15th Aug 2024 14:12
Capital Ltd - London-based drilling and other mining services - Pretax profit drops by 30% to USD16.3 million in the first half of 2024 from USD23.4 million a year before, despite a 9.8% rise in revenue to USD169.4 million from USD154.3 million. This is due to higher costs across the board. Cost of sales increases by 14%, administrative expenses by 16%, and finance costs by 41%.
"Capital in 2024 is undergoing a number of structural transitions that we expect will set up the business for the next wave of growth," Chief Executive Peter Stokes explains. "We are soon coming to the end of our waste mining contract at Sukari and, while at the end of 2020, this contract was the largest award in the company's history, once it concludes we will emerge as a much larger business, a credit to the business development success across the rest of the group." Sukari is an Egyptian gold mine operated by Centamin PLC.
Capital maintains its interim dividend at 1.3 US cents per share and affirms its 2024 financial guidance. It expects USD355 million to USD375 million in revenue, which would be up from USD318.4 million in 2023.
Current stock price: 85.33 pence, down 4.6% in London on Thursday
12-month change: down 0.1%
By Tom Waite, Alliance News editor
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