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Highlights

  • Capital has secured a five-year contract valued at approximately USD 140 million with Nevada Gold Mines
  • In H1FY24, CAPD’s revenue grew by 9.8% YoY to USD 169.40 million, despite a 2.3% YoY EBITDA decline
  • CAPD's revenue guidance for FY24 lies between USD 355-375mn, with capital expenditure expected to be between USD 70-80mn

Capital Limited (LSE: CAPD) is a drilling and mining services company based in the United Kingdom. It is mainly focused on the African markets.

Capital successfully secured several contract extensions and new agreements, such as a two-year drilling services contract with Perseus Mining at Nyanzaga and an expanded rig count at Belinga. Furthermore, the five-year contract valued at approximately USD 140 million with Nevada Gold Mines represents a key milestone.

H1FY24 Financial Update

In the first half of the financial year 2024 (H1FY24), the company reported a revenue of USD 169.40 million, a 9.8% YoY increase compared to USD 154.30 million in H1FY23. However, EBITDA saw a slight decline of 2.3% YoY from USD 43.90 million in H1FY23 to USD 42.90 million in H1FY24. This drop was attributed to increased costs, including those related to the start-up of new contracts and ongoing investments in the rapidly growing MSALABS division.

Top 10 Shareholders

The top 10 shareholders of Capital collectively hold approximately 64.15% of the total shares. The largest shareholder is Boyton (Jamie Phillip) with around 10.47%, closely followed by Aberforth Partners LLP with a 10.18% stake.

Company Outlook

CAPD's revenue guidance for FY24 lies between USD 355 million and USD 375 million, with capital expenditure expected to be between USD 70 million and USD 80 million. Capital is expected to benefit from the Sukari contract extension, adding up to 10Mt of waste removal in Q3FY24. MSALABS continues its multi-year laboratory roll-out, focusing on Chrysos PhotonAssay™ units, with a revenue target of USD 50 million to USD 60 million. However, potential delays at Nevada Gold Mines could pose a risk.

Stock Information

The stock price of CAPD has plummeted by approximately 7.36% over the past six months. It has a 52-week high of GBX 105.61 and a 52-week low of GBX 70.27, currently trading below the average of these two values. As of 21 February 2025, the stock last traded at GBX 78.00.

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 21 February 2025. The reference data in this report has been partly sourced from EODHD/Others.