London-listed mining services company Capital has reported a 17.6% year-on-year increase in revenue to $93.7-million for the third quarter and is maintaining its full-year revenue guidance at between $355-million and $375-million.

The company's drilling and associated revenue increased by 24.8% year-on-year to $63.9-million and its mining revenue by 7.2% year-on-year to $19.3-million.

Its laboratories business MSALABS recorded revenue of $10.5-million for the quarter, which was flat compared with the $10.5-million reported for the third quarter of 2023, but 4.5% lower than the revenue of $11-million recorded for the second quarter of this year.

Capital's drilling division increased its fleet utilisation from 72% in the third quarter of last year to 76% in the quarter under review, mainly as a result of the ramp-up at Perseus Mining's Nyanzaga project, in Tanzania, along with consistent operations across the rest of the portfolio.

The average revenue per operating rig also increased by 17.3% year-on-year to $210 000.

"Total rig count will increase further as rigs arriving on site, predominantly in Nevada, are commissioned," Capital CE Peter Stokes says.

Capital announced in September last year that it had secured a three-year drilling contract at Nevada Gold Mines (NGM), in the US. NGM is a joint venture between Barrick Gold Corporation and Newmont Corporation.

That was followed by the announcement in October 2023 that Chrysos Corporation and MSALABS had entered into an agreement to provide Chrysos' PhotonAssay technology to Barrick Gold's mine sites on four continents, starting with the deployment of three units to the NGM complex.

Capital says MSALABS's third-quarter revenues were broadly in line with the previous quarter as the contract with NGM had not yet started making a contribution. However, MSALABS has subsequently begun receiving samples at NGM, with the ramp-up of the PhotonAssay units and subsequently fire assay and multi-element assaying capabilities to progress over the next 12 months.

However, as the ramp-up of the contract is taking longer than expected, MSALABS's full-year revenue has been estimated to reach only about $45-million.

Capital says that while the PhotonAssay adoption cycle has been slower than expected, engagement with top-tier customers is very strong and underpins a healthy long-term outlook.

" . . . we look forward to continuing to ramp the business through 2025," says Stokes.

Meanwhile, the strong third-quarter mining revenues were driven by extended activity at Centamin's Sukari gold mine, in Egypt. That mining contract has, however, been completed.

Further, Capital points out that Fortescue Metals Group has decided to change its development strategy at the Belinga iron-ore mine, in Gabon, from pre-production mining to resource development and, therefore, taken the decision to cancel the mining contract with Capital early.

"As a result, Capital will have available mining fleets, across both Egypt and Gabon, once demobilisations are complete. We are now finalising next steps for this mining equipment and will then update the market," says Stokes.

Capital assures shareholders that tendering activity remains robust across the group "with a number of opportunities progressing".