REG - Capital Limited - Financial Results for FY 2023
14/03/2024 07:15
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RNS Number : 8432G Capital Limited 14 March 2024
Capital Limited
("Capital", the "Group" or the "Company")
Capital (LSE: CAPD), a leading mining services company, today provides its
full year financial results for the year ended 31 December 2023.
FULL YEAR FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2023*
FY 2023 FY 2022 vs
FY 2022
Revenue ($ m) 318.4 290.3 9.7%
EBITDA (adjusted for IFRS 16 leases)(1,2) ($ m) 91.8 86.4 6.3%
Operating profit ($ m) 60.3 59.7 1.0%
Investment gain / (loss) ($ m) 3.0 (19.8) N/A
Net Profit After Tax (NPAT) ($ m) 38.5 22.7 69.6%
NPAT (Adjusted for investment gain/(loss) ($ m) 35.5 42.5 (16.4%)
Earnings per share
Basic EPS (cents) 19.1 11.1 72.1%
Basic EPS (adjusted for investment gain/(loss) (cents) 17.5 21.5 (18.5%)
Final Dividend per Share (cents) 2.6 2.6
Cash from Operations (adjusted for IFRS 16 leases)(2) ($ m) 84.3 69.8 20.8%
Capex(3) ($ m) 69.0 57.5 20.0%
Net Debt(1) ($ m) 69.8 47.2 47.9%
Investments ($ m) 47.2 38.7 22.0%
Margins and returns
EBITDA Margin (adjusted for IFRS 16 leases)(1,2) 28.8% 29.8%
Operating profit Margin 18.9% 20.6%
NPAT Margin (adjusted for investment gain/(loss) 11.2% 14.6%
*All amounts are in US dollars unless otherwise stated
((1) ) EBITDA, and Net Debt are non-IFRS financial measures and
should not be used in isolation or as a substitute for Capital Limited
financial results presented in accordance with IFRS. Alternative performance
measures as detailed on pages 27 - 28 of this results announcement
((2) ) Adjustment for the cash cost of the IFRS 16 leases which
amounts to $8.2 million in 2023 and $3.7 million in 2022.
((3) ) Capital expenditure (Capex) consists of purchase of PPE for
cash, prepayments for PPE and assets purchased during the year and financed by
OEM.
FY 2023 Financial Overview
· FY 2023 revenue of $318.4 million, up 9.7% on FY 2022 ($290.3
million);
· Revenue came in marginally below our guidance of $320 - 340
million given a number of headwinds namely subdued activity in West Africa,
particularly in Mali, and operations suspended in Sudan with Perseus. In
addition MSALABS revenues fell slightly behind its aggressive growth target
for 2023, with utilisation across commercial laboratories deployed through the
year slightly behind schedule as we drive adoption of the new PhotonAssay(TM)
technology.
· FY 2023 EBITDA (adjusted for IFRS16 leases) of $91.8 million, up
6.3% on FY 2022 ($86.4 million);
· FY 2023 EBITDA margin (adjusted for IFRS16 leases) remained
strong at 28.8% (FY 2022: 29.8%);
· Group margins were strong through 2023 especially considering the
heavy cost loadings required in the ramp up of MSALABS;
· Value of the Group's strategic investment portfolio as of 31
December 2023 increased to $47.2 million (FY 2022: $38.7 million) including
net cash investment of $4.6 million;
· Net profit after tax (NPAT) of $38.5 million, up 69.6% on FY 2022
($22.7 million). Excluding the impact of investment losses/ gains, adjusted
NPAT is $35.5 million for FY 2023, down 16.4% on FY 2022 ($42.5 million);
· Basic earnings per share (EPS) of 19.1 cents, up 72.1% on FY 2022
(11.1 cents). Excluding the impact of investment losses/ gains, basic EPS
(adjusted) is 17.5 cents, down 18.5% on FY 2022 (21.5 cents);
· Cash from operations (adjusted for IFRS 16 leases) of $84.3
million, an increase of 20.8% on FY 2022 ($69.8 million);
· Total capex of $69.0 million, up 20.0% on FY 2022 ($57.5
million). Total capex consisted of cash capex of $47.9 million (2022: $43.0
million), prepayments of $5.3 million (2022: $5.5 million) and financed capex
of $15.8 million (2022: $9.0 million);
· Net debt of $69.8 million an increase of 47.9% on FY22 ($47.2
million); and
· Net debt excludes the investment holdings of $47.2 million.
· Declared a final dividend of US$2.6 cents per share, to be paid
on 15 May 2024 which, together with the interim dividend of US$1.3 cents per
share brings the total dividends declared for 2023 to US$3.9 cents per share
(2022: US$3.9 cents per share).
Operational and Strategic Highlights
· Safety performance remained best in class on a global scale with
the 2023 Total Recordable Injury Frequency Rate ("TRIFR") of 0.75 per
1,000,000 hours worked, a significant improvement (38%) on FY 2022 (1.2).
· Capital Drilling: Further contract wins and major contract
long-term renewal
· New contract win:
- A letter of intent from Allied Gold Corporation for a grade
control drilling services contract across its Cote d'Ivoire complex.
· FY 2023 major anchoring contract wins with significant growth
potential (previously announced):
- A three-year comprehensive drilling services contract with
Nevada Gold Mines, USA. The contract includes a wide array of drilling
services including underground reverse circulation and diamond, both surface
and underground. NGM operates the single largest gold-mining complex globally;
- A three-year reverse circulation and diamond drilling services
contract with Fortescue Metals Group at the Belinga iron ore project, Gabon.
This is one of the world's largest undeveloped, high-grade hematite iron ore
deposits; and
- A two-year diamond drilling services contract with Barrick at
the Reko Diq copper-gold project, Pakistan. This is amongst the largest
undeveloped copper-gold projects globally.
