Capital Limited - H1 2025 Results (Unaudited)
14/08/2025 07:00
RNS Number : 2521V
Capital Limited
14 August 2025
Capital Limited
("Capital", the "Group" or the "Company")
H1 2025 Results (Unaudited)
Capital Limited (LSE: CAPD), a leading mining services company, today provides its results (unaudited) for the half-year period 1 January to 30 June 2025 (the "Period").
| H1 2025 | H1 2024 | vs H1 2024 | |
| Revenue | 159.2 | 169.4 | (6.0%) |
| EBITDA (adjusted for IFRS 16 leases and exceptional items)1,2,3 | 32.1 | 42.9 | (25.2%) |
| Operating Profit | 16.2 | 25.0 | (35.2%) |
| Operating Profit (excluding exceptional items)3 | 17.9 | 26.6 | (32.7%) |
| Investment Gain / (Loss) | 19.3 | (0.5) | N/A |
| Net Profit After Tax (NPAT) | 14.8 | 9.6 | 54.2% |
| NPAT (excluding effects from investment portfolio and exceptional items)4 | 2.1 | 11.8 | (82.2%) |
| Earnings per share | |||
| Basic EPS (cents) | 7.6 | 4.7 | 60.7% |
| Basic EPS (excluding effects from investment portfolio and exceptional items)4,5 (cents) | 1.1 | 5.8 | (81.2%) |
| Interim Dividend per Share (cents) | 1.3 | 1.3 | - |
| Cash from Operations (adjusted for IFRS 16 leases)2 | 54.7 | 51.2 | 6.8% |
| Capex6 | 20.4 | 44.3 | (54.0%) |
| Net Debt1 | 55.4 | 86.4 | (35.9%) |
| Investments held at fair value | 49.5 | 47.8 | 3.6% |
| Margins | |||
| EBITDA Margin (adjusted for IFRS 16 leases and exceptional items)1,2,3 | 20.2% | 25.3% | |
| Operating Profit Margin | 10.2% | 14.8% | |
| Operating Profit Margin (excluding exceptional items)4 | 11.2% | 15.7% | |
| NPAT Margin (excluding investment gain/(loss) and exceptional items) | 1.3% | 7.0% | |
| 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 are detailed on pages 33-35 of this results announcement. (2)Adjustment for cash cost of IFRS 16 leases which amounts to $7.3 million in H1 2025 (H1 2024: $6.0 million) (see page 15). (3)Exceptional items charged to EBITDA and Operating Profit include ERP implementation costs of $1.7 million in H1 2025 (H1 2024: 1.7 million). (4) Exceptional items charged to Net Profit After Tax in H1 2025 include ERP implementation costs of $1.7 million (H1 2024: 1.7 million), share in loss of associate of $0.1 million (H1 2024: nil) and impairment of investment in associate of $5.6 million (H1 2024: nil). (5)Effects from investment portfolio charged to Net Profit After Tax in H1 2025 include both realised and unrealised gains on investments of $19.3 million (H1 2024: $0.5 million loss) and dividend income of $0.9 million (H1 2024: nil). (6)Capital expenditure (Capex) consists of purchases of PPE for cash, prepayments for PPE and assets purchased during the year and financed by OEM. | |||
| Q2 2025* | Q1 2025 | vs Q1 2025 | H1 2025* | H1 2024 | H1 2025* vs H1 2024 | |
| Closing fleet size | 133 | 135 | (1.5%) | 133 | 127 | 4.7% |
| Fleet utilisation (%) | 74% | 73% | 1.9% | 74% | 69% | 7.2% |
| Average utilised rigs | 99 | 98 | 1.0% | 98 | 88 | 11.7% |
| ARPOR1,2($) | 198,000 | 182,000 | 8.8% | 190,000 | 204,000 | (6.9%) |
| CAPITAL LIMITED | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||
| For the six months ended 30 June 2025 | ||||||||||||
| Unaudited | ||||||||||||
| Six months ended | ||||||||||||
| Notes | 30 June 2025 | 30 June 2024 | ||||||||||
| US$'000 | US$'000 | |||||||||||
| Revenue | 3 | 159,200 | 169,434 | |||||||||
| Cost of sales | (94,473) | (94,948) | ||||||||||
| Gross profit | 64,727 | 74,486 | ||||||||||
| Administration expenses | (27,014) | (27,252) | ||||||||||
| Depreciation, amortisation, and impairments | (21,542) | (22,255) | ||||||||||
| Operating profit | 16,171 | 24,979 | ||||||||||
| Interest income | 37 | 46 | ||||||||||
| Dividend income | 865 | - | ||||||||||
| Finance costs | (8,113) | (8,202) | ||||||||||
| Share of loss / impairment of investment in associate | 19 | (5,693) | - | |||||||||
| Fair value gain/loss) on financial assets | 18 | 19,252 | (493) | |||||||||
| Profit before taxation | 22,519 | 16,330 | ||||||||||
| Taxation | 4 | (7,692) | (6,695) | |||||||||
| Profit and total comprehensive income for the period | 14,827 | 9,635 | ||||||||||
| Profit attributable to: | ||||||||||||
| Owners of the parent | 14,843 | 9,206 | ||||||||||
| Non-controlling interest | 12 | (16) | 429 | |||||||||
| 14,827 | 9,635 | |||||||||||
| Earnings per share: | ||||||||||||
| Basic (cents per share) | 5 | 7.6 | 4.7 | |||||||||
| Diluted (cents per share) | 5 | 7.6 | 4.7 | |||||||||
| CAPITAL LIMITED | ||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||||||||
| As at 30 June 2025 | ||||||||||
| Unaudited | Audited | |||||||||
| Notes | 30 June 2025 | 31 December 2024 | ||||||||
| ASSETS | US$'000 | US$'000 | ||||||||
| Non-current assets | ||||||||||
| Property, plant and equipment | 7 | 240,651 | 240,969 | |||||||
| Right-of-use assets | 8 | 36,841 | 32,062 | |||||||
| Goodwill | 1,296 | 1,296 | ||||||||
| Intangible assets | 872 | 794 | ||||||||
| Other receivables | 9 | 11,649 | 10,790 | |||||||
| Investment in associate | 19 | 659 | 6,300 | |||||||
| Total non-current assets | 291,968 | 292,211 | ||||||||
| Current assets | ||||||||||
| Inventories | 59,712 | 61,912 | ||||||||
| Trade receivables | 52,565 | 60,226 | ||||||||
| Other receivables | 9 | 34,366 | 26,044 | |||||||
| Investments at fair value | 18 | 49,531 | 30,304 | |||||||
| Current tax receivable | 658 | 505 | ||||||||
| Cash and cash equivalents | 58,585 | 40,526 | ||||||||
| Total current assets | 255,417 | 219,517 | ||||||||
| Total assets | 547,385 | 511,728 | ||||||||
| EQUITY AND LIABILITIES | ||||||||||
| Equity | ||||||||||
| Share capital | 11 | 20 | 20 | |||||||
| Share premium | 11 | 65,252 | 64,719 | |||||||
| Equity-settled employee benefits reserve | 3,607 | 3,972 | ||||||||
| Other reserve | 190 | 190 | ||||||||
| Retained income | 216,512 | 202,674 | ||||||||
| Equity attributable to owners of the parent | 285,581 | 271,575 | ||||||||
| Non-controlling interest | 12 | 11,439 | 11,813 | |||||||
| Total equity | 297,020 | 283,388 | ||||||||
| Non-current liabilities | ||||||||||
| Loans and borrowings | 13 | 92,998 | 86,925 | |||||||
| Lease liabilities | 25,276 | 22,226 | ||||||||
| Trade and other payables | 15,662 | 7,511 | ||||||||
| Deferred tax | 2,395 | 3,195 | ||||||||
| Total non-current liabilities | 136,331 | 119,857 | ||||||||
| Current liabilities | ||||||||||
| Trade and other payables | 70,443 | 57,821 | ||||||||
| Provisions | 203 | 203 | ||||||||
| Current tax payable | 11,679 | 10,640 | ||||||||
| Loans and borrowings | 13 | 20,193 | 28,259 | |||||||
| Lease liabilities | 11,516 | 11,560 | ||||||||
| Total current liabilities | 114,034 | 108,483 | ||||||||
| Total equity and liabilities | 547,385 | 511,728 | ||||||||
| Share capital | Sharepremium | Totalsharecapital | Equity-settled employee benefits reserve | Otherreserve | Totalreserves | Retainedincome | Total attributable to equity holders of theGroup | Non-controlling interest | Total equity | ||
| US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | ||
| Balance at 31 December 2023 - Audited | 19 | 62,390 | 62,409 | 5,763 | 190 | 5,953 | 195,515 | 263,877 | 9,270 | 273,147 | |
| Profit for the period | - | - | - | - | - | - | 9,206 | 9,206 | 429 | 9,635 | |
| Contributions by and distributions to owners | |||||||||||
| Issue of shares | - | 2,329 | 2,329 | (2,329) | - | (2,329) | - | - | - | - | |
| Recognition of share-based payments | - | - | - | 765 | - | 765 | - | 765 | - | 765 | |
| Adjustment arising from change in non-controlling interest | - | - | - | - | - | - | (880) | (880) | 792 | (88) | |
| Dividends | - | - | - | - | - | - | (5,102) | (5,102) | (32) | (5,134) | |
| Total transactions with owners | - | 2,329 | 2,329 | (1,564) | - | (1,564) | (5,982) | (5,217) | 760 | (4,457) | |
| Balance at 30 June 2024 (Unaudited) | 19 | 64,719 | 64,738 | 4,199 | 190 | 4,389 | 198,739 | 267,866 | 10,459 | 278,325 | |
| Balance at 31 December 2024 - Audited | 20 | 64,719 | - | 64,739 | 3,972 | 190 | 4,162 | 202,674 | 271,575 | 11,813 | 283,388 |
| Profit for the period | - | - | - | - | - | - | - | 14,843 | 14,843 | (16) | 14,827 |
| Contributions by and distributions to owners | |||||||||||
| Issue of shares | - | 533 | - | 533 | (533) | - | (533) | - | - | - | - |
