Capital Limited

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

 

Full Year Financial Results for the Year Ended 31 December 2024

 

Capital (LSE: CAPD), a leading mining services company, today provides its full year financial results for the year ended 31 December 2024.

 

	FY 2024	FY 2023		vs FY 2023
Revenue	348.0	318.4		9.3%
EBITDA (adjusted for IFRS 16 leases and exceptional items)1,2,3	80.0	91.8		(12.9%)
Operating Profit	39.3	60.3		(34.9%)
Operating Profit (excluding exceptional items)4	47.3	60.3		(21.5%)
Investment Gain / (Loss)	12.1	3.0		304.7%
Net Profit After Tax (NPAT)	18.3	38.5		(52.5%)
NPAT (excluding exceptional items and investment gain/(loss))4	14.3	35.5		(59.7%)
Earnings per share
Basic EPS (cents)	8.9	19.1		(53.5%)
Basic EPS (excluding exceptional items and investment gain/(loss)) (cents)	6.8	17.5		(61.1%)
Final Dividend per Share (cents)	1.3	2.6		(50.0%)
Cash from Operations (adjusted for IFRS 16 leases)2	77.1	84.3		(8.6%)
Capex5	67.2	69.0		(2.6%)
Net Debt1	75.7	69.8		8.5%
Investments held at fair value	30.3	47.2		(35.8%)
Margins
EBITDA Margin (adjusted for IFRS 16 leases and exceptional items)1,2,3	23.0%	28.8%
Operating Profit Margin	11.3%	18.9%
Operating Profit Margin (excluding exceptional items)4	13.6%	18.9%
NPAT Margin (excluding exceptional items and investment gain/(loss))	4.1%	11.2%
All amounts are in US dollar millions unless otherwise stated
(1)      EBITDA and Net Debt are non-IFRS financial measures and should not be used in isolation or as a substitute for Capital Limited financial results presented in accordance with IFRS. Alternative performance measures are detailed on pages 21 - 22 of this results announcement. (2)      Adjustment for the cash cost of the IFRS 16 leases, which amounts to $13.1 million in 2024 and $8.2 million in 2023. (3)      Exceptional items include ERP implementation costs of $2.7 million (2023: nil) and provisions against VAT receivables of $2.5 million (2023: nil). (4)      Exceptional items include ERP implementation costs of $2.7 million (2023: nil), provisions against VAT receivables of $2.5 million (2023: nil) and impairments relating to MSALABS of $2.8 million (2023: nil). (5)      Capital expenditure (Capex) consists of cash purchases of PPE, prepayments for PPE and assets purchased through OEM-financing.

 

FY 2024 Financial Overview

·      FY 2024 revenue of $348.0 million, up 9.3% on FY 2023 ($318.4 million);

·      FY 2024 EBITDA (adjusted for IFRS16 leases and exceptional items) of $80.0 million, down 12.9% on FY 2023 ($91.8 million);

·      FY 2024 EBITDA margin (adjusted for IFRS16 leases and exceptional items) down to 23.0% (FY 2023: 28.8%);

·      Value of the Group's strategic investment portfolio as of 31 December 2024 decreased to $30.3 million (FY 2023: $47.2 million) including net cash disposal of $28.9 million;

·      Operating Profit of $39.3 million for FY 2024, down 34.9% on FY 2023 ($60.3 million). Excluding the impact of exceptional items, adjusted operating profit is $47.3 million, down 21.5% on FY 2023 ($60.3 million);

-       The Company has taken the decision to book non-cash provisions and impairments in 2024 primarily relating to historical VAT receivables and various laboratory assets in Mali.

