Mining services company reports third consecutive year of growth

Source the Ghana Report

Global mining services company Capital has announced a third consecutive year of material growth.

The company’s revenue for the 2022 financial year amounted to $290.3-million, a 28% increase from 2021, and at the upper end of its revised guidance of $280-million to $290-million. Earnings before interest, taxes, depreciation and amortisation for the year were $90.1-million, up 22.9%.

“2022 has been another outstanding year for Capital, marking the business’s third consecutive year of material growth . . . Capital enters 2023 with an even stronger underlying business,” chairperson Jamie Boyton said on March 16.

The company said it had made progress towards strengthening its contract portfolio, operational teams, equipment quality, and balance sheet flexibility over the past year. It said its strategy of offering premium service and equipment quality remained key to the underpinning of its growth strategy across business divisions, with good safety performance being an important aspect.

The Capital Drilling division reported additional material contract wins during the 2022 financial year, with an average monthly revenue for each operating rig of about $180 000. Use of the fleet increased to 79%, compared with 75% in the prior year, with a decrease in the fourth quarter attributed by the company to an active strategy to reposition the contract portfolio, reducing exposure to small-scale contracts while focusing on large-scale mine sites and tier one projects with significant growth potential.

Capital Mining, another division of Capital, reported consistently strong performance, with the Sukari gold mine waste mining contract exceeding the previous daily production record since the project began.

Capital subsidiary MSALABS reported a strong start to the current year, with the company stating that the rollout of Chrysos’ PhotonAssay units was progressing well. The expanded relationship with Chrysos will see MSALABS deploy 21 units by 2025.

Capital’s safety performance reflects a total recordable injury frequency rate of 1.2 per one-million hours worked, up from 0.98 in 2021.

“The underlying demand in the market continues to be encouraging and our tender pipeline remains equally buoyant. In addition none of our material contracts are due for renewal in 2023, providing a firm footing from which to continue to grow. We will continue to pursue our key strategic priorities during 2023, with revenues expected to reach $320-million to $340-million in 2023,” Boyton said.

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