Capital Limited

("Capital", the "Group" or the "Company")

Capital (LSE: CAPD), a leading mining services company, today provides its full year financial results for the year ended 31 December 2023.

FULL YEAR FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2023*

FY 2023 Financial Overview

· FY 2023 revenue of $318.4 million, up 9.7% on FY 2022 ($290.3 million);

· Revenue came in marginally below our guidance of $320 - 340 million given a number of headwinds namely subdued activity in West Africa, particularly in Mali, and operations suspended in Sudan with Perseus. In addition MSALABS revenues fell slightly behind its aggressive growth target for 2023, with utilisation across commercial laboratories deployed through the year slightly behind schedule as we drive adoption of the new PhotonAssay^TM technology.

· FY 2023 EBITDA (adjusted for IFRS16 leases) of $91.8 million, up 6.3% on FY 2022 ($86.4 million);

· FY 2023 EBITDA margin (adjusted for IFRS16 leases) remained strong at 28.8% (FY 2022: 29.8%);

· Group margins were strong through 2023 especially considering the heavy cost loadings required in the ramp up of MSALABS;

· Value of the Group's strategic investment portfolio as of 31 December 2023 increased to $47.2 million (FY 2022: $38.7 million) including net cash investment of $4.6 million;

· Net profit after tax (NPAT) of $38.5 million, up 69.6% on FY 2022 ($22.7 million). Excluding the impact of investment losses/ gains, adjusted NPAT is $35.5 million for FY 2023, down 16.4% on FY 2022 ($42.5 million);

· Basic earnings per share (EPS) of 19.1 cents, up 72.1% on FY 2022 (11.1 cents). Excluding the impact of investment losses/ gains, basic EPS (adjusted) is 17.5 cents, down 18.5% on FY 2022 (21.5 cents);

· Cash from operations (adjusted for IFRS 16 leases) of $84.3 million, an increase of 20.8% on FY 2022 ($69.8 million);

· Total capex of $69.0 million, up 20.0% on FY 2022 ($57.5 million). Total capex consisted of cash capex of $47.9 million (2022: $43.0 million), prepayments of $5.3 million (2022: $5.5 million) and financed capex of $15.8 million (2022: $9.0 million);

· Net debt of $69.8 million an increase of 47.9% on FY22 ($47.2 million); and

· Net debt excludes the investment holdings of $47.2 million.

· Declared a final dividend of US$2.6 cents per share, to be paid on 15 May 2024 which, together with the interim dividend of US$1.3 cents per share brings the total dividends declared for 2023 to US$3.9 cents per share (2022: US$3.9 cents per share).

Operational and Strategic Highlights

· Safety performance remained best in class on a global scale with the 2023 Total Recordable Injury Frequency Rate ("TRIFR") of 0.75 per 1,000,000 hours worked, a significant improvement (38%) on FY 2022 (1.2).

· Capital Drilling: Further contract wins and major contract long-term renewal

· New contract win:

- A letter of intent from Allied Gold Corporation for a grade control drilling services contract across its Cote d'Ivoire complex.

· FY 2023 major anchoring contract wins with significant growth potential (previously announced):

- A three-year comprehensive drilling services contract with Nevada Gold Mines, USA. The contract includes a wide array of drilling services including underground reverse circulation and diamond, both surface and underground. NGM operates the single largest gold-mining complex globally;

- A three-year reverse circulation and diamond drilling services contract with Fortescue Metals Group at the Belinga iron ore project, Gabon. This is one of the world's largest undeveloped, high-grade hematite iron ore deposits; and

- A two-year diamond drilling services contract with Barrick at the Reko Diq copper-gold project, Pakistan. This is amongst the largest undeveloped copper-gold projects globally.

