PRELIMINARY FULL YEAR FINANCIAL RESULTS
Capital Limited
("Capital", the "Group" or the "Company")
PRELIMINARY FULL YEAR FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2022* (unaudited)
|
|
2022 |
2021 |
% change |
|
|
Revenue ($ m) |
290.3 |
226.8 |
28.0% |
|
|
Investment (Loss)/ Gain ($ m) |
(19.8) |
33.7 |
N/A |
|
|
Net Profit After Tax ($ m) |
22.7 |
70.3 |
(67.7)% |
|
|
Basic EPS (cents) |
11.1 |
37.0 |
(70.1)% |
|
|
Cash From Operations ($ m) |
73.5 |
42.6 |
72.5% |
|
|
IFRS 16 lease payments ($ m) |
3.7 |
0.9 |
311.1% |
|
|
|
|
|
|
|
|
Adjusted for investment (loss)/ gain |
|
|||
|
EBITDA1,2 ($ m) |
90.1 |
73.3 |
22.9% |
|
|
EBIT1,2 ($ m) |
59.7 |
51.9 |
15.0% |
|
|
Adjusted Net Profit After Tax2 ($ m) |
42.5 |
36.6 |
16.2% |
|
|
Basic EPS (adjusted)2 (cents) |
21.5 |
19.2 |
11.9% |
|
|
|
|
|
|
|
|
Adjusted for investment (loss)/ gain and IFRS 16 lease payments |
|
|||
|
EBITDA (adjusted for IFRS 16 leases)3 ($ m) |
86.4 |
72.4 |
19.4% |
|
|
Cash from operations (adjusted for IFRS 16 leases)3 ($ m) |
69.8 |
41.7 |
67.5% |
|
|
|
|
|
|
|
|
Final Dividend per Share (cents) |
2.6 |
2.4 |
8.3% |
|
|
Total dividend per Share (cents) |
3.9 |
3.6 |
8.3% |
|
|
|
|
|
|
|
|
ROCE (%)4 |
25.9 |
22.7 |
14.1% |
|
|
Capex (including assets financed by OEM)5 ($ m) |
57.5 |
60.7 |
(5.3)% |
|
|
Net Debt1,6 ($m) |
47.2 |
31.9 |
48.0% |
|
|
Investments ($m) |
38.7 |
60.2 |
(35.6)% |
|
|
|
|
|||
|
*All amounts are in US dollars unless otherwise stated |
|
|||
|
(1) EBITDA, EBIT and Net Debt are non-IFRS financial measures and should not be used in isolation or as a substitute for Capital Limited financial results presented in accordance with IFRS. (2) EBITDA, EBIT, Adjusted Net Profit After Tax and Basic Earnings Per Share (adjusted) are pre fair value gain/loss on investments. (3) EBITDA (adjusted for IFRS 16 leases) and Cash from operations (adjusted for IFRS 16 leases) are pre fair value gain/ loss on investments and include the cash cost of the IFRS 16 leases. (4) ROCE calculated utilising 12 months EBIT and average yearly capital employed. (5) Capital expenditure (Capex) consists of purchase of PPE for cash, prepayments for PPE and assets purchased during the year and financed by OEM. (6) Net Debt excludes lease liabilities. |
||||
FY 2022 Financial Overview
· FY 2022 revenue of $290.3 million, up 28.0% on FY 2021 ($226.8 million), at the upper end of revised guidance of $280-290 million (up from $270-280 million guided at our FY21 results);
· This is the third consecutive year Capital has delivered material growth in revenue, with full year revenues increasing 28%, following 68% YoY growth in 2021 and 18% YoY growth in 2020.
· FY 2022 EBITDA of $90.1 million, up 22.9% on FY 2021 ($73.3 million);
· FY 2022 EBITDA (adjusted for IFRS16 leases) of $86.4 million, up 19.4% on FY 2021 ($72.4 million);
· Introducing EBITDA (adjusted for IFRS16 leases): Our reported EBITDA does not take into account IFRS 16 lease payments, most notably the minimum lease cost payment to Chrysos. While not a material difference in 2022, this will grow as we roll out more Chrysos PhotonAssay ™ units over the coming years. We will therefore report EBITDA (adjusted for IFRS 16 leases) which adjusts EBITDA to take into account the cash cost of these lease payments and is therefore more representative of the underlying profitability and more aligned with cash flows.
