REG - Capital Limited - New Contract Award & Finance Update

CapitalAnnouncement

12/06/2023 07:00

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RNS Number : 2780C  Capital Limited  12 June 2023

 For Immediate Release  12 June 2023

 

 

Capital Limited

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

 

New Contract Award & Finance Update

Capital (LSE: CAPD), a leading mining services company, is pleased to announce
the award of a new mining services contract as well as an extension of our
revolving credit facility.

Earth moving & crushing services for Ivindo Iron SA, majority owned by
Fortescue Metals Group ("Fortescue"), at the Ivindo Iron Ore Project
("Ivindo") in Gabon:

·      Ivindo is located in the northeast of Gabon and is one of the
world's largest undeveloped, high-grade hematite iron ore deposits with the
potential to become a globally significant iron ore mine;

·      Ivindo Iron SA ("Ivindo Iron") is the operating entity for the
Belinga Project and Fortescue has a 72 per cent indirect interest in the
company;

·      The contract has a term of up to 5 years and will generate
approximately $30 million of revenue per annum once fully operational. The
contract involves both earthmoving and crushing services. Capital will utilise
existing equipment and is in the process of purchasing ~$15 million of
additional equipment. The Company's capital expenditure guidance for FY23 is
now expected in the range of $65 - 75 million (up from $50 - 60 million);

·      Capital has already begun mobilising equipment to the site. This
mining & crushing services contract is in addition to the three-year
reverse circulation and diamond drilling services contract with Ivindo,
announced earlier this year, where drilling recently commenced.

Completion of further upsizing of our revolving credit facility ("RCF"):
Capital has increased its revolving credit facility from $25 million to $50
million. As part of this upsize, Capital has formed a new banking relationship
with one of the premier lenders in Africa, Nedbank Limited, who is co-lending
this facility with the previous sole RCF lender Standard Bank Limited. This
facility, alongside group cash flow, provides the Company with additional
balance sheet flexibility to deliver on growth opportunities.

 

Commenting on the contract win, Peter Stokes, Chief Executive Officer, said:

'We are thrilled to have been awarded the mining and crushing services
contract at Ivindo. This is our second significant mining services contract
and continues our strategy to diversify our revenue stream through an expanded
service offering.

 

We look forward to working closely with Ivindo Iron to expand our relationship
from drilling services to mining and crushing services and ensure a rapid ramp
up on this world class deposit.

 

In addition, the increase in our RCF gives us greater flexibility to move
quickly on new opportunities and represents a greater level of maturity for
our business.'

 

 

 

- ENDS -

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

 

Capital Limited
 

Peter Stokes, Chief Executive
Officer
investor@capdrill.com

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, focusing on the African
markets. 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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