· Other recent contract awards (previously announced):

- Centamin's Sukari Gold Mine in Egypt has issued Capital with a letter of intent to award a 5-year open pit drilling services contract extension, starting from January 1, 2025. Subject to concluding a contract, which will include both blast hole and grade control drilling, this will extend our activities on site out to the end of 2029, 25 years after we commenced operations in 2005;

- A two-year grade control drilling services contract with Perseus Mining at the Sissingué gold mine in Côte d'Ivoire. This expands our relationship with Perseus from existing contracts in Sudan and the Yaouré mine, Côte d'Ivoire; and

- Expanded rig count at Belinga, Gabon, under our existing three-year reverse circulation and diamond drilling services contract.

· Fleet utilisation for FY 2023 was 73%, compared to 79% in FY 2022;

· Average monthly revenue per operating rig ("ARPOR") was US$186,000 in FY 2023, up 3.3% on FY 2022 (US$180,000); and

· Rig count decreased from 129 to 127 through FY 2023, net of depletion.

*Average revenue per month per operating rig

¹Associated revenue refers to revenue generated from complementary services tied to our drilling operations.

All amounts are in USD unless otherwise stated

· Capital Mining: Second material mining services contract win:

· Capital secured its second high-quality mining services contract with Ivindo Iron SA (Gabon), developing Belinga, one of the world's largest undeveloped, high-grade hematite iron deposits. This contract has a term of up to 5 years and will generate approximately $30 million of revenue per annum once fully operational; and

· Sukari Gold Mine (Egypt) waste mining contract saw consistent operations through FY 2023.

· MSALABS: Furthering on its growth trajectory and initiated strategic global partnership, breaking into the USA market with largest contract in MSALABS history:

· The deployment of Chrysos PhotonAssay? units remains on track:

- MSALABS possesses the largest international network of Chrysos PhotonAssay? technology; and

- MSALABS relationship with Chrysos remains strong and will see the deployment of 21 units.

· MSALABS was awarded a five-year comprehensive laboratory services contract with Nevada Gold Mines (NGM) in the United States of America (USA).

- MSALABS will operate a state-of-the-art hybrid laboratory incorporating Chrysos PhotonAssay^TM units as well as traditional fire assay methods and full multi-element assaying capabilities;

- MSALABS will deploy three PhotonAssay^TM units in Nevada; and

- 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.

· MSALABS has forged a global partnership with Barrick and Chrysos Corporation to deliver PhotonAssay^TM technology across Barrick mine sites:

- The three PhotonAssay^TM units in Nevada mark the start of this broader partnership agreement, with trials underway for a possible ten further PhotonAssay^TM units by the end of 2025 across multiple of Barrick's other operations.

· Commercial laboratory focus in 2023: Capitalising on our early mover advantage, we focused on deploying PhotonAssay^TM units in a number of commercial locations of strategic importance. As opposed to mine site laboratories, commercial laboratories have longer lead times to ramp utilisation which in turn impacts margins given the upfront cost loading required. 2024 will benefit from an increase in utilisation at these sites, as well as the business's greater leaning towards mine site laboratories through this coming year.

· Capital Investments: Year on year portfolio growth:

· The total value of investments (listed and unlisted) was $47.2 million as at 31 December 2023 ($38.7 million as at 31 December 2022) including net cash investments of $4.6 million; and

· The portfolio continues to be focused on a select few key holdings with our holdings in Predictive Discovery, Allied Gold Corp and WIA Gold comprising the majority (~85%) of our investments.

Outlook

· Revenue guidance for 2024 of $355 - $375 million driven by an improved contract portfolio, ramp ups of new drilling and mining contracts and a continued expansion of MSALABS;

· Capital Drilling is poised for additional growth in 2024, primarily fuelled by the scale up of operations with Nevada Gold Mines in the USA, alongside promising growth prospects across several of our current operations - Belinga, Gabon and Reko Diq, Pakistan, in particular;

· Capital Mining will continue to embed operations at the Belinga site in Gabon. The Sukari earth moving contract is anticipated to sustain its steady-state performance until the contract concludes (mid 2024);

