REG - Capital Limited - New Contract Awards

CapitalAnnouncement

30/06/2022 07:00

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RNS Number : 6918Q  Capital Limited  30 June 2022

 For Immediate Release  30 June 2022

 

Capital Limited

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

 

New Contract Awards

Capital (LSE: CAPD), a leading mining services company focused on the African
markets, is pleased to announce the award of new contracts in both drilling
and laboratory services.

·      A three-year comprehensive drilling services contract with
AngloGold Ashanti with its GEITA GOLD MINE LIMITED in Tanzania: Our Tanzanian
subsidiary company, CMS (Tanzania) Limited has been awarded a contract to
provide a full range of drilling services including development (diamond &
reverse circulation), grade control, blast hole & underground drilling.
Capital will utilise the existing fleet, which now has a total of 25 rigs on
site.

CMS (Tanzania) Limited is an 80:20 joint venture with local company CK
Washirika Limited. The joint venture, which is fully compliant with the local
content law in Tanzania, demonstrates Capital's commitment to building
capabilities and supporting local communities.

This contract further cements Capital's long-term relationship with AngloGold
Ashanti, which started with the provision of grade control drilling services
at the Geita site in 2006 and will now extend to mid-2025.

The comprehensive new contract commenced in June 2022 and replaces and extends
contracts announced in March 2021 and December 2021. It is anticipated to
generate ~$150 million over the three year contract term, making it the second
largest award of new business in the Company's history.

·      First contract with B2Gold Corporation at the Fekola Gold mine,
one of largest gold mines in Africa:  Capital has been awarded a reverse
circulation drilling services contract at the Fekola Gold Mine, Mali. This
contract is a further example of Capital's focus on large scale, long life and
low cost assets. B2Gold Corporation has guided Fekola to produce between
570,000 - 600,000 ounces of gold in 2022, making it amongst the largest gold
mines in Africa.

·      MSALABS contract extension: MSALABS has been awarded a two-year
extension to the existing three-year onsite laboratory services contract with
Kinross at the Tasiast Gold Mine, Mauritania, subject to final terms &
conditions.

 

Capital will be announcing its trading update for the six months to 30 June on
19 July, which will include a conference call and question and answer session.

 

Commenting on the new contract awards, Jamie Boyton, Executive Chairman, said:

"We continue to see very strong demand across the market and today's
announcement is testament to that.

We are pleased to maintain our long-standing relationship with AngloGold
Ashanti at their Geita Gold Mine with the award of this revised and expanded
long-term contract that will extend our relationship to almost 20 years. The
full range of drilling services included in the contract is not only a
reflection of our excellent operational and safety performance but also
highlights our strategy to increase our service offering with long-term
mine-site based clients.

We are also pleased to begin drilling services on the Tier-1 Fekola Gold Mine,
one of the largest gold mines in Africa with B2Gold, our latest blue-chip
customer."

ENDS -

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

 

 Capital                                                                                                                                                                  +230 464 3250
 Limited

                                                                                                                                                                        investor@capdrill.com (mailto:investor@capdrill.com)
 Jamie Boyton, Executive
 Chairman

 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 Wyllie

 Detlir Elezi

 Buchanan                                                                                                                                                                 +44 20 7466 5000

 Bobby Morse                                                                                                                                                              capital@buchanan.uk.com

 James Husband

 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; mining equipment hire and
maintenance; and geochemical analysis. The Group's corporate headquarters are
in Mauritius and it has established operations in Burkina Faso, Cameroon,
Côte d'Ivoire, Egypt, Guinea, Kenya, Mali, Mauritania, Nigeria, Saudi Arabia
and Tanzania.

 

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