OUR
DiffeRences
cReate ValUe
2007 Annual Report
1
2
PhOTO:
BOART LOngyEAR DRILLIng SERvICES
MInERALS ExPLORATIOn SITE, InDOnESIA
table Of cOntents
Chairman’s Letter
Managing Director’s Letter
Operations Review
Competitive Differences
Board of Directors
Leadership Team
Financial Report
Directors’ Report
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4
6
8
17
18
19
22
Independent Auditor’s Declaration 46
Directors’ Declaration
48
Supplementary Information 123
Welcome to Boart longyear
Boart Longyear has a rich legacy of more than 100
years of providing drilling services and products to our
customers around the world in the mining, environmental,
infrastructure and energy industries.
Boart Longyear listed on the Australian Securities
Exchange on 5 April 2007.
For additional copies of this Annual Report, please
visit the Investor Relations page of our website at
www.boartlongyear.com.
1
A LETTER FROM ThE ChAIRMAn
gRAhAM BRADLEy
Dear Investors,
I am pleased to present the Company’s first annual result since our
ASx listing on 5 April 2007.
Our 2007 net profit after tax (nPAT) on a statutory basis was US$81
million. This exceeded our prospectus forecast (US$78 million) by
nearly 4 percent.
Because of the significant restructuring undertaken by the Company
and its predecessor group in the course of 2006 and early 2007, the
Company’s underlying performance is best judged by considering
our results on a pro forma basis compared to our prospectus
forecast. I am, therefore, pleased to report we have exceeded our
pro forma nPAT and earnings before interest, tax, depreciation and
amortisation (EBITDA) (US$336 million) for 2007. This exceeded
our prospectus forecast (US$320 million) by 5 percent. This result
was achieved from revenues of US$1,571 million which exceeded
our prospectus forecast (US$1,461 million) by US$110 million, or 8
percent. Both our Drilling Services division and our Products division
contributed to this above-prospectus result.
Boart Longyear ended the year with a strong cash position. net debt
was US$569 million compared to US$642 million in April 2007 at the
time of listing.
The Company has declared a dividend of 1.5 US cents per share.
This dividend is consistent with the stated policy set out in our
prospectus of distributing between 30 to 40 percent of net earnings.
The dividend will be paid on 18 April 2008.
Our 2007 results were delivered in a climate of strong growth in
demand for the Company’s services and products, as mineral
resources enjoyed continuing strong demand on a worldwide
basis. Accordingly, the Company continued during 2007 to invest
in expanded production capacity, to add new drill rigs to our
worldwide fleet and to make selective acquisitions. In early 2007
we completed the purchase of grimwood Davies and KWL Drill
Rig Engineering in Western Australia, and Connors Drilling in Chile
and Argentina, acquisitions, which have performed at or above
plan. On 31 December, we also acquired Patagonia Drill Mining
Services’ operations in Argentina, Chile, Uruguay and Paraguay.
These acquisitions added drilling services capability—making us
the largest drilling services contractor in Australia and substantially
expanding our footprint in South America—along with adding product
capability and expertise. Since 1 January 2008, we have completed
our acquisition of Britton Bros. Diamond Drilling, located in western
Canada and Mexico. We have also sold our non-core mining capital
equipment business in South Africa.
In addition, in 2007 the Company has added 130 new drill rigs to
our global fleet through acquisitions and capital investment, bringing
“We have exceeded our pro forma nPAT
and EBITDA ... we see growth in demand
for our services and products continuing
strongly in 2008 and beyond.”
2
our total in rigs to more than 1,100. We have also expanded our
manufacturing operations in Wuxi, China, as well as Wroklaw, Poland,
and invested additional capital in existing manufacturing facilities.
There have been no changes to the composition of the Board since
the Company was listed last April. I would like to thank my Board
colleagues for their considerable contribution in both preparing
the Company for its initial public offering and in overseeing the
establishment of corporate governance, remuneration, health,
environment and safety, risk management and other important policies
and procedures necessary to ensure that as a listed company, Boart
Longyear’s governance, structures and practices meet the highest
standards.
I would also like to thank our chief executive, Paul Brunner, and
his executive team for their energy and dedication during the past
year. We thank, in particular, our former Chief Financial Officer, Ron
Sellwood, who retired in October after three years with the Company.
Looking ahead, while we see continued volatility in global debt and
equity markets, we expect that this will not fundamentally affect the
continuing strong demand for mineral resources, energy and water
resources, which, in turn, will drive continued growth in the Company’s
revenues. We see growth in demand for our services and products
continuing strongly in 2008.
