Capital Limited New Contract Award & Finance Update (2780C)
June 12 2023 - 1:00AM
UK Regulatory
TIDMCAPD
RNS Number : 2780C
Capital Limited
12 June 2023
For Immediate Release 12 June 2023
Capital Limited
("Capital", the "Group" or the "Company")
New Contract Award & Finance Update
Capital (LSE: CAPD), a leading mining services company, is
pleased to announce the award of a new mining services contract as
well as an extension of our revolving credit facility.
Earth moving & crushing services for Ivindo Iron SA,
majority owned by Fortescue Metals Group ("Fortescue"), at the
Ivindo Iron Ore Project ("Ivindo") in Gabon:
-- Ivindo is located in the northeast of Gabon and is one of the
world's largest undeveloped, high-grade hematite iron ore deposits
with the potential to become a globally significant iron ore
mine;
-- Ivindo Iron SA ("Ivindo Iron") is the operating entity for
the Belinga Project and Fortescue has a 72 per cent indirect
interest in the company;
-- The contract has a term of up to 5 years and will generate
approximately $30 million of revenue per annum once fully
operational. The contract involves both earthmoving and crushing
services. Capital will utilise existing equipment and is in the
process of purchasing $15 million of additional equipment. The
Company's capital expenditure guidance for FY23 is now expected in
the range of $65 - 75 million (up from $50 - 60 million);
-- Capital has already begun mobilising equipment to the site.
This mining & crushing services contract is in addition to the
three-year reverse circulation and diamond drilling services
contract with Ivindo, announced earlier this year, where drilling
recently commenced.
Completion of further upsizing of our revolving credit facility
("RCF"): Capital has increased its revolving credit facility from
$25 million to $50 million. As part of this upsize, Capital has
formed a new banking relationship with one of the premier lenders
in Africa, Nedbank Limited, who is co-lending this facility with
the previous sole RCF lender Standard Bank Limited. This facility,
alongside group cash flow, provides the Company with additional
balance sheet flexibility to deliver on growth opportunities.
Commenting on the contract win, Peter Stokes, Chief Executive
Officer, said:
'We are thrilled to have been awarded the mining and crushing
services contract at Ivindo. This is our second significant mining
services contract and continues our strategy to diversify our
revenue stream through an expanded service offering.
We look forward to working closely with Ivindo Iron to expand
our relationship from drilling services to mining and crushing
services and ensure a rapid ramp up on this world class
deposit.
In addition, the increase in our RCF gives us greater
flexibility to move quickly on new opportunities and represents a
greater level of maturity for our business.'
- ENDS -
For further information, please visit Capital Limited's website
www.capdrill.com or contact:
Capital Limited
Peter Stokes, Chief Executive Officer investor@capdrill.com
Rick Robson, Chief Financial Officer
Conor Rowley, Corporate Development & Investor Relations
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 and Tanzania.
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