Capital (CAPD) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 revenue rose 17.6% year-over-year to $93.7 million and 5.0% sequentially from Q2 2024.

• Drilling operations exceeded target utilisation, with ARPOR up 17.3% year-over-year to $210,000.

• Mining revenue increased 7.2% year-over-year, driven by extended activity at Sukari, but Belinga contract ended early.

• MSALABS began receiving samples for Nevada Gold Mines, but ramp-up delays led to reduced 2024 revenue guidance.

• Interim dividend of 1.3 cents per share paid in October 2024.

Financial highlights

• Drilling and associated revenue grew 24.8% year-over-year to $63.9 million; mining revenue up 7.2% to $19.3 million.

• MSALABS revenue was flat year-over-year at $10.5 million, down 4.5% sequentially.

• Average monthly revenue per operating rig (ARPOR) increased to $210,000, up 17.3% year-over-year.

• Total investments valued at $30.9 million at quarter-end, down from $47.8 million at June 2024.

• Q3 investment gains (realised and unrealised) totaled $15.0 million.

Outlook and guidance

• 2024 group revenue guidance maintained at $355–$375 million.

• Capital expenditure guidance for 2024 remains $70–$80 million.

• MSALABS 2024 revenue guidance reduced to ~$45 million due to delayed contract ramp-up.

• Drilling segment expects further revenue growth in Q4, especially from Nevada Gold Mines.

• Robust tendering activity continues across the group.