London-listed Capital says stronger mining and laboratory service revenues offset a slightly weaker contribution from its core drilling arm to underpin a 9% year-on-year improvement in Q3 revenue to US$79.7 million.
The September-quarter total, also up 4.2% on the previous three months, included $51.2m from drilling, down 2.1% yoy; $18m from mining (up 38.5% yoy); and $10.5m from MSALABS (up 36.4% yoy).
Capital said drill fleet utilisation of 72% in Q3 this year was down 6.5% yoy, “impacted by seasonal weather conditions in West Africa as well as softer activity levels in Mali”, while average monthly revenue per operating rig (ARPOR) was US$179,000 in Q3 2023, down 1.6% on Q3 2022.
The company said its new three-year underground and surface drilling contract at the major Nevada Gold Mines (Barrick Gold/Newmont) gold complex, “extending our drilling presence into North America”, would generate about $35m revenue per annum once fully operational from 2025.
Capital’s share price is down 3% in the past month 77.8p, capitalising the company at about £151 million. The share price has fallen more than 19% this year.