London-listed mining services company Capital has increased its full-year revenue guidance following a strong first-half performance.
The firm recorded a 39.9% year-on-year increase in revenue to $138.1-million and a 47.3% year-on-year increase in net profit after tax to $18.4-million for the six months ended June 30. This has resulted to an increase in revenue guidance for the full year to between $280-million and $290-million, compared with the previously stated guidance of between $270-million and $280-million.
Non-drilling revenue contributed 28% of the total revenue for the six-month period under review, compared with 17% last year, which the company said was driven by year-on-year growth in mining services and in its majority-owned analytical services subsidiary MSALabs.
MSALabs has an improved growth outlook owing to the expanded global partnership with mining technology company Chrysos that is expected to bolster its number of PhotonAssay units for improved gold analysis.
The partnership with MSALabs is aimed at deploying 21 Chrysos PhotonAssay units globally by 2025. The rollout of the initial six units by year-end is on track, in addition to four units that were already announced for installation at the Bulyanhulu gold mine, in Tanzania; the Morila gold mine, in Mali; the Kibali gold mine, in the Democratic Republic of Congo; and Val d’Or in Quebec, Canada.
The fifth unit is set to arrive at Yamoussoukro, in Côte d’Ivoire, with facility preparations well advanced while the sixth unit is due to begin installation in Timmins, Canada, by the end of the year. MSALabs was also awarded a two-year extension to the existing three-year on site laboratory services contract with gold miner Kinross at the Tasiast mine, in Mauritania.
Aside from raising the company’s revenue guidance for the year, Capital has also lifted its capital expenditure (capex) guidance to between $50-million and $55-million, which includes higher sustaining capex on an expanded fleet, and additional rigs to replace expedited rig replacements.