| Recognition of share-based payments | - | - | - | - | 1,418 | - | 1,418 | - | 1,418 | - | 1,418 |
| Transfer of share-based payment reserve on lapse of options | - | - | - | - | (1,250) | - | (1,250) | 1,250 | - | - | - |
| Adjustment arising from change in non-controlling interest | - | - | - | - | - | - | - | 303 | 303 | (358) | (55) |
| Dividends | - | - | - | - | - | - | - | (2,558) | (2,558) | - | (2,558) |
| Total transactions with owners | - | 533 | - | 533 | (365) | - | (365) | (1,005) | (837) | (358) | (1,195) |
| Balance at 30 June 2025 (Unaudited) | 20 | 65,252 | - | 65,272 | 3,607 | 190 | 3,797 | 216,512 | 285,581 | 11,439 | 297,020 |
| CAPITAL LIMITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||
| For the six months ended 30 June 2025 | |||||||||||
| Six months ended | |||||||||||
| Unaudited | Unaudited | ||||||||||
| Notes | 30 June 2025 | 30 June 2024 | |||||||||
| US$'000 | US$'000 | ||||||||||
| Cash flow from operating activities | |||||||||||
| Cash generated from operations | 14 | 62,023 | 57,178 | ||||||||
| Interest income received | 37 | 46 | |||||||||
| Finance costs paid | (6,488) | (6,071) | |||||||||
| Interest paid on lease liabilities | 8 | (1,691) | (1,456) | ||||||||
| Tax paid | (7,605) | (4,960) | |||||||||
| Net cash from operating activities | 46,276 | 44,737 | |||||||||
| Cash flow from investing activities | |||||||||||
| Purchase of property, plant and equipment | 7 | (7,898) | (15,963) | ||||||||
| Proceeds from sale of property, plant and equipment | 977 | - | |||||||||
| Proceeds from dividends received | 865 | - | |||||||||
| Purchase of intangible assets | (95) | (127) | |||||||||
| Purchase of investments at fair value | 18 | (2,082) | (5,404) | ||||||||
| Purchase of investment in associate | 19 | (52) | (6,633) | ||||||||
| Proceeds on sale of investments at fair value | 18 | 2,106 | 4,285 | ||||||||
| Cash paid in advance for property, plant and equipment | (7,122) | (11,038) | |||||||||
| Advance payments on leases | (1,921) | (970) | |||||||||
| Net cash from investing activities | (15,222) | (35,850) | |||||||||
| Cash flow from financing activities | |||||||||||
| Repayment of loans and borrowings | 13 | (30,878) | (12,463) | ||||||||
| Proceeds from new loans and borrowings | 13 | 25,000 | 20,000 | ||||||||
| Arrangement fees paid - new financing | (159) | (342) | |||||||||
| Dividends paid | 6 | (2,558) | (5,134) | ||||||||
| Repayment of principal on leases liabilities | 8 | (5,652) | (4,560) | ||||||||
| Purchase of shares from non-controlling interests | (55) | (88) | |||||||||
| Net cash from financing activities | (14,302) | (2,587) | |||||||||
| Net increase in cash and cash equivalents | 16,752 | 6,300 | |||||||||
| Cash and cash equivalents at the beginning of the period | 40,526 | 34,365 | |||||||||
| Effect of exchange rate movement on cash balances | 1,307 | (750) | |||||||||
| Cash and cash equivalents at the end of the period | 58,585 | 39,915 | |||||||||
| CAPITAL LIMITED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS | |
| For the six months ended 30 June 2025 | |
| 1. | Basis of presentation and accounting policies |
| Preparation of the condensed consolidated interim financial statements | |
| The condensed consolidated interim financial statements of Capital Limited and Subsidiaries ("Capital" or, together, the "Group") as at and for the six months ended 30 June 2025 (the "Interim Financial Statements"), which are unaudited, have been prepared in accordance with International Accounting Standard ("IAS") No. 34, "Interim Financial Reporting". This condensed interim report does not include all the notes of the type normally included in an Annual Report. They should be read in conjunction with the annual consolidated financial statements and the notes thereto in the Group's Annual Report for the year ended 31 December 2024 which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The Interim Financial Statements have been reviewed in terms of International Standard on Review Engagements (ISRE) 2410. The Group Annual Financial Statements are presented in United States Dollars, which is also the Group's functional currency. Amounts are rounded to the nearest thousand, unless otherwise stated. | |
| Accounting policies | |
| The condensed consolidated interim financial statements have been prepared under the going concern basis under the historical cost convention, except for certain financial instruments which are measured at fair value. | |
| All accounting policies, presentation and methods of computation which have been followed in these condensed consolidated financial statements were applied in the preparation of the Group's financial statements for the year ended 31 December 2024. No new standards or amendments have been issued that are relevant to the Group. | |
| The preparation of financial statements in conformity with IFRS recognition and measurement principles requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Management reviews its estimates on an on-going basis using currently available information. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. | |
| Going concern | |
| As at 30 June 2025, the Group had a robust balance sheet with a modest debt gearing with equity of US$296.6 million and loans and borrowings of US$114.0 million. Cash as at 30 June 2025 was US$58.6 million, with net debt of US$55.4 million. Investments in listed entities at the end of June 2025 amounted to US$49.5 million which provided additional flexibility as these investments could be converted into cash. | |
| This robustness is underpinned by stable revenues generated on long term contracts. Revenues generated on mine sites and longer-term contracts make up the majority of Group revenues. Stronger-than-expected revenue in H1 2025 led management to upgrade forecasts for the full year.While margins have declined YoY, much of this is driven by the investment made across key growth areas (Nevada, Pakistan & MSALABS), which is setting the foundation for the business to continue to grow in the years ahead. | |
| Commercially, the Group continues to secure and extend long term mining contracts with high quality customers, including the latest significant win for mining services in Pakistan with Reko Diq Mining. This contract with Reko Diq Mining has only made a minor contribution to Group revenue as at 30 June 2025. | |
| CAPITAL LIMITED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT'D) | |
| For the six months ended 30 June 2025 | |
| 1. | Basis of presentation and accounting policies |
| Going concern (cont'd) | |
| In determining the going concern status of the business, the Board has reviewed the Group's forecasts for the 18 months to December 2026, 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 30% 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 December 2026. 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. | |
| 2. | Operations in the interim period |
| Capital Ltd is incorporated in Bermuda. The Group provides drilling services, mining (load and haul), mineral assaying and surveying services. The Group also has a portfolio of investments in listed and unlisted exploration and mining companies. 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. | |
| 2.1 | Use of estimates and judgements |
| The preparation of both annual and interim financial statements usually requires the use of estimates and judgements. The write-down of the value of the investment inEco Detection Pty Ltd ("Eco"),is the only material change in judgement and estimate in the period. | |
| Six months ended | |||||||||||
| 3. | Revenue | 30 June 2025 | 30 June 2024 | ||||||||
| US$'000 | US$'000 | ||||||||||
| Revenue from the rendering of services comprises: | |||||||||||
| Drilling and associated revenue | 117,133 | 110,142 | |||||||||
| Mining and associated revenue | 7,620 | 36,342 | |||||||||
| Laboratory services revenue | 30,959 | 20,772 | |||||||||
| Revenue from surveying | 3,488 | 2,178 | |||||||||
| 159,200 | 169,434 | ||||||||||
| CAPITAL LIMITED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT'D) | ||||||||||||||
| For the six months ended 30 June 2025 | ||||||||||||||
| 4. | Taxation | |||||||||||||
