REG - Capital Limited - Q1 2026 Trading Update

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RNS Number : 2019B  Capital Limited  21 April 2026

Capital Limited

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

 

Q1 2026 Trading Update

 

Capital (LSE: CAPD), a leading mining services company, today provides its
trading update for the period 1 January to 31 March 2026 (the "Period").

 

FIRST QUARTER (Q1) 2026 KEY METRICS

                                  Q1 2026*  Q1 2025  vs        Q4 2025  vs

                                                     Q1 2025            Q4 2025
 Revenue                          101.7     71.8     41.6%     92.7     9.7%
 Drilling and associated revenue  62.8      57.7     8.8%      60.2     4.3%
 Mining revenue                   18.0      0.6      2,900.0%  10.9     65.1%
 MSALABS revenue                  20.9      13.5     54.8%     21.6     (3.2%)

All amounts are in USD million unless otherwise stated

* Unaudited numbers

 

Commenting on the trading update, Jamie Boyton, Executive Chair, said:

"Q1 2026 was yet another record revenue quarter for the Company. Our drilling
business performed well over the quarter as we achieved a quarterly ARPOR of
$201,000. We commenced our second mining contract at Sukari during the quarter
and our new commercial laboratory in Newfoundland started receiving samples.

Whilst the recent geopolitical tension has not directly affected any of our
operating sites, we have had to adapt our  personnel and supply chain
logistics to accommodate disruptions to our processes, while our investment
portfolio was impacted by a general slide in global equity markets.

The benefits of the significant momentum generated within the Company are now
starting to take effect. With full run rates expected at both our mining
contracts later this year, alongside the start of new drilling contracts and
the commissioning of new laboratories, we expect continued revenue growth to
achieve the $410 - 440 million revenue guidance set at our FY25 results."

Financial Highlights

·      Total revenue of $101.7 million, a 41.6% increase on Q1 2025
($71.8 million) and a 9.7% increase on Q4 2025 ($92.7 million);

-     Drilling and associated revenue for the quarter was $62.8 million,
up 8.8% on Q1 2025 ($57.7 million) and up 4.3% on Q4 2025 ($60.2 million);

-     Mining revenue for the quarter was $18.0 million, up 2,900.0% on Q1
2025 ($0.6 million) and up 65.1% on Q4 2025 ($10.9 million); and

-     MSALABS revenue for the quarter was $20.9 million, up 54.8% on Q1
2025 ($13.5 million) and down 3.2% on Q4 2025 ($21.6 million).

·      Final dividend of 1.3cps declared at the FY25 results for the
2025 financial year (2024: 1.3cps) will be payable 12 May 2026.

 

Operational Update

·      Strong safety performance with Q1 2026 Total Recordable Injury
Frequency Rate ("TRIFR") of 1.4 per 1,000,000 hours worked (FY 2025 1.2).

Capital Drilling: Increasing ARPORs

·      Fleet utilisation for the quarter decreased to 70%, from 73% in
Q1 2025 and from 74% in Q4 2025;

·      Average monthly revenue per operating rig ("ARPOR") was $201,000
in Q1 2026, up 10.4% on Q1 2025 ($182,000) and up 7.5% on Q4 2025 ($187,000).

·      New contract wins:

-     Awarded a 5-year deep hole directional diamond drilling contract at
AngloGold Ashanti's Sukari Gold Mine in Egypt;

-     Awarded a 3-year diamond and reverse circulation drilling contract
with Robex Gold at its Kiniero Gold Project in Guinea. The completion of the
merger between Robex Gold and Predictive Discovery was announced on 17 April;

-     Awarded a short-term waterbore contract at Resolute Mining's Doropo
Project in Côte d'Ivoire; and

-     As previously announced, awarded a 5-year grade control drilling
contract with Montage Gold at its Koné Gold Project in Côte d'Ivoire.

 

                        Q1 2026*  Q1 2025  vs        Q4 2025  vs

                                           Q1 2025            Q4 2025
 Closing fleet size     138       135      2.2%      137      0.7%
 Fleet utilisation (%)  70%       73%      (4.1%)    74%      (5.4%)
 Average utilised rigs  96        98       (2.0%)    101      (5.0%)
 ARPOR(1)($)            201,000   182,000  10.4%     187,000  7.5%

*Unaudited numbers

(1)Average revenue per month per operating rig

 

Capital Mining: Two projects underway

·      Our Reko Diq mining contract is operating as planned with both
fleets having now commenced double shifting.

-     Barrick management recently announced that the project will remain
under active management with a reduced capital spend and a slowing of
development activity. Capital remains a critical contractor on-site and our
operations continue to perform as expected;

-     The recent geopolitical tension has not directly impacted our
activities at site. However, travel and supply chain disruptions caused by the
conflict are being actively managed by Capital and the client; and

·      We re-commenced waste mining activity at Sukari Gold Mine during
the quarter under a new contract;

-     Our remaining fleet on-site is currently operating as planned with
additional equipment expected to arrive over the next quarter.

 

MSALABS: Continued revenue performance

·      Laboratory utilisation increased to 53% in Q1 2026 from 40% in Q1
2025;

·      Our new commercial laboratory in Newfoundland, which is
underpinned by a 5-year contract with Equinox Gold's Valentine Gold Mine and
equipped with a Chrysos PhotonAssay(TM) unit, has started to receive samples;

·      Construction is currently underway at our two new laboratories in
Côte d'Ivoire: an on-site laboratory at Montage Gold's Koné Project and our
second in-country commercial laboratory; and

·      New contract win: Awarded a 5-year laboratory services contract
at United Gold's Amulsar Gold Mine in Armenia.

 

Capital Investments: Impacted by geopolitical tension

·      The total value of investments (listed and unlisted) was $94.6
million as at 31 March 2026, down from $97.5 million as at 31 December 2025,
with the portfolio recording investment unrealised losses (net of realised
gains) of $3.2 million in Q1 2026; and

·      The portfolio continues to be focused on a select few key
holdings, namely WIA Gold, Asara Resources and Apollo Minerals.

Outlook

·      Revenue guidance for 2026 is reiterated as $410 - $440 million as
guided at our FY25 results;

·      Our newly awarded drilling contracts are expected to ramp up as
planned, whilst we continue consolidation into preferred markets;

·      We expect to achieve full run rates at both our mining contracts
later this year with our fully utilised mining fleet supporting these
operations;

·      We are on track with construction and commissioning of new
laboratories and expect to see utilisation improving at our existing
laboratories; and

·      We are seeing strong tendering activity on the demand backdrop
driven by record commodity prices and increased capital markets activity.

 

- ENDS -

 

 

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

 

Capital Limited
 
 
investor@capdrill.com

Jamie Boyton, Executive Chair

Rick Robson, Chief Financial Officer

Conor Rowley, GM Commercial & Corporate Development

Ryan Tennis, 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

Varun Talwar

 

Panmure Liberum Limited
 
+44 20 3100 2000

Scott Mathieson

John More

 

FTI
Consulting
+44 20 3727 1000

Ben
Brewerton
capitallimited@fticonsulting.com

Nick Hennis

 

About Capital Limited

Capital Limited is a leading mining services company that provides 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 Canada, Côte
d'Ivoire, Democratic Republic of Congo, Egypt, Gabon, Guinea, Kenya, Mali,
Mauritania, Namibia, Pakistan, Saudi Arabia, Tanzania, United States of
America and Zambia.

 

 

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