Capital announces series of new contract awards

(Sharecast News) - Capital Limited announced a series of new contract awards across its drilling and laboratory services operations on Thursday, including a major new contract at the Reko Diq copper-gold project in Pakistan, reinforcing its partnership with Barrick and adding a new revenue stream to the business. The London-listed company said it had secured a three-year contract, with an optional one-year extension, to provide borehole drilling services for the Reko Diq project.

It said the work would support the development of production water holes essential to the mine's operations.

To fulfil the contract, Capital said it had purchased a specialised water bore drilling rig from Italian manufacturer Fraste, which is currently on-site undergoing commissioning.

"We are seeing strong momentum across the business, as we move through the second quarter of 2025, driven by both a successful initial ramp-up of our mining contract at Reko Diq and through the award of multiple new contracts," said executive chairman Jamie Boyton.

"We are pleased to announce our new borehole drilling services contract at Reko Diq, which is a new revenue stream for the business, and further underpins our strong operating relationship with Barrick."

In exploration drilling, Capital said it had been awarded several new contracts, reflecting a recovery in exploration activity amid sustained high gold prices.

New exploration projects over the next six months would include work with Allied Gold in Côte d'Ivoire, Toubani Resources in Mali, and the International Continental Scientific Drilling Program in Gabon.

Meanwhile, the group's laboratory services division, MSALABS, was continuing to expand.

It had completed the installation and commissioning of a new commercial laboratory in Elko, Nevada, equipped with its third Chrysos PhotonAssay unit in the region.

Sample processing began in June.

MSALABS had also received a letter of award for a two-year extension to its on-site laboratory services contract with Kinross at the Tasiast Gold Mine in Mauritania, where it had operated since 2019.

Additionally, it had secured a new three-year fire assay laboratory contract for WIA Gold's Kokoseb Gold Project in Namibia.

Capital also updated the market on the broader mining ramp-up at Reko Diq, which started in April.

The first tranche of its Sukari mining fleet had arrived on-site and was undergoing commissioning, while the second tranche was being prepared for export from Egypt.

Capital said the Gabon mining fleet was now fully deployed, and had started operations.

The company said it would provide a full trading update for the second quarter on 17 July.

At 1236 BST, shares in Capital Limited were up 11.87% at 84.35p.

Reporting by Josh White for Sharecast.com.