· Other recent contract awards (previously announced):
- Centamin's Sukari Gold Mine in Egypt has issued Capital with a
letter of intent to award a 5-year open pit drilling services contract
extension, starting from January 1, 2025. Subject to concluding a contract,
which will include both blast hole and grade control drilling, this will
extend our activities on site out to the end of 2029, 25 years after we
commenced operations in 2005;
- A two-year grade control drilling services contract with Perseus
Mining at the Sissingué gold mine in Côte d'Ivoire. This expands our
relationship with Perseus from existing contracts in Sudan and the Yaouré
mine, Côte d'Ivoire; and
- Expanded rig count at Belinga, Gabon, under our existing
three-year reverse circulation and diamond drilling services contract.
· Fleet utilisation for FY 2023 was 73%, compared to 79% in FY
2022;
· Average monthly revenue per operating rig ("ARPOR") was
US$186,000 in FY 2023, up 3.3% on FY 2022 (US$180,000); and
· Rig count decreased from 129 to 127 through FY 2023, net of
depletion.
FY 2023 FY 2022
FY 2023 vs FY 2022
Closing fleet size 127 129 -1.6%
Average Fleet 125 118 5.9%
Fleet utilisation (%) 73 79 -7.6%
Average utilised rigs 92 93 -1.1%
ARPOR*($) 186,000 180,000 3.3%
Drilling revenue ($m) 204.2 200.5 1.8%
Surveying revenue ($m) 3.7 4.7 -21.3%
Other Associated revenue(1) ($m) 7.4 8.0 -8.6%
Total Drilling and associated revenue ($m) 215.3 213.2 1.0%
*Average revenue per month per operating rig
(1)Associated revenue refers to revenue generated from complementary services
tied to our drilling operations.
All amounts are in USD unless otherwise stated
· Capital Mining: Second material mining services contract win:
· Capital secured its second high-quality mining services contract
with Ivindo Iron SA (Gabon), developing Belinga, one of the world's largest
undeveloped, high-grade hematite iron deposits. This contract has a term of up
to 5 years and will generate approximately $30 million of revenue per annum
once fully operational; and
· Sukari Gold Mine (Egypt) waste mining contract saw consistent
operations through FY 2023.
· MSALABS: Furthering on its growth trajectory and initiated
strategic global partnership, breaking into the USA market with largest
contract in MSALABS history:
· The deployment of Chrysos PhotonAssay™ units remains on track:
- MSALABS possesses the largest international network of Chrysos
PhotonAssay™ technology; and
- MSALABS relationship with Chrysos remains strong and will see
the deployment of 21 units.
· MSALABS was awarded a five-year comprehensive laboratory services
contract with Nevada Gold Mines (NGM) in the United States of America (USA).
- MSALABS will operate a state-of-the-art hybrid laboratory
incorporating Chrysos PhotonAssay(TM) units as well as traditional fire assay
methods and full multi-element assaying capabilities;
- MSALABS will deploy three PhotonAssay(TM) units in Nevada; and
- The contract is anticipated to generate ~$140 million over the
five-year term, with annual revenues of ~$30 million once fully operational,
making it the largest award of new business in the history of MSALABS. Capital
expenditure for the project is expected of ~$7 million.
· MSALABS has forged a global partnership with Barrick and Chrysos
Corporation to deliver PhotonAssay(TM) technology across Barrick mine sites:
- The three PhotonAssay(TM) units in Nevada mark the start of this
broader partnership agreement, with trials underway for a possible ten further
PhotonAssay(TM) units by the end of 2025 across multiple of Barrick's other
operations.
· Commercial laboratory focus in 2023: Capitalising on our early
mover advantage, we focused on deploying PhotonAssay(TM) units in a number of
commercial locations of strategic importance. As opposed to mine site
laboratories, commercial laboratories have longer lead times to ramp
utilisation which in turn impacts margins given the upfront cost loading
required. 2024 will benefit from an increase in utilisation at these sites, as
well as the business's greater leaning towards mine site laboratories through
this coming year.
· Capital Investments: Year on year portfolio growth:
· The total value of investments (listed and unlisted) was $47.2
million as at 31 December 2023 ($38.7 million as at 31 December 2022)
including net cash investments of $4.6 million; and
· The portfolio continues to be focused on a select few key
holdings with our holdings in Predictive Discovery, Allied Gold Corp and WIA
Gold comprising the majority (~85%) of our investments.
Outlook
· Revenue guidance for 2024 of $355 - $375 million driven by an
improved contract portfolio, ramp ups of new drilling and mining contracts and
a continued expansion of MSALABS;
· Capital Drilling is poised for additional growth in 2024,
primarily fuelled by the scale up of operations with Nevada Gold Mines in the
USA, alongside promising growth prospects across several of our current
operations - Belinga, Gabon and Reko Diq, Pakistan, in particular;
· Capital Mining will continue to embed operations at the Belinga
site in Gabon. The Sukari earth moving contract is anticipated to sustain its
steady-state performance until the contract concludes (mid 2024);
· MSALABS continues to drive forward its multi-year expansion
strategy, with a strong emphasis on the deployment of Chrysos PhotonAssay(TM)
units. The pipeline remains robust, reinforced by the recent partnership
forged with Barrick Gold and Chrysos Corporation. The business is expected to
deliver revenues of $50-60 million in 2024, another significant YoY increase
from 2023 (FY 2023 $38.4 million);
· Capital expenditure is expected to be $70-80 million in 2024.
This will fund typical sustaining and replacement capex across the drilling
and mining fleet to ensure ongoing youth and productivity, newly purchased
rigs to drive growth in the USA and the expansion of MSALABS. This year we
will also fund non-recurring expenditures primarily a major workshop facility
in Nevada as a hub for our operations in the region; and
· Tendering activity remains robust across the Group with a number
of high-quality opportunities progressing.
Commenting on the results, Peter Stokes, Chief Executive, said:
"The past year has been another great year for Capital, achieving growth for
the fourth year in a row despite a challenging market environment, all while
maintaining an exemplary safety record. We continue to strengthen our
portfolio across drilling and mining, with a strategic focus on tier one
assets made possible by the longstanding relationships we have built over the
years with some of the world's leading miners. Capital has also achieved a
number of strategic landmarks through the year, positioning itself for a
strong 2024 and beyond.
