N94W) indicates the oil pad or the well
predominance and consist of 36 sections and have location and lines the directional
different production a length of 36 miles, which is wellbore
curves. why each of these sections has
a side length of 1 mile37
NEW PROJECT VALUATION
TYPE CURVE PROCESS OF VALUATION
100000
▪ Before investment decisions are made, we analyze a large number
of producing wells in the surrounding area in order to estimate the
expected production profile called a type curves (blue line).
▪ Analysis often consists of more than 100 surrounding wells in order
to obtain the most reliable analysis
10000
▪ The typical curve shows the highest production at the beginning,
which leads to a high IRR.
Bopd
RESERVE TYPES
1 PDP - Proved, developed & producing
1000 Proven reserves that have been drilled and are already producing
2 PNP - Proved not producing
Proven reserves, excluding production
3 PUD - Proved undeveloped reserves
Proven reserves that have not yet been drilled
4 PRB - Probable reserves
100 Possible reserves
0 10 20 30
Months38
SINGLE WELL ECONOMIC POTENTIAL
OIL AND GAS TYPE CURVE
30000
EXAMPLE 60000
MCF – Thousand Cubic feet of Gas
Oil Gas
BO – Barrels of Oil
20000 40000
10000 20000
0 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Months
EXPECTED SINGLE WELL EONOMIMCS
CASH FLOW EXAMPLE
AT 50 USD OIL*
$5.0
Drilling and completion USD 4.5m
Payback time 1.5-3 Years $2.5
Opex USD 8-10 per Barrel
mUSD
Well life 20-30 Years $0.0
IRR 20-55%
-$2.5
Net Revenue USD 6-12m
Net Cash Flow USD 2.0-8.0m CASH FLOW Cumulative Cash Flow
-$5.0
t=0 t=1 t=2 t=3 t=4 t=5 Remaining
years
* 2 mile horizontal Niobrara well, DJ Basin, Colorado / Gas Price 2.5 USD / drillcost 4.5 MM USD / 100% working interest39
AN OIL PRICE OF 55 USD/BARREL LEADS TO A NET MARGIN OF 26%
SINGLE WELL ECONOMICS
EXAMPLE
$5.0
$20.5 $13.0
$3.6
$5.0
$9.6
$50 EBITDA / Barrel
$21.1
$34.2
$13.2
WTI Oil Price Gas & NGL Transport
Differential Royalty Local Tax Opex Processing Cash Flow Depletion Wellhead
Credit Net Profit
* 2 mile horizontal Niobrara well, DJ Basin, Colorado / Gas Price 2.5 USD / drillcost 4.5 MM USD / 100% working interest40 OIL & GAS – COMPANY PRESENCE IN US
41
ESTABLISHED US PRODUCER
POWDER RIVER BASIN - WYOMING
− Bright Rock Energy
− 28.000 acres
KEY FACTS ON OUR ACTIVITY IN USA
WILLISTON BASIN – NORTH DAKOTA
− Salt Creek Oil & Gas ▪ More than 60 wells drilled
− 5.000 acres
▪ Active in 4 states
▪ Partner in more than 250 wells
UINTA BASIN - UTAH DJ BASIN - COLORADO ▪ Q1 2021 production 6,432 BOEPD
− Bright Rock Energy − Cub Creek Energy
− 2.000 acres − Elster Oil & Gas
− 5.000 acres
DEUTSCHE ROHSTOFF US OIL & GAS
▪ North Dakota is the second strongest, Colorado the sixth strongest oil producing state in the USA, Utah also ranks among the most important
▪ All states have a long history in the oil industry, resulting in an excellent pipeline infrastructure & worker culture
▪ First-class regional service companies ensure the best possible services in the oil & gas sector
▪ Good regulatory environment for conducting business activities
▪ Large number of manufacturing companies offers optimal opportunities for non-operative activities and participations42
PRODUCTION GROWTH SINCE 2015
SUMMARIZED PRODUCTION ON ALL OIL FIELDS
20,000
Salt Creek assets sale in ND Knight and planned
new projects
15,000
Impact of COVID-19
Forecast
10,000
Divestment Tekton
5,000
0
TEKTON ENERGY ELSTER OIL & GAS
2012 – 04.2014 2014 - now
Producing company
BRIGHT ROCK ENERGY
07.2018 - now
CUB CREEK ENERGY
2015 - now
