Annual
Report
2024
Capital Limited
Annual Report 2024
Sustainability
Corporate
Governance
Financial
Statements
Supplementary
Information
Strategic
Report
1
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S
ustainability
31 Sustainability
40 TCFD Report
Corporate Governance
55 Chair’s introduction to Governance
57 Corporate Governance Report
66 Statement of Compliance
67 Board of Directors
70 Audit and Risk Committee Report
75 Nomination Committee Report
78 Sustainability Committee Report
80 Remuneration Committee Report
95 HSSE C
ommittee Report
96 I
nv
estment Comm
ittee Report
97 Directors’ responsibilities St
atement
Financial Statements
99 Independent Auditor’s Report
106 Consolidated Statement
of Profit or Loss and Other
Comprehensive Income
107 Consolidated Statement
of Financial Position
109 Consolidated Statement
of Changes in Equity
110 Consolidated Statement
of Cash Flows
111 Notes to the Consolidated
Financial Statements
About Capital
Capital is a leading mining services company
providing a complete range of drilling, mining,
maintenance and geochemical laboratory
solutions to customers within the global
minerals industry
What’s inside
2 2024 in review
4 Our Company at a glance
5 Executive Chair’s Statement
Strategic Report
9 Investment Case
10 B
usiness Model
11 St
rategy
16 K
ey Performance Indicators
18 Operational Review
18 – Capital Drilling
19 – Capital Mining
20 – MSALABS
21 – Capital Investments
22 – Capital Innovation
23 Chief Financial Officer’s Review
26 Principal Risk
s
30 Viability Statement
31
SUSTAINABILITY
5
EXECUTIVE CHAIR’S
STATEMENT
10
OUR BUSINESS MODEL
57
CORPORATE
GOVERNANCE REPORT
Supplementary Information
152 Alternative Performance Measures
155 Shareholder Information
Capital Limited
Annual Report 2024
Sustainability
Corporate
Governance
Financial
Statements
Supplementary
Information
Strategic
Report
2
2024
2024
$318.4m
$91.8m
$290.3m
2022 2023
$86.4m
2022 2023
$348.0m
$80.0m
2024 in review
REVENUE
$348.0m
The Group has
delivered outstanding
compound annual
revenue growth of
27% CAGR
since 2020
ADJUSTED EBITDA
$80.0m
Margins reflect
investment in
growth areas
23%
for 2024
Award of new mining
contract at Reko Diq
Subject to final contract negotiations,
majority of our mining fleet will be sent to
Reko Diq to commence early civils work and
TSF construction during 2025.
Commencement of USA
operations
Our new drilling contract at Nevada
Gold Mines commenced during the year,
expanding our drilling footprint to the
Americas.
Record revenues for
MSALABS
MSALABS achieved its highest ever
revenues during the year, underpinned by
our rollout of the PhotonAssay
technology
and remain as the largest global distributor
of this technology.
Investment in Eco
Detection
We made a strategic investment in Eco
Detection and secured an exclusive
arrangement to distribute their Ion-Q
technology within the mining industry.
This is the world’s first fully autonomous,
multiparameter, laboratory-grade water
analysis system.
Capital Limited
Annual Report 2024
Sustainability
Corporate
Governance
Financial
Statements
Supplementary
Information
Strategic
Report
3
BY REGION
MENA
CAF/WAF
EAF
ROW
BY SERVICE
Drilling and Associated
Mining
MSALABS
BY LOCATION
Mine site
Non-Mine site
BY ACTIVITY
Production
Development
Exploration
Underground
Mining
MSALABS
Other
NUMBER OF COUNTRIES
EMPLOYEES NATIONALS
2,854 93.5% 22
Our company at a glance
Our global coverage
Committed to safety, training and local employment
Labs Drilling
Corporate office
Mining
A diverse portfolio across
geography and service
Capital Limited
Annual Report 2024
Sustainability
Corporate
Governance
Financial
Statements
Supplementary
Information
Strategic
Report
4
More information | Page 18 More information | Page 20More information | Page 19] More information | Page 21 More information | Page 22
Our company at a glance continued
End-to-end integrated mining services offering
A complete range of drilling
solutions for projects across
the mining cycle from
exploration to production.
