Capital improves earnings amid ‘headwinds’

Staff reporter

London-listed contract driller and miner Capital has confirmed a 6.3% year-on-year rise in EBITDA to US$91.8 million and 70% net profit improvement to $38.5 million on the $318.4 million of revenue for FY2023 announced in January.

Revenue came in marginally below Capital’s $320-340 million guidance “given a number of headwinds”, the company said.

The historically Africa-centric company now growing strongly in North America counted its “landmark entry into the North American drilling business” with a three-year, $35 million a year contract with Nevada Gold Mines and circa-$140 million, five-year MSALABS contract with NGM among its 2023 highlights.

Group-wide drill fleet utilisation of 73% (127 rigs in fleet at the end of 2023) compared with 79% in 2022.

Average monthly revenue per operating rig (ARPOR) was $186,000 in 2023, up 3.3% on 2022.

Revenue guidance for 2024 is $355-375 million, “driven by an improved contract portfolio, ramp ups of new drilling and mining contracts and a continued expansion of MSALABS”.

Capital shares have climbed about 8% in the past month to 91p, capitalising the company at about ₤177 million.


Leave a Reply

Not registered? Register Now

Powered By MemberPress WooCommerce Plus Integration