Capital Limited

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

 

H1 2026 Results (Unaudited)

 

Capital Limited (LSE: CAPD), a leading mining services company, today provides its results (unaudited) for the half-year period 1 January to 30 June 2026 (the "Period").

 

	H1 2026	H1 2025		vs H1 2025
Revenue	219.0	159.2		37.6%
Adjusted EBITDA 1,2	54.7	32.1		70.4%
Operating Profit	31.8	16.2		96.3%
Investment Gain	7.0	19.3		(63.7%)
Net Profit After Tax (NPAT)	21.3	14.8		43.9%
Operational NPAT 1,3	15.5	2.1		638.1%
Earnings per share
Basic EPS (cents)	10.1	7.6		32.9%
Operational Basic EPS 1,3 (cents)	7.5	1.1		581.8%
Interim Dividend per Share (cents)	1.3	1.3		0.0%
Adjusted Cash from Operations 1,4	41.4	54.7		(24.3%)
Capex 1,5	24.1	20.4		18.1%
Net Debt 1,6	43.3	55.4		(21.8%)
Investments held at fair value 7	116.5	49.5		135.4%
Margins
Adjusted EBITDA Margin 1,2	25.0%	20.2%
Operating Profit Margin	14.5%	10.2%
Operational NPAT Margin 1,3	7.1%	1.3%
All amounts are in US dollars unless otherwise stated
(1)  Non-IFRS financial measures 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 34-37 of this results announcement. (2)   Adjusted EBITDA is calculated as EBITDA less cash cost of IFRS 16 leases and exceptional items. (3)   Operational NPAT is calculated as NPAT less effects from investments and exceptional items. (4)  Adjusted Cash from Operations is calculated as cash generated from operations less cash cost of IFRS 16 leases. (5) Capital expenditure (Capex) consists of purchases of PPE for cash, prepayments for PPE and PPE financed by OEM. (6)    Net Debt excludes ROU liabilities and unamortised debt arrangement costs. (7)    Investment portfolio excludes Capital Innovation investments of $2.3 million (H1 2025: nil).

 

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

"Capital delivered a strong first half performance, with revenue increasing 37.6% year-on-year to $219.0 million, and Adjusted EBITDA increasing 70.4% to $54.7 million. This performance was underpinned by improved drilling contract productivity, continued momentum from MSALABS and solid execution across our mining services contracts.

On the back of a strong H1, we are pleased to announce an increase in our 2026 Group revenue guidance to $430 - $450 million (from $410 - $440 million).

We secured several important, long-term contract awards across drilling and laboratory services, including a new long-term contract with Maaden. At the same time, we discontinued drilling operations at Sadiola and Nevada Gold Mines, reallocating capital and equipment to markets where we see stronger demand and better long-term returns.

Our mining contracts at Reko Diq and Sukari continue to perform well. While recent commentary from Barrick noted a slowdown in capital expenditure at Reko Diq, Capital remains a well-established key contractor at the project and will continue to support its development going forward.

MSALABS continues to build on its momentum, with commissioning of new laboratories, increasing utilisation and improving margins. Its growing geographic footprint, customer and commodity diversification continue to broaden the Group's service offering.

We remain confident in the Group's outlook as we mobilise into several new contracts, with robust industry demand and attractive growth opportunities present across all divisions. We are pleased to declare an interim dividend of 1.3 cents per share, reflecting our continued focus on delivering value to shareholders."

Financial Overview

·      H1 2026 revenue of $219.0 million, up 37.6% on H1 2025 ($159.2 million);

·      H1 2026 Adjusted EBITDA of $54.7 million, an increase of 70.4% on H1 2025 ($32.1 million) with H1 2026 Adjusted EBITDA Margin of 25.0% (H1 2025: 20.2%);

·      H1 2026 Operational NPAT of $15.5 million, an increase of 638.1% on H1 2025 ($2.1 million);

·      H1 2026 Adjusted Cash from Operations of $41.4 million, a 24.3% decrease on H1 2025 ($54.7 million) partly driven by an unfavourable working capital position at the end of the period, some of which is expected to normalise in H2 2026;

·      H1 2026 Capex of $24.1 million (H1 2025: $20.4 million) including prepayments and assets financed by OEM;

·      Net debt at H1 2026 of $43.3 million decreased 21.8% on H1 2025 ($55.4 million), predominantly as a result of higher Adjusted EBITDA, offset by unfavourable working capital movements and net purchases in the investment portfolio; and

·      Declared an interim dividend of 1.3 cents per share, to be paid on 5 October 2026 to shareholders registered on 28 August 2026.