We believe we are well-positioned to serve this demand with high-
quality products and reliable and safe contract drilling services. With
our moderate debt levels, high interest cover and strong cash flows,
Boart Longyear is well-positioned to continue to take advantage of
market conditions by further investment in organic growth and selective
acquisitions in the year ahead. We expect, therefore, continued
double-digit percentage growth in the Company’s revenues and
financial results in 2008.
I look forward to working with my Board colleagues, our executive
leadership team and our 9000 people around the world to realise this
aspiration in the year ahead.
Boart Longyear’s Initial Public Offering took
place on 5 April 2007.
2007 featured the launch of several new
products, including the variable Wall (v-Wall)
coring rod.
gRAhAM BRADLEy
ChAIRMAn
Left to right: Chairman graham Bradley,
Employee Scott Krugg, and Director Peter
St. george tour a US drill site.
3
A LETTER FROM ThE MAnAgIng DIRECTOR
PAUL BRUnnER
We are pleased to announce to our Shareholders that in Boart
Longyear’s first year of operation as a listed company we posted
record revenues and profits exceeding the commitments we made
in our IPO prospectus.
Our success was driven by strong demand for minerals in China
and elsewhere in the developing world, in conjunction with a
commitment from Boart Longyear’s employees at all levels to meet
the challenges set out in our operating plan. Underpinning our
performance in our Drilling Services division were the addition of
drill rigs and the crews to man those rigs, and from our Products
division, the completion of substantial capacity increases while
restructuring some underperforming parts of our operation. We
also successfully integrated three acquisitions made early in
the year and closed on a fourth acquisition at year’s end. The
Company is well-positioned to extend our success into 2008 by
building on this sound platform.
Our outlook for growth from all business segments remains strong
and there is no evidence that credit issues in the United States will
spill over into the demand for mineral exploration. The constrained
supply for commodities such as copper, gold, nickel and zinc is
sustaining prices well above historical averages and the point at
which mining companies are willing to invest in their exploration
programmes. Exploration is a segment of the mining industry that
has seen 30 years of under-investment. Success to date has not
yielded the new deposits or increases in metal reserves necessary
to close the supply gap for key metals. In addition, the increasing
complexity of new deposits, the politics in the jurisdictions being
explored and the logistics of operating a mine in remote and under-
developed locations should extend the life of this exploration cycle.
It is our view that the macro-economic conditions in which
the mining and the mineral exploration drilling industries find
themselves will sustain exploration and mine development well
into the future. Boart Longyear’s platform for growth and success
in this environment will be built on our points of competitive
difference. We are the exploration drilling industry’s global leader
and are clearly differentiated through our position as the only major
integrated products and services provider. This integration provides
a built-in continuous improvement and innovation loop leading to
a stream of new product solutions and value-adding ideas. As
evidence of this, in 2007 we introduced the Stage3 Diamond Bit, the
v-Wall Rod and the Quick Descent Core Barrel, all products which
contain patented technologies and significantly enhance drilling
productivity.
Further differentiating the Company are nearly 120 years of proven
performance, reliability, and innovation unmatched in the industry.
Boart Longyear truly is advantaged by our differences. The strength
of the Boart Longyear brand forms a solid base for extending valued
“We are the exploration drilling
industry’s global leader and are
clearly differentiated through our
position as the only major integrated
products and services provider. This
integration provides a built-in continuous
improvement and innovation loop leading
to a stream of new product solutions and
value-adding ideas.”
4
customer relationships by using our global reach to provide exceptional
customer service anywhere in the world. It also:
• gives us a first mover’s advantage on entering new markets and
looking at acquisition opportunities;
• Allows us to leverage our scale into even our smallest operation,
from our purchasing power to our training programmes; and
• Ensures our governance programmes are robust, from our ethics
and good citizenship to our environment, health and safety efforts.
As an organisation, I am proudest of how our people remained focused
on operational excellence through a period of strong growth and
significant change. We have delivered on our promises to the financial
community, but, as important, we met the challenges of safeguarding
our people in the field. Key among our efforts is our focus on safety,
such that today, we maintain among the industry’s lowest Loss Time
Injury (LTI) rates and continue to review every LTI at the highest level in
of Company management.
It is Boart Longyear’s global leadership in both drilling services and
drilling products, coupled with our world-class product innovation,
strong corporate values and commitment to the safety and training of
our people around the world that will enable us to continue to provide
high-quality, reliable products and services to our customers to meet
their growing needs. I am confident that our integrated business
model and strong financial position will assure Boart Longyear’s future
success and that our differences will continue to create value for our
investors and customers.
Our primary Corporate value of “Safety First”
is a commitment to each of our over 9000
employees around the world.
In 2007, the Company launched new global
training initiatives focused on retention,
leadership and safety.