· FY 2022 EBITDA (adjusted for IFRS16 leases) margins remained robust at 29.8% (FY 2021: 31.9%);
· Net losses from equity investments of $19.8 million in 2022, predominantly unrealised, which in combination with proceeds from sales, decreased the value of Group strategic investment portfolio to $38.7 million, as of 31 December 2022 (31 December 2021: $60.2 million);
· Net profit after tax (NPAT) of $22.7 million, down 67.7% on FY 2021 ($70.3 million). Excluding the impact of investment losses/ gains, adjusted NPAT is $42.5 million for FY2022, up 16.2% on FY 2021 ($36.6 million);
· Basic earnings per share (EPS) of 11.1 cents, down 70.1% on FY 2021 (37.0 cents). Excluding the impact of investment losses/ gains, basic EPS (adjusted) is 21.5 cents, up 11.9% on FY 2021 (19.2 cents);
· Cash from operations (adjusted for IFRS 16 leases) of $69.8 million, an increase of 67.5% on FY 2021 ($41.7 million);
· Total capex of $57.5 million, down 5.3% on FY 2021 ($60.7 million). Total capex consisted of cash capex of $43.0 million (2021: $46.3 million), prepayments of $5.5 million (2021: $3.5 million) and financed capex of $9.0 million (2021: $10.9 million);
· Net debt of $47.2 million an increase of 48.0% on FY21 ($31.9 million);
· Net debt including investments of $8.5 million (FY 2021: net cash including investments of $28.3 million);
· Declared a final dividend of US$2.6 cents per share, to be paid on 9 May 2023 which, together with the interim dividend of US$1.3 cents per share brings the total dividends declared for 2022 to US$3.9 cents per share (up 8% on 2021 total dividend of US$3.6 cents per share).
Operational and Strategic Highlights
· Delivered a sector-leading safety performance with 2022 Total Recordable Injury Frequency Rate ("TRIFR") of 1.2 per 1,000,000 hours worked (2021: 0.98).
· Capital Drilling: Further material contract wins
- Average monthly revenue per operating rig ("ARPOR") in FY 2022 at US$180,000, down 0.6% on FY 2021 (US$181,000); Q4 2022 ARPOR of US$191,000, up 3.8% on Q4 2021 (US$184,000);
- FY 2022 average utilisation was 79% an increase on FY 2021 (75%); Fleet utilisation decreased to 73% in Q4 2022, compared to 79% in Q4 2021 and 77% in Q3 2022. This is the result of our active strategy to reposition the contract portfolio, reducing exposure to small scale contracts, and focusing on large scale mine sites and Tier-1 projects with significant growth potential.
- New contract wins:
§ A two-year diamond drilling services contract with Barrick at the Reko Diq copper-gold project, Pakistan;
§ A three-year reverse circulation and diamond drilling services contract with Fortescue Metals Group at the Belinga iron ore project, Gabon;
§ A diamond drilling services contract with Kodal Minerals at the Bougouni lithium project, Mali.
- Recent Q4 2022 contract wins (previously announced):
§ A three-year surface production drilling contract with AngloGold Ashanti at the Geita gold mine, Tanzania. This contract will utilise five rigs from the existing fleet together with one new rig during 2022, and is anticipated to generate revenues of $33 million over the contract term;
§ A two-year contract extension for underground grade control drilling with Barrick at the Bulyanhulu gold mine, Tanzania;
§ A three-year contract extension (with two-year further extension option) for grade control and reverse circulation drilling with B2Gold at the Fekola gold mine, Mali;
§ An underground contract with Barrick for an additional rig at North Mara gold mine, Tanzania;
§ An extension of the exploration contract to June 2024, including additional rigs, with Tembo Mining at the Kabanga nickel project, Tanzania.