| Capital Limited is incorporated in Bermuda and tax resident in the United Kingdom and the Group operates in multiple countries jurisdictions with complex legal and tax regulatory environments. Taxation is calculated in accordance with local legislation and the prevailing tax rates. 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 include those relating to transfer pricing matters and 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 judgement 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. | ||||||||||||||
| 5. | Earnings per share | |||||||||||||
| 30 June 2025 | 30 June 2024 | |||||||||||||
| Basic Earnings per share: | ||||||||||||||
| The profit and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows: | ||||||||||||||
| Profit for the period used in the calculation of basic earnings per share (US$'000) | 14,843 | 9,206 | ||||||||||||
| Weighted average number of ordinary shares for the purposes of basic earnings per share | 196,465,287 | 195,026,529 | ||||||||||||
| Basic earnings per share (cents) | 7.6 | 4.7 | ||||||||||||
| Diluted earnings per share: | 30 June 2025 | 30 June 2024 | ||||
| The profit 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. ($) | 14,843 | 9,206 | ||||
| Weighted average number of ordinary shares used in the calculation of basic earnings per share | 196,465,287 | 195,026,529 | ||||
| - Dilutive share options # | - | 968,276 | ||||
| Weighted average number of ordinary shares used in the calculation of diluted earnings per share | 196,465,287 | 195,994,805 | ||||
| Diluted earnings per share (cents) | 7.6 | 4.7 | ||||
| #For the purposes of calculating diluted earnings per share, no share options were included as being dilutive as no vesting metrics were met at 30 June 2025. In the period ended 30 June 2024 968,276 share options were included as being dilutive as the vesting metrics were met at the period end. | ||||||
| 6. | Dividends | |||||
| During the six months ended 30 June 2025, a dividend of 1.30 cents per ordinary share was declared on 27 March 2025, totalling US$2,557,939(six months ended 30 June 2024: 2.6 cents per ordinary share, totalling US$5,102,685) and paid on 15 May 2025. | ||||||
| CAPITAL LIMITED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT'D) |
| For the six months ended 30 June 2025 |
| 7. Property, plant and equipment |
| Cost | Drilling rigs | Heavy mining equipment | Associated Drilling & mining equipment | Vehicles and trucks | Camp and associated equipment | Land & Buildings | Leasehold improvements | Computer Software | Total |
| US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | |
| At 1 January 2024 | 148,242 | 81,860 | 41,377 | 47,019 | 27,043 | - | 1,654 | 52 | 347,247 |
| Additions | 35,785 | 4,350 | 1,672 | 9,894 | 9,906 | 6,348 | - | 20 | 67,975 |
| Disposal | (4,034) | - | (4,328) | (2,029) | (1,865) | - | - | - | (12,256) |
| At 31 December 2024 | 179,993 | 86,210 | 38,721 | 54,884 | 35,084 | 6,348 | 1,654 | 72 | 402,966 |
| Additions | 5,958 | 1,574 | 3,887 | 3,548 | 756 | 847 | - | - | 16,570 |
| Disposal | (14,794) | (4,095) | (3,425) | (231) | - | - | - | - | (22,545) |
| Transfer to Intangible asset | - | - | - | - | - | - | - | (72) | (72) |
| At 30 June 2025 | 171,157 | 83,689 | 39,183 | 58,201 | 35,840 | 7,195 | 1,654 | - | 396,919 |
| Accumulated Depreciation | |||||||||
| At 1 January 2024 | 72,897 | 26,078 | 9,860 | 19,421 | 10,215 | - | 97 | 20 | 138,588 |
| Depreciation | 10,573 | 7,041 | 6,082 | 4,716 | 3,925 | 231 | - | 9 | 32,577 |
| Impairment | 226 | 907 | - | - | 1,061 | - | - | - | 2,194 |
| Disposal | (3,754) | - | (4,100) | (1,653) | (1,855) | - | - | - | (11,362) |
| At 31 December 2024 | 79,942 | 34,026 | 11,842 | 22,484 | 13,346 | 231 | 97 | 29 | 161,997 |
| Depreciation | 6,019 | 214 | 3,414 | 2,768 | 2,665 | 126 | - | 15,206 | |
| Impairment | - | 475 | - | - | - | - | - | - | 475 |
| Disposal | (14,433) | (3,170) | (3,425) | (98) | (255) | - | - | - | (21,381) |
| Transfer to Intangible asset | - | - | - | - | - | - | - | (29) | (29) |
| At 30 June 2025 | 71,528 | 31,545 | 11,831 | 25,154 | 15,756 | 357 | 97 | - | 156,268 |
| Carrying amount at: | |||||||||
| 31 December 2024 | 100,051 | 52,184 | 26,879 | 32,400 | 21,738 | 6,117 | 1,557 | 43 | 240,969 |
| 30 June 2025 | 99,629 | 52,144 | 27,352 | 33,047 | 20,084 | 6,838 | 1,557 | - | 240,651 |
| CAPITAL LIMITED Notes to the Condensed Consolidated Interim Financial Statements (cont'd) |
| For the six months ended 30 June 2025 |
| Vehicles & Machinery | Land & Buildings | Total | ||
| Right of use assets | US$'000 | US$'000 | US$'000 | |
| At 1 January 2024 | 24,579 | 5,105 | 29,684 | |
| Additions | 15,391 | 778 | 16,169 | |
| Depreciation | (10,407) | (1,618) | (12,025) | |
| Impairment | (1,521) | (245) | (1,766) | |
| At 31 December 2024 | 28,042 | 4,020 | 32,062 | |
| Additions | 10,168 | 410 | 10,578 | |
| Depreciation | (5,000) | (799) | (5,799) | |
| At 30 June 2025 | 33,210 | 3,631 | 36,841 | |
| Lease liabilities | ||||
| At 1 January 2024 | 24,266 | 5,184 | 29,450 | |
| Additions | 13,567 | 777 | 14,344 | |
| Interest expense | 2,645 | 422 | 3,067 | |
| Lease payments | (11,253) | (1,822) | (13,075) | |
| At 31 December 2024 | 29,225 | 4,561 | 33,786 | |
| Additions | 8,319 | 339 | 8,658 | |
| Interest expense | 1,495 | 196 | 1,691 | |
| Lease payments | (6,376) | (967) | (7,343) | |
| At 30 June 2025 | 32,663 | 4,129 | 36,792 |
| CAPITAL LIMITED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT'D) | |
| For the six months ended 30 June 2025 | |
| As at | ||||||||||||
| 30 June 2025 | 31 December 2024 | |||||||||||
| US$'000 | US$'000 | |||||||||||
| 9. | Other receivables | |||||||||||
| Prepayments | 12,932 | 10,474 | ||||||||||
| Capitalised contract costs | 9,814 | 7,082 | ||||||||||
| VAT recoverable | 7,413 | 6,410 | ||||||||||
| Amounts due from non-controlling interest | 5,685 | 5,685 | ||||||||||
| Accounts receivable - Sundry | 1,925 | 2,948 | ||||||||||
| Prepayment for fixed assets | 7,122 | 3,970 | ||||||||||
| Others | 1,124 | 265 | ||||||||||
| 46,015 | 36,834 | |||||||||||
| Current | 34,366 | 26,044 | ||||||||||
| Non-current | 11,649 | 10,790 | ||||||||||
| 46,015 | 36,834 | |||||||||||
| 10. | Trade receivables | |||||||||||
| Trade receivables | 52,565 | 64,762 | ||||||||||
| Less: allowance for credit losses | - | (4,536) | ||||||||||
| Total trade receivables | 52,565 | 60,226 | ||||||||||
| Movements in the impairment allowance for trade receivables are as follows: | ||||||||||||
| Opening provision for impairment of trade receivables | 4,536 | 4,697 | ||||||||||
| Increase during the year | - | 97 | ||||||||||
| Receivables written off during the year as uncollectible | (4,536) | (258) | ||||||||||
| At period end/year end | - | 4,536 | ||||||||||
| 11. | Issued capital and share premium | |||||||||||
| Authorised capital | ||||||||||||
| 2,000,000,000 (31 December 2024: 2,000,000,000) ordinary shares of 0.01 cents (31 December 2024: 0.01 cents) each | 200,000 | 200,000 | ||||||||||
| Issued and fully paid: | ||||||||||||
| 196,257,124 (31 December 2024: 196,257,124) ordinary shares of 0.01 cents (31 December 2024: 0.01 cents) each | 20 | 20 | ||||||||||
| Share premium: | ||||||||||||
| Balance at the beginning of the period | 64,719 | 62,390 | ||||||||||
| Issue of shares | 533 | 2,329 | ||||||||||
| Balance at the end of the period | 65,252 | 64,719 | ||||||||||
| Fully paid ordinary shares which have a par value of 0.01 cents, carry one vote per share and carry rights to dividends. | ||||||||||||
| CAPITAL LIMITED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT'D) | ||||||||||||
| For the six months ended 30 June 2025 | ||||||||||||
| 12. | Non-controlling interest | |||||
| Below is a summary of the movement in non-controlling interest during the period: | ||||||
| MSALABS Ltd | CMS (Tanzania) Ltd | IACA Limited | Total | |||
| US$'000 | US$'000 | US$'000 | US$'000 | |||
| Balance at 1 January 2025 | 3,172 | 8,606 | 35 | 11,813 | ||
| Profit/ (loss) attributable to NCI | 91 | (107) | - | (16) | ||
| Change in ownership: | ||||||
| - Purchase of shares from NCI | (358) | - | - | (358) | ||
| Balance at 30 June 2025 | 2,905 | 8,499 | 35 | 11,439 | ||