PAUL BRUnnER
MAnAgIng DIRECTOR
Managing Director Brunner visits a sonic
drilling project in Europe.
5
OUR inteGRateD
DRillinG
sOlUtiOns
g & m i n e r als Drilling Servic
e
s
minin
Drilling Products
Exploration Drilling
Tools and Equipment
Rock Drilling Tools and Equipment
s
e
c
i
v
r
e
S
geotechnical and
Environmental Tools
g
n
i
l
l
i
r
D
y
g
r
e
n
e
Drilling ServiceS:
Diamond core drilling
Rotary drilling
Rotary air blast drilling
Dual tube reverse circulation drilling
Sonic drilling
Auger drilling
Percussive drilling
Probe drilling
Drilling ProDUctS:
Coring
Diamond bits
Drill rods and casing
In-the-hole tools
Percussive
Percussive bits
Drilling tools
Tapered and threaded rods
Pneumatic and hydraulic drills
Environmental and geotechnical
geotechnical drilling tools
Overburden drilling tools
Jet grouting tools
Drilling rigs
Surface coring rigs
Underground coring rigs
Longhole percussive drill rigs
Reverse circulation drill rigs
geotechnical and construction rigs
6
OpeRatiOns ReView
bUsiness OVeRView
Boart Longyear has been a leading provider of drilling services and products to
the global minerals industry for well over a century.
We operate an integrated business delivering high-quality drilling services and
products to customers globally.
DRillinG seRVices
Our Drilling Services division operates in more than 35 countries across north
America, South America, Asia and the Pacific rim, Europe and Sub-Saharan
Africa. We have an international network of more than 50 zone locations that
maintain and mobilise equipment close to key geographic markets.
Our competitive strengths include:
• global reach and longstanding relationships with a global customer base;
• Access to equipment and consumables to enhance drilling productivity;
•
•
Full suite of drilling services technologies; and
Industry-leading safety and training programmes.
MInIng AnD MInERALS
We are the global leader for minerals exploration, supporting mining customers
in the exploration, development and production of gold, copper, diamonds,
platinum, uranium, and other metals and minerals. The rock core chips and
samples we extract provide mining companies with critical information over the
life of a mining project, from exploration through the development, production
and closure of the mine.
EnvIROnMEnTAL & InFRASTRUCTURE
Our Environmental & Infrastructure drilling business continues to expand its
presence and capabilities to serve customers in the following industries:
• Environmental: drilling to support site investigation and remediation of
contamination for both soil and groundwater;
Environmental & InfrastructureDrilling Services
OpeRatiOns ReView
Key financial
peRfORmance
taRGets stateD in
the pROspectUs
haVe been met
2006/2007
yEAR OvER yEAR
FInAnCIAL COMPARISOnS
$2000
$1500
$1000
$500
$0
$1,576
$1,118
‘07
‘06
REvEnUE FROM
COnTInUIng OPERATIOnS*
In US$ M
• Water: drilling in support of groundwater exploration and development,
including the construction of water wells and servicing existing well and
pumping systems;
• geotechnical: subsurface investigative drilling for new construction and the
repair and remediation of existing infrastructure systems; and
• geo-construction: drilling for a variety of civil engineering and infrastructure
construction projects.
EnERgy
We assist customers in the exploration and production of non-conventional
energy sources, such as oil sands, oil shale and coal bed methane, by providing
earth and rock core samples for analysis and by installing gas well casings and
coal bed methane wells.
Due to growing hydrocarbon consumption and uncertainty surrounding the
supply of existing resources in the Middle East and other energy-producing
states, major oil and gas companies and utilities are seeking to develop these
alternative energy sources.
DRillinG pRODUcts
Our Products division develops, manufactures and sells coring tools, drilling
capital equipment and percussive tools. These products are used in industries
such as minerals, environmental, infrastructure, construction, stone and energy.
Coring tools developed, manufactured and distributed by Boart Longyear
include diamond coring bits, drill rods and wireline core extraction systems.
The Products division also manufacturers drilling tools and accessories for the
construction drilling and geotechnical markets globally. Many of our products
use patented technologies.
We are a recognised leader in the supply of drilling products to minerals drilling
services providers, primarily for dedicated surface and underground coring rigs
and bits.
The majority of the Product division’s sales are to our Drilling Services
division’s competitors, and an estimated 15 percent of the Product division’s
manufacturing output is used by our Drilling Services division.