Our drilling business had another strong year achieving growth despite
difficult global market conditions. We have stayed committed to our strategy
of focusing on tier one clients with world class assets. This dedicated
commitment has seen us add world class assets to our contract portfolio, most
notably Barrick's copper project at Reko Diq (Pakistan), FMG's majority owned
iron-ore project at Belinga (Gabon) and the major gold-mining complex in the
USA, with Nevada Gold Mines, marking our first entry into the North American
market.
Our mining business was awarded its second high-quality mining services mining
contract with Ivindo, Gabon, which mobilised successfully through the year.
Operations at Sukari were also very consistent through 2023, and we are on
track to complete the contract by mid-2024, six months ahead of contracted
requirements. We have now demonstrated our expertise in both rapid
mobilisation and excellent performance in load and haul operations. These
milestones underscore our position as a trusted partner for tier-1 clients and
provide a robust foundation for future growth.
MSALABS has once again achieved remarkable growth over the past year, driven
particularly by the successful rollout of the revolutionary Chrysos
PhotoAssay(TM) technology. MSALABS is quickly becoming a major component of
the group as recently highlighted by its largest contract to date with Nevada
Gold Mines. It is set to operate PhotonAssay(TM) units as well as traditional
fire assay methods, complemented by extensive multi-element assaying
capabilities, all within a state of-the-art hybrid laboratory-the first of its
kind in the USA. Moreover, the business continues to strategically lay the
foundations for further growth through its recent global partnership with
Chrysos and Barrick.
Our investment portfolio remained focused on a select key few holdings through
the year. Growth in key investments saw our portfolio grow to $47.2 million, a
significant return from the net investment to date of ~$17.1 million. In
addition, our portfolio has been a key business development tool for the
Group, with contracts from investee companies generating over $140 million in
revenue since we formally launched our investment strategy in 2019 and remains
a core pillar of our business model.
We are excited for the year ahead and are confident in maintaining the growth
momentum of previous years. In addition we will retain our steadfast focus on
maintaining peer leading margins, returns and safety performance in parallel
to this growth. We will continue to pursue our key strategic priorities during
2024 and expect revenues to reach $355-375 million for the year."
Capital Limited will be hosting a live webcast presentation at 09:00 London
time on Thursday 14 March 2024, where questions can be submitted through the
platform.
The webcast presentation link:
Issuer Services | London Stock Exchange | Capital Limited FY 2023 Results
(lsegissuerservices.com)
(https://eur04.safelinks.protection.outlook.com/?url=https%3A%2F%2Flinkprotect.cudasvc.com%2Furl%3Fa%3Dhttps%253a%252f%252fwww.lsegissuerservices.com%252fspark%252fCapitalDrillingLtd%252fevents%252fa0c9c785-a31b-4bf8-98b9-e51d0394883c%26c%3DE%2C1%2CUaWxdLw2vfEX55elFr7W4oQaxRySw4xRuiCTOsTk623p_ba81FLlE4tWlM4uvwZSAO4uEPXz2J7-RKzzYgBclSrUlc3C-a2ZAGtmsZ0iyqPyiaZg%26typo%3D1&data=05%7C02%7Cademide.edgal%40capdrill.com%7C30700ed49b964b2ab0da08dc41e7d5f9%7Cc0386db254e9426fbaa9cb50596e8a17%7C1%7C0%7C638457712256465196%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=7dVgjAmWFXdnkXS24L0NYRQ6L6Km8%2FOH8ZM0vxAfDcs%3D&reserved=0)
Participants may join the webcast approximately five minutes before the
commencement time. A copy of the Company's presentation will be available on
www.capdrill.com (http://www.capdrill.com)
- 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, Ghana, Guinea, Kenya,
Mali, Mauritania, Nigeria, Pakistan, Saudi Arabia, Tanzania and the United
States of America.
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
2023 2022
US$'000 US$'000
Revenue 318,424 290,284
Cost of sales (171,524) (155,852)
Gross profit 146,900 134,432
Administration expenses 4 (46,852) (44,331)
Depreciation, amortisation and impairments (39,766) (30,416)
Profit from operations 5 60,282 59,685
Interest income 65 35
Finance costs 6 (13,002) (7,356)
Fair value gain / (loss) on financial assets 2,989 (19,798)
Profit before tax 50,334 32,566
Taxation 7 (11,804) (9,836)
Profit and total comprehensive income for the year 38,530 22,730
Profit and total comprehensive income for the year attributable to:
Owners of the parent 36,737 20,990
Non-controlling interest 1,793 1,740
38,530 22,730
Earnings per share:
Basic earnings per share (cents per share) 8 19.09 11.07
Diluted earnings per share (cents per share) 8 18.82 10.71
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Notes 2023 2022
US$'000 US$'000
ASSETS
Non-current assets
Property, plant and equipment 10 208,657 172,658
Right-of-use assets 29,684 16,652
Goodwill 1,296 1,296
Intangible assets 572 1,916
Other receivables 9,789 6,460
Total non-current assets 249,998 198,982
Current assets
Inventory 11 61,922 58,695
Trade receivables 12 49,567 41,542
Other receivables 24,055 20,073
Investments at fair value 47,154 38,727
Current tax receivable 686 400
Cash and cash equivalents 34,366 28,380
Total current assets 217,750 187,817
Total assets 467,748 386,799
EQUITY AND LIABILITIES
Equity
Share capital 13 19 19
Share premium 13 62,390 62,390
Treasury shares 14 - (2,475)
Equity-settled employee benefits reserve 5,763 4,469
Other reserve 190 190
Retained earnings 195,515 168,726
263,877 233,319
Non-controlling interest 9,270 5,573
Total equity 273,147 238,892
Non-current liabilities
Loans and Borrowings 15 75,521 56,865
Lease liabilities 21,109 12,127
Deferred tax 34 34
Trade and other payables 2,057 1,485
Total non-current liabilities 98,721 70,511
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
2023 2022
US$'000 US$'000
Current liabilities
Trade and other payables 50,685 43,453
Provisions 487 2,637
Current tax payable 9,315 9,130
Loans and Borrowings 15 27,052 18,037
Lease liabilities 8,341 4,139
Total current liabilities 95,880 77,396
Total liabilities 194,601 147,907
Total equity and liabilities 467,748 386,799