| MSALABS Ltd | CMS (Tanzania) Ltd | IACA Limited | Total | |||
| US$'000 | US$'000 | US$'000 | US$'000 | |||
| Balance at 1 January 2024 | 3,292 | 5,988 | (10) | 9,270 | ||
| Profit/ (loss) attributable to NCI | (761) | 1,218 | (28) | 429 | ||
| Change in ownership: | ||||||
| - Equity raise | 822 | - | - | 822 | ||
| - Purchase of shares from NCI | (30) | - | - | (30) | ||
| Dividends paid | (32) | - | - | (32) | ||
| Balance at 30 June 2024 | 3,291 | 7,206 | (38) | 10,459 |
| 13. | Loans and borrowings | ||||
| Loans and borrowings consist of: | |||||
| (a) US$75 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 full accordion of US$25m was exercised and completed 26 April 2024. The total available amount of the facility is currently US$75m. 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 1.925% per annum is charged on any undrawn balances. The amount utilised on the RCF was US$70 million as at 30 June 2025 (2024: US$60 million). The facility is repayable in March 2027. | |||||
| Under the terms of the RCF, the group is required to comply with certain financial covenants relating to: | |||||
| · Interest coverage | |||||
| · Gross debt to EBITDA ratio | |||||
| · Debt to equity ratio | |||||
| · Tangible net worth | |||||
| In addition, CAPD (Mauritius) Limited is also required to comply with the Total Tangible Net Worth covenant. | |
| CAPITAL LIMITED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT'D) | |
| For the six months ended 30 June 2025 | |
| 13. | Loans and borrowings (cont'd) |
| Security for the revolving credit facility comprise 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$43.4 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$8.0 million in 2023. As at 30 June 2025, the amount outstanding on the term loan was US$5.5 million (2024: US$13.1 million). During the period under review, the Group has complied with all covenants (same as RCF) 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% and 9.50%. As at 30 June 2025, the total drawn under these credit agreements was US$19.5 million (2024: US$24 million). No covenants are attached to this facility. | |
| (d) US$18.5 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. As at 30 June 2025 the balance outstanding was US$1.7 million (2024: US$3.3 million) and the facility is no longer available to be drawn. 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 30 June 2025, the balance outstanding was US$8.3 million (2024: US$ 6.3m). No covenants are attached to these facilities. |
| (e) US$5.0 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 30 June 2025, the balance outstanding was US$1.2 million (2024: US$ 3.2 million). During the period under review, the Group has complied with all covenants (same as RCF) attached to the facility. | ||||||||
| (f) US$3.7m Mortgage with Byington Family Trust | ||||||||
| The Group entered into a US$3.7m mortgage with Byington Family Trust on 8 January 2024. The property in Elko serves as collateral for the mortgage. The rate of interest is fixed at 7.50% until maturity on 31 December 2034. As at 30 June 2025, the balance outstanding was US$3.5 million (2024: US$ 3.6m). No covenants are attached to this facility. (g) US$1.6m Business Loan Facility Agreement with Northrim Bank The Group entered into a US$1.6m Loan Facility Agreement with Northrim Bank on 27 August 2024. The property in Fairbanks, Alaska serves as collateral for this loan. The rate of interest is three-month SOFR plus a margin of 3%. As at 30 June 2025, the balance outstanding was US$1.5 million (2024: US$ 0.7m). During the period under review, the Group has complied with all covenants (same as RCF) attached to the facility. | ||||||||
| CAPITAL LIMITED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT'D) | ||||||||||||||||||||
| For the six months ended 30 June 2025 | ||||||||||||||||||||
| 13. | Loans and borrowings (cont'd) | |||||||||||||||||||
| As at | ||||||||||||||||||||
| 30 June 2025 | 31 December 2024 | |||||||||||||||||||
| US$'000 | US$'000 | |||||||||||||||||||
| Bank loans | 79,037 | 76,388 | ||||||||||||||||||
| Supplier credit facilities | 31,373 | 36,288 | ||||||||||||||||||
| Vendor financed mortgage | 3,556 | 3,599 | ||||||||||||||||||
| 113,966 | 116,275 | |||||||||||||||||||
| Less: Unamortised debt arrangement costs | (775) | (1,091) | ||||||||||||||||||
| Total loans and borrowings | 113,191 | 115,184 | ||||||||||||||||||
| Current | 20,193 | 28,259 | ||||||||||||||||||
| Non-current | 92,998 | 86,925 | ||||||||||||||||||
| Total loans and borrowings | 113,191 | 115,184 | ||||||||||||||||||
| At the reporting date, the Group's loans and borrowings total US$114.0 million (2024: US$116.3 million), offset by unamortised debt costs of US$0.8 million (2024: US$1.1m). US$0.7 million (2024:US$ 0.8m) of the debt costs have been classified as current and US$0.1 million (2024:US$ 0.3m) as non-current. The covenants for each of the applicable instruments above are measured bi-annually on a rolling 12-month basis at 31 December and 30 June. | ||||||||||||||||||||
| 14. | Note supporting the Statement of Cash Flows | |||||||||||||||||||
| 14.1 | Cash generated from operations | |||||||||||||||||||
| Six months ended | ||||||||||||||||||||
| 30 June 2025 | 30 June 2024 | |||||||||||||||||||
| US$'000 | US$'000 | |||||||||||||||||||
| Profit before taxation | 22,519 | 16,330 | ||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||
| - Depreciation, amortisation and impairments | 15,742 | 16,909 | ||||||||||||||||||
| - ERP Costs written off | - | 676 | ||||||||||||||||||
| - Loss on disposals | 187 | 113 | ||||||||||||||||||
| - Fair value (gain)/loss on financial assets | (19,250) | 493 | ||||||||||||||||||
| - Share-based payment | 1,418 | 765 | ||||||||||||||||||
| - Interest income | (37) | (46) | ||||||||||||||||||
| - Dividend income | (865) | - | ||||||||||||||||||
| - Finance costs | 8,113 | 8,202 | ||||||||||||||||||
| - Depreciation of right-of-use assets | 5,799 | 5,346 | ||||||||||||||||||
| - Unrealised foreign exchange (gain) / loss on foreign currency held | (1,298) | 1,128 | ||||||||||||||||||
| - Other non-cash items | 636 | 481 | ||||||||||||||||||
| - Decrease in expected credit loss provision | - | (6) | ||||||||||||||||||
| - Bad debts written off | - | 385 | ||||||||||||||||||
| - Share of loss / impairment of investment in associate | 5,693 | - | ||||||||||||||||||
| Operating profit before working capital changes | 38,657 | 50,776 | ||||||||||||||||||
| Adjustments for working capital changes: | ||||||||||||||||||||
| - Decrease in inventory | 1,564 | 306 | ||||||||||||||||||
| - Decrease / (increase) in trade and other receivables | 1,634 | (5,967) | ||||||||||||||||||
| - Increase in trade and other payables | 20,168 | 12,063 | ||||||||||||||||||
| 62,023 | 57,178 | |||||||||||||||||||
| CAPITAL LIMITED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT'D) | ||||
| For the six months ended 30 June 2025 | ||||
| 14.2 | Reconciliation of borrowings and leases | |||
| Loans & borrowings | Lease liabilities | Total | ||
| US$'000 | US$'000 | US$'000 | ||
| At 1 January 2025 | 116,275 | 33,786 | 150,061 | |
| Cash flows: | ||||
| - Drawdowns | 25,000 | - | 25,000 | |
| - Interest paid | (6,110) | (1,691) | (7,801) | |
| - Principal repayments | (30,878) | (5,652) | (36,530) | |
| Non-cash flows: | ||||
| - supplier credit facility received | 4,111 | - | 4,111 | |
| - Interest expensed during the period | 5,569 | 1,691 | 7,260 | |
| - Unamortised debt arrangement costs | (776) | - | (776) | |
| - Additions to leases | - | 8,658 | 8,658 | |
| At 30 June 2025 | 113,191 | 36,792 | 149,983 | |
| Loans & borrowings | Lease liabilities | Total | ||
| US$'000 | US$'000 | US$'000 | ||
| At 1 January 2024 | 104,198 | 29,450 | 133,648 | |
| Cash flows | ||||
| - Drawdowns | 20,000 | - | 20,000 | |
| - Interest paid | (5,577) | (1,456) | (7,033) | |
| - Principal repayments | (12,463) | (4,560) | (17,023) | |
| Non-cash flows | ||||
| - supplier credit facility received | 10,665 | - | 10,665 | |
| - Vendor financed mortgage | 3,680 | - | 3,680 | |
| - Interest expensed during the period | 5,830 | 1,456 | 7,286 | |
| - Unamortised debt arrangement costs | (1,546) | - | (1,546) | |
