This represents an annual growth rate of 9.7% compared to the previous year.
However, fiscal 2023 revenue is expected to be below guidance of $320 million to $340 million, with fourth-quarter revenue impacted by multiple factors, including weakened activity in Mali and the continued restart of operations in Sudan.
Additionally, the company’s MSALABS revenue fell short of its ambitious growth targets for this year. MSALABS revenue still increased 40% year over year to $38.4 million.
Capital plans to launch more labs this year.
The company provides a range of drilling, mining, maintenance and geochemical laboratory solutions to customers in the global mining industry.
More news
- Diamond imports on the rise in December as mid-stream restocks
- Tirupati raises £1.05m to optimise production in Madagascar
- Ausgold closes in on Katanning development
- BHP mining partnership tackles cyber security
- MTM to raise funds via private placement to support REE projects
During the year, MSALABS signed a five-year comprehensive laboratory services contract with Nevada Gold Mines (NGM) in the United States, where MSALABS will operate a high-end hybrid laboratory including three Chrysos PhotonAssay units as well as traditional fire assay methods and technologies. Comprehensive multi-element analysis capabilities.
The contract is expected to generate $14 million in revenue over five years and approximately $30 million in annual revenue when fully operational. This is the largest new business award in MSALABS history.
Capital expenditures for the project are approximately $7 million.
Additionally, last year MSALABS formed a global partnership with Barrick Gold and Chrysos Corporation to deploy PhotonAssay technology at Barrick’s global mining sites.
The three PhotonAssay installations with NGM mark the beginning of this wider collaborative agreement. Trials of a possible 10 additional PhotonAssay units are underway at several other Barrick sites by the end of 2025.
Additionally, Capital Drilling has been awarded a five-year contract extension for its Sukari mine in Egypt, starting on January 1, 2025.
The contract will likely extend the company’s field activities until the end of 2029, subject to completion of a final drilling services agreement, including blasthole and grade control drilling.
Capital has also signed a two-year grade-controlled drilling contract with Perseus Mining, including work at the Sissingué mine in Côte d’Ivoire. This complements the company’s existing contracts with Perseus in Sudan and Côte d’Ivoire.
Capital’s average monthly revenue per operating asset was $188,000 in the fourth quarter of last year, down 1.6% year over year and up 5% sequentially. The company’s rig count, net of consumption, increased from 126 to 127 rigs in the fourth quarter.
Capital Drilling is poised for further growth this year, particularly due to the expansion of its NGM business and strong growth potential in some of its existing businesses.
Tender activity also continues to be strong across the group, with a number of high-quality opportunities progressing.