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity-settled employee benefits reserve Total
attributable to the equity holders of the Group / Company
Non-controlling interest
Share capital Share premium Treasury shares Total share capital Other Total reserves Retained income Total
reserve
equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance at January 1, 2023 19 62,390 (2,475) 59,934 190 4,469 4,659 168,726 233,319 5,573 238,892
Profit for the year - - - - - - - 36,737 36,737 1,793 38,530
Total comprehensive income for the year - - - - - - - 36,737 36,737 1,793 38,530
Issue of shares - - 2,475 2,475 - (2,246) (2,246) (229) - - -
Recognition of share-based payments - - - - - 3,540 3,540 - 3,540 - 3,540
Adjustment arising from change in non-controlling interest - - - - - - - (2,100) (2,100) 1,923 (177)
Dividends - - - - - - - (7,619) (7,619) (18) (7,637)
Total contributions by and distributions recognised directly in equity - - 2,475 2,475 - 1,294 1,294 (9,948) (6,179) 1,905 (4,274)
Balance at December 31, 2023 19 62,390 - 62,409 190 5,763 5,953 195,515 263,877 9,270 273,147
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Total attributable to the equity holders of the Group / Company
Equity-settled employee benefits reserve
Non-controlling interest
Share capital Share premium Treasury shares Total share capital Other Total reserves Retained income Total
reserve
equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance at January 1, 2022 19 60,900 - 60,919 190 3,186 3,376 154,880 219,175 3,768 222,943
Profit for the year - - - - - - - 20,990 20,990 1,740 22,730
Total comprehensive income for the year - - - - - - - 20,990 20,990 1,740 22,730
Issue of shares - 1,490 - 1,490 - (1,490) (1,490) - - - -
Recognition of share-based payments - - - - - 2,773 2,773 - 2,773 - 2,773
Repurchase of own shares - - (2,475) (2,475) - - - - (2,475) - (2,475)
Adjustment arising from change in non-controlling interest - - - - - - - (55) (55) 55 -
Impact of acquisition of subsidiary - - - - - - - - - 10 10
Dividends - - - - - - - (7,089) (7,089) - (7,089)
Total contributions by and distributions recognised directly in equity - 1,490 (2,475) (985) - 1,283 1,283 (7,144) (6,846) 65 (6,780)
Balance at December 31, 2022 19 62,390 (2,475) 59,934 190 4,470 4,660 168,725 233,319 5,573 238,892
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
2023 2022
Note US$'000 US$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 16 92,532 73,533
Interest income received 65 35
Finance costs paid (9,441) (6,407)
Interest paid on lease liabilities (2,081) (818)
Tax paid (11,905) (10,585)
Net cash from operating activities 69,170 55,758
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (47,876) (42,974)
Proceeds from sale of property, plant and equipment 69 19
Purchase of intangible assets and cloud computing arrangements (1,777) (634)
Purchase of investments at fair value (9,258) (9,010)
Proceeds from sale of investments at fair value 4,668 10,637
Cash paid in advance for property, plant and equipment (5,318) (5,542)
Net cash from investing activities (59,492) (47,504)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans and borrowings 38,000 20,717
Repayment of loans and borrowings (26,732) (16,666)
Repayment of principle on leases liabilities (6,152) (2,916)
Advance payment on leases (1,205) (667)
Dividends paid 9 (7,637) (7,089)
Repurchase of own - (2,475)
shares
Proceeds from issuance of equity to non-controlling interests 1,193 -
Purchase of shares from non-controlling interest (1,404) -
Net cash used in financing activities (3,937) (9,095)
Total cash movement for the year 5,741 (842)
Cash at the beginning of the year 28,380 30,577
Effect of exchange rate movement on cash balances 245 (1,355)
Total cash at end of the year 34,366 28,380
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2023
1. General information
Capital Limited (the "Company") is incorporated in Bermuda. The Company and
its subsidiaries (the "Group") provide drilling, mining (load and haul),
crushing, mineral assaying and surveying services. The Group also has a
portfolio of investments in listed and unlisted exploration and mining
companies.
During the year ended 31 December 2023, the Group provided drilling services
in Côte d'Ivoire, Guinea, Gabon, Egypt, Mali, Saudi Arabia, Pakistan, Sudan
and Tanzania. Mining services are provided in Egypt and Gabon and mineral
analysis services are provided in Canada, Guyana, Mauritania, Nigeria, Côte
d'Ivoire, Mali, Tanzania, Kenya, Ghana, Egypt and Democratic Republic of the
Congo. The Group's administrative office are located in the United Kingdom
and Mauritius.
2. Basis of preparation
The condensed consolidated financial statements are prepared on the going
concern basis under the historical cost convention, except for certain
financial instruments which are measured at fair value. The directors are
responsible for the preparation of the results announcement.
The condensed consolidated financial statements included in this results
announcement has been prepared in accordance with the measurement and
recognition criteria of International Financial Reporting Standards ("IFRS")
as issued by the International Accounting Standards Board ("IASB"). Whilst the
financial information included in this results announcement has been prepared
in accordance with IFRS, this announcement does not itself contain sufficient
information to comply with the disclosure requirements of IFRS. The Group's
2023 Annual Consolidated Financial Statements have been prepared in accordance
with IFRS. The results announcement does not constitute a dissemination of the
annual financial reports. A separate dissemination announcement in accordance
with Disclosure and Transparency Rules (DTR) 6.3 will be made when the Annual
Report and audited consolidated Financial Statements are available on the
Company's website.
The accounting policies are in terms of IFRS and consistent with those of the
prior year.
The financial information for the years ended 31 December 2023 and 2022 does
not constitute the annual financial statements. The annual consolidated
financial statements for the year ended 31 December 2022 and 2023 were
completed and received an unmodified audit report from the Company's Auditors.