| - Additions to leases | - | 7,862 | 7,862 | |
| At 30 June 2024 | 124,787 | 32,752 | 157,539 |
| 15. | Segmental analysis | ||||||||
| Operating segments are identified on the basis of internal management reports regarding components of the Group. These are regularly reviewed by the board 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 have 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 services, mining services, surveying, IT support services and mineral assaying. | ||||||||
| - Rest of world: | Derives revenue from the provision of drilling services, surveying, IT support services and mineral assaying. The segment relates to jurisdictions which contribute a relatively small amount of external revenue to the Group. These include Saudi Arabia and Canada. | ||||||||
| Information regarding the Group's operating segments is reported below. At 30 June 2025, management reviewed the composition of the Group's operating segments and the allocations of operations to the reportable segments. | |||||||||
| CAPITAL LIMITED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT'D) | |||||||||
| For the six months ended 30 June 2025 | |||||||||
| 15. | Segmental analysis | ||||||||
| Segment revenue and results: | |||||||||
| The following is an analysis of the Group's revenue and results by reportable segment: | |||||||||
| For the six months ended 30 June 2025 | Africa | Rest of World | Consolidated | ||||||
| US$'000 | US$'000 | US$'000 | |||||||
| External revenue | 115,814 | 43,386 | 159,200 | ||||||
| Segment profit / (loss) | 37,925 | (1,677) | 36,248 | ||||||
| Central administration costs and depreciation | (20,077) | ||||||||
| Profit from operations | 16,171 | ||||||||
| Fair value gain on financial assets | 19,252 | ||||||||
| Interest income | 37 | ||||||||
| Dividend income | 865 | ||||||||
| Finance costs Share of loss / impairment of investment in associate | (8,113) (5,693) | ||||||||
| Profit before tax | 22,519 | ||||||||
| For the six months ended 30 June 2024 | Africa | Rest of World | Consolidated | |||||||||||
| US$'000 | US$'000 | US$'000 | ||||||||||||
| External revenue | 148,870 | 20,564 | 169,434 | |||||||||||
| Segment profit / (loss) | 52,939 | (10,617) | 42,322 | |||||||||||
| Central administration costs and depreciation | (17,343) | |||||||||||||
| Profit from operations | 24,979 | |||||||||||||
| Fair value gain on financial assets | (493) | |||||||||||||
| Interest income | 46 | |||||||||||||
| Finance costs | (8,202) | |||||||||||||
| Profit before tax | 16,330 | |||||||||||||
| The accounting policies of the reportable segments are the same as the Group's accounting policies described in note 1. Segment profit/(loss) represents the profit/(loss) earned by each segment without allocation of central administration costs, depreciation, interest income, share of losses from associate, finance charges and income tax. This is the measure reported to the board for the purpose of resource allocation and assessment of segment performance. | ||||||||||||||
| The following customers from the Africa segment contributed 10% or more to the Group's revenue: | ||||||||||||||
| 30 June 2025 | 30 June 2024 | |||||||||||||
| % | % | |||||||||||||
| Customer A | 10% | 31% | ||||||||||||
| Customer B | 19% | 15% | ||||||||||||
| CAPITAL LIMITED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT'D) | |
| For the six months ended 30 June 2025 | |
| 15. | Segmental analysis (continued) |
| As at | ||||||||||
| 30 June 2025 | 31 December 2024 | |||||||||
| US$'000 | US$'000 | |||||||||
| Segment assets: | ||||||||||
| Africa | 579,688 | 621,903 | ||||||||
| Rest of world | 160,889 | 270,174 | ||||||||
| Total segment assets | 740,577 | 892,077 | ||||||||
| Head office companies | 438,352 | 445,062 | ||||||||
| 1,178,929 | 1,337,139 | |||||||||
| Eliminations * | (631,544) | (825,411) | ||||||||
| Total assets | 547,385 | 511,728 | ||||||||
| Segment liabilities: | ||||||||||
| Africa | 202,912 | 267,097 | ||||||||
| Rest of world | 122,909 | 124,697 | ||||||||
| Total segment liabilities | 325,821 | 391,794 | ||||||||
| Head office companies | 334,854 | 440,679 | ||||||||
| 660,675 | 832,473 | |||||||||
| Eliminations * | (410,310) | (604,133) | ||||||||
| Total liabilities | 250,365 | 228,340 | ||||||||
| For the purposes of monitoring segment performance and allocating resources between segments the board monitors the tangible, intangible and financial assets attributable to each segment. All assets are allocated to reportable segments with the exception of property, plant and equipment used by the head office companies, certain amounts included in other receivables, and cash and cash equivalents held by the head office companies. | ||||||||||||
| * Eliminations include intra-group accounts receivable, intra-group accounts payable and intra-group investments. | ||||||||||||
| Other segment information: | ||||||||||||
| Six months ended | ||||||||||||
| Non-Cash items included in profit or loss: | 30 June 2025 | 30 June 2024 | ||||||||||
| US$'000 | US$'000 | |||||||||||
| Depreciation | ||||||||||||
| Africa | 14,556 | 19,118 | ||||||||||
| Rest of world | 5,762 | 2,912 | ||||||||||
| Total segment depreciation | 20,318 | 22,030 | ||||||||||
| Head office companies | 1,224 | 225 | ||||||||||
| 21,542 | 22,255 | |||||||||||
| Loss on disposal of property, plant and equipment | ||||||||||||
| Africa | 206 | 100 | ||||||||||
| Rest of world | 32 | - | ||||||||||
| Total segment loss on disposal | 238 | 100 | ||||||||||
| Head office companies | (51) | 13 | ||||||||||
| 187 | 113 | |||||||||||
| CAPITAL LIMITED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT'D) | |
| For the six months ended 30 June 2025 | |
| 15. | Segmental analysis (continued) |
| Six months ended | |||||
| 30 June 2025 | 30 June 2024 | ||||
| US$'000 | US$'000 | ||||
| Impairment on Inventory | |||||
| Africa | |||||
| Stock Provision | 643 | 472 | |||
| Stock Write Offs | 440 | 24 | |||
| 1,083 | 496 | ||||
| Rest of world | |||||
| Stock Provision | (8) | 10 | |||
| Stock Write Offs | 2 | (1) | |||
| (6) | 9 | ||||
| Total segment impairment | 1,077 | 505 | |||
| Head office companies | 14 | - | |||
| 1,091 | 505 | ||||
| 16. | Commitments | As at | ||||
| 30 June 2025 | 30 June 2024 | |||||
| The Group has the following capital commitments at 30 June: | US$'000 | US$'000 | ||||
| Committed capital expenditure | 13,530 | 26,482 | ||||
| 17. | 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. | |
| CAPITAL LIMITED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT'D) |
| For the six months ended 30 June 2025 |
| 18. | Financial instruments | ||||||||||
| (a) | Fair value hierarchy | ||||||||||
| Financial instruments that are measured in the consolidated statement of financial position or disclosed at fair value require disclosure of fair value measurements by level based on the following fair value measurement hierarchy: | |||||||||||
| Level 1: | quoted prices (unadjusted) in active markets for identical assets or liabilities; | ||||||||||
| Level 2: | inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); and | ||||||||||
| Level 3: | inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). | ||||||||||
| As at | |||||||||||
| 30 June 2025 | 31 December 2024 | ||||||||||
| US$'000 | US$'000 | ||||||||||
| Level 1 - Listed shares | 47,025 | 29,121 | |||||||||
| Level 3 - Unlisted shares and derivative financial assets | 2,506 | 1,184 | |||||||||
| 49,531 | 30,305 | ||||||||||
| The reconciliation of the investment valuation movement is as follows: | |||||||||||
| Level 1 | Level 3 | Total | |||||||||
| US$'000 | US$'000 | US$'000 | |||||||||
| At 1 January 2025 | 29,121 | 1,184 | 30,305 | ||||||||
| Additions | 844 | 1,238 | 2,082 | ||||||||
| Disposal | (2,106) | - | (2,106) | ||||||||
| Fair value gain | 19,166 | 84 | 19,250 | ||||||||
| At 30 June 2025 | 47,025 | 2,506 | 49,531 | ||||||||
| Level 1 | Level 3 | Total | |||
| US$'000 | US$'000 | US$'000 | |||
| At 1 January 2024 | 44,755 | 2,399 | 47,154 | ||
| Additions | 8,421 | 60 | 8,481 | ||
| Disposal | (36,942) | (336) | (37,278) | ||
| Fair value gain/(loss) | 12,887 | (939) | 11,948 | ||
| At 31 December 2024 | 29,121 | 1,184 | 30,305 | ||
