London-listed mining services group Capital has reported that its third quarter, ended September 30, delivered its highest quarterly revenue in its operating history, supported by a steady drilling performance, a ramp-up in mining activities at the Reko Diq copper/gold project, in Pakistan, and record revenues for its subsidiary MSALABS.

The company notes that MSALABS continues to demonstrate an improving performance – achieving its highest-ever quarterly revenues.

“The division is now positively contributing to group profitability after a rapid expansion in our footprint over the last two years,” says Capital executive chairperson Jamie Boyton.

He explains that drilling is in line with the company’s targeted long-term utilisation levels, that the ramp-up of mining operations at Reko Diq is progressing well and that the company’s investment book recorded gains of $22.5-million during the quarter.

“With continued momentum from high commodity prices driving the market, we are seeing robust revenue and margin growth across all business divisions and expect to finish the year strong, accelerating into 2026,” he says.

For the second time this year, Boyton points out, Capital is increasing its 2025 full-year revenue guidance to between $335-milllion and $350-million, which includes increased MSALABS revenue guidance of between $65-million and $75-million.

The company previously raised its revenue guidance to between $320-million and $340-million, including between $55-million and $65-million for MSALABS, compared with its originally guided revenue of between $300-million and $320-million, including $50-million to $60-million in revenue for MSALABS.

The company reported revenue of $93.9-million for the September quarter, a 7.4% quarter-on-quarter and 0.2% year-on-year increase.

Drilling and associated revenue for the quarter was $65.1-million, up 3.3% quarter-on-quarter and 1.9% year-on-year.

Mining revenue for the quarter was $7.8-million, up 11.4% quarter-on-quarter, but 59.6% lower year-on-year.

MSALABS’s revenue for the quarter was $21-million, up 20.7% quarter-on-quarter and 100% year-on-year.

CAPITAL DRILLING

Capital noted that its total rig count had increased to 134 in the third quarter of this year, compared with 133 as at June 30, net of depletion.

Additionally, fleet utilisation for the quarter increased to 76%, from 74% in the second quarter, consistent with that of the third quarter of 2024. Utilisation across the fleet is at long-term target utilisation levels of 75%.

The average monthly revenue per operating rig was $198 000 in the third quarter, consistent with the second quarter and down 5.7% on the third quarter of 2024.

In lieu of strong demand across the sector, Capital says all rig orders for 2026 have already been placed.

Moreover, the company has secured an exploration diamond drilling contract for ANKH Resources, in Egypt.

RAMP-UP GAINS TRACTION

Capital says its mining contract at Reko Diq continues to advance through the ramp-up phase, adding that the civils fleet has begun double shift operations as the company continues to train and expand its Pakistani workforce.

The company says the first tranche of the tailings storage facility (TSF) fleet has arrived on-site with the second tranche in Karachi awaiting mobilisation to site and is expected to begin ramp-up in the fourth quarter of this year.

The mining contract at Reko Diq is being expanded to include additional development equipment and 100 new personnel.

Capital says it is expected to lift run-rate contract revenue by about $10-million once fully operational in the first half of 2026.

Additionally, capital expenditure (capex) purchases of about $5-million are under way and the company says it expects to remain within its previously stated capex guidance range of $45-million to $55-million.

MSALABS

Meanwhile, Capital reports that MSALABS is now achieving positive net profitability, driven by cost optimisation and higher utilisation at laboratories as the company focused on consolidating its growth and ramping up current operations.

Capital notes that, subject to final documentation, it has been awarded a three-year contract, with an option to extend for a further three years, at Reko Diq to build and operate an on-site prep and geochemistry laboratory.

Equipment purchases are under way and the company says it expects to begin operations in the first half of 2026.

CAPITAL INVESTMENTS

Capital notes that the total value of investments (listed and unlisted) was $73.9-million as at September 30, up from $49.5-million as at June 30, with the portfolio recording investment gains (realised and unrealised) of $22.5-million in the third quarter of this year.

The company says the portfolio remains focused on select key holdings namely WIA Gold, Asara Resources and Sanu Gold.

OUTLOOK

Capital says it expects this momentum to continue into 2026, with improving financial performance at MSALABS, continued ramp-up at its Reko Diq mining contract and contract execution across its drilling business.

The company says the mining and exploration market is entering a phase of high levels of demand, underpinning a multiyear growth cycle.

“We are strategically positioned to benefit from this demand backdrop, as currently demonstrated by our high level of tendering activity,” it says.