London-listed mining services company Capital’s board has taken the decision to book noncash provisions in 2024, primarily relating to historical value-added-tax receivables and various laboratory assets in Mali.

The company now expects its net profit after tax (NPAT) for 2024 to be in the range of $18-million to $20-million.

This follows a recent trading and operational update where the company indicated an adverse impact to its profitability that was particularly driven by its new operations in the US.

"The board has taken the decision to make noncash provisions that have negatively impacted our 2024 results. We remain positive about the outlook for the business, however, we continue to face pressures to profitability, particularly driven by our operations in the US.

“We do, however, expect margins to bottom in the first half of 2025 and expect a resumption of revenue growth in 2026 along with a recovery in margins,” Capital executive chairperson Jamie Boyton said on March 10.

Capital’s 2024 financial year results will be published on March 27.

In addition, Capital forecast that its 2025 financial year revenue would be in the range of $300-million to $320-million. The company said on March 10 that its revenues would be weighted to the second half, given the ramp up of new projects, predominantly in its mining business, and that its margins would, therefore, follow a similar weighting.

Across Capital’s drilling business, the focus for 2025 will be on core profitability, particularly in the US.

In mining, revenues were expected to be down year-on-year given the conclusion of the company’s contracts at Sukari, in Egypt, and Belinga, in Gabon, in 2024, while operations at Reko Diq, in Pakistan, are expected to begin ramping up throughout the year.

Capital said MSALABS was expected to generate revenues of about $50-million to $60-million, up from $43.6-million in 2024.

Further, the company said it would be consolidating its existing platform in key strategic locations to improve profitability. This included the construction of a laboratory at Nevada Gold Mines (NGM), in the US, that will add wet chemistry and multi-element capabilities from 2026.

Looking forward, Capital expects to continue to see revenues of more than $80-million for MSALABS driven by the hybrid laboratory at NGM and the rollout of further laboratories.

Meanwhile, Capital CEO Peter Stokes has tendered his resignation, which has been accepted by the board. He agreed to a brief transitional period to hand over responsibilities and to ensure business continuity.

For the time being, the senior management team will report to Boyton.