- Rig count increased to 129 from 127 through Q4 2022, net of depletion.
· Capital Mining: Consistent strong performance
- Sukari Gold Mine (Egypt) waste mining contract had another strong performance through Q4 2022 with the team exceeding their previous daily production record since the project commenced.
· MSALABS : Strong start to 2023
- Chrysos' PhotonAssay™ unit rollout is progressing well. The expanded relationship with Chrysos will see MSALABS deploy 21 units by 2025 :
• MSALABS now has six units commissioned across Africa and Canada, with a mine site laboratory at Barrick's Kibali gold mine, and the commercial laboratory in Prince George, Canada successfully commissioning in recent weeks;
• Routine copper analysis commenced at the unit at Barrick's Bulyanahulu gold mine, Tanzania;
- MSALABS has also extended into the Yukon region in Canada, where mining activity is rapidly growing, with a sample preparation laboratory at Victoria Gold's Eagle mine.
- MSALABS has also now commissioned a mine site laboratory at Shanta Gold's Singida mine, Tanzania, and a laboratory in Bougouni, Mali, which will support gold and lithium operations in southern Mali.
Outlook
· Tendering activity across all business units remains robust, with a number of opportunities progressing.
· Revenue guidance for 2023 of $320 to $340 million driven an improved contract portfolio, contract extensions and expansions from existing long-term contracts, the Sukari load & haul contract continuing at steady state and MSALABS continuing to grow through 2023;
· Laboratories is seeing strong demand for its services and the rollout of the Chrysos units, with the business expected to deliver revenues of $40-50 million in 2023, another significant YoY increase from 2022 (FY 2022 $27.3 million) and is expected to grow to over $80 million per annum from 2025;
· The Sukari earth moving contract continues to perform well and we expect the operation to continue at steady state through 2023;
· Capital expenditure is expected to be $50-60 million in 2023. This will fund a more than typical replacement of the drilling fleet to ensure ongoing youth and productivity, the expansion of MSALABS, including a number of commercial labs, as well as sustaining capex on the enlarged drill fleet and the Sukari mining contract;
· Drill rig fleet size forecast to remain broadly flat compared to the end of 2023, net of depletion.
Commenting on the results, Jamie Boyton, Executive Chairman of Capital Limited, said:
'2022 has been another outstanding year for Capital marking the business's third consecutive year of material growth, but most pleasingly Capital enters 2023 with an even stronger underlying business. The Group has made significant steps in strengthening the contract portfolio, the management and operational teams, the equipment quality and the balance sheet flexibility. The focus on our premium service and quality of our equipment remains paramount in underpinning our growth strategy across our business divisions with our ongoing sector leading safety performance an example of such focus.
Our drilling business had another strong performance in 2022 with average utilisation for the year increasing further to 79% near historic record levels. Notably however we made the strategic decision during the year to reduce exposure to small scale exploration contracts and focus on our key long-term mine site contracts and world-class development projects. It has been pleasing to see this strategy reap the benefits so quickly with major extensions at the Geita and Bulyanhulu gold mines, Tanzania, a new material mine site contract at the Fekola gold mine, Mali, expanded contracts at world class non-gold projects Goulamina (lithium) and Kabanga (Nickel) and recent new contracts at world class projects Belinga (iron ore) and Reko Diq (copper).
Our mining business, having ramped up at Sukari in 2021, has now proven, operating throughout the year at steady state and even achieving its daily production in the final quarter of the year. The Sukari waste mining contract is the first load & haul of significant scale for Capital and this exceptional operational performance has elevated Capital's reputation both in mining as we tender on further opportunities and also as a reliable end-to-end service provider.
The growth trajectory MSALABS is achieving is remarkable especially considering in 2022 the business laid the foundations for material further growth in the years to come. The expanded relationship with Chrysos means MSALABS will now deploy 21 units into the market by 2025 and having achieved a strong start in 2023 we're expecting the business to generate $40-50 million this year and in excess of $80 million per annum from 2025.
