Deutsche Rohstoff AG - The SiLLC Assembly

Deutsche Rohstoff Group recorded higher oil production in the current quarter than expected in October

Oil and gas production in Q4 higher than expected
Revenue and EBITDA 2022 around 7% above forecast of 14 October
Forecast 2023 and outlook 2024 unchanged
EBITDA increases by a further ca. EUR 10 million

Mannheim, Dezember 12, 2022 16:30h Deutsche Rohstoff Group recorded higher oil production in the current quarter than expected in October. The four US-subsidiaries produced an average of over 9,650 BOEPD (barrels of oil equivalent per day) in the first 11 months of 2022. Compared to 30 September (9,339 BOEPD), this represents an increase in expected total production of about 110,000 BOE.

The increase in revenue is mainly due to higher production volumes from the existing wells in Colorado, as well as very high initial production from the wells in Utah, which started production in Q4. Some additional wells in Utah will start production in H1 2023. In Wyoming, the wells were also all able to produce at or above plan.

Forecast 2022 (increase)

Sales of EUR 163 to 168 million (previous forecast EUR 152 to 157 million)
EBITDA EUR 138 to 143 million (previously EUR 128 to 133 million)

Forecast 2023 (unchanged)

For 2023, the Company confirms the forecast as follows:

Base scenario

Group sales: EUR 140 to 160 million
EBITDA: EUR 110 to 125 million

Increased price scenario

Group sales: EUR 155 to 175 million
EBITDA: EUR 125 to 140 million

The assumptions for the basis of the forecast remain unchanged at a EUR/USD exchange rate of 1.12 EUR/USD, a natural gas price of USD 4, and a WTI price of USD 75 in the base scenario and USD 85 in the increased price scenario.

For 2024, the Executive Board continues to expect sales above EUR 120 million and EBITDA above EUR 100 million. This is based on only 4 additional net wells at Cub Creek until mid-2023, non-operated wells in Utah until mid-2023 and the already contractually secured Occidental joint venture.

For a definition of the term EBITDA, please refer to the Deutsche Rohstoff AG website at https://rohstoff.de/en/apm/.

Mannheim, 12 December 2022

Deutsche Rohstoff identifies, develops and sells attractive raw material deposits in North America, Australia and Europe. The focus is on the development of oil and gas deposits in the USA. Metals such as gold and tungsten round off the portfolio. Further information is available at www.rohstoff.de

Contact

Deutsche Rohstoff AG

Phone +49 621 490 817 0

info@rohstoff.de

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Disclaimer
All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC Assembly International.

Third quarter 2022 financial report published

EUR 20 million net profit in Q3/EBITDA 2022 of EUR 128 to 133 million

Mannheim. Deutsche Rohstoff Group today published its Q3 2022 report, confirming the figures already announced. In the first 9 months of 2022, revenues of EUR 118.2 million (previous year: EUR 53.2 million), earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 102.3 million (previous year: EUR 52.1 million) and consolidated net income of EUR 52.6 million (previous year: EUR 21.4 million) were achieved. The report is now available HERE.

The very good half-year result continues to have a positive impact on the Group’s balance sheet. In the 3rd quarter, the bank liabilities of EUR 24.5 million still existing as of 30 June 2022 were repaid in full. Equity increased again in the 3rd quarter and stands at EUR 135.0 million as of 30 September 2022. The equity ratio after 9 months was 38.9 percent (previous year: 32.2 percent).

The four U.S. companies produced an average of 9,339 BOE per day in the first three quarters (previous year: 7,135 BOEPD), for a total production of 2,549,508 BOE (previous year: 1,947,804 BOE). Oil accounted for 1,351,255 barrels (previous year: 865,197 barrels), with natural gas and condensates accounting for the remainder. All volumes are the Group’s net share.

A positive contribution to earnings of EUR 15.1 million in the first 9 months was also made by other operating income, which mainly resulted from the sale of securities and from currency gains.

The Company’s hedge book continues to expand. For Q4 2022, the Group’s hedge ratio for oil is 42% and for gas 55% of expected production, which has been hedged at around USD 68/barrel of oil and USD 3.8/MMBtu. For 2023, around 20% of oil production and 28% of gas production are currently hedged at ca. 75 USD/barrel oil and USD 3.9/MMBtu natural gas.

Forecast

The Company had also increased its guidance for 2022 and 2023 on 14 October 2022. The following key figures are expected for 2022:

• Revenues of EUR 152 to 157 million (previously: EUR 140 to 150 million)

• EBITDA EUR 128 to 133 million (previously EUR 120 to 130 million)

This forecast is based on an oil price of USD 85/barrel, a EUR/USD exchange rate of 1.00 and a gas price of USD 6.00 in Q4 2022.

For 2023, revenues of EUR 140 to 160 million and an EBITDA of EUR 110 to 125 million are expected in the base scenario. In the increased price scenario revenues of EUR 155 to 175 million and an EBITDA of EUR 125 to 140 million are expected. For the year 2024, the Executive Board is already expecting sales above EUR 120 million and EBITDA above EUR 100 million.

The assumptions of this forecast are an exchange rate of 1.12 EUR/USD, a natural gas price of USD 4, and a WTI price of USD 75 in the base scenario and USD 85 in the increased price scenario.

The Management Board of Deutsche Rohstoff AG will hold a web call on Wednesday, 2 November at 2:00 p.m., on the 9-month-results. Interested investors can register for the call HERE. [Please note, that the web call will only be held in German.]

For a definition of the term EBITDA, please refer to the Deutsche Rohstoff AG homepage at https://rohstoff.de/en/apm/.

Mannheim, 31 October 2022

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Deutsche Rohstoff AG: Further joint development with Occidental

USD 75 million additional investments in 2023 and 2024
Positive impact on 2023 forecast
First-time forecast for 2024 assumes Group sales and EBITDA above EUR 100 million

Mannheim. Salt Creek Oil & Gas, a wholly owned subsidiary of Deutsche Rohstoff AG (FRA: DR0), has entered into another joint development agreement with Occidental (NYSE: OXY) in the Powder River Basin/Wyoming. The development is expected to drill 15 additional wells and commence production in 2023 (5 wells) and 2024 (10 wells). The investment volume for Salt Creek totals USD 75 million.

For 2024, the Executive Board expects group sales above EUR 120 million and EBITDA above EUR 100 million. The investments are expected to increase group revenue by approximately EUR 10 million in 2023. This forecast will be specified in the coming months. It is based on an oil price of USD 75, a gas price of USD 4 and a EUR/USD exchange rate of 1.12. Possible drilling programs that are not part of the existing forecast for 2023 are not yet included in this estimate.

For the definition of the term EBITDA, we refer to the homepage of Deutsche Rohstoff AG at www.rohstoff.de/apm/.

Information and Explanation of the Issuer to this announcement:

In February, Salt Creek had already announced a first joint venture with Occidental with an initial investment volume of USD 65 million. The total announced cooperation with Occidental thus amounts to USD 140 million investment in the development of 31 horizontal wells. The first six wells began production in September. A further ten wells will follow in the first half of 2023.

The expanded cooperation with Occidental ensures that the Company not only expects EBITDA of well over EUR 100 million in 2022 and 2023, but that the foundation has already been laid for EBITDA of over EUR 100 million in 2024. Growth potential from further possible development projects in the Group are not included in the forecast for 2023 and especially 2024.

Contact

Deutsche Rohstoff AG

Phone +49 621 490 817 0

info@rohstoff.de

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