Our expanded portfolio
includes some of the world’s
largest miners at tier one
assets across Africa, the
Americas and the
Middle East.
Load and haul services for
mining operations, delivering
additional diversification to
the Group by moving further
along the value chain.
A global provider of
innovative geochemical
laboratory services for the
exploration and mining
sector, and the largest
distributor of PhotonAssay
technology. Leveraging
the latest techniques and
technologies, we facilitate
accurate, efficient, safe and
environmentally responsible
analysis.
Comprising direct
investments in both
publicly traded and private
companies, Capital
Investments constitutes
an important element of
our business development
strategy, allowing us to
leverage our infrastructure,
relationships and expertise by
investing in exploration and
mining companies which are
strategically aligned with our
broader operations.
Capital Innovation provides
the Group with further
diversification of service
offering which can contribute
to enhanced productivity,
efficiency and sustainability
through screening and
adopting new technology
relevant to the mining
industry.
Capital Limited
Annual Report 2024
Sustainability
Corporate
Governance
Financial
Statements
Supplementary
Information
Strategic
Report
5
Executive Chair’s statement
Capital is undergoing a transition to
create a platform for profitable growth
2024 has been a year of intense activity
for Capital, as we navigated the
challenges of ramping up multiple projects
simultaneously. This pivotal year of
transition is, however, expected to give the
business a clear roadmap ahead - one that
will see us evolve into a larger, more resilient
business positioned to deliver consistent
margins across the full market cycle.
Laying the foundations for this growth, we
entered the USA market during the year across
drilling and MSALABS. As previously guided,
this has not been without its difficulties with
the ramp-up falling behind our expectations,
therefore negatively impacting our Group
financials. In response to challenges faced
this year, we have implemented a series of
structural changes within our management
team to enhance our ability to successfully
capitalise on the significant growth
opportunities available to the Group.
Whilst we recorded a 9% increase in
Group revenue to $348.0 million, our
mining division saw the conclusion of its
two existing contracts. However, we have
successfully navigated this by securing,
pending final negotiations, a material new
contract at Barrick’s world-class project
Reko Diq, strengthening our position for
long-term success and utilising the majority
of our mining fleet in this new location.
Whilst we will see lower mining revenues
for 2025, equipment will start to arrive on
site during H1 and begins to meaningfully
ramp up in H2. We are excited to be
bringing our services to Reko Diq at the
very beginning of its development. This
operation is set to be one of the world’s
largest, longest life and lowest cost copper-
gold operations. Our mining contracts,
which build on the drilling contracts already
in place, will involve both early works civils
and tailings storage facility mining services
and reinforces our reputation for load and
haul services with blue-chip customers.
In MSALABS we are consolidating our
existing platform in key strategic locations.
During 2025 we will also be constructing
a state-of-the-art laboratory at Nevada
Gold Mines (“NGM”) that will add wet
chemistry and multi-element capabilities
from 2026 and see NGM grow to the
largest single operation of MSALABS.
Through this in conjunction with the rollout
of further laboratories, we remain confident
in revenues for MSALABS surpassing $80
million annualised revenue.
Following a major investment cycle over the
past four years, we see significant growth
coming on stream across MSALABS, our
mining division and through continuing
to leverage our strong drilling platform.
Highlights for the year
In 2024 we continued
to invest across the
business to drive future
growth.
The Group achieved an
outstanding, industry-
leading performance in
safety.
TRIFR
1
See my introduction to
Governance | Page 55
See my Biography | Page 67
0.78
1. Total Recordable Injury Frequency
Rate. Per 1,000,000 hours worked
2024 has been a year
of transition as we ramp up
multiple large scale projects
in new geographies.”
