REG - Capital Limited - New Contracts Updates

CapitalAnnouncement

20/09/2023 07:00

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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
(https://en.wikipedia.org/wiki/Barrick_Gold) (61.5% ownership) and Newmont
(https://en.wikipedia.org/wiki/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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