London-listed mining services company Capital has signed four new contracts for diamond and reverse circulation drilling in Guinea, Côte d’Ivoire and Tanzania, which will help meet its revenue guidance of between $300-million and $320-million for the full year.

For the first quarter, ended March 31, Capital reported a 15.4% decrease in revenue to $71.8-million, compared with the $80.2-million of revenue generated in the same quarter of last year.

Drilling revenue increased by 10% year-on-year to $57-million but was offset by a near 97% decrease in mining revenue to $600 000 from $18-million in the prior corresponding quarter.

The lower mining revenue was mainly a result of the conclusion of mining contracts at the Sukari gold mine, in Egypt, and the Belinga iron-ore mine, in Gabon.

Revenue from the MSALABS division increased by 37% year-on-year to $13.5-million in the quarter under review.

“As management continues to focus on operations in the US, we expect to drive further gains through the year, albeit weighted to the second half. MSALABS has started the year strong, driven by increased utilisation at Nevada Gold Mines and a new commercial laboratory in Fairbanks, Alaska,” says chairperson Jamie Boyton.

The company had a fleet of 135 units at the end of March, compared with a closing fleet size of 124 units at the end of March last year. Fleet utilisation also increased from 66% in the prior corresponding quarter to 73% in the reporting quarter.

Capital’s average monthly revenue per operating drill rig was $182 000 in the first quarter of the year, which is 9.9% lower than in the first quarter of last year and 7.6% lower compared with the preceding quarter ended December 31, 2024.

This reduction is owing to rigs being commissioned and not yet reaching their full run rate productivity.

The four new contracts have been signed with Perseus Mining at its Nyanzaga gold project, in Tanzania; with Sanu Gold at its Daina and Diguifara projects, in Guinea; with Asara Resources at its Kada gold project, in Guinea; and with Koulou Gold at its Sakassou project, in Côte d’Ivoire.

In addition to the new contracts signed, the company has also mobilised equipment at the Reko Diq project, in Pakistan.

The Reko Diq mining services contract, which relates to a project operated by Barrick Gold Corporation, will run through to December 2028. The contract may be extended for five years thereafter.

The scope of work for the contract includes early civil works and tailing storage facility services.

Capital expects positive momentum through the year with a focus on consolidating ramp-ups in key growth areas, including in the US, and advancing tendering activity and new opportunities.

MSALABS, in particular, is expected to generate between $50-million and $60-million in revenue for the full year, on the back of profitability gains and commissioning of another Chrysos PhotonAssay unit in Nevada.