Going concern
As at 31 December 2023, the Group had a robust balance sheet with a low debt
gearing with equity of US$273.1 million and loans and borrowings of US$102.6
million. Cash as at 31 December 2023 was US$34.4 million, with net debt of
US$68.2 million. Investments in listed entities at the end of December 2023
amounted to US$44.8 million which provided additional flexibility as these
investments could be converted into cash.
This robustness is underpinned by stable cash flows generated by a diversified
service offering and diversified contract portfolio. Revenues continued to
perform strongly in 2023 with increased revenue of 10% compared to 2022.
Commercially, the Group secured two long-term major contracts with
high-quality customers in 2023: Ivindo Iron in Gabon which is majority owned
by major mining company Fortescue Metals Group for drilling, mining and
crushing services and Nevada Gold Mines in USA, a JV between Barrick Gold
Corporation and Newmont Corporation for comprehensive drilling and laboratory
services. The contract with Nevada Gold Mines had not started generating
revenue as at 31 December 2023.
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2023
2. Basis of preparation (continued)
Going concern (continued)
In determining the going concern status of the business, the Board has
reviewed the Group's forecasts for the 18 months to June 2025, including both
forecast liquidity and covenant measurements. In the assessment, management
took into consideration the principal risks of the business that are most
relevant to the going concern assessment and reverse stressed the forecast
model to identify the magnitude of sensitivity required to cause a breach in
covenants or risk the going concern of the business, alongside the Group's
capacity to mitigate. The most relevant sensitivity was considered to be a
decrease in EBITDA through loss of contracts, with no redeployment of
equipment. EBITDA would need to fall over 40% during the period of assessment
for going concern to breach the covenant test. Given the strong market demand
from existing high-quality clients and across a large tendering pipeline, the
Group's increased service diversification and the limited contract expiries
due during the year, management considers the risk of a deep demand reduction
to be low.
Given the Group's exposure to high-quality mine site operations, we consider a
decrease of such magnitude to be remote. Based on its assessment of the
forecasts, principal risks and uncertainties and mitigating actions considered
available to the Group (holding back dividends, sale of investments, capex
deferment) in the event of downside scenarios, the Board confirms that it is
satisfied the Group will be able to continue to operate and meet its
liabilities as they fall due over the going concern period to June 2025.
Accordingly, the Board has concluded that the going concern basis in the
preparation of the Financial Statements is appropriate and that there are no
material uncertainties that would cast doubt on that basis of preparation.
3. Segment analysis
Operating segments are identified on the basis of internal management reports
regarding components of the Group. These are regularly reviewed by the
Chairman in order to allocate resources to the segments and to assess their
performance. Operating segments are identified based on the regions of
operations. For the purposes of the segmental report, the information on the
operating segments has been aggregated into the principal regions of
operations of the Group. The Group's reportable segments under IFRS 8 are
therefore:
· Africa: Derives revenue from the provision of drilling and mining services, surveying
and mineral assaying.
· Rest of world: Derives revenue from the provision of drilling services, surveying and mineral
assaying. The segment relates to jurisdictions which contribute a relatively
small amount of external revenue to the Group. These include Canada, Pakistan
and Saudi Arabia.
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2023
3. Segment analysis (continued)
The following is an analysis of the Group's revenue and results by reportable
segment:
Africa Rest of world Consolidated
US$'000 US$'000 US$'000
2023
External revenue
Drilling services 199,496 12,056 211,552
Mining services 64,721 - 64,721
Laboratory services 19,743 18,662 38,405
Surveying services 3,659 87 3,746
Total external revenue 287,619 30,805 318,424
Segment profit (loss) 108,359 (17,771) 90,588
Central administration costs and depreciation (30,306)
Profit from operations 60,282
Interest income 65
Finance charges (13,002)
Fair value gain on financial assets 2,989
Profit before tax 50,334
2022
External revenue
- Drilling services 202,201 6,361 208,562
- Mining services 49,763 - 49,763
- Laboratory services 13,804 13,501 27,305
- Surveying services 4,333 321 4,654
Total external revenue 270,101 20,183 290,284
Segment profit (loss) 91,428 (6,554) 84,874
Central administration costs and depreciation (25,189)
Profit from operations 59,685
Interest income 35
Finance charges (7,356)
Fair value loss on financial assets (19,798)
Profit before tax 32,566
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2023
3. Segment analysis (continued)
The following customers from the Africa segment
contributed 10% or more to the Group's revenue:
2023 2022
% %
Customer A 16 15
Customer B 33 39
Segment assets and liabilities:
The following is an analysis of the Group's assets and liabilities by
reportable segment:
2023 2022
US$'000 US$'000
Segment assets:
Africa 567,699 506,043
Rest of world 92,454 59,642
Total segment assets 660,153 565,685
Head office companies 338,507 280,828
998,660 846,513
Eliminations (530,912) (459,714)
Total Assets 467,748 386,799
Segment liabilities:
Africa 257,526 239,013
Rest of world 61,173 31,752
Total segment assets 318,699 270,765
Head office companies 373,103 315,695
691,802 586,460
Eliminations (497,201) (438,553)
Total Liabilities 194,601 147,907
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2023
4. Administrative expenses
2023 2022
US$'000 US$'000
Employee costs 19,809 16,324
Professional fees 3,813 3,848
Insurance 1,986 1,886
Rental cost 1,605 1,549
Share based payment expenses 3,540 2,774
Bad debts written off 218 1,458
Increase in net expected credit loss provision 1,717 2,981
Travel & Accommodation 3,211 2,499
Bank charges 1,382 1,277
Foreign exchange (gain)/loss (151) 1,711
Software costs 1,933 1,104
Other expenses 7,789 6,920
Total administration expenses 46,852 44,331
5. Profit from operations
The following items have been recognised as expenses
in determining profit from operations:
Depreciation and amortisation
2023 2022
US$'000 US$'000
Rights of use assets 7,510 3,458
Computer software 7 4
Drilling rigs 10,521 10,373
Associated drilling equipment 4,900 3,134
Vehicles and trucks 4,493 3,180
Camp and associated equipment 2,594 1,390
Mining equipment 9,302 8,877
Total depreciation and amortisation 39,327 30,416
Impairment:
Vehicles and trucks 389 -
Camp and associated equipment 50 -
Total impairment 439 -
Total depreciation, amortisation and impairments 39,766 30,416
Operating lease expense
Short term equipment rental 3,786 3,335
Employee costs
Salaries, wages, bonuses and other benefits 90,673 79,560
Share based compensation expense 3,540 2,774
Total employee costs 94,213 82,334
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2023
5. Profit from operations
2023 2022
Other US$'000 US$'000
Loss on disposal of property, plant and equipment 946 669
Legal and professional fees 3,813 3,848
Stock write-off 691 200
Provision for inventory obsolescence 574 745
Increase in expected credit loss provision 1,716 2,981
Bad debts written off 218 1,458
Other taxes 558 333
Increase / (decrease) in provisions for other taxes 136 (288)
6. Finance costs
2023 2022
US$'000 US$'000
Interest on lease liabilities 2,081 818
Interest on bank loans 7,705 4,220
Interest on supplier credit facilities 1,943 1,005
Amortised debt arrangement costs 1,240 439
Other interest paid 33 874
Total finance charges 13,002 7,356
7. Taxation
The Group operates in multiple jurisdictions with complex legal and tax
regulatory environments. In certain of these jurisdictions, the Group has
taken income tax positions that management believes are supportable and are
intended to withstand challenge by tax authorities. Some of these positions
are inherently uncertain and relates to the interpretation of income tax laws.