·      Net Profit After Tax (NPAT) of $18.3 million for FY 2024, down 52.5% on FY 2023 ($38.5 million). Excluding the exceptional items and impact of investment gains, adjusted NPAT is $14.3 million for FY 2024, down 59.7% on FY 2023 ($35.5 million);

·      Basic Earnings Per Share (EPS) of 8.9 cents for FY 2024, down 53.5% on FY 2023 (19.1 cents). Excluding the impact of exceptional items and investment gains, adjusted EPS is 6.8 cents, down 61.1% on FY 2023 (17.5 cents);

·      Cash from Operations (adjusted for IFRS 16 leases) of $77.1 million for FY 2024, a decrease of 8.6% on FY 2023 ($84.3 million);

·      Total Capex of $67.2 million for FY 2024, a decrease of 2.6% on FY 2023 ($69.0 million). Total capex consisted of cash capex of $34.5 million (2023: $47.9 million), prepayments of $4.0 million (2023: $5.3 million) and financed capex of $28.7 million (2023: $15.8 million);

·      Net Debt of $75.7 million, an increase of 8.5% on FY 2023 ($69.8 million); and

-       Net debt excludes the investment holdings of $30.3 million.

·      Declared a final dividend of $1.3 cents per share, to be paid on 15 May 2025 which, together with the interim dividend of $1.3 cents per share brings the total dividends declared for 2024 to $2.6 cents per share (2023: $3.9 cents per share).

 

Operational and Strategic Highlights

·      Safety performance maintains its exceptional standing on a global scale with the 2024 Total Recordable Injury Frequency Rate ("TRIFR") of 0.78 per 1,000,000 hours worked, broadly in line with FY 2023 (0.75).

·      Capital Drilling - Continued strength of our core business:

·      Recent contract awards (previously announced):

-       An 18-month diamond drilling services contract at the Mingomba Copper Project in Zambia owned by KoBold Metals;

-       A 2-year diamond drilling services contract at Perseus Mining's Yaouré Gold Mine in Côte d'Ivoire;

-       A 6-month reverse circulation drilling services contract with Aton Mining at its various exploration properties in Egypt; and

-       A 6-month diamond drilling services contract with Lotus Gold at its project site in Egypt.

·      Fleet utilisation for FY 2024 was 73%, compared to 73% in FY 2023;

·      Average monthly revenue per operating rig ("ARPOR") was $204,000 in FY 2024, up 9.7% on FY 2023 ($186,000); and

·      Rig count increased from 127 to 130 through FY 2024, net of depletion.

 

	FY 2024	FY 2023	vs FY 2023
Closing fleet size	130	127	2.6%
Average Fleet	126	125	0.8%
Fleet utilisation (%)	73%	73%	(0.8%)
Average utilised rigs	92	92	0.0%
ARPOR1($)	$204,000	$186,000	9.7%
Surveying revenue ($m)	5.4	3.7	45%
Total Drilling and associated revenue2 ($m)	239.1	215.2	11.1%
(1)     Average revenue per month per operating rig (2)     Associated revenue refers to revenue generated from complementary services tied to our drilling operations.

·      Capital Mining - New contract award at Reko Diq

·      Major new contract award at Reko Diq:

-       As previously announced, the Company has a letter of intent from Barrick, the operators of Reko Diq, to significantly expand our service offering at their 50% owned major copper-gold project in Pakistan beyond the reverse circulation and diamond drilling geotechnical services we have provided since early 2023;

-       These additional works will utilise the majority of the Group's combined mining fleets and covers two components:

§ Early works civils focused on the construction phase of the project prior to first production. The first items of equipment are anticipated to arrive on site in H1 2025; and

§ Tailings storage facility ("TSF") mining services, with phased arrival of further equipment on site planned through 2025 with a gradual ramp up in operations from Q4 2025 onwards and currently envisaged to be at run rate utilisation in H2 2026.

·      Other mining contracts came to an end in FY 2024:

-       Sukari Gold Mine (Egypt) waste mining contract came to its natural end in September 2024; and

-       At Belinga (Gabon), the customer gave notice to conclude our mining contract early in Q4 2024, as they altered their development strategy at the project.

·      MSALABS - Ramping up Nevada Gold Mines contract

·      Nevada Gold Mines contract:

-       The first stage of our state-of-the-art laboratory at Nevada Gold Mines, equipped with Chrysos PhotonAssay^TM technology, started receiving samples in Q4 2020 after a slower-than-expected start to the construction of the laboratory and subsequent ramp up; and

-       Detailed design of second-stage wet chemistry and multi-element assaying facility is underway and is expected to be commissioned in H1 2026.