Jamie Boyton
Executive Chair
Capital Limited
Annual Report 2024
Sustainability
Corporate
Governance
Financial
Statements
Supplementary
Information
Strategic
Report
6
Executive Chair’s statement continued
Broad ranging services across
the value chain
The comprehensive range of services
we offer across the value chain is a key
differentiator for Capital, providing diversified
revenue streams and a long-term business
model, while also fostering stronger, more
enduring relationships with our clients by
delivering end-to-end solutions. Our clients
are increasingly recognising our broad
offering, expanding their contracts with
us to include multiple sites and a wider
combination of services across drilling,
laboratories, earthmoving and in some cases
investment.
Innovation and technology are central to
our strategy and to expanding our service
offering, with the Board placing significant
emphasis on driving advancement within
our sector. We remain at the forefront of
the mining industry by actively seeking new
opportunities and adopting cutting-edge
technologies that drive efficiencies, deliver
environmental benefits and create value
for both our business and our customers.
In 2024 we made a ~$7 million strategic
investment in Eco Detection, acquiring a
~22% ownership stake in the company and
also securing an exclusive arrangement
for the distribution of this technology to
the mining industry. Eco Detection’s Ion-Q
platform is the world’s first fully autonomous,
multiparameter laboratory grade water
analysis system and, while still in its early
stages, we look forward to introducing
this new t
echnology to our clients and the
broader mining industry.
Progressing our approach
to sustainability
We continue to have a strong focus on
advancing sustainability across our business
and will provide a comprehensive update to
our stakeholders in our second standalone
Sustainability Report. In addition to
upholding our excellent safety record, some
of our key commitments include investing
in the ongoing training and development
of our workforce and creating value for
the countries in which we operate, with
93.5% of our workforce coming from their
countries of operation. In alignment with
our environmental commitments, we have
made further progress with our reporting in
line with the Task Force on Climate-Related
Financial Disclosures (TCFD) in this Annual
Report. We continue to identify innovative
ways of helping our customers address
sustainability-related challenges – be that
through improved accuracy and efficiencies
with related environmental benefits,
examples being PhotonAssay
and Eco
Detection’s Ion-Q platform or through
partnering with major OEM supplier Epiroc to
field test the innovative SmartROC D65 BE, a
battery-electric surface drill rig for the mining
and construction industry.
Delivering across cycles
Exploration activity and capital spending
across the mining industry has remained
relatively subdued despite strong commodity
pricing, with current exploration and capital
expenditure budgets insufficient to meet the
projected demand for minerals in coming
years. Global exploration investment remains
considerably and unsustainably below
previous cycle peaks.
By strategically refining our customer base
to focus on blue-chip customers which are
better positioned to access capital, and
operate world-class, low-cost operations,
we insulate the Company from fluctuating
market trends and we believe we can drive
sustainable returns through the cycles.
Heightened geopolitical tensions throughout
2024 have made operating in some
jurisdictions challenging, reinforcing the
benefits of our geographical diversification
strategy. With a long history of operating
successfully on the continent, Africa remains
a significant contributor to our Group.
However, we have selectively reduced
exposure from West Africa and towards
further growth in East Africa and in Southern
Africa. We are also increasing our presence
in North America through both drilling and
MSALABS and in Pakistan through drilling
and earthmoving at Reko Diq.
Importantly this growth comes with
reduced capital expenditure, largely utilising
equipment we already own. This allows us
concentrate on successfully finalising the
current ramp ups to drive cash flow
and a return on our investments.
Consistency remains core
to the business
Underpinning our enduring customer
relationships with blue-chip, large-scale miners
has been our commitment to an industry-
leading operational, technical and safety
performance. Safety has firmly remained
our f
irst priority, enabling us to maintain our
outstanding recording 2024, with a Total
Recordable Injury Frequency Rate (TRIFR)
of 0.78 in 2024 (2023: 0.75) (per 1,000,000
hours worked). This consistent, best-in-class
performance is credit to the diligence we
apply to safety management and all practices
across our business, and I congratulate our
employees for their efforts. We also maintained
very strong utilisation across our drilling fleet
of 73% in the year in spite of some of the
challenges we faced in commissioning various
new projects.