The Group periodically reassesses its tax positions. Changes to the financial
statement recognition, measurement, and disclosure of tax positions is based
on management's best judgment given any changes in the facts, circumstances,
information available and applicable tax laws. Considering all available
information and the history of resolving income tax uncertainties, the Group
believes that the ultimate resolution of such matters will not likely have a
material effect on the Group's financial position, statements of operations or
cash flows.
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2023
8. Earnings per share
2023 2022
Basic earnings per share
The earnings and weighted average number of ordinary shares used in the
calculation of basic earnings per share are as follows:
Earnings for the year, used in the calculation of basic earnings per share 36,737 20,990
(US$'000)
Adjusted for:
Fair value (gain)/loss on financial assets (US$'000) (2,989) 19,798
Earnings for the year, used in the calculation of basic earnings per share 33,748 40,788
(adjusted) (US$'000)
Weighted average number of ordinary shares for the purposes of basic earnings 192,451,358 189,653,369
per share
Basic earnings per share (US$ c) 19.09 11.07
Basic earnings per share (adjusted) (US$ c) 17.54 21.51
2023 2022
Diluted earnings per share
The earnings used in the calculations of all diluted earnings per share
measures are the same as those used in the equivalent basic earnings per share
measures, as outlined above.
Weighted average number of ordinary shares used in the calculation of basic 192,451,358 189,653,369
earnings per share
Shares deemed to be issued for no consideration in respect of:
- Effect of STIP and LTIP shares 2,801,729 6,263,799
Weighted average number of ordinary shares used in the calculation of diluted 195,253,087 195,917,168
earnings per share
Diluted earnings per share (US$ c) 18.82 10.71
Diluted earnings per share (adjusted) (US$ c) 17.28 20.82
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2023
9. Dividends
2023 2022
US$'000 US$'000
Dividends 7,637 7,089
During the 12 months ended 31 December 2023, a dividend of 2.6 cents (2022:
2.4 cents) per ordinary share, totalling to US$5.0 million (2022: US$4.6
million) was declared as the final dividend for 2022. This dividend was paid
to the shareholders on 9 May 2023 (2022: 10 May 2022), followed by a further
dividend of 1.3 cents (2022: 1.3 cents) per share which was declared as
interim dividend for 2023 totalling US$2.5 million (2022: US$2.5 million) and
paid on 3 October 2023 (2022: 3 October 2022). The total dividend paid is
US$7.6 million (2022: US$7.1 million).
In respect of the year ended 31 December 2023, the Directors propose that a
final dividend of 2.6 cents (2022: 2.6 cents) per share be paid to
shareholders on 15 May 2024 (2022: 9 May 2023). This final dividend has not
been included as a liability in these Consolidated Financial Statements. The
proposed final dividend is payable to all shareholders on the Register of
Members on 19 April 2024 (2022: 14 April 2023). The total estimated final
dividend to be paid is US$5.0 million (2022: US$5.0 million). The payment of
this final dividend will not have any tax consequences for the Group.
10. Property, plant and equipment
The net movement in property, plant and equipment in the year is an increase
of US$36.0 million (2022: US$29.1 million). This is primarily as a result of:
· additions in the year of US$69.3 million (2022: US$56.7 million)
on drilling rigs, heavy mining equipment and other assets to expand its
operations and replace existing assets;
· disposals of property, plant and equipment with a net book value
of US$1.0 million (2022: US$0.7 million) during the year; and
· Depreciation charge of US$31.8 million (2022: US$27.0 million).
· Impairment of US$0.4 million (2022: US$ Nil)
The Group's property plant and equipment includes assets not yet commissioned
totalling US$41.8 million (2022: US$24.6 million). The assets will be
depreciated once commissioned and available for use. A loss of US$1.0 million
(2022: US$0.7 million) was incurred on the disposal of property, plant and
equipment. Not reflected in the Cash Flow is a US$15.8 million (2022: US$ 9.0
million) asset finance facility obtained from Epiroc Financial Solutions and
Caterpillar for the purchase of Rigs.
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2023
11. Inventory
2023 2022
US$'000 US$'000
Gross carrying value of inventory 63,724 59,955
Less: provision for inventory obsolescence (1,802) (1,260)
61,922 58,695
The cost of inventories recognised as an expense in the current year amounts
to US$21.3 million (2022: US$18.3 million). During the year, the Group wrote
off US$0.7 million (2022: US$0.2 million) of inventory. A provision of US$0.6
million (2022: US$0.7 million) was made during the year, resulting in an
increase in the carrying amount of the provision.
