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Capital Drilling

INTERVIEW: Capital Drilling On Track with Increased Earnings

Capital Drilling Ltd (LON:CAPD) CEO Jamie Boyton talks to DirectorsTalk about its Q3 2018 trading update for the period to 10 October 2018. Jamie explains whats driven the successful quarter, its improved utilization rate, why we have seen its fleet drop, how the move to West Africa is going and what the company has been doing to achieve its ISO Certification.

Financial Highlights

· Revenue of $31.0 million, representing 3% growth on Q3 2017 ($30.0 million) and an increase of 12% on Q2 2018 ($27.8 million)

· ARPOR up 2% ($198,000) on Q2 2018 ($195,000)

· Continued solid operational profitability, driven by improved revenue and continued cost management

· Declared an Interim dividend of US0.6cps for the H1 2018 period, paid on 05 October 2018 (2017: Interim dividend of US0.5cps), representing a 20% increase

· Strong cash position facilitated repayment of $2.0 million on current revolving facility, reducing gross debt to $10.0 million as at 30 September, with net cash increasing to $4.1 million

· Continue to track in line with recently upgraded revenue guidance of $105 to $115 million for 2018

Operational Highlights

· Strong ARPOR performance driven by continued solid performance across the Group’s key contracts at the Sukari Mine (Egypt – Centamin), the North Mara Mine (Tanzania – Acacia), the Geita Gold Mine (Tanzania – AngloGold Ashanti), the Tasiast Gold Mine (Mauritania – Kinross) and the Syama Gold Mine (Mali – Resolute)

· Utilisation increased to 53% from 48% in Q2 2018 reflecting the start of drilling activities for new projects – De Beers (Botswana), Hummingbird (Mali), Graphex (Tanzania)

· Further expanded mine site drilling activity during Q3 with the commencement of directional drilling and pre-split drilling at the Tasiast Mine (Kinross) in Mauritania (two rigs)

· Continued to expand our presence in West Africa, with Group rig count now at 31 rigs, representing one third of the Capital Drilling fleet

· Successfully completed an exploration contract at Algold (Mauritania)

· Decommissioned two rigs and sold two rigs during Q3, consistent with the continued focus on active asset management, resulting in a closing fleet size of 91 Rigs

Capital Drilling ltd provides specialised drilling services to mineral exploration and mining companies in emerging and developing markets, for exploration, development and production stage projects. The Company currently owns and operates a fleet of 91 drilling rigs with established operations in Botswana, Côte d’Ivoire, Egypt, Ghana, Kenya, Mali, Mauritania and Tanzania. The Group’s corporate headquarters are in Mauritius.