TIDMCAPD
RNS Number : 4958G
Capital Limited
19 July 2023
Capital Limited
("Capital", the "Group" or the "Company")
Q2 2023 Trading Update
Capital (LSE: CAPD), a leading mining services company, today
provides its trading update for the period 1 April to 30 June 2023
(the "Period").
FIRST HALF (H1) 2023 KEY METRICS
H1 2023 H1 2022 vs H2 2022 vs
H1 2022 H2 2022
====================== =========== =========== =========== =========== ===========
Revenue ($m) 154.3 138.1 11.7% 152.2 1.4%
====================== =========== =========== =========== =========== ===========
ARPOR(#) ($) 188,000 173,000 8.7% 187,000 0.5%
---------------------- ----------- ----------- ----------- ----------- -----------
Average Utilised Rigs 93 93 0.0% 93 0.0%
====================== =========== =========== =========== =========== ===========
Fleet Utilisation (%) 75 83 -9.6% 75 0.0%
---------------------- ----------- ----------- ----------- ----------- -----------
Average Fleet 124 112 10.7% 124 0.0%
====================== =========== =========== =========== =========== ===========
Closing Fleet Size 125 116 7.8% 129 -3.1%
SECOND QUARTER (Q2) 2023 KEY METRICS
Q2 2023 Q2 2022 vs Q1 2023 vs
Q2 2022 Q1 2023
====================== ========== ========== ============ ========== ===========
Revenue ($m) 76.5 71.2 7.4% 77.8 -1.7%
====================== ========== ========== ============ ========== ===========
ARPOR(#) ($) 183,000 171,000 7.0% 192,000 -4.7%
---------------------- ---------- ---------- ------------ ---------- -----------
Average Utilised Rigs 90 97 -7.2% 95 -5.3%
====================== ========== ========== ============ ========== ===========
Fleet Utilisation (%) 73 85 -14.1% 77 -5.2%
---------------------- ---------- ---------- ------------ ---------- -----------
Average Fleet 124 114 8.8% 123 0.8%
====================== ========== ========== ============ ========== ===========
Closing Fleet Size 125 116 7.8% 123 1.6%
All amounts are in USD unless otherwise stated
(#) Average revenue per month per operating rig
* Unaudited numbers
Financial Highlights
-- Revenue US$76.5 million, a 7.4% increase on Q2 2022 (US$71.2
million) and a 1.7% decrease on Q1 2023 (US$77.8 million);
-- Three high-quality contracts are set to commence in Q3 2023:
- The business is geared for a strong second half driven by the
ramp up of three high quality contracts, namely drilling at the
Ivindo Iron Ore Project ("Ivindo"), Gabon, and the Reko Diq
copper-gold project, Pakistan, and our recently announced mining
services and crushing contract at Ivindo Iron ore.
-- Temporary shutdown of operations at Perseus Mining's Meyas Sand Gold Project, Sudan:
- Following the escalation of conflict in Sudan in April 2023,
we alongside Perseus made the decision to temporarily cease
operations at the Meyas Sand Gold Project. We have been closely
monitoring the situation and with no reported incidents in an area
of approximately 250,000 square kilometres around the site, we are
in discussions with Perseus to return to operations in H2 2023.
-- Non-drilling revenue contributed 36% of total revenue in Q2
2023 with consistent Mining Services operations and MSALABS
continuing along its growth path;
-- In Q2 we paid the final dividend of US 2.6 cps declared at
the FY22 results for the 2022 financial year (2021: US 2.4 cps).
This dividend was paid on 09 May 2023.
Operational Update
-- Safety performance remains world-class with H1 2023 Total
Recordable Injury Frequency Rate ("TRIFR") of 1.03 per 1,000,000
hours worked (FY 2022: 1.2).
-- Capital Drilling: Material contracts commencing Q3 2023
-- Fleet utilisation was 73% in Q2 2023, compared to 85% in Q2
2022 and 77% in Q1 2023, the decrease in part driven by the
temporary shutdown of rigs in Sudan.
-- Average monthly revenue per operating rig ("ARPOR") remained
strong at US$183,000 in Q2 2023, a 7.0% increase on Q2 2022
($171,000) and a 4.7% decrease on Q1 2023 (US$192,000).
-- New contract win:
- A reverse circulation exploration drilling contract with
Centamin, at the Nugrus Block in the Egyptian Eastern Desert;
-- Rig count increased from 123 to 125 through Q2 2023, net of depletion.
