TIDMCAPD
RNS Number : 8721I
Capital Limited
21 April 2022
For Immediate Release 21 April 2022
Capital Limited
("Capital", the "Group" or the "Company")
Q1 2022 Trading Update
Capital (LSE: CAPD), a leading mining services company focused
on the African markets, today provides its Q1 2022 trading update
for the period ended 31 March 2022 (the "Period").
FIRST QUARTER (Q1) 2022 KEY METRICS
Q1 2022 Q1 2021 Q4 2021 % change % change
from from
Q1 2021 Q4 2021
-------------------- --------- --------- --------- ---------- ----------
Revenue (US$m) 66.9 44.0 66.5 52.0% 0.6%
-------------------- --------- --------- --------- ---------- ----------
ARPOR*(US$) 174,000 180,000 184,000 -3.3% -5.4%
-------------------- --------- --------- --------- ---------- ----------
Average utilised
rigs 90 64 86 40.6% 4.7%
-------------------- --------- --------- --------- ---------- ----------
Fleet Utilisation
(%) 82% 67% 79% 22.4% 3.8%
-------------------- --------- --------- --------- ---------- ----------
Average Fleet 110 95 109 15.8% 0.9%
-------------------- --------- --------- --------- ---------- ----------
Closing fleet
size 110 98 109 12.2% 0.9%
-------------------- --------- --------- --------- ---------- ----------
* Average monthly revenue per operating rig
Financial Highlights
-- Revenue US$66.9 million, a 52.0% increase on Q1 2021 (US$44.0
million) and a 0.6% increase on Q4 2021 (US$66.5 million);
-- Mine-site services continue to underpin revenue streams, contributing 87% of Group revenue;
-- Strong growth in non-drilling revenue contribution (28% of
total revenue) compared with Q1 2021 (21%), particularly driven by
the ramp up of Mining Services and MSALABS;
-- Average monthly revenue per operating rig ("ARPOR") decreased
2.2% on Q1 2021 ($184,000) and 5.4% (US$174,000) on Q4 2021
(US$184,000). ARPOR in the quarter was impacted by increased rig
movement within each region and also a higher proportion of revenue
at Geita coming from the underground;
-- Final dividend of US 2.4 cps declared at the FY21 results for
the 2021 financial year (2020: US 1.3 cps), will be payable 10 May
2022.
Operational Highlights
-- Fleet Utilisation increased to 82%, an increase of 22.4% on
Q1 2021 (67%) and 3.8% on Q4 2021 (79%) driven by start-up of new
contracts;
-- Safety performance remains world-class with the Group
remaining LTI free across twenty-six sites in Q1 2022;
- Two sites in our East African operations achieved safety
milestones remaining LTI free for five and six years;
-- Capital Drilling: Outlook underpinned by further contract wins:
- New contract wins:
-- An extension of the exploration and delineation drilling
contract with Predictive Discovery at its Bankan Project in Guinea,
initially expanding from 2 to 5 rigs;
-- An exploration drilling contract with WIA Gold at its Bouaflé
project in Côte d'Ivoire;
-- An extension of the exploration drilling contract with Golden
Rim at the Kada Gold mine in Guinea;
-- An extension of the exploration drilling contract with
Perseus Mining at the Yaouré Gold mine in in Côte d'Ivoire;
- Rig count increased from 109 (31 December 2021) to 110, with 5
rigs due to be commissioned in Q2 2022.
-- Capital Mining continues to perform strongly
- Sukari Gold Mine (Egypt) waste mining contract continues to
perform at steady state levels aligned to contract targets for the
quarter;
- Capital remains active in the tendering pipeline as mining
projects move through the DFS stage.
-- MSALABS: Growth trajectory on track
- The rollout of the Chrysos'(TM) PhotonAssay units is progressing well:
-- MSALABS provisionally awarded a 5-year agreement with Barrick
at the Kibali Gold Mine in the Democratic Republic of Congo for
provision of laboratory management, sample preparation, and
geochemical assay services on site, subject to final terms and
conditions. The contract includes the new Chrysos PhotonAssay
technology, with a unit expected to be on site in H2 2022;
-- Awarded a 12-month contract with New Found Gold for
processing 20,000 samples per month through our new Val d'Or
PhotonAssay facility commencing in Q2 2022;
- Awarded a 3-year contract with Victoria Gold Corp for the
provision of a sample preparation facility on site at its Eagle
Gold Project near Mayo, Yukon as well as geochemical assay services
in our Langley Hub laboratory;
- Awarded a 2-year contract and commenced provision of services
with Shanta Gold for sample preparation on site at their West Kenya
Project Area.
Outlook
-- Q1 2022 has continued to see robust demand with the outlook
remaining strong across all business units;
- The drilling business has a strong outlook with utilisation
rates at very high levels and the group's rig count due to finish
the year 10 rigs higher than at the end of Q1 2022;
- The Sukari earth moving contract is now performing at steady state levels;
- MSALABS is experiencing very strong demand for its laboratory
services with the rollout of the Chrysos units progressing further
in Q1 2022 and set to continue through the remainder of the
year;
- Business mix underpinned by long-term mine-site contracts with
blue-chip customers, with non-drilling revenues to proportionally
increase further through 2022;
- Tendering activity across all business units remains robust,
with a number of opportunities progressing;
-- Macro conditions continue to suggest sustained strength in
the demand environment and outlook with gold and other key
commodities still trading at near decade long highs; and
-- Revenue guidance for 2022 remains $270 to $280 million
(compared to FY2021 revenues of $226.8 million).
Commenting on the trading update, Jamie Boyton, Executive
Chairman, said:
'The Group had another strong performance through Q1 2022 across
all its business units, setting a solid foundation to deliver
another record year in 2022. While we continue to see growth across
all business units, our focus on operational excellence and safety
remains paramount and so it is pleasing to see another world class
performance. Market conditions remain buoyant, and we are very
active in the tendering market across drilling, mining and MSALABS.
We maintain our revenue guidance of $270-280 million.
In drilling, while we saw some short term variation in group
ARPOR, utilisation rates were very strong as a number of new
contracts were brought online. We expect the division to continue
to grow through the year, with the expected increase in rig count
weighted Q2-Q4 of this year. Our mining division continues to
perform well with Sukari now operating at peak steady state levels.
MSALABS also continues to go from strength to strength on an
exceptional growth trajectory, both with its traditional business
and in the roll out of the revolutionary Chrysos technology,
highlighted by the clear demand for the unit in Val d'Or and the
provisional award for a unit at Barrick's Kibali Gold mine.'
- 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
Matthew Armitt
Jennifer Wyllie
Detlir Elezi +44 20 3207 7800
Tamesis Partners LLP
Charlie Bendon
Richard Greenfield +44 20 3882 2868
Stifel Nicolaus Europe Limited
Ashton Clanfield
Callum Stewart
Rory Blundell +44 20 7710 7600
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, Côte
d'Ivoire, Egypt, Guinea, Kenya, Mali, Mauritania, Nigeria, Saudi
Arabia and Tanzania.
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