Deutsche Rohstoff (DR0) 15th International Investment Forum summary

Business overview and portfolio

• Core business is U.S.-based oil and gas production, with operations mainly in Wyoming and Colorado, producing 14,000-15,000 barrels of oil equivalent per day and over 100 operated wells.

• Built significant reserves of 54 million barrels of oil equivalent, supporting stable production and revenue for at least the next 10 years.

• Diversified portfolio includes a major stake in Almonty Industries, a leading tungsten mining company, now a significant asset.

• Almonty’s market value and bonds held represent about EUR 14 per share, or EUR 70 million, for the portfolio.

• Cerytech, a minor shell company, is not a current focus and represents a negligible part of the business.

Financial performance and capital allocation

• Q1 2025 revenue reached EUR 59 million, EBITDA EUR 43 million, and net profit EUR 12.5 million, with slight impact from currency losses and higher depreciation.

• Equity stands at EUR 239 million (EUR 48 per share), with recent trading at EUR 34-35 per share.

• High CapEx years (EUR 150-180 million annually) have supported growth and production plateau, enabling stable dividends and share buybacks.

• Proposed 2025 dividend is EUR 2 per share (5.7% yield), placing the company among Germany’s top 10 for dividend yield; EUR 4 million in share buybacks executed last year.

• Share price has outperformed peers over the past five years and in the last 12 months, despite recent oil price declines.

Operational strategy and resilience

• Maintains a stable production profile by investing in new wells and testing new acreage, focusing on cost control and efficiency.

• Drilling 10 wells in 2025 with a EUR 100 million investment, targeting lower costs per well and higher initial production rates.

• Achieved cost reductions, with current well costs down to EUR 9 million from EUR 11 million, maintaining a 30% rate of return even at lower oil prices.

• Strong hedge book and moderate leverage (<1x net debt/EBITDA) provide stability and less volatility compared to peers.

• Guidance for 2025 revised down only 5-7% despite a 20% drop in oil prices, demonstrating operational resilience.