Capital Ltd Q3 2022 revenue of $73.1 million, up 18.7% on Q3 2021

Capital Ltd (LON:CAPD), a leading mining services company, has provides its Q3 2022 trading update for the period ended 30 September 2022.


 Q3 2022Q3 2021Q2 2022% change fromQ3 2021% change fromQ2 2022
Revenue (US$m)73.161.671.218.7%2.7%
Average utilised rigs91819712.3%-6.2%
Fleet Utilisation (%)7776851.3%-9.4%
Average Fleet11910711411.2%4.4%
Closing fleet size12710811617.6%9.5%

* Average monthly revenue per operating rig

Financial Highlights

·      Q3 2022 revenue of $73.1 million, up 18.7% on Q3 2021 ($61.6 million) and up 2.7% on Q2 2022 ($71.2 million);

·      Non-drilling revenue contributed 29% of total revenue for Q3 2022, compared with 26% in Q3 2021 and up from 27% in Q2 2022;

·      Average monthly revenue per operating rig (“ARPOR”) of $182,000 was flat on Q3 2021 ($182,000) but up 6.4% on Q2 2022 (US$171,000); and

·      Interim dividend of 1.3 cents per share (cps), paid on 3 October, up 8.3% on 2021 interim dividend (1.2 cps).

Operational Highlights

·      Safety performance remains world-class and improved through the quarter with the 9-month YTD TRIFR at 1.2, down from 1.8 in H1 2022;  

·      Capital Drilling: Strong performance while repositioning the contract portfolio through the quarter:

–     Fleet Utilisation of 77% in Q3 2022 was up 1.3% on Q3 2021 and down 9.4% on Q2 2022, due to typical seasonal weakness, particularly the wet season in West Africa, and also increased asset mobilisation as the group begun repositioning the contract portfolio as outlined at our H1 22 results. Repositioning of rigs is continuing in Q4 2022 along with some refurbishments on the newly acquired rigs at Fekola;

–     Previously announced contract wins (6 September):

§ 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 and reverse circulation) and grade control drilling. To facilitate delivery of the new contract Capital has purchased 10 rigs from African Mining Services (‘AMS’), part of the Perenti Group.

–     New contract wins:

§ A multi-rig exploration drilling contract (including reverse circulation, diamond and air core drilling) with Perseus Mining at its Block 14 Gold Project in Sudan; and

§ A reverse circulation drilling contract with Evolution Energy Minerals at its Chilalo graphite project in Tanzania.

–     Rig count increased from 116 to 127 through Q3 2022, net of depletion (including the 10 rigs purchased from AMS).

·      Capital Mining: Continuing to perform well:

–     Sukari Gold Mine (Egypt) waste mining contract achieved a quarterly record of waste mined since the project began; and

–     Capital remains active in the tendering pipeline.

·      MSALABS: Robust growth trajectory continuing:

–     Ongoing Chrysos PhotonAssay™ rollout:

§ MSALABS now has three Chrysos PhotonAssay™ units commissioned at Bulyanhulu Gold Mine (Tanzania), Morila Gold Mine (Mali) and Val d’Or (Quebec, Canada) with a fourth unit currently being commissioned in Yamoussoukro (Cote d’Ivoire);

§ The fifth and sixth units are set to arrive at the Kibali Gold Mine (DRC) and Prince George (Canada) in the coming weeks. A further unit is still earmarked for Timmins (Canada), as previously guided, which will be commissioned in Q1 2023;  and

§ Increased geographic spread is enabling accelerated PhotonAssay trials with major mining houses. PhotonAssay continues to be in high demand giving MSALABS a strong competitive advantage especially following the expanded relationship with Chrysos Corporation to roll out 21 units by 2025.

–     MSALABS has been awarded a 3-year mine site laboratory contract with Shanta Gold at its Singida Gold mine in Tanzania; and

–     MSALABS has completed the construction of a laboratory in Bougouni, Mali to support gold and lithium operations in southern Mali along with providing additional sample flow for the Chrysos unit at the Morila Gold mine (Mali).


·      Q3 2022 continued to see robust demand across our blue-chip portfolio of customers;

·      Revenue guidance for 2022 remains $280 to $290 million (upgraded from $270 – 280 million at the H1 2022 results). Capital expenditure guidance remains $60-65 million in 2022 (recently increased from $50-55 million as a result of the purchase of rigs and other assets from AMS):

–     The drilling business has further improved its contract portfolio with high-quality long-term contracts, and further rigs will arrive in Q4 with the group’s rig count growing towards ~130 rigs by the end of 2022; 

–     The Sukari earth moving contract continues to perform well and at full capacity; 

–     MSALABS is experiencing strong demand for its laboratory services with revenue guidance for 2022 remaining ~$30 million (up from $15.6 million in 2021). The continued rollout of Chrysos PhotonAssay™ units will drive material further growth through 2023 and 2024; and

–     Tendering activity across all business units remains robust, with a number of opportunities progressing.