| CAPITAL LIMITED NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONT'D) | |
| For the six months ended 30 June 2025 | |
| 18. | Financial instruments (Continued) |
| (b) | Fair value information |
| Level 1 shares | |
| Market approach - Listed share price. | |
| The Company's interests in various listed shares are valued at the 30 June 2025 closing prices. No secondary valuation methodologies have been considered as all the Company's investments are listed on active markets. | |
| Level 3 shares | |
| The Group's investments held at Level 3 are valued either on a net asset approach or cost approach. | |
| Net asset approach | |
| Management applied a net asset valuation methodology at 30 June 2025 for certain unlisted investments based on the Group's share ownership percentage of the unlisted company's net asset value. The unlisted company publishes some of its significant net asset value information and management then derives the investment at fair value attributable to the Group. | |
| Cost approach | |
| Management holds all other unlisted investments at cost where this represents the best estimate of fair value. | |
| (c) | Fair values of other financial instruments | ||||
| Level 3 derivative financial assets | |||||
| The Group's derivative financial assets consist of call options to acquire additional shares in a non-listed entity. | |||||
| 19. | Investment in associate | ||||
| As at | As at | ||||
| 30 June 2025 | 31 December 2024 | ||||
| US$'000 | US$'000 | ||||
| Opening balance | 6,300 | - | |||
| Additions | 52 | 6,687 | |||
| Share of loss | (119) | (387) | |||
| Impairment | (5,574) | - | |||
| Closing balance | 659 | 6,300 | |||
| In H1 2024 the Group completed a US$6.6 million strategic investment in Eco, acquiring a 22% ownership stake in the company. Eco is incorporated in Australia and produces analysis systems for monitoring water quality. This investment has been accounted for in accordance with IAS 28, as an investment in associate rather than as an investment at fair value. In H1 2025 an impairment of $5.6 million was recognised against the investment. This impairment was calculated by writing down the investment to its fair value, based on a new valuation agreed by shareholders for a new funding round entered into on 1 July 2025. | |||||
| 20. | Events post the reporting date There have been no significant events after the reporting date. | ||||
| CAPITAL LIMITED STATEMENT OF DIRECTORS' RESPONSIBILITY | |||||||||||||||
| For the six months ended 30 June 2025 | |||||||||||||||
| The directors are responsible for the maintenance of adequate accounting records and the preparation and integrity of the condensed consolidated interim financial statements and related information. The directors are also responsible for the Group's systems of internal financial control. These are designed to provide reasonable, but not absolute, assurance as to the reliability of the financial statements, and to adequately safeguard, verify and maintain accountability for the Group's assets, and to prevent and detect misstatement and loss. Nothing has come to the attention of the directors to indicate that any material breakdown in the functioning of these controls, procedures and systems has occurred during the six months under review. | |||||||||||||||
| We confirm that to the best of our knowledge: | |||||||||||||||
| a) | the condensed set of consolidated interim financial statements, which has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as issued by the International Accounting Standards Boards gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Group as required by FCA's Disclosure and Transparency Rules DTR4.2.4R; | ||||||||||||||
| b) | the interim management report includes a fair review of the information required by DTR4.2.7R and DTR4.2.8R; and | ||||||||||||||
| c) | there have been no significant individual related party transactions during the first six months of the financial year and nor have there been any significant changes in the Group's related party relationships from those reported in the Group's annual financial statement for the year ended 31 December 2024. | ||||||||||||||
| The condensed consolidated interim financial statements have been prepared on the going concern basis since the directors believe that the Group has adequate resources in place to continue in operation for the foreseeable future. The condensed consolidated interim financial statements were approved by the board of directors on 13 August 2025. | |||||||||||||||
| ON BEHALF OF THE DIRECTORS | |||||||||||||||
| Jamie Boyton | |||||||||||||||
| Executive Chairman | |||||||||||||||
| Area | Description | Mitigation |
| General reduction in levels of activity across the mining industry | The Group is highly dependent on the levels of mineral exploration, development and production activity within the markets in which it operates. A reduction in these activities, or in the budgeted expenditure of mining and mineral exploration companies, will cause a decline in the demand for mining services. | The Group is seeking to balance this risk by building a portfolio of long-term mine-site contracts, expanding its services offering into mine-site based activities such as load and haul mining, and also expanding both its client base and geographic reach. The Group's operations are generally focused on mine sites, with limited exposure to exploration-only activities which can be more volatile. Capital has strong existing relationships with our clients at both executive and operational levels which helps ensure that the Group is aware of and prepared for potential changes and well placed to identify new opportunities as they arise with our key business partners. The Group's strategic focus is on blue-chip, high-quality clients with long term project commitments that are inherently less susceptible to industry fluctuations. |
| Area | Description | Mitigation |
| Enterprise Resource Planning (ERP) system failure | The Group's existing ERP system is monitored and supported by internal technical staff as it is no longer maintained by the publisher, SAGE. The system requires regular downtime for routine maintenance during which time the system is unavailable to support the business. | Capital's staff are experienced in maintaining the current ERP which minimises system downtime. The implementation of a new, modern ERP system, Microsoft Dynamics, is well progressed and transition to the new system commenced during 2024 and is progressing well during 2025. |
| Risk to cash repatriation | Restrictive currency controls in certain operating jurisdictions can impact the Group's ability to repatriate cash. | The Group maintains multiple bank accounts in jurisdictions where cash repatriation can prove challenging, which can provide greater access to foreign currency payments. The Group maintains strong relations with its key transactional banking partners, and any new country entry process includes specific due diligence requirements relating to the operation of the banking system and the ability to repatriate cash. |
| Risk of key contract termination | Some contracts can be terminated for convenience by the client without penalty. | Key contracts include agreed notice periods as well as demobilisation and/ or termination fees where a contract is terminated for reasons beyond the Group's control. Contract renewal negotiations are commenced well in advance of the expiry of fixed term contracts. Strong client relationships help the Group to better understand the needs of our clients and partner with them to continue to meet their current and future needs. |
| Decline in mine-site production levels | A significant proportion of the Group's revenue is derived from producing mines which carry their own risks and can be subject to, for example, unforeseen changes in mine plans due to geological or technical challenges, changes to a client's operational budget or broader strategic objectives and changes in global commodity prices. | The producing mines which account for a significant proportion of the Group's revenue tend to have long-term mine plans and well understood geology. Many contracts include fixed fee elements which help mitigate the revenue impact of short-term reductions in activity levels. The Group focuses on ensuring operational excellence and seeks continuous improvement to increase our overall value proposition as a strategic partner for our clients. |
