REG - Capital Limited - Capital signs mining services contract at Reko Diq

CapitalAnnouncement

02/04/2025 07:00

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RNS Number : 2102D  Capital Limited  02 April 2025

Capital Limited

("Capital", the "Group" or the "Company")

 

Capital signs major mining services contract with Reko Diq Mining Pakistan
Limited (operated by Barrick) at Reko Diq

 

Capital (LSE: CAPD), a leading mining services company, is pleased to announce
the signing of a material mining services contract at Reko Diq.

 

Mining services contract with Barrick at Reko Diq:

 

The Company is pleased to announce that it has concluded formal negotiations
and has signed a mining services contract with Reko Diq Mining Pakistan
Limited, operated by Barrick, for the world-class Reko Diq project. This
transformative agreement sets the stage for long-term success, with operations
extending through to December 2028 and generating over $60 million in annual
revenue once fully operational.  The agreement also includes a provision for
a five-year contract extension after 2028.

 

Contract Highlights:

Two Major Scopes of Work:

1.     Early Works Civils:

o  As the project's foundation, this scope focuses on the construction phase
at Reko Diq, prior to first production.

o  Leveraging our mining equipment previously at Belinga, we will hit full
run rate from Q4 2025. This equipment is already on-site with commissioning
underway.

o  Onboarding of the workforce is nearly complete and operational training
has commenced.

2.     Tailings Storage Facility (TSF) Mining Services:

o  This phase focuses on the construction and ongoing maintenance of the
tailing storage facility.

o  Utilising the majority of the fleet from Sukari, our team will commence
operations at the start of Q4 2025, reaching full utilisation in the second
half of 2026.

 

Expanding Our Presence at Reko Diq:

With this contract, we are significantly expanding our service offering at the
Reko Diq copper-gold project, building on our proven track record since 2023
and our longer-term association with Pakistan dating back to 2008.  Alongside
the new civils and TSF services, we will continue to deliver reverse
circulation and diamond drilling geotechnical services, showcasing our
unwavering commitment to operational excellence and project success.

This is an exciting new chapter for Capital and a testament to our ongoing
partnership with Pakistan and Barrick. We look forward to the opportunities
ahead and delivering outstanding results at Reko Diq.

 

Reko Diq Project:

Reko Diq is owned 50% by Barrick, 25% by three federal state-owned enterprises
and 25% by the Government of Balochistan. The Project is is set to be one of
the world's largest, longest life and lowest cost copper gold operations.

Once the project is ramped up, based on Barrick's feasibility study, the
operation will be in the Top 10 copper mines globally by production while also
being amongst the lowest cost operations in the world with a C1 cash cost of
just US$0.53/lb.

The long-term outlook of this operation is also compelling, with an estimated
life of mine of c.37 years and Barrick seeing exploration targets that could
support a significant further extension to the mine life.

 

Commenting on the contract award, Jamie Boyton, Executive Chair, said:

"Reko Diq is set to be the next truly major copper operation in the world and
so it is exciting for us to be bringing our services to the site at the very
beginning of its development, first through drilling and now adding mining
services. Today highlights the strategy core to Capital of focusing on adding
our services at long-term contracts at world class assets.

We are also thrilled to be able to redeploy the majority of our mining kit
from our previous two mining contracts and continue to drive a return from
this investment."

 

- ENDS -

 

For further information, please visit Capital's website www.capdrill.com or
contact:

 

Capital Limited
                          investor@capdrill.com
 

Jamie Boyton, Exectuive Chair

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
(mailto: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.

 

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