Commenting on the trading update, Jamie Boyton, Executive Chairman, said:

“The third quarter of 2022 saw Capital again increase revenues despite seeing typical seasonal weakness compounded by increased asset movement as we repositioned the drilling contract portfolio. This is testament to the enhancements the business has made in its service offering over the past two years in particular, and the more robust and less volatile our revenues have become as a result. 

Through the quarter we begun repositioning our drilling contract portfolio, not only reducing our exposure to small exploration contracts but also increasing our exposure to tier-1 assets, as highlighted with our expanded relationship with B2Gold at Fekola, and assets with exciting long-term potential as with Perseus Mining’s Block 14 project.

Our mining division continues to perform well with Sukari achieving a record quarter in waste mined since the project began. MSALABS also continues its impressive growth trajectory through the quarter, both through multi-year mine site contracts for its traditional business and in the roll out of the revolutionary Chrysos technology.”

Click to view all articles for the EPIC:
Or click to view the full company profile:
Capital Limited

More articles like this

Capital Limited

Gold prices gain

Gold prices edged higher on Monday and hovered near a seven-month high, supported by a weaker dollar and hopes that the Federal Reserve might slow its pace of interest rate hike. Spot gold XAU= was up 0.2% at

Capital Limited

Gold hits 6-month high

Ahead of the release of the Federal Reserve’s December policy meeting minutes on Wednesday, gold prices hit a six-month high, albeit in thin trading. Spot gold was trading higher by 0.98% at $1,841.55 per ounce at the time of

Capital Limited

Glittering gold gives markets some Christmas cheer

Asian stocks were trying to get into a festive mood on Wednesday and managed small gains, with even Japan’s Nikkei lifting off a two-month low it hit following the Bank of Japan’s surprise decision to loosen

Capital Limited

Sample Preperation

Every step, from sample receipt until the laboratory begins the analysis must be suitable for the specific needs of your project and sample matrix and completed with meticulous care to minimise contamination. MSALABS expertise and state-of-the-art

Capital Limited

Gold near 5-month peak

Gold prices steadied on Monday after hitting a five-month high, as the dollar edged lower after more Chinese cities relaxed COVID-19 restrictions over the weekend. Spot gold was little changed at $1,799.26 per ounce by 0717

Capital Limited

Gold eyes best week in three

Gold prices eased on Friday ahead of a key U.S. jobs report, but were set for their best week in three as the dollar weakened on prospects of slower U.S. Federal Reserve rate hikes and signs

Capital Limited

Gold gains on dollar pullback

Gold ticked higher on Monday as a retreat in the dollar made bullion more attractive for other currency holders, drawing further support from some safe-haven demand from China amid wide protests over its strict COVID-19 curbs.

Capital Limited

Gold prices surge

Gold prices rose as soon as the U.S. Federal Reserve announced that it may slow the pace of interest rate hikes in the future. Globally, gold prices bounced above the key $1,750 an ounce level on

Capital Limited

Gold pinned near 3-month high

Gold prices hovered near three-month highs on Tuesday as mixed signals from Federal Reserve officials on the path of U.S. interest rates kept the dollar pinned to recent lows, while copper prices sank as rising COVID-19

Capital Limited

Improving safety standards in Africa

At Capital, we have an uncompromising commitment to the occupational health and safety of our employees and others where we work. Through our Tanzanian-based JV partner, International Apprenticeship and Competency Academy Limited (IACA) we now have

Capital Limited

Capital Ltd appoints Rick Robson as Chief Financial Officer

Capital Ltd (LON:CAPD) has announced the appointment of Mr. Rick Robson as Chief Financial Officer (“CFO”) following the departure of Mr. Giles Everist. Mr. Robson will replace Mr. Giles Everist with effect from 01 January 2023

Capital Limited

Gold firms as dollar rally pauses

Gold prices rose on Monday after declining more than 1% in the previous session, as a pause in the dollar rally alleviated some pressure from the greenback-priced bullion, though looming U.S. rate hikes restricted further gains.

Capital Limited

Capital welcomes new CEO

Capital have welcomed new Chief Executive Officer, Peter Stokes, who commenced on 3 October 2022. Peter’s appointment will support the next phase of Capital’s growth strategy, as they continue to rapidly expand their four key pillars.

Capital Limited

Gold firms on softer dollar

Gold prices edged higher on Monday on a softer dollar, although prospects of central banks worldwide retaining their aggressive monetary policy stance limited the gains for safe-haven bullion. Spot gold XAU= rose 0.3% to $1,663.99 per ounce, as

Capital Limited

Gold firms on slightly softer dollar

Gold prices rose on Tuesday as the dollar slipped, but the metal languished near a 2-1/2-year low on prospects of further rate hikes by the U.S. Federal Reserve to tame soaring inflation. Spot gold was up 0.4%