Mining services company Capital has reported another quarterly revenue record of $117.3-million for the three months ended June 30. This contributed to stronger-than-expected revenue of $219-million for the first half of this year - a 37.6% year-on-year increase.

Drilling and associated revenue for the quarter was $68-million, up 7.9% on the second quarter of 2025 and up 8.3% on the first quarter of this year.

Mining revenue for the quarter was $25.5-million, up 264.3% on the second quarter of 2025 and up 41.7% on the first quarter of this year.

Revenue for the company’s MSALABS subsidiary for the quarter was $23.8-million, up 36.8% on the second quarter of 2025 and up 13.9% on the first quarter of this year.

In its trading update for the company’s second quarter from April 1 to June 30, Capital executive chairperson Jamie Boyton says the company’s drilling business delivered consistent performance during the quarter and is in the late stages of negotiation on several growth opportunities.

During the quarter, he says the company began demobilising from its drilling operations at the Nevada Gold Mines (NGM) complex, in the US, and the Sadiola mine, in Mali, with equipment being redirected to higher‑returning opportunities across the company’s existing portfolio.

Boyton says Capital’s operations at Reko Diq performed in line with its contract and the company's new waste mining contract at Sukari, in Egypt, has ramped up faster than expected.

“[Capital subsidiary] MSALABS delivered another strong quarter and we were pleased to announce our joint venture with Mari Minerals in Pakistan, alongside increasing utilisation and several new laboratories expected to be commissioned later in the year,” says Boyton.

“The underlying performance across the broader operating business has exceeded our expectations while we will incur non-recurring termination and demobilisation costs associated with NGM and Sadiola, which will largely offset the better-than-expected performance in this first-half period.

“We view these actions as an important step in optimising the portfolio for the medium term,” says Boyton.

Against a backdrop of record commodity prices, strong tendering activity and increasing capital markets activity, he says the company reiterates its full‑year revenue guidance of $410-million to $440-million and remains well positioned to deliver continued growth across all three divisions.

UPDATES
Capital reports that it was awarded an exploration drilling services contract with Skylark Minerals, in Côte d’Ivoire, started operations during the quarter at Predictive Discovery’s Kiniéro gold mine, in Guinea, deep-hole drilling at AngloGold Ashanti’s Sukari gold mine, in Egypt, and grade control drilling at Montage Gold’s Koné gold project, in Côte d’Ivoire, and added to Capital’s underground reverse circulation (RC) fleet at AngloGold Ashanti’s Geita gold mine, in Tanzania.

During the quarter, the group discontinued drilling operations at Sadiola and NGM. The company says this reflects ongoing portfolio optimisation with capital, equipment and management attention being redirected toward higher-returning opportunities across the group's existing footprint.

Additionally, while the contract at Sadiola had been performing well, Capital says activity has been increasingly impacted by political unrest and the recently implemented local content regulations.

With strong demand for drilling services across West Africa, the company explains that the decision was taken to relocate assets within the region, with several rigs currently in transit to the group's recently commenced contract with Predictive Discovery in Guinea.

Capital says its operations at NGM continued to be both operationally and economically challenging.

The company notes that it has now concluded the drilling contract and demobilisation is under way. Some of the assets are being reallocated to other operating contracts while the rigs configured to US regulatory requirements are being sold.

CAPITAL MINING
Meanwhile, Capital says its operations at Reko Diq continue to perform in line with the contract.

The company notes that Capital remains a key contractor on-site and continues to work closely with site management and project stakeholders to support ongoing operations and development activities under the terms of its existing contract.

As previously announced by Barrick on April 2, its management considers it necessary to slow development activity at Reko Diq and continue the project review until mid-2027.

Capital says they noted that, while development activity will be slowed, the project will remain under active management with reduced capital spend.

To date, Capital says there has been no change to Capital's operating position at site.

The company notes that its waste mining contract at Sukari gold mine has outperformed since it started in the first quarter of this year, with additional equipment en-route to site and expected to be commissioned in the third quarter of this year,

MSALABS
Further, Capital says laboratory usage increased to 55% in the second quarter of this year from 50% in the same period last year and from 53% in the first quarter of this year.

The company notes that MSALABS and Mari Minerals, a subsidiary of Mari Energies, have incorporated a JV to deliver assaying services to support in-country exploration in Pakistan, with Mari Minerals being the cornerstone customer.

Planning and detailed design for Phase 1 laboratory is underway with construction expected to begin in the third quarter of this year and is expected to be operational by the end of the year.

Capital adds that construction is underway at its new commercial laboratory in Korhogo, in Côte d’Ivoire, an on-site laboratory at Montage Gold’s Koné gold project and an on-site laboratory at United Gold’s Amulsar gold mine, in Armenia, with all laboratories expected to be commissioned in the second half of this year.

Additionally, Capital notes that it has expanded its Marsa Alam laboratory in Egypt to increase assaying capacity.

INVESTMENTS
Capital notes that the total value of investments (listed and unlisted) was $116.5-million as at June 30, up from $97.5-million as at December 31, 2025, with the increase driven by various factors.

This includes investment gains (realised and unrealised) of $7.4-million in the first half of this year, achieving a 7.6% return. 

Additionally, the increase was also driven by net investment purchases of $11.6-million, of which the majority related to the equity raises of WIA Gold and Asara Resources during the second quarter of this year.

Capital says the portfolio continues to be focused on a select few key holdings, namely WIA Gold, Asara Resources and Apollo Minerals.

OUTLOOK
Looking ahead, Capital reports that revenue guidance for the 2026 full-year remains at $410-million to $440-million.

The company says the better-than-expected performance across the broader operating business in the first half of the year will be largely offset by the one-off costs associated with the demobilisation at NGM and Sadiola.

Regarding capital drilling, Capital says it will focus on mobilising at its new contract wins and closing new commercial opportunities, while the company completes demobilisation from NGM and Sadiola.

At MSALABS, the company says it expects to commission three new laboratories and expect to see usage improving at its existing laboratories during the second half of this year.

During the second half of the year, Capital says it expects WIA Gold to release its definitive feasibility study and mineral resource estimate (MRE) update and Asara Resources to progress infill drilling in support of an MRE update.

The company says exploration and development activity remains robust across the markets in which it operates, providing a supportive backdrop for future contract awards.