LSE-listed mining services company Capital’s revenue for the quarter ended March 31 increased by 52% year-on-year to $66.9-million as mine-site services continue to underpin revenue streams, contributing 87% of group revenue.

Capital experienced strong growth in non-drilling revenue, which comprises 28% of total revenue, particularly driven by the ramp-up of its mining services and MSALABS divisions.

On the exploration side of the business, the average monthly revenue per operating rig (Arpor) decreased by 2.2% year-on-year and 5.4% on that achieved in the fourth quarter of 2021.

Arpor in the first quarter was impacted by increased rig movement within each region and also a higher proportion of revenue at AngloGold Ashanti’s Tanzania-based Geita coming from the underground operation.

As such, Capital’s declaration of a final dividend of $0.024 apiece, declared at its 2021 financial year results, will be payable on May 10.

In terms of operations, Capital increased its fleet use to 82% - an increase of 22.4% year-on-year, driven by the startup of new contracts.

Going forward, with new projects being awarded, Capital foresees an extension of the exploration and delineation drilling contract with gold and uranium explorer Predictive Discovery at its Guinea-based Bankan project, initially expanding from two to five rigs.

An exploration drilling contract with gold-focussed explorer WIA Gold at its Bouaflé project in Côte d’Ivoire has also been concluded.

In addition, Capital has extended the exploration drilling contract with explorer Golden Rim at the Kada gold mine in Guinea and its exploration drilling contract with gold developer Perseus Mining at the Yaouré gold mine in Côte d’Ivoire.

Rig count increased from 109 as at December 31, 2021, to 110, with five rigs due to be commissioned in the second quarter of this year.

As for Capital’s mining business, the company’s operations at the Egypt-based Sukari gold mine waste mining contract continue to perform at steady-state levels aligned to contract targets for the quarter.

Capital also notes that MSALABS’ growth trajectory remains on track, while the rollout of Chrysos’ PhotonAssay units is progressing well.

Capital executive chairperson Jamie Boyton says market conditions remain buoyant, and the company is very active in the tendering market across drilling, mining and MSALABS.

Going forward, Capital has a strong outlook with rig use rates at elevated levels and the group’s rig count due to finish this year using about ten rigs more than at the end of the first quarter of this year.