Capital confident about FY23 outlook

London-listed mining services contractor Capital expects a strong second half of 2023 to help it deliver targeted full-year revenue of US$320-340 million, with new project starts and a possible resumption of work for Perseus Mining in Sudan pencilled in for the next few months.

Capital said the start of two “high-quality long-term contracts” for Barrick Gold at Reqo Diq in Pakistan and Fortescue Metals Group unit Ivindo in Gabon would complement the forecast ongoing expansion of its mineral laboratory service arm, MSALABS, this year and into 2024.

June quarter revenue of US$76.5 million was up 7.4% on the same period in 2022. Fleet utilisation in the latest quarter was 73%, compared with 85% in Q2 2022 and 77% in the first quarter of this year. Capital said the decrease was partly driven by a temporary shutdown of rigs in Sudan due to internecine conflict. Discussions were said to be continuing with Perseus Mining about a possible restart of drilling at its Meyas Sand gold project close to Sudan’s northern border with Egypt.

“Average monthly revenue per operating rig [ARPOR] remained strong at US$183,000 in Q2 2023, a 7% increase on Q2 2022 and a 4.7% decrease on Q1 2023,” Capital said.

It said the MSALABS business was expected to generate $40-50m revenue this year versus $27.3m in 2022.

Capital’s share price is down nearly 13% in the past month, capitalising the company at circa-£171m (US$221m).


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