Capital Limited (LSE:CAPD) delivered record first-half revenue as strong growth across its drilling, mining and laboratory services businesses offset the impact of contract exits in Mali and the United States. The mining services group also reaffirmed its full-year revenue guidance, supported by expanding operations and continued investment in higher-return projects.
Record revenue driven by diversified growth
Second-quarter revenue reached a record $117.3 million, while first-half revenue increased 37.6% year on year to $219.0 million. Growth was supported by strong performances across Capital Drilling, Capital Mining and MSALABS, highlighting the benefits of the group’s diversified business model.
Capital is also reallocating equipment and capital previously deployed on discontinued contracts in Mali and the US towards projects offering stronger long-term returns. Although these changes will result in one-off demobilisation costs, management maintained its full-year revenue guidance of between $410 million and $440 million.
The company also continued to deliver solid operational safety performance during the period.
New contracts and expansion support outlook
Capital Drilling benefited from higher fleet utilisation and improved revenue per rig, supported by new contracts across Côte d’Ivoire, Guinea, Egypt and Tanzania. These gains helped offset the planned wind-down of work at Nevada Gold Mines and the Sadiola project.
Within Capital Mining, work at the Reko Diq project continued broadly in line with expectations despite a slower development schedule, while waste mining activities at the Sukari mine expanded faster than originally anticipated.
MSALABS also continued to grow its global footprint through the launch of new laboratories and a joint venture in Pakistan, strengthening its position in the mining laboratory testing market. In addition, the company’s portfolio of strategic mining investments outperformed broader sector benchmarks during the period.
Investment outlook
Capital Limited continues to benefit from strong revenue growth, healthy operating profitability and an improving balance sheet. The group’s strategy of shifting resources towards higher-margin projects and expanding its laboratory services business provides additional opportunities for long-term earnings growth.
Although technical indicators remain relatively weak, the shares trade on an attractive valuation based on earnings, while improving operational performance and a diversified project pipeline support the company’s longer-term investment case.
About Capital Limited
Capital Limited is a London-listed mining services company providing drilling, mining and laboratory testing services to gold and base metals producers across emerging mining regions. Its operations are organised through three core divisions—Capital Drilling, Capital Mining and MSALABS—and are complemented by a portfolio of strategic equity investments in junior mining companies. The group has a growing presence across West Africa, North Africa, Pakistan and other international mining markets.
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