Our Direct Investments portfolio remained focused around key holdings through the year. While 2022 market volatility saw a reduction in the portfolio to $38.7 million, it has nevertheless grown significantly from the net investment to date of ~$12.5 million, but also remains a strong business development tool with contracts from investee companies generating revenue of $51 million in 2022 (17.5% of Group revenue) and remains a core pillar of our business model.
The underlying demand in the market continues to be encouraging and our tender pipeline remains equally buoyant. In addition none of our material contracts are due for renewal in 2023, providing a firm footing from which to continue to grow. We will continue to pursue our key strategic priorities during 2023, with revenues expected to reach $320-340 million in 2023.'
Peter Stokes, Chief Executive, said:
"Since joining Capital in October 2022, I've seen first hand how strong a business Capital is and through 2023 we will strive to leverage our existing platform to continue to grow our service offering, while maintaining our core values.
We are extending our geographic footprint outside Africa both through MSALABS, in Canada in particular, and now with our drilling business as we commence operations at Barrick's Reko Diq project in Pakistan. We are continuing to look at opportunities globally but will maintain the core value of prioritising local employment, with more than 90% of the Group's workforce consisting of national employees.
We have now also formalised our existing mining technology expertise within the Group with the creation of 'Capital Innovation' which will channel new technologies and business ventures to market. Having successfully become early adopters of the innovative Chrysos technology, we are now aiming to provide solar hybrid power solutions both to our mining customers and our own operations through our new 50:50 joint venture Mine Power Solutions Limited with our partner Enerwhere Limited. We are also trialling a number of other technologies that could add significant value to our customers in years to come.
Capital's focus on its mine site services, Tier 1 asset client base, and the embracing of proven and more sustainable technology in the mining sector continues to underpin our growth trajectory, of which 2023 will see yet further progress."
Capital Limited will be hosting a live webcast presentation at 09:00 BST on Thursday 16 March 2023, where questions can be submitted through the platform.
The webcast presentation link:
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 Limited's website www.capdrill.com or contact:
Capital Limited investor@capdrill.com
Jamie Boyton, Executive Chairman
Peter Stokes, Chief Executive Officer
Rick Robson, Chief Financial Officer
Conor Rowley, Investor Relations & Corporate Development Manager
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 Cleary
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, focusing on the African markets. 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 London and it has established operations in Canada, Côte d'Ivoire, Egypt, Guinea, Kenya, Mali, Mauritania, Nigeria, Saudi Arabia, Sudan and Tanzania.
Financial Review
Capital Limited has delivered another strong performance in 2022 across all our business divisions. We have taken important steps over the past year, both operationally and financially, to ensure the business is well positioned to continue to grow.
Revenue increased by 28% to US$290.3 million (2021: US$226.8 million). H2 revenue (US$152.2 million) was 10% higher than H1 revenue (US$138.1 million) primarily due to the continued ramp up of MSALABS as well as new drilling contract wins through the year, notably the material drilling services contract at B2Gold's Fekola mine in Mali.
Profitability of Group operations remained robust with a YoY EBITDA increase of 22.9% and a YoY EBIT increase of 15%. EBITDA (adjusted for IFRS 16 leases), where we take into account the cash cost of these IFRS 16 leases, was up 19% YoY.
Our investment portfolio booked a US$19.8 million mark-to-market loss reflected in the Profit and Loss. The portfolio remains concentrated around key holdings valued at US$38.7 million at the end of 2022 (compared to a net investment to date of ~US$12.5 million). During the year we were net sellers with net proceeds of US$1.6 million.
Our cash capital expenditure remained broadly in line with 2021 at US$48.5 million (2021: US$49.9 million) as we funded both organic and inorganic growth. On top of replacement rigs which we incorporate in our sustaining capex guidance, we directly purchased a number of rigs to grow our fleet towards our initial year end 2022 guidance of 120 (up from 109 rigs at the end of 2021). We subsequently raised guidance to 130 rigs following the purchase of 10 rigs and associated equipment from African Mining Services (AMS), part of Perenti Group, to facilitate the delivery of the new contract at the Fekola mine. The remainder of the Group's growth capex funded the expansion of MSALABS.
