Key Highlights

  • Capital Limited (LSE:CAPD) is drawing attention as investors digest a strong third quarter, its entry into Australia and a higher 2026 Revenue forecast.
  • Third-quarter revenue rose 23.2% to US$115.7m, taking nine-month revenue to US$334.7m, up 32.2%.
  • MSALABS, the group’s laboratory division, posted record quarterly revenue of US$26.0m, up 23.8%.
  • The Acquisition of Metres Down Under, Australia’s largest specialist underground reverse circulation driller, has been completed.
  • Full-year 2026 revenue guidance has been raised to US$435m to US$455m.
  • An expanded two-year drilling mandate has been secured at Fortescue’s Belinga iron ore project in Gabon.

Why Capital Limited Is in Focus Today

Capital Limited (LSE:CAPD), the London-listed Mining services group providing drilling, mining and laboratory services to the global minerals industry, remains firmly on investor radar on Thursday, 5 November 2026. The group’s recent third-quarter trading update and its first move into the Australian drilling market have been widely discussed this week, with commentary focusing on how its growth is broadening beyond traditional exploration drilling.

Strong gold prices continue to support exploration and mine development budgets across Africa and beyond, and Capital Limited (LSE:CAPD) is one of the most direct listed ways to gain exposure to that spending. Its shares rose more than 5% on 6 October when the Australian acquisition and guidance upgrade were first announced, and the stock has traded around the 120p level in recent weeks.

Third-Quarter Numbers

Capital reported revenue of US$115.7m for the third quarter of 2026, up 23.2% year on year. That took revenue for the first nine months to US$334.7m, a 32.2% increase on the same period of 2025. The mix of the quarter is important. Drilling and associated revenue edged down 0.9% to US$64.5m, as rigs were moved from lower-return contracts at Nevada Gold Mines and Sadiola into higher-returning work. That repositioning temporarily reduced drilling revenue, but should support margins over time.

Mining services revenue surged, and MSALABS delivered another record quarter, with revenue of US$26.0m, up 23.8%. Safety metrics also improved, and the group said its Investment portfolio, which holds stakes in listed mining companies, continued to outperform sector benchmarks.

Entering Australia With Metres Down Under

The biggest strategic step of the autumn was the acquisition of Metres Down Under, Australia’s largest specialist underground Reverse Circulation Drilling company, for up to about US$16m. The Business generated around US$25m of revenue and US$6m of adjusted EBITDA in the 12 months to September 2026 and is expected to be Earnings accretive from the outset.

The deal gives Capital Limited (LSE:CAPD) an operating base in one of the world’s most important mining jurisdictions, strengthens its relationship with gold major AngloGold Ashanti, and adds specialist underground expertise that can be deployed across the group’s international operations. The company has also appointed Tim Donnelly as chief operating officer for drilling and mining to support the next stage of growth.

Bigger Contract at Belinga

Capital has also secured an expanded two-year drilling mandate at Fortescue’s Belinga iron ore project in Gabon, where it has worked since 2023. Long-term contracts with large miners give the group better revenue visibility and help keep rigs fully utilised, which is critical for profitability in the drilling business.

A Strong First Half Laid the Foundations

The latest update follows a strong first half. In the six months to 30 June 2026, Capital Limited (LSE:CAPD) grew revenue by 37.6% to US$219m and lifted adjusted EBITDA by 70.4% to US$54.7m. The group reduced net debt, reaffirmed its dividends and exited lower-return drilling operations in Mali and the US. MSALABS expanded to 33 laboratories with higher utilisation and better margins, reinforcing Capital’s position as an integrated mining services provider.

Guidance Upgrade

Reflecting the stronger trading and the Australian acquisition, Capital raised its 2026 revenue guidance to between US$435m and US$455m, while keeping Capital Expenditure plans and MSALABS guidance unchanged. With US$334.7m already booked after nine months, many market followers believe the group is on track for at least the top end of that range.

Risks to Consider

Mining services Demand is cyclical and depends heavily on Commodity prices and miners’ spending plans. A fall in gold prices could lead clients to cut exploration budgets. Capital operates in several African countries, which brings political, security and currency risks, and contract renewals or losses can cause revenue to swing. Integrating an acquisition in a new market also carries execution risk.

What Investors Are Watching Next

Investors will now watch the fourth-quarter trading update, expected in January 2027, to see whether full-year revenue lands at or above the top of guidance. The first full contribution from Metres Down Under, rig redeployment into new long-term contracts, the expansion of MSALABS laboratories and further contract wins with major miners are the key milestones. Margin trends, net Debt and the Dividend policy will also be closely followed, along with the direction of gold and copper prices that drive client spending for Capital Limited (LSE:CAPD).