REG - Capital Limited - New Contract Award

CapitalAnnouncement

06/09/2022 07:00

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RNS Number : 3051Y  Capital Limited  06 September 2022

 For Immediate Release  6 September 2022

 

 

Capital Limited

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

 

New Contract Award

Capital (LSE: CAPD), a leading mining services company is pleased to announce
the award of a new drilling contract and associated purchase of additional
drill rigs and other capital equipment.

·      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 & reverse circulation) and grade control
drilling. This follows our initial drilling contract announced at the end of
June 2022.

·      Associated asset purchase: To facilitate delivery of the new
contract Capital has purchased 10 rigs from African Mining Services (AMS),
part of the Perenti Group. In addition we have purchased associated equipment
and staff accommodation.  These rigs are additional to the rig count increase
for 2022 guided at our interim results.

This contract is another example of Capital's focus on large scale, long life
and low cost assets. B2Gold Corp. has guided Fekola to produce between 570,000
- 600,000 ounces of gold in 2022, making it amongst the largest gold mines in
Africa.

 

·      Guidance update: As a result of the purchase of rigs and other
assets from AMS, capital expenditure is now expected to be approximately
$60-65 million in 2022 (from $50-55 million). Revenue guidance for calendar
year 2022 remains $280 - $290 million (recently upgraded from $270-280 million
at the H122 results).

 

Commenting on the recent contract win, Jamie Boyton, Executive Chairman, said:

'We are pleased to be further expanding our service offering at the Fekola
gold mine and building our relationship with B2Gold.

 

This new contract award is a strong endorsement of our strategy, not only of
expanding our service offering on mine sites with blue-chip customers, but
also in repositioning the portfolio to long term contracts that are positioned
to operate consistently through the cycle. We have been opportunistic in
purchasing rigs from AMS which allows us to more rapidly commence operations
and as a result we are increasing our 2022 capex guidance to $60-65 million
and our year end rig count to ~130 rigs. Revenue guidance for this calendar
year remains in line with our recently upgraded guidance of $280-290 million
and we look forward to a strong contribution from the new contract in 2023 and
2024.'

 

- ENDS -

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

 

Capital Limited
 
+230 464 3250

Jamie Boyton, Executive Chairman
            investor@capdrill.com

Giles Everist, Chief Financial Officer

Conor Rowley, Investor Relations & Corporate Development Manager

 

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

 

Berenberg
 
+44 20 3207 7800

Matthew Armitt

Jennifer Lee

Detlir Elezi

 

Buchanan
 
+44 20 7466 5000

Bobby
Morse
                   capital@buchanan.uk.com

George Cleary

 

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 Mauritius and it has
established operations in Burkina Faso, Côte d'Ivoire, Canada, Egypt, Guinea,
Kenya, Mali, Mauritania, Nigeria, Saudi Arabia and Tanzania.

 

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