TIDMCAPD
RNS Number : 5005X
Capital Limited
21 December 2023
FOR IMMEDIATE RELEASE
21 December 2023
MSALABS Limited & Capital Limited
("MSALABS" & "Capital")
Nevada Gold Mines ("NGM") Contract Award
MSALABS, a global provider of geochemical laboratory services
for the exploration and mining sectors and a majority-owned
subsidiary of Capital, is pleased to announce the finalisation of a
major new contract.
New Major MSALABS Contract
-- A five-year comprehensive laboratory services contract with
NGM in the United States of America (USA): MSALABS will operate a
state-of-the-art hybrid laboratory incorporating both Chrysos
PhotonAssay(TM) technology and traditional fire assay methods as
well as full multi-element assaying capabilities.
-- Largest contract award in MSALABS's history: The contract is
anticipated to generate $140 million over the five-year term, with
annual revenues of $30 million once fully operational, making it
the largest award of new business in the history of MSALABS.
Capital expenditure for the project is expected of $7 million in
2024.
-- Phased ramp up through 2024:
o Phase I of the project will commence towards the end of H1
2024 with the commissioning of two Chrysos PhotonAssay(TM) units
and a capacity of 80,000 samples per month.
o Phase 2 will commence at the end of 2024 with the third
Chrysos PhotonAssay(TM) unit along with the full geochemical
laboratory bringing capacity to 120,000 samples per month as well
as associated multi-element testing.
o Preparations have begun across suppliers and recruitment with
headcount expected to be 110 employees.
Growing platform in the USA
-- Significant beachhead for MSA into the USA market: This long
term contract entrenches MSALABS presence in the Americas, both
operationally given the full suite of services across preparation,
PhotonAssay, fire assay and multi-element chemistry at a major
operation, and also geographically, expanding its footprint in the
Americas from its multiple laboratories across Canada and South
America.
-- Additional to Capital's drilling contract award at NGM:
Capital is also establishing itself in the USA with the recently
awarded comprehensive drilling services contract with Nevada Gold
Mines (NGM). The contract encompasses a wide array of drilling
services including underground reverse circulation and diamond,
both surface and underground. The contract has a term of 3 years
and will generate approximately $35 million of revenue per annum
once fully operational from 2025.
-- Newly appointed CEO - Americas: We are excited to welcome
Aaron Austin as Chief Executive Officer - Americas. Aaron has more
than 30 years' experience with large multi-national companies,
including Orica and BME, across all functions. Aaron will oversee
our operations as we undergo expansion into the region and ramp up
our new contracts at the Nevada Gold Mines complex.
Commenting on the contract award, Stuart Thomson, MSALABS CEO
said:
" We are thrilled to have been awarded this material contract,
adding to our existing PhotonAssay contracts with Barrick at
Bulyanhulu and Kibali. This contract reflects not only the proven
advantages of the innovative PhotonAssay technology but also the
trusted capabilities of MSALABS across traditional fire assay and
multi-element analysis.
This state-of-the-art hybrid laboratory will be the first of its
kind in the USA and, with MSALABS' holistic approach to laboratory
design, will help drive productivity improvements to the Nevada
Gold Mines complex.
These three new PhotonAssay units mark the start of a broader
partnership agreement with Barrick Gold, with trials underway for a
possible ten further PhotonAssay units by the end of 2025 across
multiple of Barrick's other operations."
Commenting on the contract award, Peter Stokes, Capital CEO
said:
"It is pleasing to be adding a further service to the Nevada
Gold mines so soon after being awarded a material drilling contract
at the complex. These contracts are large in both scale and
duration which allows us to fully establish in the region and
provide a platform for further growth. We are pleased to have Aaron
as part of the team overseeing the ramp up of these contracts as
well as further opportunities in the region."
- ENDS -
For further information, please visit Capital's website
www.capdrill.com or contact:
Capital Limited investor@capdrill.com
Peter Stokes, Chief Executive Officer
Rick Robson, Chief Financial Officer
Conor Rowley, Corporate Development & Investor Relations
Tamesis Partners LLP +44 20 3882 2868
Charlie Bendon
Richard Greenfield
Stifel Nicolaus Europe Limited +44 20 7710 7600
Ashton Clanfield
Callum Stewart
Rory Blundell
Buchanan +44 20 7466 5000
Bobby Morse capital@buchanan.uk.com
George Pope
About Capital Limited
Capital Limited 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. The Company's services include: exploration, delineation
and production drilling; load and haul services; maintenance; and
geochemical analysis. The Group's corporate headquarters are in the
United Kingdom and it has established operations in Côte d'Ivoire,
Canada, Democratic Republic of Congo, Egypt, Gabon, Guinea, Kenya,
Mali, Mauritania, Nigeria, Pakistan, Saudi Arabia, Tanzania and the
United States of America.
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