· MSALABS continues to drive forward its multi-year expansion strategy, with a strong emphasis on the deployment of Chrysos PhotonAssay^TM units. The pipeline remains robust, reinforced by the recent partnership forged with Barrick Gold and Chrysos Corporation. The business is expected to deliver revenues of $50-60 million in 2024, another significant YoY increase from 2023 (FY 2023 $38.4 million);

· Capital expenditure is expected to be $70-80 million in 2024. This will fund typical sustaining and replacement capex across the drilling and mining fleet to ensure ongoing youth and productivity, newly purchased rigs to drive growth in the USA and the expansion of MSALABS. This year we will also fund non-recurring expenditures primarily a major workshop facility in Nevada as a hub for our operations in the region; and

· Tendering activity remains robust across the Group with a number of high-quality opportunities progressing.

Commenting on the results, Peter Stokes, Chief Executive, said:

"The past year has been another great year for Capital, achieving growth for the fourth year in a row despite a challenging market environment, all while maintaining an exemplary safety record. We continue to strengthen our portfolio across drilling and mining, with a strategic focus on tier one assets made possible by the longstanding relationships we have built over the years with some of the world's leading miners. Capital has also achieved a number of strategic landmarks through the year, positioning itself for a strong 2024 and beyond.

Our drilling business had another strong year achieving growth despite difficult global market conditions. We have stayed committed to our strategy of focusing on tier one clients with world class assets. This dedicated commitment has seen us add world class assets to our contract portfolio, most notably Barrick's copper project at Reko Diq (Pakistan), FMG's majority owned iron-ore project at Belinga (Gabon) and the major gold-mining complex in the USA, with Nevada Gold Mines, marking our first entry into the North American market.

Our mining business was awarded its second high-quality mining services mining contract with Ivindo, Gabon, which mobilised successfully through the year. Operations at Sukari were also very consistent through 2023, and we are on track to complete the contract by mid-2024, six months ahead of contracted requirements. We have now demonstrated our expertise in both rapid mobilisation and excellent performance in load and haul operations. These milestones underscore our position as a trusted partner for tier-1 clients and provide a robust foundation for future growth.

MSALABS has once again achieved remarkable growth over the past year, driven particularly by the successful rollout of the revolutionary Chrysos PhotoAssay^TM technology. MSALABS is quickly becoming a major component of the group as recently highlighted by its largest contract to date with Nevada Gold Mines. It is set to operate PhotonAssay^TM units as well as traditional fire assay methods, complemented by extensive multi-element assaying capabilities, all within a state of-the-art hybrid laboratory-the first of its kind in the USA. Moreover, the business continues to strategically lay the foundations for further growth through its recent global partnership with Chrysos and Barrick.

Our investment portfolio remained focused on a select key few holdings through the year. Growth in key investments saw our portfolio grow to $47.2 million, a significant return from the net investment to date of ~$17.1 million. In addition, our portfolio has been a key business development tool for the Group, with contracts from investee companies generating over $140 million in revenue since we formally launched our investment strategy in 2019 and remains a core pillar of our business model.

We are excited for the year ahead and are confident in maintaining the growth momentum of previous years. In addition we will retain our steadfast focus on maintaining peer leading margins, returns and safety performance in parallel to this growth. We will continue to pursue our key strategic priorities during 2024 and expect revenues to reach $355-375 million for the year."

Capital Limited will be hosting a live webcast presentation at 09:00 London time on Thursday 14 March 2024, where questions can be submitted through the platform.

The webcast presentation link:

Issuer Services | London Stock Exchange | Capital Limited FY 2023 Results (lsegissuerservices.com)

Participants may join the webcast approximately five minutes before the commencement time. A copy of the Company's presentation will be available on www.capdrill.com

- 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, Ghana, Guinea, Kenya, Mali, Mauritania, Nigeria, Pakistan, Saudi Arabia, Tanzania and the United States of America.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)