12. Trade receivables
2023 2022
US$'000 US$'000
Trade receivables 54,264 44,523
Less: allowance for credit losses (4,697) (2,981)
Total trade receivables 49,567 41,542
As the Group does not have historical credit losses, the expected loss rates
have been based on current and forward-looking information on micro
macroeconomic factors affecting the Group's customers. The Group has
identified the metals and mining sector's credit loss probability rates as the
key macroeconomic factor in countries where the Group operates.
The lifetime expected loss provision for trade receivables is as follows:
More than More than More than
30 days 60 days 120 days
31 December 2023 Current past due past due past due Total
US$'000 US$'000 US$'000 US$'000 US$'000
Expected loss rate 0.2% 1.7% 0.1% 52.4% 8.7%
Gross carrying amount 26,139 6,583 12,913 8,629 54,264
Loss provision 49 113 14 4,521 4,697
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2023
12. Trade receivables (continued)
Movements in the impairment allowance for trade receivables are as follows:
2023 2022
US$'000 US$'000
Opening provision for impairment of trade receivables 2,981 -
Increase during the year 1,934 4,438
Receivables written off during the year as uncollectible (218) (1,457)
At 31 December 4,697 2,981
13. Share capital and Share premium
2023 2022
US$'000 US$'000
Authorised
2,000,000,000 (2022: 2,000,000,000) ordinary shares of US$0.0001 (2022:
US$0.0001) each
200 200
Issued share capital
193,696,920 (2022: 192,864,738) ordinary shares of US$0.0001 (2022: US$0.0001) 19 19
each
Share premium 2023 2022
US$'000 US$'000
Balance at beginning of period 62,390 60,900
Share issue - 1,490
Balance at end of period 62,390 62,390
In April 2023, the Group issued 832,182 new common shares pursuant to the
Group's employee short- and long-term incentive plans. The shares rank pari
passu with the existing ordinary shares. Fully paid ordinary shares which have
a par value of 0.01 cents, carry one vote per share and carry rights to
dividends.
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2023
14. Treasury shares
2023 2022
US$'000 US$'000
Balance at 1 January 2,475 -
(Reissued)/acquired in the year (2,475) 2,475
Balance at 31 December 2023 - 2,475
The treasury shares reserve represents the cost of shares in Capital Limited
purchased in the market and held by the Company to satisfy options under the
Group's share incentive plans. The number of ordinary shares held by the
Company at 31 December 2023 was nil (2022: 1,973,551).
During the year, the treasury shares were reissued to employees against the
LTIPs and STIPs that vested during the year.
15. Loans and borrowings
2023 2022
US$'000 US$'000
Bank loans 78,385 57,945
Supplier credit facilities 25,813 17,674
104,198 75,619
Less: Unamortised debt arrangement costs (1,625) (717)
Total loans and borrowings 102,573 74,902
Current 27,052 18,037
Non-current 75,521 56,865
Total loans and borrowings 102,573 74,902
(a) US$50 million revolving credit facility (RCF) provided by Standard Bank
(Mauritius) Limited and Nedbank Limited
The Company entered into a revolving credit facility agreement on 28 March
2023 as borrower together with Standard Bank (Mauritius) Limited and Nedbank
Limited (acting through its Nedbank Corporate and Investment banking division)
as lenders and arrangers, with Nedbank acting as agent and security agent to
borrow a revolving credit facility for an aggregate amount of US$50 million
with the Company being able to exercise an accordion option to request an
increase of the facility under the terms and conditions of the Facility
Agreement. The interest rate on the RCF is the prevailing three-month Secured
Overnight Financing Rate (SOFR) (payable in arrears) plus a margin of 5.5%,
and an annual commitment fee of 1.75% per annum is charged on any undrawn
balances. The amount utilised on the RCF was US$45 million as at 31 December
2023 (2022: US$25 million).
Under the terms of the RCF, the Group is required to comply with certain
financial covenants relating to:
• Interest Cover Ratio
• Debt EBITDA Ratio
• Debt Equity Ratio
• Total Tangible Net Worth
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2023
15. Loans and borrowings (continued)
In addition, CAPD (Mauritius) Limited, as borrower, is also required to comply
with the Total Tangible Net Worth covenant.
Security for the RCF comprises various pledges over the shares and claims of
the Group's entities in Tanzania together with a debenture over the rigs in
Tanzania and the assignment of material contracts and their collection
accounts in each of Egypt, Tanzania and Mali.
As at the reporting date and during the period under review, the Group has
complied with all covenants attached to the loan facilities.
(b) US$40.5 million term loan provided by Macquarie Bank
Limited (London Branch)
On 15 September 2022, the Group refinanced the senior secured, asset backed
term loan facility with Macquarie Bank Limited. The term of the loan is three
years repayable in quarterly instalments with an interest rate on the facility
of the prevailing three-month SOFR plus a margin of 6.5% per annum (payable
quarterly in arrears). The loan is secured over certain assets owned by the
Group and currently located in Egypt together with guarantees provided by
Capital Limited, Capital Drilling Egypt LLC. The Group drew an additional US$8
million in 2023. As at 31 December 2023, the amount outstanding on the term
loan was US$32 million (2022: US$33 million).
During the year under review, the Group has complied with all covenants
attached to the term loan.
(c) Epiroc Financial Solutions AB credit agreements
The Group has a number of credit agreements with Epiroc, drawn down against
the purchase of rigs. The term of the agreements is four years repayable in 46
monthly instalments. The rate of interest on most of the agreements is
three-month SOFR plus a margin of 4.8%, with a fixed rate of interest of the
remaining agreements of 8.5%. As at 31 December 2023, the total drawn under
these credit agreements was US$16.5 million (2022: US$11.7 million).
No covenants are attached to this facility.
(d) US$8.5 million term loan facility with Sandvik Financial Services AB
(PUBL)
The Group has term loan facility agreement with Sandvik Financial Services AB
(PUBL). The facility is for the purchase of equipment from Sandvik AB,
available in not more than four tranches. Interest is payable quarterly in
arrears at 5.45% per annum on the drawn amount. The facility is no longer
available to drawn on and as at 31 December 2023 the balance outstanding was
US$4.2 million (2022: US$5.9 million).