Through 2022 we took a number of steps to improve our financial flexibility. In addition to purchasing rigs through OEM financing, we also refinanced our Macquarie asset backed loan facility, taking advantage of the excellent condition of the mining equipment at Sukari, which provided US$10.6 million of new liquidity. In addition, we renewed our corporate RCF facility with Standard Bank and increased the facility from US$15 million to US$25 million.
Cash generated from operations was notably 73% higher YoY at US$73.5 million (2021: US$42.6 million) reflective of stronger fleet utilisation and the new contract wins. Including the cash cost of lease payments, cash generated from operations (adjusted for IFRS 16 leases) was US$69.8 million, up 68% YoY (2021: US$41.7 million). This is despite a large working capital outflow primarily as a result of inventory build in connection with new contracts and a decision to hold higher inventories in view of supply chain constraints globally. Closing cash was US$28.4 million (2021: US$30.6 million) with net debt of US$47.2 million (2021: US$31.9 million).
The business remains very robust and is a testament to our continued focus on long-term mine site contracts which reduces the volatility of earnings. Nevertheless, we have evaluated a downside scenario to assess the aggregate effect of the reasonable downside short term risks and demonstrated that the business is robust to scenarios far worse than experienced or expected.
STATEMENT OF COMPREHENSIVE INCOME
|
US$ millions |
2022 |
2021 |
|
Revenue |
290.3 |
226.8 |
|
Gross Profit |
134.4 |
106.3 |
|
PBT |
32.6 |
82.0 |
|
NPAT |
22.7 |
70.3 |
|
Basic EPS (cent) |
11.1 |
37.0 |
|
|
|
|
|
Adjusted for loss/ gain on investments |
||
|
EBITDA 1 |
90.1 |
73.3 |
|
EBIT 1 |
59.7 |
51.9 |
|
Adjusted NPAT1 |
42.5 |
36.6 |
|
Basic EPS (adjusted)1 (cent) |
21.5 |
19.2 |
|
|
|
|
|
Adjusted for loss/ gain on investment and IFRS 16 lease payments |
||
|
EBITDA (adjusted for IFRS 16 leases)2 |
86.4 |
72.4 |
|
|
|
|
|
Gross Profit (%) |
46.3% |
46.9% |
|
EBITDA (adjusted for IFRS 16 leases)2 (%) |
29.8% |
31.9% |
|
EBIT (%) |
20.6% |
22.9% |
1 EBITDA, EBIT Adjusted Net Profit After Tax and Basic Earnings Per Share (adjusted) are pre fair value loss/gain on investments.
2 EBITDA (adjusted for IFRS 16 leases) is pre fair value loss/ gain on investments and includes the cash cost of the IFRS 16 leases.
Average rig utilisation increased to 79% (2021: 75%) on a larger average fleet size of 118 (2021: 104). Average revenue per operating rig (ARPOR) per month remained broadly in line with the prior year at US$180,000 (2021: US$181,000).
Non-drilling revenues saw another notable increase in contribution to Group revenues in 2022, driven both by the Sukari mining contract achieving its first year of continuous steady state operations as well as the continued ramp up of MSALABS. 2022 contribution to revenue from non-drilling services was 28% (2021: 24%).
EBITDA increased 22.9% to US$90.1 million delivering a 31% margin (2021: US$73.3 million/32%). EBITDA (adjusted for IFRS 16 leases) increased 18% to US$86.4 million delivering a 30% margin (2021: US$72.4 million, 32%). Margins remained robust despite higher administration expenses of US$44.3 million (2021: US$33.0 million). The increase in administration expenses YoY was impacted by US$1.5 million of bad debts written off, US$3.0 million in expected credit loss provisions and US$2.6 million in other operational provisions.
EBIT increased 15% to US$59.7 million delivering a 21% margin (2021: US$51.9 million/23%).