| Area | Description | Mitigation |
| Deterioration in health and safety record | The Group's operations are subject to various health and safety risks associated with drilling and mining including, in the case of individuals, personal injury and potential loss of life; and, in the Group's case, interruption or suspension of site operations due to unsafe operations. | Health and Safety is an absolute priority for the Group. Overseen by the Board, the HSSE Committee, the CEO and senior management team provide strategic leadership in this area and lead a programme of open and honest communication with employees at all levels and in all areas of the business. Some of the Group's safety initiatives, including those around training and monitoring as well as the innovative Safety Risk Leadership Walk, are detailed on our website and have contributed to safety milestones such as 16 years LTI free at our Mwanza facility. |
| Over exposure to one commodity sector | Gold is an important commodity that contributes significantly to the Group's order book and tender pipeline. Price and demand fluctuations in this single commodity could have a material impact on Capital's financial performance | The Group seeks to secure long term contracts with blue-chip clients. Capital continues to actively seek opportunities with a focus on non-gold minerals (e.g. copper) as well as transition materials. |
| Area | Description | Mitigation |
| Reduction in value of equity investment portfolio | Through Capital Investments, the Group holds investments in a portfolio of publicly traded companies. The accounting value of these investments is marked to market at each reporting date and the fair value adjustment is accordingly recorded in the profit and loss account as an unrealised gain or loss. The value of the investments will change and could materially alter both the Group's reported net assets and net profit position. | By diversifying its holding into a portfolio of investments in various companies, the Group aims to mitigate the risk from a significant devaluation of a single investment holding. We maintain a robust governance structure for this portfolio, with the Group's Investment Committee being required to include at least one Independent Non-Executive Director. The committee actively monitors existing investments for performance and ongoing strategic alignment. New investments are required to satisfy a number of criteria. In the event the fair value of investments gives rise to an unrealised loss, while this would affect the company's net assets and profitability, it would not affect cashflow or give rise to any going concern implications. |
| Geographical risk | The Group operates in a number of jurisdictions where social unrest and resulting economic turbulence are common, both of which have the ability to significantly disrupt operations and threaten safety and security of Capital's assets and personnel. | The Group has considerable practical experience in operating successfully in such jurisdictions and plans are in place to secure the safety of personnel and assets in the event of significant security issues. The Group is seeking to continue to diversify its operations geographically including, for example, in North America, Pakistan and Zambia. Safety and security are key considerations in the Group's due diligence processes when considering entry into new jurisdictions or significant additional investment into existing jurisdictions. |
| Area | Description | Mitigation |
| Access to new funding sources | Inability to access bank debt and/or inability to access equity capital from the market. Debt facilities not available in time to support the ongoing growth of the business. | The Group is focused on capital efficiency and maintaining balance sheet flexibility. The Group prioritises building and maintaining strong relationships with our banking partners as well as our existing OEM finance providers such as CAT, Sandvik and Epiroc. Senior management continues to engage regularly with shareholders. |
| Energy transition | Capital is subject to both risks and opportunities associated with the global energy transition and climate change. Traditional diesel-powered mining equipment will be replaced by more energy efficient, low-carbon alternatives. Increasing production in the battery minerals sector is critical to support the global transition to lower carbon technologies. | Our carbon reduction efforts are closely linked to the development of sustainably powered equipment by Original Equipment Manufacturers (OEMs) as well as clients and host governments switching to renewable energy sources. The Group assesses developments in low-carbon technology and senior management are in regular contact with OEM manufacturers so as to maintain a strong awareness of industry developments. Recognising the importance of reducing our emissions and our Net Zero target, we continue to identify and pilot technology options for decarbonisation to capitalise on opportunities as they become available such as our Epiroc partnership to field-test their SmartROC D65 battery-electric surface drill rig. We continue to focus on our drill fleet automation and replacement and already have several electric underground rigs in use. Where possible we are looking to switch our ancillary fleet to alternative energy sources. |
| CAPITAL LIMITED APPENDIX: GLOSSARY AND ALTERNATIVE PERFORMANCE MEASURES (UNAUDITED) | ||||||||||
| The Group presents various Alternative Performance Measures (APMs) as management believes that these are useful for users of the financial statements in helping to provide a balanced view of, and relevant information on, the Group's financial performance in the period. The following terms and alternative performance measures are used in the half year results release for the six months ended 30 June 2025. | ||||||||||
| ARPOR | Average revenue per operating rig | |||||||||
| Operating profit (pre-exceptional items) | Earnings before interest, taxes, fair value gain/loss on financial assets and exceptional items | |||||||||
| EBITDA | Earnings before interest, taxes, depreciation, amortization, fair value gain/loss on financial assets and exceptional items | |||||||||
| EBITDA (adjusted for IFRS 16 leases and exceptional items) | EBITDA less of cash cost of the IFRS 16 leases and exceptional items | |||||||||
| NPAT | Net Profit After Tax | |||||||||
| NPAT (excluding effects from investment portfolio and exceptional items) | Net Profit After Tax before fair value gain/loss on investments, dividend income and exceptional items | |||||||||
| Basic EPS (excluding effects from investment portfolio and exceptional items) (cents) | Net profit after tax before fair value gain/loss on investments, dividend income and exceptional items over weighted average number of ordinary shares | |||||||||
| Net Debt | Cash and cash equivalents less short term and long-term debt | |||||||||
| Reconciliation of alternative performance measures to the financial statements: | |||||||||||
| Six months ended | |||||||||||
| 30 June 2025 | 30 June 2024 | ||||||||||
| US$'000 | US$'000 | ||||||||||
| ARPOR can be reconciled from the financial statements as per the below: | |||||||||||
| Revenue per financial statements (US$) | 159,200 | 169,434 | |||||||||
| Non-drilling revenue (US$) | (47,126) | (63,868) | |||||||||
| Revenue used in the calculation of ARPOR (US$) | 112,074 | 105,566 | |||||||||
| Monthly Average active operating Rigs | 98 | 86 | |||||||||
| Monthly Average operating Rigs | 133 | 125 | |||||||||
| ARPOR (rounded to nearest US$10,000) | 190 | 204 | |||||||||
| Operating profit (pre-exceptional items) can be reconciled from the financial statements as per the below: | |||||||||||
| Profit for the period | 14,827 | 9,635 | |||||||||
| Taxation | 7,692 | 6,695 | |||||||||
| Interest income | (37) | (46) | |||||||||
| Dividend income | (865) | - | |||||||||
