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Capital Ltd on Tuesday said it has extended its drilling contract with B2Gold Corp to 2024 and upped its capital expenditure guidance for this year.
The Africa-focused mining services provider said it has expanded its drilling services contract with B2Gold at the Fekola gold mine, Mali to the end of 2024.
This now includes development and grade control drilling, and follows on from the company's initial drilling contract, which was announced at the end of June this year.
To help facilitate the new contract, Capital said it has purchased 10 rigs from African Mining Services. It has also bought associated equipment and staff accommodation.
Capital said that the contract is an example of its focus on ‘large scale, long life and low cost assets.’
Looking ahead, the company now expects 2022 capital expenditure to be between $60 million and USD 65 million, up from the previous range of $50 million to $55 million.
Revenue guidance remains between $280 million and $290 million. This was recently upgraded from between $270 million and $280 million.
Executive Chair Jamie Boyton said: ‘This new contract award is a strong endorsement of our strategy, not only of expanding our service offering on mine sites with blue-chip customers, but also in repositioning the portfolio to long term contracts that are positioned to operate consistently through the cycle.’
Shares in Capital were up 3.1% to 85.40 pence each in London on Tuesday just after midday.
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