Capital Limited Q3 Revenue Rises 23.2% as Mining and Labs Offset Weaker Drilling

Capital Limited (LON: CAPD), the mining services group, reported third-quarter revenue of $115.7m, up 23.2% on a year earlier but 1.4% below the second quarter. The unaudited update, released before the London open today, covers July to September. Nine-month revenue is $334.7m, up 32.2%.

The growth did not come from drilling, the largest division. Drilling and associated revenue was $64.5m, down 0.9% on the year and 5.1% on the quarter. Mining rose to $25.2m from $7.8m, a 223.1% jump from a low base, and the MSALABS geochemical laboratories reached $26.0m, up 23.8%. The chair called it “yet another record quarter” for MSALABS.

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Jamie Boyton, Executive Chair, said the drilling shortfall reflected a choice about where to put rigs.

Drilling revenue was lower in the quarter as we redeployed equipment from NGM and Sadiola to higher-returning contracts across our existing portfolio and into new contract wins.

Jamie Boyton, Executive Chair

Fleet utilisation, the share of rigs working, was 72%, level with the second quarter but below 76% a year earlier, and average utilised rigs fell to 94 from 102 a year ago. Average revenue per month per operating rig was $208,000, up 5.1% on the year but down from $218,000 in the second quarter. The closing fleet was 131 rigs, against 134 a year earlier.

Two developments stand out. Fortescue’s Belinga iron ore project has been extended by two years with five more rigs, taking it to 10. Capital has also completed the purchase of MDU, an Australian underground drilling contractor, which generated about $25m of revenue and $6m of Adjusted EBITDA over the twelve months to September 2026.

MDU is consolidated only from the 30th of September, so it did not drive the quarter’s growth. Capital’s 2026 revenue guidance of $435m to $455m reflects MDU’s consolidation and sits above the $430m to $450m given at the half-year.

MSALABS revenue guidance of $85m to $95m and capex guidance of $55m to $65m were reiterated. The stated priorities now are integrating MDU and mobilising with Fortescue and Maaden.