Profit Before Tax (PBT) decreased by 60% to US$32.6 million (2021: US$82.0 million) however this was primarily impacted by the non-cash investment loss of US$19.8 million (2021: US$33.7 million gain). These investments, while making mark to market losses through the year, continue to be a strong business development tool for the Group with revenue from investee companies in 2022 of US$51.0 million up from US$41.0 million in 2021.
Net Profit After Tax (NPAT) decreased 68% to US$22.7 million (2021: US$70.3 million) again impacted by the non-cash investment loss of our equity investments. Adjusted NPAT (excluding the impact of these investments) was US$42.5 million in 2022 up 16% YoY (2021: US$36.6 million).
The Effective Tax Rate for 2022 was 30.2% (2021: 14.3%). The increase in ETR in 2022 is primarily due to the significant unrealised decrease in fair value of the Group's investment portfolio. Excluding the impacts of these investments our ETR in 2022 was 18.8% down from 24.3% in 2021.
The Basic Earnings Per Share (EPS) for the year decreased 70% to 11.1 cents (2021: 37.0 cents), although this is largely a result of the mark-to-market losses on the investment portfolio. Excluding this impact, the Basic EPS (adjusted) increased 12% to 21.5 cents (2021: 19.2 cents). The weighted average number of ordinary shares used in the earnings per share calculation was 189,653,369 (2021: 189,765,149).
STATEMENT OF FINANCIAL POSITION
|
US$ million |
2022 |
2021 |
|
Non-current assets |
198.9 |
162.4 |
|
Current assets |
187.8 |
189.1 |
|
Total assets |
386.8 |
351.5 |
|
Non-current liabilities |
69.0 |
53.0 |
|
Current liabilities |
78.9 |
75.6 |
|
Total liabilities |
147.9 |
128.6 |
|
Shareholders' equity 1 |
233.3 |
219.2 |
1Attributable to equity holders of parent
Non-current assets increased by 22% YoY to US$198.9 million (2021: US$162.4 million) reflecting a net investment in the fleet (rig size increased from 109 at the end of 2021 to 129 at the end of 2022) in addition to a 69% YoY increase in the right-of-use asset base to US$16.7 million (2021: US$9.9 million) primarily in connection with the roll out of Chrysos PhotonAssayTM units in MSALABS.
Current assets decreased to US$187.8 million (2021: US$189.1 million) primarily as a result of a 55% YoY increase in inventory offset by a 36% YoY decrease in the fair value of the investment portfolio. Inventory increased by US$20.8 million to US$58.7 million (2021: US$37.9 million) to accommodate both increased activity across the group and to provide comfort to the business while we saw supply chain constraints globally. Investments held of US$38.7 million (2021: US$60.2 million) are the fair value of the equity investment portfolio.
Non-current liabilities of US$69.0 million (2021: US$53.0 million) includes US$56.9 million (2021: US$45.6 million) of long-term loans. Total long-term debt includes US$25 million of the renewed Revolving Credit Facility, a US$35.4 million asset backed facility with Macquarie and OEM financing direct through Epiroc & Sandvik.
Current liabilities consisted of trade and other payables of US$44.9 million (2021: US$46.5 million), the current portion of long-term liabilities of US$18.0 million (2021: US$16.9 million), provisions of US$2.6 million (2021: US$ nil) and tax liabilities of US$9.1 million (2021: US$10.0 million).
STATEMENT OF CHANGES IN EQUITY
|
US$ million |
2022 |
2021 |
|
Opening equity |
222.9 |
148.1 |
|
Share buyback |
(2.5) |
- |
|
Share based payments |
2.8 |
2.0 |
|
Total comprehensive income |
22.7 |
70.3 |
|
Dividends paid |
(7.1) |
(4.8) |
|
Gain on change in ownership |
- |
5.1 |
|
NCI ex Business Combination |
- |
2.2 |
|
Closing equity |
238.9 |
222.9 |
As at 31 December 2022, shareholders' equity increased by 7% driven primarily by net profit for the year of US$22.7 million. The Group distributed dividends of US$7.1 million (2021: US$4.7 million) to shareholders. At the beginning of 2022 the Group also completed a share buyback of US$2.5 million .
