Ann: Quarterly Investor Update, page-4

Topline revenue reasonable but the EBITDA is a shocker (again). They've gone to great lengths to detail why EBITDA is half where it should be but the perennial lower than expected numbers has been going on for 3 years now. When they detailed their expectations of the business with the rig expansion guidance was in the order of $55million with Nathan Mitchell saying that $60million in good market conditions wouldn't be out of the question. The 'coulda, shoulda, woulda' feel is becoming entrenched here. They were consistently generating EBITDA numbers well over $10million years ago. Here we have a much larger business with operating margin going backwards by a long way when they should be improving considering fixed costs should be fairly anchored. Disappointing also is 80 rigs in the field out of a fleet of 98-99. Not sure how that equates to 'full utilization' even accounting for mandatory maintenance. DDH by comparison are leaving them behind. This is a very poor quarterly. If they pay bonuses this year shareholders should make noise because they're not aligning management returns with those of shareholders. Revenue without commensurate profit is pointless. Mining services are starting to look good but management have to take responsibility here & make it happen.