Operational Review

·      Safety performance remains strong with a Total Recordable Injury Frequency Rate ("TRIFR") of 1.2 per 1,000,000 hours worked in H1 2026 (H1 2025: 0.8).

Capital Drilling

·      Total rig count decreased to 131 by the end of H1 2026 (FY 2025: 137), as rigs were decommissioned as part of the withdrawal from NGM and Sadiola;

·      H1 2026 average rig utilisation was 71%, down from 74% in H1 2025. The decrease during the half was driven by rigs in transit, including redeployments from NGM and Sadiola, as well as rig movements around several short-term exploration contracts;

·      Average monthly revenue per operating rig ("ARPOR") was $210,000 in H1 2026, up 10.5% on H1 2025 ($190,000), reflecting portfolio optimisation initiatives despite several rig redeployments during the period;

·      New contract win

-     Awarded an 8-rig diamond drilling contract with Maaden for 2 years, with a 1-year extension option, across several of its exploration projects in Saudi Arabia, marking Capital's second contract in Saudi Arabia and the first direct contract with Maaden.

·      Contract wins during H1 2026 (previously announced)

-     Awarded a 5-year grade control drilling contract with Montage Gold at its Koné Gold Project in Côte d'Ivoire, which commenced in Q2 2026;

-     Awarded a 5-year deep hole directional diamond drilling contract at AngloGold Ashanti's Sukari Gold Mine in Egypt, which commenced in Q2 2026;

-     Awarded a 3-year diamond and reverse circulation drilling contract with PDI Gold at its Kiniero Gold Project in Guinea, which commenced in Q2 2026;

-     Awarded exploration drilling services contracts with Skylark Minerals and Santa Fe Minerals, and a short-term waterbore contract with Resolute Mining in Côte d'Ivoire.

·      Discontinued drilling operations: During H1 2026, the Group exited drilling operations at Sadiola (Mali) and Nevada Gold Mines (USA), reallocating equipment and management resources to higher-return opportunities across its existing operations. Assets from Sadiola are being redeployed to support the recently commenced PDI Gold contract in Guinea, while selected Nevada assets are being reallocated within the business or sold.

 

	H1 2026*	H1 2025	H1 2026* vs H1 2025
Closing fleet size	131	133	(1.5%)
Fleet utilisation1 (%)	71%	74%	(4.1%)
Average utilised rigs1	97	98	(1.0%)
ARPOR2($)	210,000	190,000	10.5%

*Unaudited numbers

¹ Average across the period

² Average revenue per month per operating rig

Capital Mining

·      Our operations at Reko Diq continue to perform well and in line with the contract;

-     Capital remains a well-established key contractor at the site and continues to support the project development;

·      Capital was awarded a waste stripping cutback services contract at Sukari Gold Mine, operated by AngloGold Ashanti;

-     This contract is utilising a mix of existing fleet and newly purchased trucks and additional ancillary equipment;

-     The contract has outperformed since it commenced in Q1 2026, with additional equipment en-route to site and expected to be commissioned in Q3 2026.

MSALABS

·      Laboratory utilisation increased to 54% in H1 2026 from 45% in H1 2025;

·      Adjusted EBITDA Margin for MSALABS division increased to 16.6% in H1 2026 from 4.8% in H1 2025;

·      Number of laboratories increased to 33 as at 30 June 2026 from 28 as at 31 December 2025. Note that this does not include franchise laboratories;

·      MSALABS possesses the largest international network of Chrysos PhotonAssay^TM technology with 15 units as at 30 June 2026, up from 14 units as at 31 December 2025;

·      Updates

-     Awarded a 5-year laboratory services contract with Tungsten West at its Hemerdon Mine in the United Kingdom;