STATEMENT OF CASH FLOWS
|
US$ million |
2022 |
2021 |
|
Net cash from operating activities |
56.6 |
30.4 |
|
Net cash used in investing activities |
(47.5) |
(50.1) |
|
Net cash generated (used in)/ from financing activities |
(9.9) |
15.5 |
|
Net (decrease)/increase in cash and cash equivalents |
(0.8) |
(4.2) |
|
Opening cash and cash equivalents |
30.6 |
35.7 |
|
Translation of foreign currency cash |
(1.4) |
(0.9) |
|
Closing cash and cash equivalents |
28.4 |
30.6 |
RECONCILIATION OF NET CASH (DEBT) POSITION
|
US$ million |
2022 |
2021 |
|
Net (debt)/ cash at the beginning of the year |
(31.9) |
5.0 |
|
Net (decrease) in cash and cash equivalents |
(0.8) |
(4.2) |
|
(Increase) in long-term liabilities |
(13.1) |
(31.8) |
|
Translation of foreign currency cash |
(1.4) |
(0.9) |
|
Net debt at the end of the year |
(47.2) |
(31.9) |
Net cash from operating activities reflects the strong performance of the operations with cash generated of US$73.5 million (2021: US$42.6 million), an increase of 73% year-on-year, offset in part by higher finance costs. Adjusting cash generated from operations for the cash cost of the IFRS 16 leases reduces 2022 cash generated to US$69.8 million, up 68% YoY (2021: US$41.7 million).
We continued to invest through 2022 to fund the growth in the rig fleet as well as the expansion of MSALABS, although the investing cash flow have decreased slightly year-on-year.
The refinancing of the Macquarie asset backed loan facility and the renewal and upsizing of the revolving credit facility with Standard Bank provided new funds of US$4.1 million, net of overall loan amortisation in 2022.
Despite this, financing activities in 2022 were a cash outflow of US$9.9 million primarily as a result of lease payments, the dividend cash payment of US$7.1 million (2021: US$4.8 million) and the share buyback payment of US$2.5 million.
The dividend history for the past three years is as follows:
|
|
H1 2020 |
FY 2020 |
H1 2021 |
FY 2021 |
H1 2022 |
FY 2022 |
|
Declaration |
20 Aug 2020 |
18 Mar 2021 |
19 Aug 2021 |
10 Mar 2022 |
18 Aug 2022 |
16 Mar 2023 |
|
Cents per share |
0.9 |
1.3 |
1.2 |
2.4 |
1.3 |
2.6 |
|
Dividend amount (US$ m) |
1.2 |
2.5 |
2.3 |
4.6 |
2.5 |
5.0 |
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
|
|
|
|
(Unaudited) |
|
Audited |
||||
|
|
|
|
2022 |
|
2021 |
||||
|
|
|
|
US$ |
|
US$ |
||||
|
|
|
|
|
|
|
||||
|
Revenue |
|
|
290,284,368 |
|
226,793,266 |
||||
|
Cost of sales |
|
|
(155,852,595) |
|
(120,491,246) |
||||
|
Gross profit |
|
|
134,431,773 |
|
106,302,020 |
||||
|
|
|
|
|
|
|
||||
|
Administration expenses |
4 |
|
(44,330,562) |
|
(33,027,346) |
||||
|
Depreciation |
|
|
(30,416,239) |
|
(21,397,355) |
||||
|
Profit from operations |
5 |
|
59,684,972 |
|
51,877,319 |
||||
|
|
|
|
|
|
|
||||
|
Interest income |
|
|
34,835 |
|
244,998 |
||||
|
Finance charges |
6 |
|
(7,355,710) |
|
(3,833,766) |
||||
|
Fair value (loss)/gain on investments at fair value |
|
|
(19,797,969) |
|
33,716,756 |
||||
|
Profit before tax |
|
|
32,566,128 |
|
82,005,307 |
||||
|
Taxation |
7 |
|
(9,835,969) |
|
(11,716,529) |
||||
|
Profit and total comprehensive income for the year |
|
|
22,730,159 |
