Capital momentum slows in 2023 Q4

Staff reporter

London-listed minerals service company, Capital, lifted 2023 revenue 9.7% year-on-year to US$318.4 million but was below its guidance range of $320-340 million due to a slower than expected fourth quarter.

The contract driller and miner, and laboratory services provider, said Q4 revenue rose 6.8% yoy to $84.5 million. However, “revenues were impacted by a number of factors”.

“Q4 revenues were impacted by subdued activity in Mali and operations not yet re-commencing in Sudan with Perseus,” Capital said.

“And MSALABS revenues fell slightly behind its aggressive growth target for 2023, as we drive adoption of the new PhotonAssay technology.

“Revenues were up over 40% yoy and with major mining companies now giving firm endorsement of the technology, we are confident in the continued multi-laboratory rollout over the coming year.”

Capital said its drill fleet utilisation in the December quarter was 72%, compared with 73% in Q4 2022. Utilisation was flat quarter-on-quarter.

Average monthly revenue per operating rig (ARPOR) was US$188,000 in Q4 2023, down 1.6% on Q4 2022 and up 5% on Q3 2023 (US$179,000).

Capital’s drill rig count was 127 at the end of 2023.


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