London-listed mining services company Capital continues to see strong demand across each of its business divisions, with the group expecting to report total revenue of $318-million for the year ended December 31.

This marks a 9.7% year-on-year growth rate compared with the prior year.          

However, the revenue generated in the 2023 financial year is expected to be below guidance of $320-million to $340-million, with the fourth-quarter revenue having been impacted on by a number of factors, including subdued activity in Mali and operations not yet restarting in Sudan.

Additionally, the company’s revenue from MSALABS fell short on what had been an aggressive growth target for the year. The MSALABS revenue grew by 40% year-on-year to $38.4-million nonetheless.

Capital has more laboratory rollouts planned for this year.

The company provides a range of drilling, mining, maintenance and geochemical laboratory solutions to customers in the global mining industry.

In the year under review, MSALABS was awarded a five-year comprehensive laboratory services contract with Nevada Gold Mines (NGM) in the US, with MSALABS to operate a high-end hybrid laboratory incorporating three Chrysos PhotonAssay units, as well as traditional fire assay methods and full multi-element assaying capabilities.

The contract is anticipated to generate $14-million over the five-year term, with yearly revenues of about $30-million once fully operational, making it the largest award of new business in the history of MSALABS.

Capital expenditure for the project has been earmarked at about $7-million.

Additionally, MSALABS last year forged a global partnership with Barrick Gold and Chrysos Corporation to deliver PhotonAssay technology across Barrick’s global mine sites.

The three PhotonAssay units with NGM mark the start of this broader partnership agreement, with trials under way for a possible 10 further PhotonAssay units by the end of 2025 across multiple of Barrick’s other operations.

Moreover, Capital Drilling was awarded a five-year contract renewal for the Sukari mine, in Egypt, starting January 1, 2025.

Subject to the conclusion of a definitive drilling services agreement, which will include blast hole and grade control drilling, the contract may extend the company’s activities on site to the end of 2029.

Capital has also signed a two-year grade control drilling contract with Perseus Mining, which involves work at the Sissingué mine, in Côte d’Ivoire. This adds to existing contracts the company has in place with Perseus in Sudan and Côte d’Ivoire.

Capital’s average monthly revenue per operating rig was $188 000 in the fourth quarter of last year, down 1.6% year-on-year, and up 5% compared with the third quarter. The company’s rig count increased from 126 to 127 through the fourth quarter, net of depletion.

Capital Drilling is set for further growth this year, particularly driven by a ramp-up of operations with NGM, as well as strong growth potential across a number of existing operations.

Tendering activity also remains robust across the group with a number of high-quality opportunities progressing.