Capital Ltd on Friday said it expects growth in 2024 to be driven by an increase in operations with Nevada Gold Mines, as it reported a revenue jump for 2023.
The mining services company said revenue rose 6.8% in the fourth quarter of 2023 to $84.5 million from $79.1 million a year ago. This was boosted by a 51% jump in mining revenue to $19.6 million from $13.0 million.
Drilling and associated revenue however declined 7.2% to $54.1 million from $58.3 million.
Revenue from MSALABS, a provider of geochemical laboratory services for the exploration and mining sectors, in which Capital owns a majority stake, jumped 39% to $10.8 million from $7.8 million.
Total revenue for Capital rose 9.7% to $318.4 million in 2023 from $290.3 million in 2022.
Looking ahead, Capital said it continued ‘to see strong demand across each of its business divisions.’ It expects further growth for Capital Drilling in 2024, boosted by operations with Nevada Gold Mines and ‘strong growth potential across a number of our existing operations.’
Nevada Gold Mines is a joint venture between Barrick Gold Corp and Newmont Corp.
Chief Executive Officer Peter Stokes said: ‘The group has delivered outstanding compound annual revenue growth of 33% since 2020 and we are confident of maintaining our growth momentum as we start 2024. This is not only through our active tendering pipeline but also our stellar safety performance, blue-chip customer base and focus on long term mine site contracts, as highlighted by the substantial contract extension at Sukari, underpinning the business for this further growth.’
Capital shares fell 5.6% to 85.88 pence each on Friday morning in London.
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