London-listed mining services provider Capital’s performance in the first six months of this year was “the strongest on record” and was supported with increases in revenue, earnings before interest, taxes, depreciation and amortisation (Ebitda) and earnings per share (EPS).

Revenue increased by 51.6% year-on-year to $98.7-million, Ebitda by 84.4% to $28.4-million and EPS by 140% to $0.067.

While generally ahead of the miner’s forecasts, the company has already reported the operational parameters that have driven this, along with an increase in its full-year revenue guidance to between $200-million and $210-million.

All parts of its business – drilling, mining, investments and laboratory work – look set to grow materially, driven by a macro tailwind and astute corporate strategy.

Capital expenditure (capex) was up from $7-million in the first half of 2020 to $27.7-million in the six months under review, and was mainly the result of the company spending on its new mining services business at the Sukari gold mine, in Egypt.

“Working capital is generally flowing out too as one would expect,” Capital commented.

Overall, the miner noted that net cash from operations fell by 23% to $5.4-million and net debt increased to $32.8-million. However, the board reflected its confidence in the outlook with a 33% increase to the interim dividend to $0.012 a share.

Rig fleet use increased to 73% and the fleet size increased to 107 rigs.

West Africa now contributes 38% of group revenue as gold mining across the region is growing and new contract wins are a regular news item.

Non-drilling revenue contributed 17% of total revenue, with the Sukari contract having just started and full run-rate guided for the fourth quarter of the year. This compares with 9% in the first half of 2020, Capital said.

The company notes in its outlook statement that “the outlook remains robust for maintaining a high use rate” and a “strong tailwind” is set to increase the drill fleet size by a further eight rigs by the end of the year.

“The figures and outlook released today imply a strong opportunity still though,” Capital said, explaining that the view is underpinned by the company’s core long-term contracts and continued opportunities to grow the contract base with new wins in West Africa, plus its latest strategic push into mining services, besides others.