TIDMCAPD
RNS Number : 8618O
Capital Limited
13 October 2021
For Immediate Release 13 October 2021
Capital Limited
("Capital", the "Group" or the "Company")
Q3 Trading Update
Capital (LSE: CAPD), a leading mining services company focused
on the African markets, today provides its Q3 2021 trading update
for the period to 30 September 2021.
THIRD QUARTER (Q3) 2021 KEY METRICS
Q3 2021 Q3 2020 Q2 2021 % change % change
from from
Q3 2020 Q2 2021
Revenue (US$m) 61.6 35.3 54.7 74.5% 12.6%
ARPOR*(US$) 182,000 171,000 180,000 6.4% 1.1%
Average utilised
rigs 81 60 81 35.0% 0.0%
Fleet Utilisation
(%) 76 61 79 24.6% -3.8%
Average Fleet 107 98 103 9.2% 3.9%
Closing fleet
size 108 98 106 10.2% 1.9%
* Average monthly revenue per operating rig
Financial Highlights
-- Revenue of $61.6 million represents a new quarterly revenue
record for the Group, up 12.6% on Q2 2021 ($54.7 million) and 74.5%
up on Q3 2020 ($35.3 million);
-- Mine-site services continue to underpin revenue streams,
contributing 90% of Group revenue;
-- Non-drilling revenue contribution of 26% to total revenue, up
from 17% in Q2 and 12% in Q3 2020, driven by mining services and
MSALABS;
-- Average monthly revenue per operating rig ("ARPOR") up
marginally (1.1%) on Q2 2021 at US$182,000, but up 6.4% on Q3 2020
(US$171,000);
-- Interim dividend of 1.2 cents per share (cps), paid on 1
October, up 33.3% on 2020 interim dividend (0.9 cps);
-- Increasing 2021 Revenue Guidance: After a strong first three
quarters of 2021 with better than anticipated drilling utilisation
rates, and Sukari mining operations delivering ahead of contract
targets, the Group is increasing guidance on anticipated revenues
for 2021 to $220-225 million (up from $200-210 million guided at
our Q2 2021 trading update and up from $185-195 million originally
guided at the FY20 results).
Operational Update
-- Fleet utilisation slightly reduced through the quarter to
76%, a decrease of 3.8% on Q2 2021 (79%) but an increase of 24.6%
on Q3 2020 (61%). This was due to seasonal weather impacts,
particularly in West Africa, and some short term rig movements.
Despite lower utilisation, the number of active rigs remained
constant with the Group's total rig count increasing to 108 rigs at
the end of Q3 2021;
-- Safety performance remains world class with the Group
maintaining the eight LTI free milestones achieved since January
2021, six being in excess of three years;
-- Commenced exploration drilling for Allied Gold Corp, Egypt
(contract previously announced);
-- New contract wins include:
- An exploration contract with Thani Dubai Mining at its Anbat
project in Egypt, due to commence in Q4;
- Exploration contract with Golden Rim Resources at its Kada
project in Guinea, due to commence in October; and
- A two-year maintenance contract with Kinross at its Tasiast
Gold Mine in Mauritania, due to commence in Q4. The contract
expands our services on site, adding to the existing drilling and
laboratory services contracts.
-- Transformational Sukari Gold Mine (Egypt) waste mining and
expanded drilling contracts performing ahead of contract
targets:
- Operations hit target run rates of above 1Mbcm per month in
August, three months ahead of contracted commitments;
- Full fleet of heavy mining equipment, ancillary equipment and
drilling fleet operational; and
- Workforce recruitment is now complete.
-- MSALABS is advancing the installation of Chrysos's PhotonAssay units:
- The initial unit at the Bulyanhulu (Tanzania) laboratory has
now been commissioned and is expected to commence operations in
October;
- Val d'Or (Canada) is expected to arrive in December, expanding
our presence in the country and facilitating our entry into the
prolific Abitibi Belt;
- Morila Gold Mine in Mali (80% owned by Firefinch ASX:FFX)
expected to arrive in Q4, to service a five-year contract with
Societe Des Mines De Morila SA, subject to final terms and
conditions;
-- MSALABS commissioning of Thor Explorations mine site
laboratory is complete and the first analyses have commenced;
-- Rig count increased from 106 (30 June 2021) to 108 with the
acquisition of new rigs to support existing contracts together with
new business; and
-- The Group's portfolio of ten long-term mine-site based contracts performed well.
Outlook
-- The Company once again delivered the highest quarterly
revenues since its inception, and we see a robust outlook for the
remainder of the year;
-- As a result we are increasing revenue guidance for 2021 to
$220-225 million compared to $200-210 million at the Q2 trading
update and $185-195 million originally guided at the FY20
results;
-- The drilling business has a strong outlook for the remainder
of the year, as we move past the seasonally weak Q3, and further
rigs arrive in the last quarter;
-- Sukari earth moving has achieved target run rates ahead of contract expectations;
-- MSALABS is seeing strong demand for its laboratory services
and the rollout of the Chrysos units is progressing well with two
further units due to be installed in Q4 2021;
-- Tendering activity across all business units remains robust,
with a number of opportunities progressing; and
-- Macro conditions continue to suggest sustainability in the
strong demand environment with gold still trading at near decade
long highs - a strong tailwind for Capital with c.90% of revenue
exposed to the African gold mining sector.
Commenting on the trading update, Jamie Boyton, Executive
Chairman, said:
"The third quarter of 2021 has again seen Capital hit its
strongest revenue performance since its inception. While we saw a
slight seasonal dip in drill rig utilisation, ARPOR remained strong
and performance for the Group improved as contribution from the
Company's non-drilling services increased. This reinforces
Capital's strategy of diversifying its revenue streams and focusing
on mine sites to drive strong organic growth and ensure a
sustainable business through the cycle.
Sukari mining has hit target run rates having outperformed
contract expectations, and with new contract wins cementing the
outlook for drilling for the remainder of the year, today we have
raised our revenue guidance once again for 2021. Amongst the strong
momentum across all areas of the business it is of particular note
that we have seen continued excellence in our safety
performance.
Looking ahead we continue to see strong demand across all our
business areas with the tender pipeline looking very encouraging.
We see increased activity with our existing clients, given high
commodity prices, but also new opportunities are opening in our key
market Egypt, with exploration in the country showing very positive
signs as we begin exploration contracts at Sukari and also with
Thani and Allied."
- ENDS -
For further information, please visit Capital's website
www.capdrill.com or contact:
Capital Limited +230 464 3250
Jamie Boyton, Executive Chairman investor@capdrill.com
Giles Everist, Chief Financial Officer
Conor Rowley, Investor Relations & Corporate Development
Manager
Berenberg +44 20 3207 7800
Matthew Armitt
Jennifer Wyllie
Detlir Elezi
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
James Husband
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; mining equipment hire and maintenance; and
geochemical analysis. The Group's corporate headquarters are in
Mauritius and it has established operations in Burkina Faso,
Cameroon, Côte d'Ivoire, Egypt, Guinea, Kenya, Mali, Mauritania,
Nigeria, Saudi Arabia 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
TSTFFLFWEEFSEES
(END) Dow Jones Newswires
October 13, 2021 02:00 ET (06:00 GMT)
Capital (LSE:CAPD)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Capital (LSE:CAPD)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
