TIDMCAPD
RNS Number : 9586M
Capital Limited
20 September 2023
FOR IMMEDIATE RELEASE
20 SEPTEMBER 2023
Capital Limited
("Capital", the "Group" or the "Company")
Significant Contract Updates
Capital (LSE: CAPD), a leading mining services company, is
pleased to announce the award of a material drilling contract in
Nevada and associated rig purchases, together with an update on the
ramp up of operations at its Ivindo iron ore contract.
New Major Contract
-- A three-year comprehensive drilling services contract with
Nevada Gold Mines LLC ("NGM") in the United States of America
("USA"): The contract spans a wide range of drilling services
including diamond, both surface and underground, and underground
reverse circulation. Drilling spans a number of operations across
NGM including:
o Underground diamond drilling in the Leeville underground mine
within the Carlin complex
o Underground reverse circulation drilling in Carlin
o Diamond drilling at the Robertson project within the Cortez
complex
NGM is a joint venture between Barrick (61.5% ownership) and
Newmont (38.5% ownership), with Barrick as operator. NGM operates
three Tier One gold assets: Carlin, Cortez, and Turquoise Ridge
consisting of 10 underground mines, 12 open pit mines and
associated facilities.
The contract will consist of 9 rigs and will include equipment
with advancements in automation for improved safety and
efficiency.
The contract is expected to generate annualised run rate
revenues of $35 million once all the rigs are fully operational
from 2025, at margins commensurate with the broader group. Capital
will purchase new rigs with associated equipment for the contract
with capex expected to be $20 million, predominantly falling in
2024.
Gabon Drilling & Mining Services Contract Update
-- Ramp up of operations at our load & haul, crushing and
drilling contract with Ivindo Iron SA proceeding well: Operations
continue to ramp up successfully at the Ivindo project. We have now
commenced drilling operations to assist in further defining this
world class deposit. The majority of the mining equipment is now in
country with operations also already underway, and crushing due to
commence later in the year.
Commenting on the contract wins, Peter Stokes, Chief Executive
Officer, said:
'This new drilling contract award represents a landmark moment
for Capital as we extend our geographic reach in drilling into
North America, adding to our existing and growing operations in
Canada with MSALABS. It is a strong endorsement of our
long-standing commitment to world leading standards in both safety
and productivity.
We are pleased to further expand our services with Barrick,
having begun our relationship across operations in Africa before
extending more globally, first at the Reko Diq mine in Pakistan,
earlier this year, and now to the Nevada Gold mines complex in the
United States.
It is also great to see a continuation of our decisive and
strategic move to reposition and improve our contract portfolio,
set out in the second half of 2022, focusing on large scale mine
sites and Tier-1 projects with significant growth potential. The
addition of world class contracts in 2023 across Reko Diq, Ivindo
and now Nevada presents significant further opportunity and a
strong platform as we look into 2024.'
- ENDS -
For further information, please visit Capital's website
www.capdrill.com or contact:
Capital Limited investor@capdrill.com
Peter Stokes, Chief Executive Officer
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. 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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END
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