$100
$60
$20
$0
$-20
$-60
$-100
$81
‘07
‘06
($83)
nET PROFIT (LOSS) FROM
COnTInUIng OPERATIOnS*
In US$ M
$300
$250
$200
$150
$100
$50
$0
$297
$69
‘06
‘07
EBITDA FROM
COnTInUIng OPERATIOnS*
In US$ M
$200
$150
$100
$50
$0
$-50
$158
‘07
‘06
( $41)
OPERATIng CAShFLOW*
In US$ M
*Statutory Basis
7
MInE ExPAnSIOn PROJECT
UTAh, USA
Around the world, Boart Longyear’s
skilled employees and high-
performance rigs and consumables
are called upon to deliver excellent
and safe results to our customers.
OUR DIFFEREnCE- the inDUstRy’s Only
maJOR inteGRateD DRillinG
sOlUtiOns pROViDeR
Because of our leading positions in
drilling services and products, we truly
understand the needs of our customers
with regards to safety, people,
training, environments, applications
and geographies. As an experienced
industry leader, we answer these needs
with innovative drilling solutions that
bring value to our customers, including:
• Access to equipment in a supply-
constrained market;
• A continuous product development
and innovation cycle;
• Product engineering driven by the
productivity requirements of our
Drilling Services division;
• A ‘speed to market’ advantage for
new product development;
• Market knowledge based on
experience in the field;
•
Industry-leading safety practices;
and
• Early adoption of productivity-
enhancing products.
8
DRillinG
cOnsUmables
DRillinG
capital eQUipment
DRillinG seRVices
FOCUS On OUR inteGRateD bUsiness aDVantaGe:
Our drilling consumables and capital equipment are developed in close collaboration with our
Drilling Services division. In turn, we incorporate our experience in the field into our product
engineering cycle. In 2007, we took additional steps to leverage the power of our integrated
business model and the unique value of the information it provides our global engineering
teams. Working together, our Drilling Services and Products divisions are actively sharing field
data, challenges, safety requirements and best practices — driving our product development to
new heights
#1 pROViDeR:
seRVices
tO the mininG
inDUstRy
#1 pROViDeR:
seRVices tO the Us
enViROnmental
inDUstRy
#1 pROViDeR:
pRODUcts tO the
sURface eXplORatiOn
inDUstRy
#1 pROViDeR:
pRODUcts
tO the UnDeRGROUnD
eXplORatiOn inDUstRy
OUR DIFFEREnCE- fOcUseD
GlObal leaDeRship pOsitiOn
in Key inDUstRies
DRillinG
seRVices
DRillinG
pRODUcts
Boart Longyear delivers expert drilling services solutions
for a wide variety of applications to our customers around
the world. Operating in more than 35 countries, our
Drilling Services division is growing to meet increasing
demand from our customers. Our teams are constantly
developing tomorrow’s solutions, applying emerging
technologies while offering time-tested, safe and
performance-driven processes perfected in a variety of
drilling applications around the globe.
Boart Longyear is a world leader in the design,
development and manufacture of products for mining,
environmental, energy and construction applications.
With state-of-the-art manufacturing centres and patented
technologies, we offer world-class products such as
coring, percussive, environmental and geotechnical
consumables and drilling rigs that perform in the toughest
applications.
Drilling Services:
Sonic Advantages:
• Reverse circulation
• Speed
• Percussive
• Cost-effectiveness
• Underground and
surface coring
• Sonic
•
Less waste
• Sample accuracy
Surface Exploration
Products:
Underground Exploration
Products:
•
LF Series coring rigs
•
LM Series coring rigs
• Coring consumables
• Coring consumables
• KWL reverse
• Percussive rigs and
circulation and
multipurpose rigs
consumables
9
DRIvERS’ SAFETy TRAInIng
ChATREE, ThAILAnD
As part of our commitment to the
safety of our employees, Boart
Longyear conducts training on
topics such as operator safety,safe
driving, basic first aid and hIv/AIDS
prevention at our locations around
the world.
OUR DIFFEREnCE- OUR RepUtatiOn fOR
leaDinG the way in safety
peRfORmance
In 2007, Boart Longyear executed several
new programmes and initiatives, received
numerous awards and recognitions,
and earned or maintained industry
certifications, validating our commitment to
the environment and the safety of others.
InCIDEnT REPORTIng
We improved the effectiveness of our
environment, health and safety (EhS)
incident reporting with the launch of a
web-based system that allows immediate
access to EhS data across the globe.
This ‘real time’ information is captured and
distributed across our operations globally
to prevent future incidents by sharing
best practices and lessons learned and
expanding awareness of safety risks and
solutions.
EhS CERTIFICATIOnS
In 2007, with the exception of recent
acquisitions, all of our drill sites around
the world and all 8 of our manufacturing
plants were ISO 14001, and OhSAS
18001 certified, proof of our long-term
commitment to the environment and the
safety of our employees and customers
today, and into the future.
