Capital Limited (LSE:CAPD) is strengthening its position in the global mining services sector, combining expansion into Australia with larger drilling contracts and growing demand across its three operating divisions. With revenue increasing by more than 32% year-on-year over the first nine months of 2026, the company has raised its full-year revenue guidance, providing further evidence of the scale of its growing operations.
In an interview with ADVFN’s The Watch List, Ryan Tennis, Head of Corporate Development and Investor Relations at Capital Limited, discussed the company’s recent acquisition of Metres Down Under (MDU), the expansion of its relationship with Fortescue in Gabon and the operational progress supporting its upgraded financial outlook.
Australia Opens a New Growth Market
A significant development for Capital is its completed acquisition of Metres Down Under, an established specialist underground reverse circulation (UG RC) drilling business based in Western Australia.
Completed in early October 2026, the acquisition establishes Capital’s operating presence in Australia, one of the world’s leading mining jurisdictions. It also provides an established operational platform, an experienced management team and access to existing drilling contracts at major gold mining operations.
MDU operates at AngloGold Ashanti’s Sunrise Dam and Tropicana mines, strengthening Capital’s relationship with a major international mining customer with which it already has an established working relationship.
For Capital, the acquisition offers an opportunity to build on an existing corporate presence in Perth and pursue further growth in the Australian market. It also enhances the group’s specialist underground drilling capabilities, creating opportunities to deploy this expertise across its international operations.
The transaction brings an established revenue-generating business into the group. MDU generated approximately US$25 million in revenue and US$6 million in adjusted EBITDA in the 12 months to September 2026, with the acquisition expected to be earnings-accretive from the outset.
Tennis highlighted the potential to use MDU’s existing platform to pursue additional opportunities in Australia while also leveraging its capabilities across Capital’s wider international business.
Fortescue Contract Expansion Adds Further Momentum
Alongside its Australian expansion, Capital is increasing its activity at Fortescue’s Belinga Iron Ore Project in Gabon.
Capital has operated at Belinga since 2023, building an established relationship with Fortescue. The recently announced contract extension and expansion of scope provides for an additional five drilling rigs, bringing the total number of rigs at the project to ten.
The expansion also includes a two-year extension to the drilling services contract, providing a longer-term operational commitment at the project.
Mobilisation of the additional equipment has commenced, with two of the five additional rigs already on-site, according to the company’s third-quarter trading update.
The expanded contract demonstrates Capital’s ability to grow its presence with an existing customer, using its operational experience and established site presence to support increased activity.
Combined with the MDU acquisition, the development at Belinga provides two distinct sources of growth: entry into a new geographical market and expansion of an established international contract.
Tennis said both developments are expected to contribute positively to group earnings over the coming years, while Capital will continue to pursue further opportunities in Australia.
Growth Across All Three Operating Divisions
Capital’s growth story extends beyond drilling, with Tennis highlighting positive contributions from all three of the group’s operating divisions: drilling, mining and MSALABS, its geochemical laboratory business.
Within drilling, the company is benefiting from the MDU acquisition, the expanded Belinga contract and the commencement of several new long-term drilling contracts.
These include contracts with Montage Gold, PDI Gold and Maaden, broadening the group’s operational activity and customer base.
The mining division is also benefiting from the ramp-up of two major contracts. Operations at Barrick’s Reko Diq copper-gold project and AngloGold Ashanti’s Sukari mine have reached their planned operating levels, following the commencement of the respective contracts in 2025 and 2026.
This progress provides a stronger contribution from Capital’s mining activities as the projects move into established operating phases.
Meanwhile, MSALABS continues to expand its laboratory network and increase utilisation across existing facilities.
The business has added several laboratories over the past 12 months, supporting increased capacity and revenue growth. Its activities provide Capital with an additional source of exposure to the mining industry, complementing its drilling and mining operations.
The breadth of this growth is important. Rather than relying on a single contract or business line, Capital is developing opportunities across multiple services, customers and geographical markets.
Revenue Growth Supports Higher Full-Year Guidance
The operational progress is reflected in Capital’s financial performance.
For the first nine months of 2026, group revenue reached US$334.7 million, an increase of 32.2% compared with the corresponding period in 2025.
Third-quarter revenue alone totalled US$115.7 million, up 23.2% year-on-year. MSALABS delivered another strong quarter, with revenue increasing by 23.8% to US$26 million, while mining revenue rose by 223.1% to US$25.2 million as major contracts continued to ramp up.
Following the acquisition of MDU, Capital raised its full-year 2026 revenue guidance to between US$435 million and US$455 million, compared with its previous range of US$430 million to US$450 million.
The company also maintained its MSALABS revenue guidance of US$85 million to US$95 million.
During the interview, Tennis pointed to the contribution of all three operating divisions, alongside favourable conditions across the mining industry, as important factors supporting the company’s outlook.
Elevated commodity prices, strong equity raisings and increasing exploration budgets are helping underpin demand for mining services. Capital is positioned to participate in that demand through its established international operations, expanded contracts and growing service capabilities.
Tennis expressed confidence in the company’s ability to deliver against its upgraded FY26 revenue guidance.
A Broader Platform for Continued Growth
Capital Limited’s latest developments highlight a business expanding its operational reach while building on existing customer relationships.
The acquisition of MDU establishes a presence in the Australian drilling market and provides access to established mining contracts. At Belinga, the expansion of the Fortescue contract demonstrates the potential to increase activity with an existing customer. Meanwhile, the ramp-up of major mining contracts and continued expansion at MSALABS are contributing to growth across the wider group.
Together, these developments give Capital several avenues through which to pursue further opportunities as mining companies continue to invest in their operations and exploration programmes.
With higher full-year revenue guidance and new sources of growth being integrated into the business, Capital enters the remainder of 2026 with an expanded operating platform and a stronger presence across key mining markets.
For investors, the key development is the combination of established operations, new contract activity and geographical expansion, with the coming periods providing further opportunities for Capital to demonstrate how these investments translate into sustained revenue and earnings growth.
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