London-listed mining, drilling, maintenance and geochemical analysis solutions provider Capital has reported a 53.5% year-on-year decline in basic earnings per share (EPS) to $0.089 in 2024, from $0.191 in 2023.

Excluding the impact of exceptional items and investment gains, the adjusted EPS is $0.068, down 61.1% on $0.175 in the previous year.

In its 2024 year-end results, published on March 27, the company reported a 9.3% increase in revenue to $348-million, up from $318.4-million in 2023. However, its operating profit declined by 34.9% year-on-year, from $60.3-million to $39.3-million.

Excluding the impact of exceptional items, the adjusted operating profit was $47.3-million, down 21.5% on the 2023 financial year’s $60.3-million.

The 2024 financial year earnings before interest, taxes, depreciation and amortisation (Ebitda), adjusted for International Financial Reporting Standard 16 (IFRS16) leases and exceptional items, was $80-million, down 12.9% on the 2023 financial year’s $91.8-million. The Ebitda margin, also adjusted for these factors, fell to 23%, compared with 28.8% in 2023.

"2024 has been a pivotal year of transition for Capital as we establish foundations and a clear roadmap to evolve into a larger, more resilient business – one equipped to deliver consistent margins through the cycle.”

“Nevertheless, this has not come without challenges with the ramp-ups of some of our key growth areas, particularly in North America, behind expectations and negatively impacting our group financials,” Capital executive chair Jamie Boyton said.

“In response, we have implemented a range of structural changes within our management team to better position our business to execute on the significant growth opportunities availed to the group.

“As a result, we expect margins to bottom in the first half of 2025 and see a recovery thereafter,” he added.

The value of the group’s strategic investment portfolio as of December 31, 2024, decreased to $30.3-million, down from $47.2-million in 2023, including a net cash disposal of $28.9-million.

Net profit after tax (NPAT) for the 2024 financial year was $18.3-million, representing a 52.5% decline from the previous year’s $38.5-million. Excluding exceptional items and investment gains, the adjusted NPAT was $14.3-million, down 59.7% from the prior year’s $35.5-million.

Cash from operations, adjusted for IFRS16 leases, stood at $77.1-million, a decrease of 8.6% from $84.3-million in 2023.

Total capital expenditure (capex) for the 2024 financial year was $67.2-million, reflecting a 2.6% decrease from $69-million in 2023.

This included cash capex of $34.5-million, down from $47.9-million in the prior year; prepayments of $4-million, down from $5.3-million; and financed capex of $28.7-million, up from $15.8-million.

Net debt increased by 8.5% to $75.7-million, compared with $69.8-million in 2023, excluding investment holdings of $30.3-million. The company declared a final dividend of $0.013 a share, payable on May 15, this year, bringing the total declared dividend for 2024 to $0.026 a share, down from $0.039 a share in 2023.

Operationally, Capital maintained its global safety performance, reporting a total recordable injury frequency rate of 0.78 per one-million hours worked, consistent with the 2023 rate of 0.75.

The Capital Drilling division continued its core business, securing contracts including an 18-month diamond drilling services contract at the Mingomba copper project, in Zambia; a two-year diamond drilling services contract at Perseus Mining’s Yaouré gold mine, in Côte d'Ivoire; a six-month reverse circulation drilling services contract with Aton Mining, in Egypt; and a six-month diamond drilling services contract with Lotus Gold, in Egypt.

Fleet utilisation for the 2024 financial year was 73%, consistent with the previous year. Average monthly revenue per operating rig increased by 9.7% to $204 000, compared with $186 000 in 2023. The rig count increased from 127 to 130.

Surveying revenue grew by 45% to $5.4-million, while total drilling and associated revenue increased by 11.1% to $239.1-million.

In the Capital Mining division, the company secured a letter of intent from Barrick Gold Corporation, operator of the Reko Diq copper/gold project in Pakistan, to expand services beyond the reverse circulation and diamond drilling geotechnical services provided since early 2023.

The additional work includes early works civils for the project's construction phase, with initial equipment expected on site in the first half of this year and tailings storage facility mining services, with phased equipment deployment planned throughout this year and ramping up late in the year, reaching full utilisation in the second half of 2026.

Other mining contracts concluded in 2024 include the Sukari Gold Mine waste mining contract in Egypt, which ended in September 2024, and the Belinga mining contract in Gabon, which concluded early in the fourth quarter as the client adjusted its development strategy.

The MSALABS division expanded its presence in North America. The first stage of its Nevada Gold Mines laboratory, featuring Chrysos PhotonAssay technology, began receiving samples in the fourth quarter of 2024 after delays in construction and ramp-up.

A second-stage wet chemistry and multi-element assaying facility is under detailed design, with commissioning expected in the first half of 2026.

MSALABS completed construction of a new laboratory in Fairbanks, Alaska, which is expected to reach high utilisation supported by large-scale contracts with Northern Star and Kinross Gold.

The company continues to roll out Chrysos PhotonAssay units, maintaining the largest international network for this technology and partnering with Barrick and Chrysos Corporation to deploy 21 units globally.

Capital Investments realised significant returns, including the sale of its entire shareholding in Predictive Discovery to Perseus Mining for $31.2-million in the second half of 2024. As of December 31, 2024, the total value of listed and unlisted investments stood at $30.3-million, down from $47.2-million in 2023.

The investment portfolio has realised about $12-million more than total cumulative investments, with holdings in WIA Gold and Sanu Gold comprising more than 80% of investments.

Looking ahead, Capital provides revenue guidance for the 2025 financial year of $300-million to $320-million. The Capital Drilling division aims to consolidate ramp-ups in key growth areas, particularly in Nevada, and enhance efficiency across operations. The Capital Mining division plans to commence early works civils at Reko Diq, with revenue expected to be weighted toward the second half of the year.

MSALABS will focus on consolidating its platform in strategic locations and delivering a robust pipeline of projects. Capex for 2025 is projected at $45-million to $55-million, funding equipment rebuilds and ancillary spending related to the Reko Diq mining contract, sustaining capital needs in drilling operations, and continued expansion of MSALABS.

Tendering activity remains strong, with multiple high-quality opportunities progressing.