10
FOCUS On
eXcellence in safety:
Boart Longyear’s reputation for safety is
among the best in the industry. We proudly
thank our employees for their commitment
to safety and share these examples of 2007
safety performance acccomplishments.
CODELCO DIvISIón AnDInA
SAFETy AWARD
Chile, December 2007
SAFETy InnOvATIOn AWARD
nOMInATIOn
Australia, 2007
BOART LOngyEAR SAFETy AWARD
1-MILLIOn hOURS
WIThOUT SERIOUS InCIDEnT
Thailand, 2007
KEnnECOTT hSEC AWARD
Canada, 2007
BOART LOngyEAR SAFETy AWARD
12 MOnThS WIThOUT
SERIOUS InCIDEnT
Australia, 2007
CODELCO DIvISIón AnDInA
SAFETy AWARD
Chile, April 2007
QUICK DESCEnT CORE BARREL
COnCEPTUAL ILLUSTRATIOn
Our knowledge of drilling drives our
product innovation. As the industry’s
only integrated provider, we bring a
unique perspective into designing
tomorrow’s drilling solutions.
OUR DIFFEREnCE- 24-hR GlObal
enGineeRinG speeDs wORlD-class
innOVatiOn tO maRKet
Through Boart Longyear’s commitment to
engineering, we accelerated technology
development and speed to market, delivering
solutions that improved performance, safety,
productivity and ease of use.
Internally, we combined our global
engineering groups into “Centres of
Expertise”, offering round-the-clock sharing
of data, best practices and ideas.
This 24-hour stream of information
significantly shortened our product
development cycle and led to the
introduction of the following products in
2007:
• Stage3TM diamond bit;
• v-WallTM coring rod;
• Quick DescentTM core barrel;
• DeltaBase 105 environmental and
infrastructure rigs; and
• new line of reverse circulation drill rigs;
In addition, we developed and readied for
launch in Q1 2008 a reverse circulation rod
handling system.
FOCUS On
incReasinG capacity:
We continually seek to improve our
manufacturing capacity, and in 2007 we
significantly enhanced our manufacturing
operations, particularly with respect to
coring products and rigs. For example,
at our new rig manufacturing plant
in Wroklaw, Poland, we delivered 65
percent faster production through lean
manufacturing.
We improved our cost position through
facility consolidation as well as other
internal cost saving measures and
positioned the recently acquired KWL
business for rapid capacity increases for
2008.
I
y
T
C
A
P
A
C
D
E
S
A
E
R
C
n
I
E
g
A
T
n
E
C
R
E
P
y
O
y
100%
100%
50%
‘06
‘07
Rods
‘07
‘06
Bits
‘07
‘06
Rigs
PRODUCT LInE
11
MInERALS ExPLORATIOn SITE
CAnADA
At Boart Longyear, we hire the
best people and provide them with
superior training, mentoring and
development programmes essential
to recognising their exceptional
performance, actions and ideas.
OUR DIFFEREnCE- OVeR 9000
tRaineD, sKilleD anD DeDicateD
emplOyees wORlDwiDe
With a specific focus on training,
development and retention of our
drillers and drillers’ helpers, gAT
involves a Zone Manager and top
driller from each operational region
and brings them together to find
solutions for operational challenges
and training needs to improve
performance and reduce injuries,
benefiting our people and delivering
the best results to our customers.
As a result of gAT initiatives,
our personnel participate in the
design and implementation of
enhanced training and development
programmes and see first-hand our
commitment to safety, increased
retention and career opportunities
and deliver greater operational
efficiencies for our business.
FOCUS On
sOnic UniVeRsity:
Boart Longyear’s Sonic University is
an accredited training program focused
on sonic drilling technology. Students
participate in both classroom and hands-on
learning methods while gaining an in-depth
understanding about sonic drilling and the
advantages that come with this innovative,
cutting-edge technology. Ensuring
the courses are applicable to the field,
coursework includes actual operation of a
sonic drill rig, with coaching and feedback
from master driller trainers.
Since its inception in 2004, over 200 drillers
have graduated from our Sonic University.
People make the difference at
Boart Longyear. We know that our
success depends on our people
and our continued investment in our
workforce. We successfully added
more than 1300 employees in 2007
despite significant labour shortages in
certain key markets. Our workforce
is of the most mobile in the industry
and can meet our customers’ needs
virtually anywhere in the world.
TRAInIng AnD RETEnTIOn
In a global environment of high
demand for skilled employees, we
strive to be the employer of choice
in the industries we serve so we can
meet the demand for our products
and services with employees that
are motivated, well-trained, safety-
conscious and customer-focused.
In 2007, along with the
implementation of our Performance
and Development Management
system for salaried employees, Boart
Longyear enhanced the training and
development of our field employees,
notably through the creation of a
global Advisory Training (gAT) team.
