Mining services company Capital CE Peter Stokes says the company is excited for the year ahead after "another great year" in 2023, in which it achieved growth for the fourth consecutive year, despite a challenging market environment.

The UK-headquartered company's services include exploration, delineation and production drilling; load and haul services; maintenance; and geochemical analysis. It has established operations in Côte d'Ivoire, Canada, the Democratic Republic of Congo, Egypt, Gabon, Ghana, Guinea, Kenya, Mali, Mauritania, Nigeria, Pakistan, Saudi Arabia, Tanzania and the US.

Capital's revenue increased by 9.7% year-on-year to $318.4-million, while its earnings before interest, taxes, depreciation and amortisation increased by 6.3% year-on-year to $91.8-million for the financial year ended December 31, 2023.

Its capital expenditure (capex) also increased by 20% year-on-year to $69-million.

"Our drilling business had another strong year, achieving growth despite difficult global market conditions. We have stayed committed to our strategy of focusing on tier one clients with world-class assets. This dedicated commitment has seen us add world-class assets to our contract portfolio, most notably Barrick Gold Corporation's copper project at Reko Diq, in Pakistan; Fortescue Metals Group's majority-owned iron-ore project at Belinga, in Gabon; and the major gold-mining complex in the US, with Nevada Gold Mines, marking our first entry into the North American market.

"Our mining business was awarded its second high-quality mining services mining contract with Ivindo, in Gabon, which mobilised successfully through the year. Operations at Sukari, in Egypt, were also consistent throughout 2023, and we are on track to complete the contract by mid-2024, six months ahead of contracted requirements.

"We have now demonstrated our expertise in both rapid mobilisation and excellent performance in load and haul operations. These milestones underscore our position as a trusted partner for tier one clients and provide a robust foundation for future growth," says Stokes.

He adds that the company's MSALABS business has also achieved "remarkable" growth in 2023 on the back of the successful rollout of the Chrysos PhotonAssay technology.

"MSALABS is quickly becoming a major component of the group, as recently highlighted by its largest contract to date with Nevada Gold Mines. It is set to operate PhotonAssay units, as well as traditional fire assay methods, complemented by extensive multi-element assaying capabilities, all within a state-of-the-art hybrid laboratory – the first of its kind in the US.

"Moreover, the business continues to strategically lay the foundations for further growth through its recent global partnership with Chrysos and Barrick," Stokes points out.

For this financial year, Capital expects to generate revenue of between $355-million and $375-million, driven by an improved contract portfolio, ramp-ups of new drilling and mining contracts and the continued expansion of MSALABS.

The MSALABS business is expected to deliver revenues of $50-million to $60-million this year, compared with $38.4-million in 2023.

The group's capex guidance has been set at $70-million to $80-million for this year. This will include the funding of sustaining and replacement capex across Capital's drilling and mining fleet to ensure ongoing productivity; the acquisition of new rigs to drive growth in the US; and the expansion of MSALABS.