SALT CREEK OIL & GAS I SALT CREEK OIL & GAS II
2017 - now43 OPPORTUNITIES Regular analysis of various projects for the sustainable and long-term increase of the company's value
44
PORTFOLIO EXPANSION
Drilled 12 2.25-mile horizontal wells in the first half of 2021. Production start expected Q4 202145 SUCCESSFUL PRODUCTION 5 pads with a total of 55 wells developed by Cub Creek Energy in Denver
46
PROBABLE RESERVES IN UTAH AND WYOMING INCREASED
RESERVES OVER TIME IN BOE
Total Probable Total Proven 29.4
26.6
20.5 20.4
15.1 13.4
8.7
3.4 2.4 3.8
2016 2017 2018 2019 2020
Discounted net
BOE Sales Net income*
RESERVES IN 2020 income*
(in million barrels) (in USD million) (in USD million)
(10%, in USD million)
Colorado Assets
Proven 15.77 364.84 148.91 101.75
Probable 0.00 0.00 0.00 0.00
Utah and North Dakota Assets
Proven 4.65 153.26 67.35 27.00
Probable 3.83 128.44 49.45 14.62
Total Proven 20.42 518.10 216.26 128.75
Total Probable 3.83 128.44 49.45 14.62
* Revenues and net income (revenues less partner shares, royalties, development and operating costs and production taxes) based on WTI forward curve as of 31 December 202047
WYOMING - 2020 LARGE AREA ACQUIRED IN POWDER RIVER BASIN
▪ Land package in the Powder River Basin with 28,000 net
acres.
▪ Production from 5 wells with currently approx. 150 BOPD
(net)
▪ Large Cap Operators in Close Proximity
▪ 7 Drill rigs active in the Basin
▪ First well from Bright Rock expected later this year
100km
Bright Rock Acreage with Buster DSU Chesapeake Energy
Devon Energy
EOG Resources48
COLORADO – USD 60m INVESTED IN 2020
DJ-BASIN – WATTENBERG FELD KEY FACTS ON OUR ACTIVITY IN USA
Source: Enverus ▪ Located in Wattenberg-Field, DJ Basin, 20.000+ Drillings
▪ Wide range of production data available due to large
USA - COLORADO
number of producing wells. This allows for a precise
estimation of the production efficiency of new wells.
▪ Present companies: Noble Energy, Anadarko Petroleum,
Extraction Oil and Gas, PDC, Synergy
MANAGING STRUCTURE
100 miles
* *
93% 88%
DENVER
100 miles * Remaining interest is held by local management board49
OLANDER AND KNIGHT SET PRODUCTION TARGETS THIS YEAR AND NEXT
I
II
III50
HISTORY OF SUCCESS - CASE STUDY I
SALT CREEK OIL AND GAS – A SUCCESSFUL STORY
DEC 2016 DEC 2017 JUN 2018
ACQUISITION - USD 38.1 m 61% increase in Sale of the majority of
1,795 net acres with 60 existing production through North Dakota land for
and approximately 90 planned wells new successful wells USD 63.6m
JUN 2015 APR 2017 MAR 2018
ESTABLISHMENT Production 20% above Robust production leads to
Salt Creek Oil & Gas expectations; USD 5 million 141% increase in proved
invested in 9 wells reserves to USD 83.9 million
Financed with equity of Deutsche Rohstoff AG and a reserve-based credit line51
HISTORY OF SUCCESS - CASE STUDY II
TEKTON ENERGY – SUCCESSFUL DEVELOPMENT AND DIVESTMENT
OCT 2011 MAR – MAY 2013 SEP 2013 – APR 2014
ACQUISITION – 2 000 acres 2 successful horizontal EXTENSIVE DRILLING
Identification of the Windsor project drilling operations, initial PROGRAM
production 1,228 BOEPD 80 new wells planned
JAN 2011 YEAR 2012 JUNI – AUG 2013 MAY 2014
ESTABLISHMENT 9 successful vertical wells BOND ISSUANCE SALE USD 230 million
Tekton Energy Financing large drilling & Remaining 560 acres were
development program transferred to Elster Oil &
Gas
Financed by Deutsche Rohstoff with equity and debt capital
365% Return on equity over approximately 3.5 years52 MINING & INVESTMENTS
53
ALMONTY - LEADING TUNGSTEN PRODUCER IN OUR PORTFOLIO
HIGHLIGHTS