·      New laboratory in Fairbanks, Alaska:

-       We have completed construction of a new laboratory in Alaska. While this is a commercial laboratory, we expect to reach strong utilisation rapidly underpinned by large scale contracts with both Northern Star and Kinross Gold.

·      Continued rollout of Chrysos PhotonAssay^TM units:

-       MSALABS possesses the largest international network of Chrysos PhotonAssay™ technology;

-       MSALABS relationship with Chrysos Corporation remains strong with plans to deploy 21 units globally; and

-       MSALABS has forged a global partnership with Barrick and Chrysos to deliver PhotonAssay^TM technology across Barrick mine sites.

·      Capital Investments - Significant returns realised

·      Sale of entire shareholding in Predictive Discovery to Perseus Mining for a total cash consideration of ~$31.2 million during H2 2024;

·      The total value of investments (listed and unlisted) was $30.3 million as at 31 December 2024 ($47.2 million as at 31 December 2023) including net cash disposal of $28.9 million;

·      As at 31 December 2024, the investment portfolio has realised ~$12 million more than total cumulative amounts invested.

·      The portfolio continues to be focused on a select few key holdings with our holdings in WIA Gold and Sanu Gold comprising over 80% of our investments.

 

Outlook

·      Revenue guidance for FY 2025 of $300 - 320 million;

·      Capital Drilling will focus on consolidating ramp ups in key growth area, particularly in Nevada, USA, and ensuring efficiency and productivity across the Group's drilling operations;

·      Capital Mining will commence the Reko Diq early works civils contract during the year, pending final contract negotiations, with revenues weighted to H2 2025;

·      MSALABS is consolidating its existing platform in key strategic locations. We aim to deliver our robust pipeline having strengthened our business development function. Additionally, we expect full run-rate revenues from the first stage of our Nevada Gold Mines laboratory and our Fairbanks laboratory.

·      Capital expenditure is expected to be $45 - 55 million in FY 2025. This will fund the rebuilds and other ancillary spend relating to the new Reko Diq mining contract, typical sustaining and replacement capex across the drilling business to ensure ongoing productivity and the continued expansion of MSALABS; and

·      Tendering activity remains robust across the Group with a number of high-quality opportunities progressing.

 

2024 Final Dividend Timetable

·      Ex-Dividend Date:                                17 April 2025

·      Record Date:                                        22 April 2025

·      Last Date for Currency Elections:     24 April 2025

·      Payment Date:                                      15 May 2025

Dividend Currency Elections

The dividend will be paid on 15 May 2025, in US Dollars ("USD") with an option for shareholders to elect to receive the dividend in Pounds Sterling ("GBP"). Currency elections should be made no later than 24 April 2025 as per the instructions detailed on the Company website (www.capdrill.com). Payments in GBP will be based on the USD/GBP exchange rate on 22 April 2025) and the rate applied will be published on the website thereafter.

 

 

Commenting on the results, Jamie Boyton, Executive Chair, said:

"2024 has been a pivotal year of transition for Capital as we establish foundations and a clear roadmap to evolve into a larger, more resilient business - one equipped to deliver consistent margins through the cycle. 

Nevertheless, this has not come without challenges with the ramp ups of some of our key growth areas, particularly in North America, behind expectations and negatively impacting our Group financials. In response, we have implemented a range of structural changes within our management team to better position our business to execute on the significant growth opportunities availed to the Group. As a result, we expect margins to bottom in H1 2025 and see a recovery thereafter. 2025 revenue is expected to be in the range of $300 - 320 million with revenues H2-weighted given the ramp up of new projects, predominantly in our mining business.

