Capital
Limited
("Capital", the "Group" or
the "Company")
Company
Update
Capital (LSE: CAPD), a leading
mining services company, today provides an update on anticipated
profitability for FY 2024, the outlook for 2025 and news of
management changes.
Trading update for
FY2024:
In addition to our recent Trading
and Operational Update where we indicated an adverse impact to
Group profitability particularly driven by our new operations in
the USA, the Board has taken the decision, to book non-cash
provisions in 2024 primarily relating to historical VAT receivables
and various laboratory assets in Mali. The Company now expects net
profit after tax ("NPAT") for 2024 to be in the range of $18 - 20
million.
The Company will announce FY 2024
results on the 27th March 2025.
Revenue Outlook for FY
2025:
FY 2025 revenue is expected to be in
the range of $300 - 320 million. Revenues will be H2 weighted given
the ramp up of new projects, predominantly in our mining business,
and margins will follow a similar weighting.
· Across
our drilling business, the focus for 2025 will be on core
profitability particularly in the USA.
· In
mining, revenues will be down YoY given the conclusion of our
contracts at Sukari and Belinga in 2024, while operations at Reko
Diq are expected, as per our previously announced letter of intent,
to commence ramping up through 2025.
· MSALABS is expected to generate revenues of ~$50-60 million
(up from $43.6 million in 2024). We are consolidating our existing
platform in key strategic locations to improve profitability. This
includes the construction of a state-of-the-art laboratory at
Nevada Gold Mines ("NGM") that will add wet chemistry and
multi-element capabilities from 2026. Looking forward we continue
to see revenues over $80 million for MSALABS driven by the hybrid
laboratory at NGM and the rollout of further
laboratories.
Executive Management
Changes:
The Company's CEO, Peter Stokes, has
tendered his resignation which has been accepted by the Board. He
has agreed a brief transitional period to hand over
responsibilities and to ensure business continuity. The senior
management team will report to Jamie Boyton in his role as
Executive Chairman.
Commenting on the update,
Jamie Boyton, Executive Chairman, said:
"The Board has taken the decision to make non-cash provisions
that have negatively impacted our 2024 results and driven our
trading update today.
We
remain positive about the outlook for the business however we
continue to face pressures to profitability, particularly driven by
our operations in the USA. We do however expect margins to bottom
in H1 2025 and expect a resumption of revenue growth in 2026 along
with a recovery in margins. We look forward to providing the market
with a comprehensive update on the 27th March in
conjunction with our FY 2024 results.
I
would like to thank Peter for his tireless efforts during this
challenging time and we wish him the best of success in his future
endeavours."
-
ENDS -
For
further information, please visit Capital's website
www.capdrill.com or contact:
Capital Limited
investor@capdrill.com
Jamie Boyton, Executive
Chairman
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
FTI
Consulting
+44 20 3727 1000
Ben
Brewerton
capitallimited@fticonsulting.com
Nick Hennis
Lucy Wigney
About Capital Limited
Capital Limited is a leading mining
services company that provides 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 Canada, Côte d'Ivoire, Democratic
Republic of Congo, Egypt, Gabon, Ghana, Guinea, Kenya, Mali,
Mauritania, Pakistan, Saudi Arabia, Tanzania, United States of
America and Zambia.