12
SURFACE MInERALS ExPLORATIOn SITE
InDOnESIA
Through strategic acquisitions
as well as organic growth, Boart
Longyear is focusing on the regions,
technologies and products that
matter most to our customers.
OUR DIFFEREnCE- fOcUseD On
stRateGic GROwth
Our Drilling Services division saw
significant growth in 2007 with the
successful completion of several strategic
acquisitions and through organic growth.
Our Products division, already the
supplier of choice for many mines and
drilling contractors in over 100 countries,
launched several new products and
acquired KWL, well-known for its high
performance reverse circulation rigs.
In addition to expanding our presence
with existing customers, our acquisition
of Prosonic, and the subsequent creation
of our Environment & Infrastructure
business, provides a platform for future
growth opportunities. As the world’s
drilling needs continue to expand, we are
executing our plan to bolster our position
in key markets while expanding into new
geographies or into markets where we
have had a limited presence. We have
continued to partner with our customers
to identify needs and opportunities
for cutting-edge solutions and safety
enhancements, and we constantly
explore opportunities to leverage our core
competencies into adjacent markets or
relationships with new customers.
FOCUS On
Recent acQUisitiOns:
December 2006 - Prosonic Corp., USA
January 2007 - Connors Chile, Argentina
January 2007 - KWL, Western Australia
The acquisition of Prosonic Corporation,
a provider of sonic drilling services in the
United States and a number of international
locations, strengthens our global ability to
offer sonic drilling services to customers and
brings a diverse fleet of sonic drill rigs for
customers in the environmental, water and
mining industries.
Our acquisition of the Latin American
operations of Connors Drilling, a highly
successful provider of diamond drilling
services, brings 33 drill rigs to our
expanding operations in Latin America and
enhances our global ability to offer a wide
range of services to our mineral exploration
customers. Along with completion of the
acquisition, the Connors operation also won
two important safety awards in their first
year with Boart Longyear.
We also acquired KWL, headquartered
in Perth, Australia, a rapidly growing and
well-regarded innovator and manufacturer
of multipurpose and dual tube reverse
circulation rigs. The acquisition
complements our strong offering of surface
and underground coring drilling rigs for
mineral exploration, strengthens our global
products capability, and positions us to lead
the drill rig product market in Australia.
13
OUR DIFFEREnCE- OUR
eXpanDinG GlObal fOOtpRint
M exico
U S A
C anada
Argentina
Brazil
n a mibia
P eru
C hile
S outh Africa
g hana
Z a m bia
S pain
Ireland
U K
headquarters and
Regional Offices
Adelaide, Australia
Salt Lake City, United States
Mississauga, Canada
Santiago, Chile
venlo, netherlands
Moscow, Russia
Almaty, Kazakhstan
Johannesburg, South Africa
Recent Acquisitions
KWL
RC Rigs - Australia
Drill Corp
Minerals Exploration Drilling - Australia
Connors, South America
Minerals Exploration Drilling - Chile and Argentina
northwest Drilling
Minerals Exploration Drilling - Australia
Prosonic Corp - United States
Sonic Drilling
grimwood Davies
Minerals Exploration Drilling - Australia
Patagonia Drilling
Minerals Exploration Drilling - Argentina
Britton Bros. Drilling
Minerals Exploration Drilling - Canada and Mexico
14
AOAOMMOAAAMOAAOMM With experience in virtually every major global market, we have the ability to respond to any challenge.
no other company has the versatility to provide that kind of service worldwide.
n etherlands
B elgiu m
S witzerland
n orw ay
S w eden
Finland
g erm any
g erm any
P oland
C zech R epublic
Italy
K azakhstan
India
R ussia
T hailand
Laos
Indonesia
A ustralia
C hina
n e w Z ealand
This map depicts many,
but not all, Boart Longyear
projects and facilities
worldwide.
15
Manufacturing Locations
Perth, Australia
Salt Lake City, Utah
KWL Rigs
Diamond Bits
Adelaide, Australia
Coring Rods
north Bay, Canada
In-the-hole Tools
Wuxi, China
Mississauga, Canada
Coring Rods, Percussive Bits
Percussive Tools
Wroclaw, Poland
DeltaBase Rigs
Johannesburg, South Africa
Percussive Drills
Eiterfeld, germany
DeltaTools
MMMAAOOMMAAOOO
MInERALS ExPLORATIOn SITE
WESTERn AUSTRALIA
Safety is the cornerstone of our
business culture, and nothing is
more important than the wellbeing
of our employees. Our customers
share this same priority, and benefit
from our training programs and
commitment to keeping “safety first.”
