Mining services provider Capital remains on track to meet its revenue guidance of between $320-million and $340-million for the full-year, after having generated $79.7-million in revenue in the third quarter, ended September 30.

Revenue for the quarter was 9% higher year-on-year and 4.2% higher quarter-on-quarter, which CE Peter Stokes believes underscores the high quality and diverse nature of the company's services.

Drilling activities accounted for the majority of the group’s revenue generation in the quarter, at $51.2-million, while mining revenue totalled $18-million and laboratories revenue totalled $10.5-million.

Notably, mining revenue grew by 38% compared with the third quarter of last year and by 25.9% compared with the preceding quarter, while laboratories revenue was up by 36.4% compared with the same quarter of last year and 9.4% higher compared with the second quarter of this year.

Fleet use was down 6.5% in the quarter, compared with the same quarter of last year, at 72%, owing to seasonal weather conditions in West Africa and softer activity levels in Mali.

The company expects to see positive momentum going into the last quarter of the year from the continued ramp-up of its operations at the Invindo and Reko Diq projects, in Gabon and Pakistan, respectively.

This momentum will continue further into 2024 as drilling operations start with Nevada Gold Mines, in the US. Stokes expects this contract to enable more expansion into the North American market.

The contract, which involves underground reverse circulation and diamond drilling, has a term of three years and will generate about $35-million in revenue a year once fully operational from 2025.

The company also expects its Sukari earthmoving contract, in Egypt, to perform at steady state through the remainder of the year.

More contract wins in the period under review include an extension of an exploration drilling contract with Allied Gold at its Sadiola project, in Mali, and additional grade contract drilling at the same project.

Capital advises that operations at Perseus Mining's Meyas Sand gold project, in Sudan, have been temporarily suspended following an escalation of conflict in the country as of April. The parties expect to resume operations in 2024.

Overall, Capital’s rig count increased from 125 to 126 in the third quarter of the year.

LABORATORY SERVICES
Capital continues to expand its MSALABS business, having placed strong emphasis on deploying Chrysos PhotonAssay units, as client assay trials continue to grow the reputation of this technology.

Capital will roll out another 21 Chrysos units by 2025.  

Ten units are currently deployed or are under construction across Africa and Canada.

 MSALABS also continues to make strides with its traditional geochemical business, having established a mine site fire assay laboratory at Barrick Gold’s Kibali Phase II project, in the Democratic Republic of Congo. The laboratory is set to become operational imminently.