Deutsche Rohstoff (DR0) Investor update summary

Strategic positioning and operational highlights

• Positioned for strong results in 2026, supported by high oil prices and expanded U.S. operations with three drilling rigs and EUR 220 million CapEx planned for the year.

• Enterprise value stands at EUR 470 million, with significant exposure to both oil/gas and metals/mining, notably a EUR 250 million stake in Almonty Industries.

• Oil reserves increased from 54 to 79 million barrels of oil equivalent, extending reserve life to approximately 14 years at current production rates.

• Production expected to reach up to 20,000 barrels per day in H2 2026, marking a major milestone.

• Flexibility and agility in operations demonstrated by rapid scaling of drilling activity in response to market conditions.

Financial performance and guidance update

• 2025 EBITDA reached EUR 132 million with EUR 29 million net income, despite challenging oil prices.

• Revenue has nearly quadrupled since 2021, with 2026 guidance at EUR 260–280 million and EBITDA potentially reaching EUR 350 million in a high oil price scenario.

• CapEx for 2026 increased from EUR 100 million to EUR 220 million, supporting a step change in production and cash flow.

• Operating cash flow projected at EUR 200 million for 2026, excluding EUR 100 million from Almonty stock divestment.

• High reinvestment rate (50–90% of EBITDA) directed toward drilling and infrastructure expansion.

Market and macro environment

• Oil prices have risen to around $90, providing tailwind for valuation and future prospects.

• Global supply disruptions estimated at 9 million barrels/day, expected to support elevated oil prices for months.

• U.S. rig count remains below last year, but efficiency and demand are increasing.

• Powder River Basin in Wyoming is the main production area, with growing activity and potential for further expansion.