OUR DIFFEREnCE- OUR ValUes
SAFETy FIRST - EThICS AnD gOOD CITIZEnShIP - ExCEPTIOnAL RESULTS
DEDICATIOn TO OUR CLIEnTS’ SUCCESS - MUTUAL TRUST AnD RESPECT
Boart Longyear’s Corporate values
define what matters most to our
employees, investors and the
communities in which we operate,
and serve as a guide for our business
operations.
Our directors, management
and employees understand the
fundamental importance of these
values, and are guided by them in our
decision making each and every day.
In Brazil, our employees reached
five million hours without a lost work
day case by putting safety first. Our
teams in Canada focused on delivering
exceptional results to our customers
by breaking records for meters drilled
per shift. In Thailand, our Drilling
Services division made outstanding
contributions to their community by
providing water wells to villages and
hospitals.
no matter where you go in the world
you will find Boart Longyear employees
putting our values into action.
FOCUS On
GOOD citiZenship:
As part of Boart Longyear’s commitment to
being a responsible global corporate citizen,
in 2007 the Company signed on as one of
the main sponsors of the Rainbow Elizabetha
Project, in the impoverished and AIDS-stricken
Kantolomba district of ndola, Zambia.
The project, which runs entirely on
sponsorships and the assistance of members
from its community, provides shelter and
counseling for hIv/AIDS-related issues and a
nutritional food supplement program. It also
helps support two community schools. With
the support of Boart Longyear, these schools
educated almost 600 students and provided
1500 books to the children. In addition,
monetary support from the Company provided
medicines, food, baby formula, mosquito nets
and school uniforms, while Boart Longyear’s
local services team is drilling a borehole to
provide clean running water to the Project’s
home and assisting the facility with access to
electricity.
This program is just one of the many global
projects underway with donations of time and
money from our Company and employees.
16
OUR bOaRD Of DiRectORs
gr
gRAhAM BRADLEy
(ChAIRMAn)
BRUCE BROOK
gEOFF hAnDLEy
DAvID McCLEMORE
PETER ST. gEORgE
PAUL BRUnnER
graham BraDley
geoff hanDley
Peter St. george
BA and LLB (hons 1) from Sydney
University and LLM from harvard Law
School.
BSc (hons) (geology and Chemistry)
from James Cook University of north
Queensland.
geoff handley is Chairman of
the Environment health & Safety
Committee and a member of the Audit
Compliance & Risk Committee.
he is currently director of Toronto- and
ASE-listed Endeavour Silver Corp and
Eldorado gold Corporation, ASx-listed
Pan Australian Resources Ltd and the
unlisted Oryx Mining and Exploration
Ltd.
Mr. handley has over 30 years’
technical and financial experience in the
mining industry, most recently as EvP,
Strategic Development with Placer
Dome Inc., with responsibility for global
exploration, acquisitions and strategic
planning.
DaviD mclemore
BSc from Oklahoma State University.
David McLemore is a member of the
nomination & Remuneration Committee
and the Environment health & Safety
Committee.
Mr. McLemore acted as Chairman
and then Deputy Chairman of Boart
Longyear from 2005 during its
ownership by Advent International,
Bain Capital and later the Macquarie
Bank-led consortium of investors. Mr.
McLemore served in various capacities
for general Electric from 1985 to 1997
and has 35 years’ broad industrial and
operational experience, including eight
years with Advent International.
graham Bradley is Chairman
of the Board and a member of
the Remuneration & nomination
Committee.
he is currently Chairman of ASx-
listed Stockland Corporation
Ltd and a director of Singapore
Telecommunications Ltd and Po valley
Energy Ltd. he also chairs unlisted
entities Anglo American Australia Ltd
and hSBC Bank Australia Ltd. Mr.
Bradley was formerly a director and
Chairman of ASx-listed Proteome
Systems Ltd.
From 1995 to 2003, Mr. Bradley was
the CEO of the listed investment
management group Perpetual Ltd. he
spent four years as the CEO of law
firm Blake Dawson and 12 years at
McKinsey & Company.
BrUce Brook
B.Comm and B.Accounting from the
University of Witwatersrand.
Bruce Brook is Chairman of the Audit
Compliance & Risk Committee and a
member of the Environment health &
Safety Committee.
he currently is a director and Chairman
of Audit Committee of Lihir gold Ltd
and Snowy hydro Ltd. he recently
retired as director of Consolidated
Minerals Ltd.
Mr. Brook was the CFO of WMC
Resources Limited from 2002 to
2005 and has 30 years’ experience in
various roles, including Deputy CFO
of AnZ Banking group Ltd, group
Chief Accountant of Pacific Dunlop
Ltd, gM, group Accounting at CRA
Ltd and general Manager, Accounting
and Services at Pasminco Ltd. he is
a fellow of the Institute of Chartered
Accountants in Australia.
