Capital (CAPD) H2 2023 earnings summary

Executive summary

• 2023 revenue rose 10% to $318.4m, led by Tier 1 contract wins and MSALABS growth; reported NPAT increased 70% to $38.5m.

• 2024 guidance targets revenue of $355m-$375m, with growth expected from Belinga and Reko Diq ramp-ups and MSALABS expansion.

Financial highlights

• Revenue was $318.4m vs $290.3m in 2022; reported EBITDA was $100.0m vs $90.1m, while EBITDA adjusted for IFRS 16 lease cash costs was $91.8m vs $86.4m.

• EBIT was $60.3m vs $59.7m; NPAT was $38.5m vs $22.7m, while adjusted NPAT excluding fair-value gains/losses was $35.5m vs $42.5m.

• Basic EPS was 19.1c vs 11.1c; adjusted basic EPS was 17.5c vs 21.5c. Cash from operations, adjusted for IFRS 16 lease costs, was $84.3m vs $69.8m.

Outlook and guidance

• 2024 revenue guidance is $355m-$375m; MSALABS revenue guidance is $50m-$60m, and capex guidance is $70m-$80m.

• Drilling growth is expected from Belinga and Reko Diq ramp-ups and the Nevada Gold Mines award; mining activity will ramp up at Belinga.

• MSALABS growth is expected from new laboratories and PhotonAssay unit rollout, alongside increased utilisation at commercial sites.