TIDMCAPD
RNS Number : 8966B
Capital Limited
13 October 2020
For Immediate Release 13 October 2020
Capital Limited
("Capital", the "Group" or the "Company")
Q3 Trading Update
Capital Limited (CAPD: LN), a leading mining services company
focused on the African markets, today provides its Q3 2020 trading
update for the period to 30 September 2020.
THIRD QUARTER (Q3) 2020 KEY METRICS
Q3 2020 Q3 2019 Q2 2020 % change % change
from from
Q3 2019 Q2 2020
Revenue (US$m) 35.3 29.4 32.6 20.1 8.3
ARPOR*(US$) 171,000 174,000 170,000 -1.7 0.6
Average utilised
rigs 60 48 57 25.0 5.3
Fleet Utilisation
(%) 61 52 58 17.3 5.2
Average Fleet 98 92 99 6.5 -1.0
Closing fleet
size 98 92 99 6.5 -1.0
* Average monthly revenue per operating rig
Financial Highlights
-- Revenue of $35.3 million, up 8.3% on Q2 2020 ($32.6 million)
and 20.1% up on Q3 2019 ($29.4 million)
-- Mine-site services continue to underpin revenue streams, contributing 94% of Group revenue
-- Q3 ARPOR $171,000, up 0.6% on Q2 2020 ($170,000) and down 1.7% on Q3 2019 ($174,000)
-- Non-drilling revenue contribution of 12% of total revenue for
Q3 2020, compared with Q2 2020 (10%), driven by mining services,
maintenance services and MSALABS (Q3 2019: 11%)
-- West Africa contributed 31% to Group revenues in Q3 2020
compared to Q2 2020 (29%), an increase of 6% (Q3 2019: 22%)
-- Continued solid operational profitability, driven by
consistent revenue at long-term contracts and ongoing prudent cost
management
-- Declared an interim dividend of US0.9cps for the H1 2020
period, paid on 25 September 2020 (2019: Interim dividend of
US0.7cps), a 29% increase
Operational Highlights
-- Further expansion of West African operations, with the
successful award of two new drilling contracts in Guinea for an
initial total of 40,000 metres of reverse circulation, diamond and
air core drilling:
- Hummingbird Resources: exploration drilling contract at its
newly acquired Kouroussa Gold Project in Guinea. Drilling is
anticipated to commence in Q4 2020 and will utilise an air core rig
from the existing fleet. This will be Capital's first contract in
Guinea
- Predictive Discovery: an exploration and delineation drilling
contract at its Bankan Project, located within the Siguiri Basin in
Guinea. This is a new client for Capital, with drilling expected to
commence in Q4 2020, and will initially utilise a multi-purpose rig
from the existing fleet
-- Exploration activity re-commencing as West African wet season
nears completion, with a number of exploration projects starting,
including Arrow Minerals (Burkina Faso), Awale Resources (C ô te
d'Ivoire), Marvel Gold (Mali) and in Q4, Oriole Resources
(Cameroon)
-- Increased exploration drilling activities has driven an
increase in Q3 2020 fleet utilisation to 61%, up 5.2% on Q2 2020
(58%) and up 17.3% on Q3 2019 (52%)
-- Continued to build the West African fleet, with a further
four reverse circulation rigs due for arrival in Q4 2020
-- Another solid safety performance for the quarter, with the
Group's COVID-19 protocols and management plan proving to be highly
effective in minimizing incidents of infection
-- Solid performance by the Groups portfolio of eight long-term
mine-site based contracts including: Tasiast (Kinross) in
Mauritania, Syama (Resolute) and Yanfolila (Hummingbird) in Mali,
Bonikro (Allied) in Côte d'Ivoire, Sukari (Centamin) in Egypt,
North Mara (Barrick) and Geita (AngloGold Ashanti) in Tanzania and
Jabal Sayid (Barrick) in Saudi Arabia
-- The COVID-19 pandemic continues to have no material impact on
operations, however some restrictions in the movement of personnel
continues to require pro-active management
Trading Update and Outlook
-- Equity markets continued to strengthen with activity levels
during the quarter reaching the highest seen since 2012, a strong
indicator of future demand
-- The gold price continues trading around all-time highs, a
positive for Capital Limited with over 90% of revenue derived from
the sector
-- Strong gold price continues to positively impact cash flows
of mining companies, which is expected to support increased
exploration budgets and demand for drilling and mining services
-- International travel restrictions associated with COVID-19
continue to ease, however the company will maintain close
monitoring of the situation
-- Operations at Sukari, Centamin's Tier 1 gold mine, continue
without any disruptions despite the temporary safety suspension to
operations on the West Wall of the open pit
-- Tendering market for drilling has increased materially during
the quarter, both in the numbers and size of tenders in the
market
-- Continued to gradually build mining fleet to better position
the business to actively engage in the mining services tender
market
-- Opportunities within the mining services business are
progressing well with advanced discussions on a number of
opportunities
The Group maintains its revenue guidance, with expected revenue
of $130 - $140 million for 2020 (versus $114.8 million in
2019).
Commenting on the trading update, Jamie Boyton, Executive
Chairman, said:
"The third quarter saw further progress in our drilling services
operations, from production to exploration, with continued
excellence in our safety record as well as a strong pick up in rig
utilisation. Our West African strategy continued to deliver growth
through existing client projects, and we look forward to expanding
our reach with the forthcoming expansion into the Guinea-Conakry
market. In terms of our broader mining services businesses, Capital
made significant progress with the development of our load and haul
fleet and capability, while MSALABS, our laboratory business,
continued to grow its presence in Africa, leveraging off the
well-established Capital network.
Looking ahead into the current quarter, Capital's operations at
Sukari, Centamin's Tier 1 gold mine in Egypt continue with no
disruptions following the successful safety measures recently
implemented in the open pit. Activity levels are beginning to
benefit from the gradual easing of travel and other restrictions
brought on by the global COVID-19 pandemic. Capital remains on
track to deliver on its guidance for 2020, supported by the
positive trends both in the capital markets' appetite for the gold
mining sector, the medium term fundamentals of gold and the
increased activity in African mining more generally."
- 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
André Koekemoer, Chief Financial Officer
Rick Robson, Executive - Corporate Development
Berenberg +44 20 3207 7800
Matthew Armitt
Jennifer Wyllie
Detlir Elezi
Tamesis Partners LLP +44 20 3882 2868
Charlie Bendon
Richard Greenfield
Buchanan +44 20 7466 5000
Bobby Morse capital@buchanan.uk.com
Kelsey Traynor
James Husband
About Capital
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 Botswana, Burkina
Faso, Côte d'Ivoire, Egypt, Guinea, 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
TSTFFASIDESSELS
(END) Dow Jones Newswires
October 13, 2020 02:00 ET (06:00 GMT)
Capital (LSE:CAPD)
Historical Stock Chart
From Apr 2024 to May 2024
Capital (LSE:CAPD)
Historical Stock Chart
From May 2023 to May 2024