▪ Share price doubles in 1Q2021
▪ APT increases with other metals
COMPANY PRESENCE
▪ Maturity of major part of liabilities extended to 2023
▪ Further capital increases or commitments to cover the
equity portion of project financing completed
▪ Expansion of ESG program in Portugal and South Korea
▪ Drilling to resource Sangdong molybdenum deposit to
commence in Q2 2021
▪ ASX: Trading expected to start in mid-June
In CAD In millions
1.40 3
1.20
1.00 DEVELOPMENT
2 PRODUCING MINES
0.80
0.60 ▪ Panasquiera - Portugal ▪ Valtreixal - Spain
1
0.40
▪ Los Santos - Spain
0.20 Production from 2022/2023
0.00 0
Jan. Feb. Mrz. Apr. Mai. Jun. Jul. Aug. Sep. Okt. Nov. Dez. Jan. Feb. Mrz. Apr. ▪ Sangdong - South Korea
20 20 20 20 20 20 20 20 20 20 20 20 21 21 21 2154
GOOD PERFORMANCE OF EQUITIES AND BONDS AND MUCH POTENTIAL
FOR THE CURRENT YEAR
in EUR 1.000
Book value Current value Price gain
INVESTMENT PORTFOLIO 04/30/2021 (unrealized)
Gold shares 10,479 13,326 2,847
Oil & Gas Shares 9,061 11,122 2,061
Total 19,540 24,448 4,908
Book value Current value
Strategic Stakes
31.03.2021 04/30/2021
Almonty Industries* 12,131 18,547
Northern Oil & Gas 6,773 8,666
Total 18,904 27,213
* includes only the Almonty shares, no loans55
GOOD PERFORMANCE OF THE PORTFOLIO AND MUCH POTENTIAL FOR
THE CURRENT YEAR
Investment portfolio - realized and unrealized income in EUR million
$4.9
$3.0
$8.0 Realization of
EUR 8.5 million
$8.5 $8.8
$3.5
2020 Q1 2021 YTD - 30 April 2021
Realized profit Unrealized profit56 FINANCIALS
57
CONSOLIDATED RESULT
GROUP
INCOME STATEMENT
in EUR million
Q1 2021 2020 2019 2018
Sales 17.9 38.7 41.2 109.1
Other own work capitalized 0.0 0.0 0.1 1.3
Other income 9.5 7.7 4.3 19.1
Cost of material 3.4 11.6 11.3 19.0
Personnel expenses 1.1 3.6 4.5 3.9
Other related expenses 1.6 7.2 7.1 8.5
EBITDA 21.3 23.9 22.7 97.9
Depreciation and amortization* 7.0 40.1 17.1 65.2
EBIT 14.3 -16.1 5.6 32.7
Financial results -1.3 -6.4 -5.4 -6.2
EBT 13.0 -22.5 0.3 26.5
Taxes -1.3 6.4 -0.1 -8.6
Consolidated net income 11.7 -16.1 0.2 17.9
* Depreciation and amortization comprises both scheduled and unscheduled depreciation and amortization on financial assets and current assets58
KEY FIGURES FROM THE BALANCE SHEET
GROUP
BALANCE SHEET
in EUR million
31. Mrz 2021 31. Dez. 2020 31. Dez. 2019 31. Dez. 2018
Balance sheet total 231.8 206.7 278.9 224.8
Intangible assets 22.5 21.9 22.1 16.9
Property, plant and equipment 114.2 112.8 139.6 110.1
Financial assets 34.8 35.7 36.8 22.0
Thereof securities held as fixed assets 13.2 13.2 18.2 5.9
Inventories 0.2 0.2 0.2 0.2
Receivables and other assets 21.9 10.8 11.1 13.8
Cash and cash equivalents* 48.9 36.0 84.8 65.9
Deferred tax assets 1.2 1.5 1.4 1.2
Equity 61.8 45.6 71.5 73.8
Equity ratio 26.7% 22.1% 25.6% 32.8%
Provisions 12.8 7.3 25.2 19.3
Liabilities 140.2 138.6 166.0 116.2
Deferred tax liabilities 17.0 15.2 16.2 15.5
* Cash at banks and securities held as current and non-current assets59 SUMMARY
60
OUR SHARE SHOULD BENEFIT FROM THE CURRENT COMMODITY
BOOM
$$$
US banks expect oil prices to High profitability of the oil Investment portfolio
remain higher business in the current price continues to offer
environment high earnings
potential
Wyoming acreage could see Almonty: Listing ASX, start of
significant increase in value construction Sangdong
from drilling should trigger further share
price gains61
Deutsche Rohstoff AG
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68161 Mannheim, Germany
+49 621 490 817 0
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