LONDON (ShareCast) - (Sharecast News) - Mining services company Capital Limited reported significant revenue growth in a first-half update on Thursday, with second quarter revenue increasing 16.6% year-on-year to $89.2m, and first-half revenue up 9.8% to $169.4m.
The London-listed firm said drilling and associated revenue for the second quarter rose 14.3% to $60.1m, while mining revenue surged 26.6% to $18.1m.

Its MSALABS division saw a 14.6% increase in second-quarter revenue to $11m.

Notably, average monthly revenue per operating rig (ARPOR) increased 15.3% on the year to $0.21m, reflecting the ramp-up of high-quality contracts and efficiency improvements at established sites.

Operational highlights included maintaining a solid safety performance, with a total recordable injury frequency rate (TRIFR) of 1.1 per million hours worked.

Fleet utilisation was steady at 72%, with the rig count rising to 127 by the end of the second quarter.

Significant contract wins included a one-year grade control drilling services contract with Barrick Gold at the Lumwana Mine in Zambia and various extensions and expansions across existing contracts.

Capital Mining saw a slight extension of its Sukari waste mining contract, with Centamin opting for additional waste removal.

The Belinga site in Gabon successfully mobilised its mining fleet, focusing on resource expansion activities.

MSALABS continued to establish widespread adoption of its 'PhotonAssay' technology, with second quarter revenues driven by increased utilisation across operations.

The division was planning to deploy three PhotonAssay units in Nevada, with further expansion potential through a broader partnership with Barrick Gold.

That contract was expected to generate around $140m over five years.

Capital also completed a strategic investment in Eco-Detection, acquiring a 22% ownership stake.

It said Eco-Detection's 'Ion-Q' platform offers real-time, autonomous water quality monitoring, with significant growth potential in the mining sector.

For the full 2024 year, Capital maintained revenue guidance of $355m to $375m.

Positive momentum was anticipated in the second half, driven by the ramp-up of operations at Nevada Gold Mines and the start of operations at Lumwana.

MSALABS was expected to contribute $50m to $60m to 2024 revenue, supported by the Nevada Gold Mines contract.

The company said it was still seeing robust tendering activity across its divisions.

"The group has seen stable growth in the first half of 2024, with a focus on fleet movement and asset deployment as we commence new operations," said chief executive officer Peter Stokes.

"Our focus for the second half will be on the operational delivery of key contracts across drilling and MSALABS and we remain confident in our $355m to $375m revenue guidance."

At 1209 BST, shares in Capital Limited were flat at 98p.

Reporting by Josh White for Sharecast.com.

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