MBA from the University of Cape Town.
Peter St. george is Chairman of the
nomination & Remuneration Committee
and a member of the Audit Compliance
& Risk Committee.
Mr. St. george is currently a director of
Toronto-listed First Quantum Minerals
Ltd, a director of Spark Infrastructure
group, Powercor Australia Ltd. and
Citipower Pty Ltd, as well as Chairman
of financial services firm, Walter
Turnbull.
he also was a director of SFE
Corporation Ltd from 2000 until July
2006 and served as CEO/Co-CEO
of Salomon Smith Barney Australia/
natWest Markets Australia from 1995
to 2001. In addition, Mr. St. george
served more than 20 years in senior
corporate advisory roles at natWest
Markets and hill Samuel & Co in
London.
Mr. St. george qualified as a Chartered
Accountant in South Africa.
PaUl BrUnner
BSc from Colorado School of Mines
and an MBA from harvard Business
School.
Paul Brunner joined Boart Longyear’s
Canadian operation in 1987. he was
appointed as CEO of Boart Longyear in
2004, having been Managing Director
from 2000. he was Boart Longyear’s
South American Regional Director for
six years and held senior management
positions in Canada for six years.
17
OUR leaDeRship team
PAUL BRUnnER
CRAIg KIPP
DOn nEWMAn
PATRICK JOhnSOn
FABRIZIO RASETTI
ChIEF ExECUTIvE
OFFICER AnD
PRESIDEnT
ChIEF
OPERATIng
OFFICER
InTERIM ChIEF
FInAnCIAL
OFFICER, vICE
PRESIDEnT AnD
CORPORATE
COnTROLLER
SEnIOR vICE
PRESIDEnT,
hUMAn RESOURCES
SEnIOR vICE
PRESIDEnT,
gEnERAL COUnSEL AnD
SECRETARy
PaUl BrUnner
See page 17.
craig kiPP
BA and MA (Mechanical Engineering) from Univ. of north
Dakota and MBA from Univ. of Chicago.
Craig Kipp was appointed as COO of Boart Longyear in
2005. Prior to Boart Longyear, he was employed in various
capacities by general Electric from 1983 to 2005, including
as President and COO of the global nuclear Fuel division,
general Manager of China and hungary operations.
Don neWman
BAcc from Univ. of Minnesota.
Don newman joined the Company in October 2006 as
vice President, Corporate Controller. In October 2007, he
was appointed the Interim Chief Financial Officer. Prior to
joining Boart Longyear, Mr. newman was vice President
and Corporate Controller of nASDAQ-listed Transaction
Systems Architects for three years. Mr. newman also
worked twelve years for nySE-listed nRg Energy in a
number of finance leadership roles.
Patrick JohnSon
BBA (Accounting) and MA (human Resource Mgmt) from
Univ. of houston.
Patrick Johnson was appointed Senior vice President,
human Resources in January 2006. Prior to Boart
Longyear, he was Managing Director of human Resources
for global Operations at Applied Materials, having served
there in various capacities for the previous six years. Mr.
Johnson also was the vice President of human Resources
for TECO Westinghouse and held positions at Arabian
American Oil Company and Star Enterprise. he holds a
Senior Professional in human Resources certificate, and a
Certified Employee Benefit Specialist qualification from IFEB
and the Wharton School.
faBrizio raSetti
BSc (Foreign Service) and JD from georgetown Univ.
Fabrizio Rasetti joined the Company in April 2006. Prior to
Boart Longyear, he was a Segment general Counsel
18
SCOTT ALExAnDER
MIKE BIRCh
vICE PRESIDEnT,
gLOBAL DRILLIng
SERvICES
vICE PRESIDEnT,
gLOBAL PRODUCTS AnD
SALES
and Segment vice-President for Business Development
for nySE-listed SPx Corporation and served in various
other management roles during his nine-years there. Prior
to SPx Corporation, he worked in the private law firms of
howrey & Simon and Towey & Associates in Washington,
DC.
Scott aleXanDer
BBA (Marketing) from the Univ. of Wisconsin.
Scott Alexander was appointed vice President, global
Drilling Services in 2006.
Prior to Boart Longyear, he was vice President of
Manitowoc Crane’s aftermarket operations in the Americas.
he also has held several leadership positions at Joy global
and Bucyrus International.
michael Birch
BSc (Business) from Brigham young Univ.
Mike Birch was appointed vice President, global Products
in 2006. Prior to Boart Longyear, he worked for Black and
Decker for 15 years in a variety of roles, including vice
President and general Manager for Baldwin hardware
and Director of Marketing for DeWalt Industrial Power Tool
division.
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