-- Capital Mining: A second material contract win
-- New major earthmoving and crushing services contract: Capital
has secured its second high-quality mining services contract with
Ivindo Iron SA ("Ivindo Iron"). This site is located in the
northeast of Gabon, one of the world's largest undeveloped,
high-grade hematite iron deposits with the potential to become a
globally significant iron ore mine. This contract has a term of up
to 5 years and will generate approximately $30 million of revenue
per annum once fully operational; and
-- Sukari Gold Mine (Egypt) waste mining contract saw consistent
operations once again through Q2 2023;
-- MSALABS: Continuing to deliver on its multi-year growth trajectory:
-- Chrysos' PhotonAssay(TM) unit rollout is progressing well as
MSALABS now has the largest international network of Chrysos
PhotonAssay(TM) technology:
- MSALABS now has ten units deployed or under construction across Africa and Canada
- New laboratories recently operational or now under
construction include Obuasi (Ghana), Kankan (Guinea) and Bamako
(Mali) in West Africa and in the Geita Township (Tanzania) in East
Africa.
- In accordance with Capital's sustainability goals, the
laboratory in Kankan (Guinea) is set to be solar powered through
Mine Power Solutions Limited (MPS), Capital's 50:50 joint venture
with Enerwhere Limited that focuses on providing solar hybrid power
solutions; and
- The expanded relationship with Chrysos will see MSALABS deploy 21 units by 2025.
-- MSALABS also continued the rollout of its traditional
geochemical business in the quarter, with a fire assay laboratory
currently under construction in Marsa Alam, Egypt; and
-- MSALABS has completed a $10 million equity raise to fund the
expansion of the business. Following this Capital's shareholding in
MSALABS has increased from 77.76% to 81.79%.
Outlook
-- Revenue guidance for 2023 remains $320 to $340 million;
-- Capital Drilling will see growth in revenues in H2 2023
driven by the addition of two high-quality long-term contracts at
Reqo Diq, Pakistan and Ivindo, Gabon set to ramp up through Q3
2023;
-- Capital Mining will also see an improvement in revenues in H2
2023 with the mining contract at Ivindo, Gabon set to commence in
Q3 2023, with mobilisation to site having already commenced through
Q2 2023. In addition, the Sukari earth moving contract is expected
to perform at steady state through the remainder of the year;
-- MSALABS will continue its multi-year laboratory roll out, particularly focused on Chrysos PhotonAssay(TM) units, with guidance for MSALABS remaining $40-50 million for 2023, another significant increase YoY (FY 2022: $27.3 million); and
-- Tendering activity remains robust across the Group with a
number of opportunities progressing.
Commenting on the trading update, Peter Stokes, Chief Executive,
said:
"The Group took another strong step forward through the quarter
with the award of our second significant mining services contract
win at the Ivindo Iron Ore Project. This not only continues our
strategy to diversify revenues but alongside further growth in our
drilling business and the impressive growth trajectory of MSALABS,
decouples the Group's growth trajectory from prevailing commodity
prices.
While Q2 saw some temporary operational interruptions,
specifically at the Meyas Sand Gold Project, we expect a strong
second half and remain confident in our revenue guidance of
$320-340 million. This will be driven across all business
divisions, with the Ivindo iron ore mining contract commencing in
Q3 2023, the world-class drilling contracts at Ivindo iron ore and
Barrick's Reko Diq project announced earlier in the year ramping up
through Q3 2023, and also MSALABS continuing to build its global
network of laboratories."
-S -
For further information, please visit Capital Limited's website
www.capdrill.com or contact:
Capital Limited +230 464 3250
Peter Stokes, Chief Executive Officer investor@capdrill.com
Rick Robson, Chief Financial Officer
Conor Rowley, Investor Relations & Corporate Development
Manager
Tamesis Partners LLP +44 20 3882 2868
Charlie Bendon
Richard Greenfield
Stifel Nicolaus Europe Limited +44 20 7710 7600
Ashton Clanfield
Callum Stewart
Rory Blundell
Buchanan +44 20 7466 5000
Bobby Morse capital@buchanan.uk.com
George Pope
About Capital Limited
Capital Limited is a leading mining services company providing a
complete range of drilling, mining, maintenance and geochemical
laboratory solutions to customers within the global minerals
industry, focusing on the African markets. The Company's services
include: exploration, delineation and production drilling; load and
haul services; maintenance; and geochemical analysis. The Group's
corporate headquarters are in the United Kingdom and it has
established operations in Côte d'Ivoire, Canada, Democratic
Republic of Congo, Egypt, Gabon, Guinea, Kenya, Mali, Mauritania,
Nigeria, Pakistan, Saudi Arabia, Sudan and Tanzania.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTGPUPUMUPWUQB
(END) Dow Jones Newswires
July 19, 2023 02:10 ET (06:10 GMT)
Capital (LSE:CAPD)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Capital (LSE:CAPD)
Gráfica de Acción Histórica
De May 2023 a May 2024