Modern Mining March 2023


Strong energy metals demand underpins Capital’s future growth

LSE-listed Capital, a leading mining services company, continues to expand its service offering, providing its expertise to companies ranging from tier one miners including Barrick, AngloGold Ashanti, Newmont, Centamin and Kinross, through to emerging miners such as Predictive Discovery, Leo Lithium and Tembo Nickel. The com pany boasts a high-quality fleet and one of the best safety track records in the industry, says CEO Peter Stokes.

The company continues to expand its service offering to the African continent.

C apital provides an integrated range of ser vices across the mining cycle, including drilling (grade control, blast hole and underground), contract mining (including load and haul), geo chemical analysis laboratory services and mine site maintenance solutions, with a particular focus on the African markets, where the company has been oper ating since 2005. 2022 was another strong year for Capital, which reported record revenue growth of 28% on FY2021 to US$290.3 million. “On top of this growth, last year saw Capital continue to adopt some of the leading technologies in the mining industry, including the Chrysos PhotonAssay technology, which is environ mentally friendly and can dramatically reduce assay result turnaround times from weeks to hours.” says Stokes, adding that the company has built its repu tation on its commitment to safety and innovation through its integrated mining solutions offering. As a mining services company focused on Africa, Capital is regarded as a barometer for the broader mining sector in Africa. Since 2019, the company has rapidly expanded its service offering to mining clients through MSALABS, its laboratory business,

Capital Mining and Capital Investments, which has invested a net of $12.5m in equity positions in some of the most prospective and exciting mining operations in Africa. “This deliberate diversification strategy, as well as focusing on growing long-term contracts and partnerships with blue-chip customers at the core of our business, has allowed for faster growth and increases in the sustainability of the busi ness during the peaks and troughs of metal pricing cycles,” explains Stokes. Capital Drilling Capital is one of the largest drilling companies in Africa, with a fleet of 129 rigs as at the end of 2022. Its drilling services are mainly contracted to some of the world’s leading mining companies with sig nificant reserves and low operating costs, including: Centamin’s Sukari Gold Mine (Egypt), AngloGold Ashanti’s Geita Gold Mine (Tanzania), Barrick’s Bulyanhulu and North Mara Gold mines (Tanzania) and B2Gold’s Fekola (Mali). “These are contracts with some of the largest gold mines in Africa and, as Tier 1 assets with low costs and long lives, they provide Capital with ongo ing repeat revenue and better visibility on our top line. As a result of Capital’s distinction in the indus try, 2022 was a year of contract extensions and expansions, including the signing of an expanded drilling service contract at Fekola Gold Mine in Mali, and a three-year comprehensive drilling services contract with AngloGold Ashanti at its Geita Gold Mine,” says Stokes. Capital is also actively involved in drilling the mines of the future, which include Predictive Discovery’s Bankan Gold Project in Guinea – the largest gold discovery in Africa for the past decade – Leo Lithium’s Goulamina lithium deposit in Mali and Tembo Nickel’s Kabanga Nickel project (Tanzania). Capital Mining Through Capital Mining’s load and haul services, and Capital Drilling’s full suite of drilling services, the

Capital is one of the largest drilling companies in Africa.

22  MODERN MINING  March 2023

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