Capital Ltd on Wednesday reported a rise in revenue for the first half of 2023 as it kept its anticipation of revenue growth for the full year unchanged.
The London-based provider of drilling and other mine services, such as crushing, said interim revenue climbed 12% to $154.3 million from $138.1 million a year ago, while average revenue per month per operating rig increased 8.7% to $188,000 from $173,000.
In the second quarter along, revenue was $76.5 million, up 7.4% from $71.2 million a year before, though down 1.7% from the first quarter.
For 2023, Capital continues to expect revenue growth of at least 10% to between $320 million and $340 million from $290.3 million in 2022.
Chief Executive Peter Stokes said: ‘This will be driven across all business divisions, with the Ivindo iron ore mining contract commencing in Q3 2023, the world-class drilling contracts at Ivindo iron ore and [Barrick Gold Corp]’s Reko Diq project announced earlier in the year ramping up through Q3 2023, and also MSALABS continuing to build its global network of laboratories.’
MSALABS is a subsidiary of Capital and a provider of geochemical laboratory services for the exploration and mining sectors. Ivindo is in Gabon, while the Reko Diq copper-gold project is in Pakistan.
Further, Capital said that Capital Drilling revenue will rise in the second half of 2023, while tendering activity remained robust ‘with a number of opportunities progressing’.
Capital shares were 0.3% higher at 88.67 pence each in London on Wednesday morning.
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