Highlights

  • Capital’s H1FY24 revenue grows 9.8%, driven by mining services and long-term contracts
  • Q3FY24 revenue increases 17.6%
  • The company generated USD 31.2 million from the sale of Predictive Discovery, adding USD 15 million in gains
  • FY24 revenue guidance remains at USD 355-375 million, with growth expected from Nevada Gold Mines

Capital Limited (LSE:CAPD) is a UK-based mining services company. It is listed on the FTSE All Share index and has a market cap of GBP 160.92mn.

In first half of the financial year 2024 (H1FY24), CAPD reported a 9.8% year-on-year increase in revenue, reaching USD 169.4 million from USD 154.3 million in H1FY23. It was driven by the continued expansion of its mining services segment and the successful execution of long-term contracts. However, EBITDA saw a slight decline of 2.3% YoY, falling to USD 42.9 million from USD 43.9 million in the previous year. This decrease was primarily attributed to higher costs related to the company's expanding operations, including start-up expenses for new contracts and investments in its rapidly growing MSALABS division.

Recent Business Update

Capital reported a 17.6% increase in its Q3FY24 revenue to USD 93.7 million compared to Q3FY23. During the reported period, the company reported a fleet utilisation rate of 76%, up from 72% in Q3 FY23. The average monthly revenue per operating rig (ARPOR) was USD 210,000, reflecting a 17.3% year-over-year increase. Additionally, Capital sold its stake in Predictive Discovery for USD 31.2 million, generating USD 15 million in realised and unrealised investment gains.

Company outlook

Capital has kept its FY24 revenue guidance at USD 355-375 million and capital expenditure at USD 70-80 million. Revenue growth is expected later in the year, driven by increased operations at Nevada Gold Mines. Due to delays in the Nevada Gold Mines contract, the MSALABS revenue guidance has been revised to approximately USD 45 million. The company is also finalising plans for mining equipment in Egypt and Gabon, with updates to be provided soon.

Top 10 Shareholders:

The top 10 shareholders of Capital Limited hold about 65.00% of the total shares. Jamie Phillip Boyton owns the largest share in the company, with around 10.47% shareholding. Aberforth Partners LLP follows closely with approximately 10.18% shareholding, as shown in the chart below.

Price Performance

CAPD's stock price has dropped by approximately 20.38% over the past six months. The 52-week high is GBX 105.61, and the 52-week low is GBX 77.00. Currently, the stock is trading below the average of the 52-week high and low.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 29 November 2024. The reference data in this report has been partly sourced from EODHD/Others.