Africa-focused Capital Drilling continues to be well positioned for an anticipated uplift in demand, especially in West Africa.
“At this early stage of the year, we have already seen some encouraging signs in the market, with robust metals prices, particularly gold, and improving capital markets.
“There remains a fundamental requirement from the mining industry to replace resources and reserves depleted during the downturn, when exploration drilling was significantly reduced due to budgetary constraints.”
“The market for our services in Africa is reflected in the increase in the number of quality tenders which, along with our strong financial position, our increased regional presence and a modern and young fleet, places Capital Drilling on a platform for further growth,” Capital Drilling chairperson Jamie Boyton said in a statement on Thursday.
The company’s long-term mining and production contracts continued to perform well over the quarter ended March 31, with an improved contract performance contributing to an increase in profitability over the previous corresponding period.
The company recorded further growth in West Africa, through the award of its first contract in Burkina Faso. The 20 000 m exploration drilling programme for Golden Rim Resources will start this month.
The company generated revenue of $27-million during the first, representing an increase of 1.5% on the $26.6-million generated in the first quarter of 2018.
Revenue is in line with the company’s full-year guidance of $110-million to $120-million.