Capital’s executive chairman, Jamie Boynton, puts longer-term deals at about 85 per cent of its revenue, which is forecast to be $110m-$120m this year.

The company has recently been increasing its capacity in West Africa, amid much excitement in the industry about the region’s gold prospects. Mr Boynton said the early 2019 fervour around the region had not yet had a big impact, but added that explorer cash and the high gold price should soon start to feed through to more work for the company, as indicated by a higher rate of inquiries recently. If gold stayed at around $1,400 an ounce that would do much to move exploration money to juniors on Aim and the Toronto Stock Exchange’s equivalent.

Capital’s places of work could raise some concerns for governance-focused investors; Mauritania and Nigeria, a new market for the company, are well down the list of countries in Transparency International’s corruption perception index. West African jurisdictions fare better at about halfway down the rankings. The company argues that operating as a contractor to listed mining companies with “world class” standards should keep all its dealings strictly above board.

Looking ahead to the second half of 2019, investors can expect seasonally higher revenue because explorers and miners ramp up activity after the wet season in west Africa.

Published by Investors Chronicle - Alex Hamer

Source: https://www.investorschronicle...