-     MSALABS and Mari Minerals, a subsidiary of Mari Energies Limited (PSX:MARI), have incorporated a joint venture to deliver assaying services to support in-country exploration in Pakistan, with Mari Minerals being the cornerstone customer. Construction of the Phase 1 laboratory is expected to commence in Q3 2026 and be operational by the end of the year;

-     Commissioning is expected in Q3 2026 at a new commercial laboratory in Korhogo in Côte d'Ivoire, an on-site laboratory at Montage Gold's Koné Gold Project in Côte d'Ivoire and an on-site laboratory at United Gold's Amulsar Gold Mine in Armenia, with all laboratories expected to be contributing to Group revenue in Q4 2026.

·      New contract wins (previously announced)

-     MSALABS was awarded a 5-year commercial laboratory services contract with Equinox Gold's Valentine Project in Newfoundland, Canada. This contract underpinned the construction of a new commercial laboratory in Newfoundland, which was commissioned in Q2 2026, utilising PhotonAssay^TM technology, as well as providing sample preparation and multi-element analysis; and

-     Awarded a 5-year laboratory services contract at United Gold's Amulsar Gold Mine in Armenia.

Capital Investments

·      The total value of investments (listed and unlisted) was $116.5 million as at 30 June 2026, up from $97.5 million as at 31 December 2025, with the increase driven by:

-     Investment gains (realised and unrealised) of $7.0 million and dividend income of $0.2 million in H1 2026, achieving a 7.4% return. Over the same period, the VanEck Junior Gold Miners UCITS ETF decreased by 14.1%; and

-     Net investment purchases of $11.8 million, of which the majority related to the equity raises of WIA Gold and Asara Resources during Q2 2026;

·      The portfolio continues to be focused on a select few key holdings, namely WIA Gold, Asara Resources and Apollo Minerals.

Outlook

·      Group revenue guidance for 2026 is raised to $430 - $450 million (up from $410 - $440 million as previously guided at our FY 2025 results), reflecting the diversification of the Group and the strong demand environment. MSALABS revenue guidance is reiterated at $85 - $95 million. Capex guidance is reiterated at $55 - $65 million with spend weighted towards H2;

·      We remain focused on operational execution across the Group, including mobilising major new contract awards, completing key project transitions, commissioning new facilities and improving utilisation across our existing footprint.

·      Across our markets, industry activity remains robust, providing a supportive backdrop for organic growth, new commercial opportunities and future contract awards.

2026 Interim Dividend Timetable

-      Ex-Dividend Date: 27 August 2026

-      Record Date: 28 August 2026

-      Last Date for Currency Elections: 1 September 2026

-      Payment Date: 5 October 2026

Dividend Currency Elections

The interim dividend will be paid on 5 October 2026, in US dollars (USD) with an option for shareholders to elect to receive the interim dividend in Pounds Sterling (GBP). Currency elections should be made no later than 1 September 2026 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 28 August 2026 and the rate applied will be published on the website thereafter.

 

Capital Limited will host a live presentation on the Group's H1 2026 Results via the London Stock Exchange's SparkLive platform on 20 August 2026 at 9:00am BST.

The presentation is open to all existing and prospective shareholders and analysts. Questions may be submitted via the SparkLive page using the 'Ask a Question' button before or during the live presentation.

To access the webcast, please register in advance via the link below:

Capital Limited H1 2026 Results | SparkLive | LSEG

If you are unable to access the page by clicking the link above, paste the link below into your browser:

https://sparklive.lseg.com/CAPITALLIMITED/events/ecb82e9c-7b55-4151-8c92-cbd1547bab91/capital-limited-h1-2026-results

 

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, Executive Chair

Rick Robson, Chief Financial Officer

Conor Rowley, GM Commercial & Corporate Development

Ryan Tennis, 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

Varun Talwar

 

Panmure Liberum Limited                                                                                 +44 20 3100 2000

Scott Mathieson

John More

 

FTI Consulting                                                                                                       +44 20 3727 1000

Ben Brewerton                                                                                                     [email protected]

Nick Hennis                          

 

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 Armenia, Canada, Côte d'Ivoire, Democratic Republic of Congo, Egypt, Gabon, Guinea, Guyana, Kenya, Mauritania, Namibia, Pakistan, Saudi Arabia, Tanzania, United Kingdom, United States of America and Zambia.