 

As we look forward, we see significant growth coming on stream across MSALABS, our mining division, and through continuing to leverage our strong drilling platform. Importantly, this growth comes with reduced capital spend, largely utilising equipment we already own, following a major investment cycle over the past 4 years. This is highlighted by our 2025 capex guidance of $45 - 55 million, a significant year-on-year reduction. This allows us concentrate on successfully finalising the current ramp ups and drive cash flow and a return on our investments.

Whilst we acknowledge challenges throughout the year, we remain positive about the outlook for the business and are excited by opportunity suite ahead of us. We have set a clear pathway to putting the current challenges behind us and driving positive momentum through 2025 and a resumption of growth into 2026 and beyond."

 

Capital Limited will be hosting a live webcast presentation at 9:00am GMT on Thursday 27^th March 2025, where questions can be submitted through the platform.

 

The webcast presentation link:

 

Issuer Services | London Stock Exchange | Capital Limited FY 2024 Results

 

Participants may join the webcast approximately five minutes before the commencement time. A copy of the Company's presentation will be available on www.capdrill.com

 

- ENDS -

 

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

 

Capital Limited                                                                     [email protected]                      

Jamie Boyton, Exectuive Chair          

Rick Robson, Chief Financial Officer

Conor Rowley, 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

Callum Stewart

Rory Blundell

 

FTI Consulting                                                                       +44 20 3727 1000

Ben Brewerton                                                                     [email protected]

Nick Hennis

Lucy Wigney        

 

 

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, Ghana, Guinea, Kenya, Mali, Mauritania, Pakistan, Saudi Arabia, Tanzania, United States of America and Zambia.

CAPITAL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2024
										Audited                                   Audited
								Notes		2024		2023
										US$'000		US$'000
Revenue								3		348,000		318,424
Cost of sales								4		(203,233)		(171,524)
Gross profit										144,767		146,900
Administration expenses								5		(56,945)		(46,852)
Depreciation, amortisation, and impairments								6		(48,562)		(39,766)
Operating profit										39,260		60,282
Interest income										38		65
Finance costs										(16,741)		(13,002)
Fair value gain on financial assets										12,097		2,989
Share of loss of associate										(387)		-
Profit before taxation										34,267		50,334
Taxation								7		(15,949)		(11,804)
Profit and total comprehensive income for the period										18,318		38,530
Profit attributable to:
Owners of the parent										17,315		36,737
Non-controlling interest										1,003		1,793
										18,318		38,530
Earnings per share:
Basic (cents per share)								8		8.87		19.09
Diluted (cents per share)								8		8.85		18.82

 

CAPITAL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2024
								Audited		Audited
						Notes		2024		2023
ASSETS								US$'000		US$'000
Non-current assets
Property, plant and equipment						10		240,969		208,657
Right-of-use assets						11		32,062		29,684
Goodwill								1,296		1,296
Intangible assets								794		572
Other receivables						13		10,790		9,789
Investment in associate								6,300		-
Total non-current assets								292,211		249,998
Current assets
Inventories								61,912		61,922
Trade receivables						12		60,226		49,567
Other receivables						13		26,044		24,055
Investments at fair value								30,304		47,154
Current tax receivable								505		686
Cash and cash equivalents								40,526		34,366
Total current assets								219,517		217,750
Total assets								511,728		467,748
EQUITY AND LIABILITIES
Equity
Share capital						14		20		19
Share premium						14		64,719		62,390
Equity-settled employee benefits reserve								3,972		5,763
Other reserve								190		190
Retained income								202,674		195,515
Equity attributable to owners of the parent								271,575		263,877
Non-controlling interest								11,813		9,270
Total equity								283,388		273,147
Non-current liabilities
Loans and borrowings						14		86,925		75,521
Lease liabilities								22,226		21,109
Trade and other payables								7,511		2,057
Deferred tax								3,195		34
Total non-current liabilities								119,857		98,721
Current liabilities
Trade and other payables								57,821		50,685
Provisions								203		487
Current tax payable								10,640		9,315
Loans and borrowings						14		28,259		27,052
Lease liabilities								11,560		8,341
Total current liabilities								108,483		95,880
Total equity and liabilities								511,728		467,748