Our focus for 2025 will be to drive this same
consistency across our projects still in ramp up
as well as efficiently redeploy our mining fleet
to Reko Diq to reach steady state operations
and ultimately strong margins and returns.
The Board of Directors has declared a final
dividend for 2024 of 1.3cps. This brings the
total dividend declared in relation to 2024
to 2.6cps, representing a ten-year history of
consistent returns to shareholders.
Capital Limited
Annual Report 2024
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Corporate
Governance
Financial
Statements
Supplementary
Information
Strategic
Report
7
Board, Governance structures and
Executive Management changes
The Board was deeply saddened by the
passing of our valued fellow member
David Abery, who made such considerable
contributions to the business since 2017.
David’s commitment to Capital and pivotal
role in further progressing our approach
to governance and risk during a time of
accelerated growth leaves a lasting legacy.
We have welcomed Graeme Dacomb onboard
as an Independent Non-Executive Director,
Chair of the Audit & Risk Committee, and
member of the Nomination and Remuneration
Committees. In addition, Michael Rawlinson
has been appointed Senior Independent
Director, Anu Dhir has been appointed Chair
of the Nomination Committee and Alex
Davidson has been appointed Chair of the
Investment Committee.
In early 2025 the Company’s CEO, Peter
Stokes, tendered his resignation which
was accepted by the Board. The senior
management team will report to myself in
my role as Executive Chair. I would like to
thank Peter for his tireless efforts through
this challenging time and wish him the best
of success in his future endeavours.
Together with the full Board, I would also
like to take this opportunity to thank all our
employees for their hard work this year, as
well as our customers, investors and the
communities where we operate for their
continued support.
Outlook
Whilst we acknowledge challenges
throughout the year, we remain positive
about the longer-term outlook for the
business. We have set a clear pathway to
overcoming operational and organisational
hurdles, driving a return to peer leading
profitability and resuming revenue growth
into 2026 and beyond.
Jamie Boyton
Executive Chair
Our values
SAFETY
Uphold our exceptional health
and safety standards and focus
on everyone’s well-being.
RESPECT
Respect colleagues, clients, the
environment and the cultures and
communities where we operate.
UNITY
Operate as a fully inclusive
global team.
INTEGRITY
Be frank honest and open,
developing relationships and seeing
things through to completion.
SUSTAINABILITY
Identify, develop and implement
initiatives to lessen our
environmental impact.
EXCELLENCE
Be responsive, innovative and
entrepreneurial, taking ownership
and always striving for the best
outcomes.
We take pride in and remain committed to
industry-leading operational, technical and
safety performance.”
Executive Chair’s statement continued
Capital Limited
Annual Report 2024
Sustainability
Corporate
Governance
Financial
Statements
Supplementary
Information
Strategic
Report
8
9 Investment Case
10
BUSINESS MODEL
11
STRATEGY
10 Business Model
11 Strategy
16 Key Performance Indicators
18 Operational Review
18 – Capital Drilling
19 – Capital Mining
20 – MSALABS
21 – Capital Investments
22 – Capital Innovation
23 Chief Financial Officer’s Review
26 Principal Risks
30 Viability Statement
Strategic Report
Capital Limited
Annual Report 2024
Sustainability
Corporate
Governance
Financial
Statements
Supplementary
Information
Strategic
Report
9
Investment Case
Five key reasons to invest
More information | Page 10 More information | Page 11More information | Page 12 More information | Page 13 More information | Page 15
Premium provider to blue-
chip customers, with
integrated and diversified
business model.
Protecting stakeholder value
through an unwavering
commitment to our
employees and best-practice
safety standards.
Well-placed to capitalise on
structural underinvestment
in the multi-year exploration
and development cycle and
geographically diversified
operations.
Giving strong visibility on
revenue and margins into
the future.
Underpinned by robust
balance sheet – providing
catalysts to valuation upside.
Best-in-class
operator
Peer leading Strategic positioning
safety record
Tier-one client
portfolio
Strong growth
profile