| Finance charges | 8,113 | 8,202 | |||||||||
| Share of loss / impairment of investment in associate | 5,693 | - | |||||||||
| Exceptional items: ERP implementation costs | 1,735 | 1,654 | |||||||||
| Fair value adjustments | (19,252) | 493 | |||||||||
| Operating profit (pre-exceptional items) | 17,906 | 26,633 | |||||||||
| Gross profit | 64,727 | 74,486 | |||||||||
| Administration expenses | (27,014) | (27,252) | |||||||||
| Exceptional items: ERP implementation costs | 1,735 | 1,654 | |||||||||
| Depreciation | (21,542) | (22,255) | |||||||||
| Operating profit (pre-exceptional items) | 17,906 | 26,633 | |||||||||
| CAPITAL LIMITED APPENDIX: GLOSSARY AND ALTERNATIVE PERFORMANCE MEASURES (UNAUDITED) | |||||||||
| EBITDA can be reconciled from the financial statements as per the below: | |||||||||
| 30 June 2025 | 30 June 2024 | ||||||||
| US$'000 | US$'000 | ||||||||
| Profit for the period | 14,827 | 9,635 | |||||||
| Depreciation | 21,542 | 22,255 | |||||||
| Taxation | 7,692 | 6,695 | |||||||
| Interest income | (37) | (46) | |||||||
| Dividend income | (865) | - | |||||||
| Finance charges | 8,113 | 8,202 | |||||||
| Share of loss / impairment of investment in associate | 5,693 | - | |||||||
| Fair value adjustments | (19,252) | 493 | |||||||
| EBITDA | 37,713 | 47,234 | |||||||
| Operating profit (EBIT) | 16,171 | 24,979 | |||||||||||
| Depreciation, amortisation and impairments | 21,542 | 22,255 | |||||||||||
| EBITDA | 37,713 | 47,234 | |||||||||||
| Gross profit | 64,727 | 74,486 | |||||||||||
| Administration expenses | (27,014) | (27,252) | |||||||||||
| EBITDA | 37,713 | 47,234 | |||||||||||
| 30 June 2025 | 30 June 2024 | ||||||||||||
| US$'000 | US$'000 | ||||||||||||
| NPAT (excluding effects from investment portfolio and exceptional items) and EBITDA (adjusted for IFRS 16 leases and exceptional items) can be reconciled from the financial statements as per the below: | |||||||||||||
| Operating profit (EBIT) | 16,171 | 24,979 | |||||||||||
| Exceptional items: ERP implementation costs | 1,735 | 1,654 | |||||||||||
| Interest income | 37 | 46 | |||||||||||
| Finance charges | (8,113) | (8,202) | |||||||||||
| Taxation | (7,692) | (6,695) | |||||||||||
| NPAT (excluding effects from investment portfolio and exceptional items) | 2,138 | 11,782 | |||||||||||
| Profit for the period | 14,827 | 9,635 | |||||||||||
| Exceptional items: ERP implementation costs | 1,735 | 1,654 | |||||||||||
| Share of loss / impairment of investment in associate | 5,693 | - | |||||||||||
| Dividend income | (865) | - | |||||||||||
| Fair value adjustments | (19,252) | 493 | |||||||||||
| NPAT (excluding effects from investment portfolio and exceptional items) | 2,138 | 11,782 | |||||||||||
| EBITDA (adjusted for IFRS 16 leases and exceptional items) | |||||||||||||
| EBITDA | 37,713 | 47,234 | |||||||||||
| Cash cost of lease payments | (7,343) | (6,016) | |||||||||||
| Exceptional items: ERP implementation costs | 1,735 | 1,654 | |||||||||||
| EBITDA (adjusted for IFRS 16 leases and exceptional items) | 32,105 | 42,872 | |||||||||||
| CAPITAL LIMITED APPENDIX: GLOSSARY AND ALTERNATIVE PERFORMANCE MEASURES (UNAUDITED) |
| 30 June 2025 | 30 June 2024 | |||||
| US$'000 | US$'000 | |||||
| Basic EPS (excluding effects from investment portfolio and exceptional items) can be reconciled as per below: | ||||||
| Profit for the period attributable to owners of the parent | 14,843 | 9,206 | ||||
| Fair value adjustments | (19,252) | 493 | ||||
| Share of loss / impairment of investment in associate | 5,693 | - | ||||
| Dividend income | (865) | - | ||||
| Exceptional items: ERP implementation costs | 1,735 | 1,654 | ||||
| Adjusted profit for the period attributable to owners of the parent for the period | 2,154 | 11,353 | ||||
| No. | No. | |||||
| Weighted average number of ordinary shares for basic earnings per share | 196,465,287 | 195,026,529 | ||||
| Basic EPS (Adjusted for investment gain/(loss) and exceptional items (cents) | 1.1 | 5.8 | ||||
| Cash from operations (adjusted for IFRS 16 leases) can be reconciled from the financial statements as per the below: | ||||||
| Cash generated from operations | 62,023 | 57,178 | ||||
| Cash cost of lease payments | (7,343) | (6,016) | ||||
| Cash from operations (adjusted for IFRS 16 leases) | 54,680 | 51,162 | ||||
| 30 June 2025 | 31 December 2024 | |||||
| US$'000 | US$'000 | |||||
| Net debt can be reconciled from the financial statements as per the below: | ||||||
| Cash and cash equivalents | 58,585 | 40,526 | ||||
| Loans and borrowings - Non-current | (93,043) | (87,268) | ||||
| Loans and borrowings - Current | (20,923) | (29,007) | ||||
| Net debt | (55,381) | (75,749) | ||||
| CAPITAL LIMITED APPENDIX: GLOSSARY AND ALTERNATIVE PERFORMANCE MEASURES (UNAUDITED) | ||
| EBITDA | ||
| EBITDA represents profit or loss for the period before interest, income taxes, depreciation & amortisation, fair value gain or loss on financial assets through profit or loss and exceptional items. EBITDA is a non-IFRS financial measure that is used as supplemental financial measure by management and external users of financial statements, such as investors, to assess our financial and operating performance. This non-IFRS financial measure will assist our management and investors by increasing the comparability of our performance from period to period. We believe that including EBITDA assists our management and investors in: - i. understanding and analysing the results of our operating and business performance, and ii. monitoring our ongoing financial and operational strength in assessing whether to continue to hold our shares. This is achieved by excluding the potentially disparate effects between periods of depreciation and amortisation, income (loss) from associate, interest income, finance charges, fair value adjustment on financial assets at fair value through profit and loss and realised gain (loss) on fair value through profit and loss investments, which may significantly affect comparability of results of operations between periods. EBITDA has limitations as analytical tools and should not be considered as alternatives to, or as substitutes for, or superior to, profit or loss for the period or any other measure of financial performance presented in accordance with IFRS. Further other companies in our industry may calculate these measures differently from how we do, limiting their usefulness as a comparative measure. EBITDA (adjusted for IFRS 16 leases) EBITDA(adjusted for IFRS 16 leases)represents profit or loss for the year before interest, income taxes, depreciation & amortisation, fair value adjustments on financial assets at fair value through profit and loss and realised gain (loss) on fair value through profit and loss investments andnet of cash cost of the IFRS 16 leases. | ||
| Net cash (debt) |
| Net cash (debt) is a non-IFRS measure that is defined as cash and cash equivalents less short term and long-term debt. Management believes that net cash (debt) is a useful indicator of the Group's indebtedness, financial flexibility and capital structure because it indicates the level of borrowings after taking account of cash and cash equivalents within the Group's business that could be utilised to pay down the outstanding borrowings. Management believes that net debt can assist securities analysts, investors and other parties to evaluate the Group. Net cash (debt) and similar measures are used by different companies for differing purposes and are often calculated in ways that reflect the circumstances of those companies. Accordingly, caution is required in comparing net debt as reported by the Group to net cash (debt) of other companies. |
| Average revenue per operating rig |
| ARPOR is a non-financial measure defined as the monthly average drilling specific revenue for the period divided by the monthly average active operating rigs. Drilling specific revenue excludes revenue generated from shot crew, a blast hole service that does not require a rig to perform but forms part of drilling. Management uses this indicator to assess the operational performance across the board on a period-by-period basis even if there is an increase or decrease in rig utilisation. |