20th Aug 2020 11:10
(Alliance News) -Â Capital Ltd on Thursday reported a sharp rise in interim profit, helped by investment gains, and looked to the remainder of the year with optimism amid buoyant gold prices.
The mining services company said revenue for the half year to June 30 was USD65.1 million, up 19% from USD54.8 million a year ago.
Pretax profit, meanwhile, jumped to USD19.1 million from USD7.6 million a year prior, as the firm recorded investment gains of USD9.9 million versus just USD100,000 a year ago.
Despite Covid-19 uncertainty, the firm said it has continued to perform strongly, with the gold price strengthening in the second quarter and reaching all-time highs early on in the third. This is a positive indicator for the business, Capital said, given the vast majority of sales are derived from the gold sector.
"While the Covid-19 pandemic still provides a level of uncertainty for the future, the gold price has reached record highs, and we anticipate strong demand for our services following the West African wet season in Q4. This is encouraging for Capital due to our high gold sector exposure and established presence in the West African region. We have now filled key positions within our mining division, and the mining business is seeing increased tendering activity, providing further optimism of higher activity levels in the second half and into 2021," said Executive Chair Jamie Boyton.
Shares in Capital were up 3.4% at 76.00 pence in London on Thursday.
By Lucy Heming;Â [email protected]
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