Capital Ltd’s Shares Spiked Up 11.8% on the NGM Contract Award

The Capital Ltd (LON: CAPD) share price spiked up 11.8% after its subsidiary, MASLABS, a leading provider of geochemical laboratory services in the exploration and mining industries, announced the completion of a significant new contract.

The five-year comprehensive lab services agreement in the USA has seen MSALABS commit to a five-year deal with NGM in the United States. The agreement involves running an advanced hybrid laboratory featuring Chrysos PhotonAssayTM technology, conventional fire assay methods, and extensive multi-element assaying capabilities.

The deal, expected to yield approximately $140 million over its duration, with annual revenues nearing $30 million when fully operational, marks the most substantial business award in MSALABS's history. The project's capital expenditure is projected at about $7 million in 2024.

Phase I, starting in late H1 2024, will see the introduction of two Chrysos PhotonAssayTM units, aiming for a monthly capacity of 80,000 samples.

Phase 2, kicking off at the end of 2024, will include a third Chrysos PhotonAssayTM unit and the complete geochemical lab, increasing capacity to 120,000 samples per month and extensive multi-element testing.

Preparatory work is underway, including supplier coordination and recruitment, with an anticipated workforce of approximately 110 employees. This long-term contract significantly bolsters MSALABS's position in the Americas. 

MSALABs recently hired Aaron Austin as the new Chief Executive Officer – Americas. With over 30 years of experience in large multinational corporations like Orica and BME, covering various functions, Aaron will lead the expansion and operational ramp-up in the Nevada Gold Mines complex.

Capital also secured its presence in the US through a comprehensive drilling services contract with Nevada Gold Mines (NGM).

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.”

Capital Limited share price. 

Capital Ltd’s share price spiked up 11.82% to trade at 88.00p from Wednesday’s closing price of 78.70p.