Additionally, the Group entered into a further US$10 million facility
agreement on 23 October 2023. The rate of interest on this agreement is fixed
at 8.15%. As at 31 December 2023, the facility was undrawn.
No covenants are attached to this facility.
(e) US$5 million facility with Caterpillar Financial Services
The Group entered into a US$5 million facility agreement with Caterpillar
Financial Services Corporation on 25 July 2023. The rate of interest on this
agreement is three-month SOFR plus a margin of 5.25%. The term of the
agreement is 2 years repayable in 8 quarterly instalments. All repayments can
be subsequently redrawn. As at 31 December 2023, the facility was fully drawn
at US$5 million.
During the year under review, the Group has complied with all covenants
attached to the facility.
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2023
16. Cash generated from operations
2023 2022
US$'000 US$'000
Profit before taxation 50,334 32,566
Adjustments for:
Depreciation, amortisation and impairments 32,256 26,959
Loss on disposals 946 669
Depreciation of Right of use assets 7,510 3,457
Share-based payment 3,540 2,774
Fair value (gain)/ loss on financial assets (2,914) 19,798
Interest income (65) (35)
Finance costs 13,002 7,356
Other non-cash items 34 -
Unrealised foreign exchange (gain) / loss on foreign cash held (246) 1,355
Increase in expected credit loss provision 1,716 2,981
Bad debts written off 218 1,458
Changes in working capital:
Increase in inventories (3,227) (20,760)
Increase in trade and other receivables (15,568) (4,885)
Increase / (decrease) in trade and other payables 7,146 (2,797)
(Decrease) / increase in provisions (2,150) 2,637
Cash generated from operations 92,532 73,533
17. Commitments
The Group has the following commitments:
2023 2022
US$'000 US$'000
Committed capital expenditure 36,083 18,686
The Group had outstanding purchase orders amounting to US$39.5 million (2022:
US$29.7 million) at the end of the reporting period of which US$36.1 million
(2022: US$18.7 million) were for capital expenditure.
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2023
18. Contingencies
As a result of the multiple jurisdictions in which the Group operates, there
are a number of ongoing tax audits. In the opinion of Management none of these
ongoing audits represent a reasonable possibility of a material settlement and
as such, no contingent liability disclosure is required.
19. Events after the reporting period
There have been no significant events affecting the Group since the year end.
GLOSSARY
A description of various acronyms is detailed below:
ARPOR Average Revenue Per Operating Rig
CAPEX Capital Expenditure
EBIT Earnings Before Interest and Taxes and fair value gain/loss on investments
EBITDA Earnings Before Interest, Taxes, Depreciation, Amortisation and fair value
gain/loss on investments
EBITDA (adjusted for IFRS 16 leases) EBITDA pre fair value gain/ loss on investments, net of cash cost of the IFRS
16 leases
Cash from operations (adjusted for IFRS 16 leases) Cash generated from operations net of cash cost of IFRS 16 leases
Basic EPS Basic Earnings Per Share
Basic EPS (adjusted) Basic Earnings Per Share adjusted for fair value gain/loss on investments
ETR Effective Tax Rate
HSSE Health, Safety, Social and Environment
KPI Key Performance Indicator
LTI Lost Time Injury
LTM Last Twelve Months
PBT Profit Before Tax
NPAT Net Profit After Tax
Adjusted NPAT NPAT pre fair value gain/ loss on investments
YOY Year-On-Year
Return on capital employed EBIT / Average capital employed
Average capital employed Average yearly capital employed pre investments at fair value and goodwill.
RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES TO THE FINANCIAL RESULTS:
ARPOR can be reconciled from the financial statements as per the below:
2023 2022
Revenue per financial statements (US$'000) 318,424 290,284
Non-drilling revenue (US$'000) (114,249) (89,793)
Revenue used in the calculation of ARPOR (US$'000) 204,175 200,491
Monthly Average active operating Rigs 92 93
Monthly Average operating Rigs 125 118
ARPOR (US$'000 per Rig) 186 180
EBITDA can be reconciled from the financial statements as per the below:
2023 2022
US$'000 US$'000
Profit for the year 38,530 22,730
Depreciation 39,766 30,416
Taxation 11,804 9,836
Interest income (65) (35)
Finance charges 13,002 7,356
Fair value adjustments on financial assets (2,989) 19,798
EBITDA 100,048 90,101
EBITDA can be reconciled from the financial statements as per the below:
2023 2022
US$'000 US$'000
Operating profit (EBIT) 60,282 59,685
Depreciation, amortisation and impairments 39,766 30,416
EBITDA 100,048 90,101
Gross profit 146,900 134,432
Administration expenses (46,852) (44,331)
EBITDA 100,048 90,101
EBITDA Margin 31.4% 31.0%
Adjusted EBITDA can be reconciled from the financial statements as per the
below:
2023 2022
US$'000 US$'000
Operating profit (EBIT) 60,282 59,685
Depreciation, amortisation and impairments 39,766 30,416
Cash cost of IFRS 16 leases (8,234) (3,733)
Adjusted EBITDA 91,814 86,368
Adjusted EBITDA Margin 28.8% 29.8%
Adjusted cash from operations can be reconciled from the financial statements
as per the below:
2023 2022
US$'000 US$'000
Cash generated from operations 92,532 73,533
Cash cost of IFRS 16 leases (8,234) (3,733)
Adjusted Cash from operations 84,298 69,800
Net cash (debt) can be reconciled from the financial statements as per the
below:
2023 2022
US$'000 US$'000
Cash and cash equivalents 34,366 28,380
Long-term borrowings (76,273) (57,154)
Short-term borrowings (27,925) (18,465)
Net (debt)/ cash (69,832) (47,239)
The Adjusted EBIT used in the Adjusted ROCE can be reconciled from the
financial statements as per the below:
Operating profit (EBIT) 60,282 59,685
Depreciation on IFRS 16 leases 7,510 3,457
Cash cost of IFRS 16 leases (8,234) (3,733)
Adjusted EBIT 59,558 59,409
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