Capital Limited New Contract Award (3051Y)
September 06 2022 - 1:00AM
UK Regulatory
TIDMCAPD
RNS Number : 3051Y
Capital Limited
06 September 2022
For Immediate Release 6 September 2022
Capital Limited
("Capital", the "Group" or the "Company")
New Contract Award
Capital (LSE: CAPD), a leading mining services company is
pleased to announce the award of a new drilling contract and
associated purchase of additional drill rigs and other capital
equipment.
-- An expanded drilling services contract with B2Gold Corp. at
the Fekola Gold Mine, Mali, out to the end of 2024. Our services on
site now include development (diamond & reverse circulation)
and grade control drilling. This follows our initial drilling
contract announced at the end of June 2022.
-- Associated asset purchase: To facilitate delivery of the new
contract Capital has purchased 10 rigs from African Mining Services
(AMS), part of the Perenti Group. In addition we have purchased
associated equipment and staff accommodation. These rigs are
additional to the rig count increase for 2022 guided at our interim
results.
This contract is another example of Capital's focus on large
scale, long life and low cost assets. B2Gold Corp. has guided
Fekola to produce between 570,000 - 600,000 ounces of gold in 2022,
making it amongst the largest gold mines in Africa.
-- Guidance update: As a result of the purchase of rigs and
other assets from AMS, capital expenditure is now expected to be
approximately $60-65 million in 2022 (from $50-55 million). Revenue
guidance for calendar year 2022 remains $280 - $290 million
(recently upgraded from $270-280 million at the H122 results).
Commenting on the recent contract win, Jamie Boyton, Executive
Chairman, said:
'We are pleased to be further expanding our service offering at
the Fekola gold mine and building our relationship with B2Gold.
This new contract award is a strong endorsement of our strategy,
not only of expanding our service offering on mine sites with
blue-chip customers, but also in repositioning the portfolio to
long term contracts that are positioned to operate consistently
through the cycle. We have been opportunistic in purchasing rigs
from AMS which allows us to more rapidly commence operations and as
a result we are increasing our 2022 capex guidance to $60-65
million and our year end rig count to 130 rigs. Revenue guidance
for this calendar year remains in line with our recently upgraded
guidance of $280-290 million and we look forward to a strong
contribution from the new contract in 2023 and 2024.'
- ENDS -
For further information, please visit Capital Limited'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
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
Berenberg +44 20 3207 7800
Matthew Armitt
Jennifer Lee
Detlir Elezi
Buchanan +44 20 7466 5000
Bobby Morse capital@buchanan.uk.com
George Cleary
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 Mauritius and it has established
operations in Burkina Faso, Côte d'Ivoire, Canada, Egypt, Guinea,
Kenya, Mali, Mauritania, Nigeria, Saudi Arabia and Tanzania.
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END
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