 

INDEPENDENT REVIEW REPORT TO CAPITAL LIMITED

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2026 is not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34: Interim Financial Reporting and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

We have been engaged by Capital Limited (the 'Company') to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2026 which comprise of the following:

Condensed Consolidated Statement of Comprehensive Income

Condensed Consolidated Statement of Financial Position

Condensed Consolidated Statement of Changes in Equity

Condensed Consolidated Statement of Cash Flows

The related explanatory notes

 

Basis for conclusion

We conducted our review in accordance with the International Standard on Review Engagements (UK) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with UK adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK adopted International Accounting Standard 34: Interim Financial Reporting.

Conclusions relating to going concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed.  

This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410, however future events or conditions may cause the Group to cease to continue as a going concern.

Responsibilities of directors

The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

In preparing the half-yearly financial report, the directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

 

INDEPENDENT REVIEW REPORT TO CAPITAL LIMITED

 

Auditor's responsibilities for the review of the financial information

In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our conclusion, including our Conclusions Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.

Use of our report

Our report has been prepared in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority and for no other purpose.  No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent.  Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.

 

BDO LLP

Chartered Accountants

London, UK

 

Date

 

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

 

 

 

CAPITAL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2026
										Unaudited
										Six months ended
								Notes		30 June 2026		30 June 2025
										US$'000		US$'000
Revenue								3		219,010		159,200
Cost of sales										(121,869)		(94,473)
Gross profit										97,141		64,727
Administration expenses										(35,536)		(27,014)
Depreciation, amortisation, and impairments										(29,825)		(21,542)
Operating profit										31,780		16,171
Interest income										34		37
Dividend income										190		865
Finance costs										(5,981)		(8,113)
Share of loss and impairment of investment in associate								19		(137)		(5,693)
Realised and unrealised fair value gain on financial assets								18		6,972		19,252
Profit before taxation										32,858		22,519
Taxation								4		(11,571)		(7,692)
Profit for the period and other comprehensive income										21,287		14,827
Profit and other comprehensive income attributable to:
Owners of the parent										22,777		14,843
Non-controlling interest								12		(1,490)		(16)
										21,287		14,827
Earnings per share:
Basic earnings per share ($c)								5		10.1		7.6
Diluted earnings per share ($c)								5		9.8		7.6

 

CAPITAL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2026
								Unaudited		Audited
						Notes		30 June 2026		31 December 2025
ASSETS								US$'000		US$'000
Non-current assets
Property, plant and equipment						7		239,929		241,978
Right-of-use assets						8		37,230		36,271
Goodwill								1,296		1,296
Intangible assets								808		884
Other receivables						9		11,525		13,244
Investment in associate						19		695		503
Total non-current assets								291,483		294,176
Current assets
Inventories								60,646		64,777
Trade receivables						10		70,676		52,288
Other receivables						9		62,170		53,955
Investments at fair value						18		118,808		99,801
Current tax receivable								1,726		1,789
Deferred tax								355		714
Cash and cash equivalents								48,079		63,376
Total current assets								362,460		336,700
Total assets								653,943		630,876
EQUITY AND LIABILITIES
Equity
Share capital						11		23		23
Share premium						11		103,669		103,499
Equity-settled employee benefits reserve								5,237		5,279
Other reserve								190		190
Retained income								288,244		266,742
Equity attributable to owners of the parent								397,363		375,733
Non-controlling interest						12		11,455		12,957
Total equity								408,818		388,690
Non-current liabilities
Loans and borrowings						13		69,780		76,275
Lease liabilities						8		24,680		24,678
Trade and other payables								414		5,004
Total non-current liabilities								94,874		105,957
Current liabilities
Trade and other payables								107,387		92,886
Provisions								203		203
Current tax payable								9,356		13,188
Loans and borrowings						13		20,726		18,541
Lease liabilities						8		12,579		11,411
Total current liabilities								150,251		136,229
Total equity and liabilities								653,943		630,876