|
70,288,778 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
|
Profit and total comprehensive income for the year attributable to: |
|
|
|
|
|
||||
|
Owners of the parent |
|
|
20,990,137 |
|
70,174,784 |
||||
|
Non-controlling interest |
|
|
1,740,022 |
|
113,994 |
||||
|
|
|
|
22,730,159 |
|
70,288,778 |
||||
|
Earnings per share: |
|
|
|
|
|
||||
|
Basic earnings per share (cents per share) |
8 |
|
11.07 |
|
36.98 |
||||
|
Diluted earnings per share (cents per share) |
8 |
|
10.71 |
|
36.40 |
||||
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
|
|
|
(Unaudited) |
Audited |
|
|
Notes |
|
2022 |
2021 |
|
|
|
|
US$ |
US$ |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment |
10 |
|
172,658,108 |
143,598,399 |
|
Right-of-use assets |
|
|
16,652,318 |
9,851,343 |
|
Goodwill |
|
|
1,296,387 |
1,252,348 |
|
Intangible assets |
|
|
1,916,190 |
1,282,269 |
|
Other receivables |
|
|
6,460,000 |
6,460,000 |
|
Total non-current assets |
|
|
198,983,003 |
162,444,359 |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Inventory |
11 |
|
58,694,979 |
37,935,112 |
|
Trade receivables |
12 |
|
41,541,867 |
42,212,147 |
|
Other receivables |
|
|
20,073,008 |
17,681,623 |
|
Investments at fair value |
|
|
38,727,041 |
60,151,667 |
|
Current tax receivable |
|
|
399,683 |
499,361 |
|
Cash and cash equivalents |
|
|
28,379,607 |
30,577,249 |
|
Total current assets |
|
|
187,816,185 |
189,057,159 |
|
Total assets |
|
|
386,799,188 |
351,501,518 |
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Share capital |
13 |
|
19,287 |
19,006 |
|
Share premium |
13 |
|
62,390,217 |
60,900,119 |
|
Treasury shares |
14 |
|
(2,474,964) |
- |
|
Equity-settled employee benefits reserve |
|
|
4,469,402 |
3,185,450 |
|
Other reserve |
|
|
190,056 |
190,056 |
|
Retained earnings |
|
|
168,725,546 |
154,879,201 |
|
|
|
|
233,319,544 |
219,173,832 |
|
Non-controlling interest |
|
|
5,572,540 |
3,767,589 |
|
Total equity |
|
|
238,892,084 |
222,941,421 |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Loans and Borrowings |
15 |
|
56,864,811 |
45,567,668 |
|
Lease liabilities |
|
|
12,127,384 |
7,354,745 |
|
Deferred tax |
|
|
34,196 |
34,196 |
|
Total non-current liabilities |
|
|
69,026,391 |
52,956,609 |
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
|
|
|
|
(Unaudited) |
Audited |
|
|
|
|
2022 |
2021 |
|
|
|
|
US$ |
US$ |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
|
44,937,680 |
46,500,122 |
|
Provisions |
16 |
|
2,636,640 |
- |
|
Current tax payable |
|
|
9,130,118 |
9,979,250 |
|
Loans and Borrowings |
15 |
|
18,036,811 |
16,887,692 |
|
Lease liabilities |
|
|
4,139,464 |
2,236,424 |
|
Total current liabilities |
|
|
78,880,713 |
75,603,488 |
|
Total liabilities |
|
|
147,907,104 |
128,560,097 |
|
Total equity and liabilities |
|
|
386,799,188 |
351,501,518 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
(Unaudited) |
Share capital |
Share premium |
Other |
Equity-settled employee benefits reserve |
Total reserves |
Retained income |
Non-controlling interest |
Total equity |
|||
|
|
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
|
Balance at January 1, 2022 |
19,006 |
60,900,119 |
- |
60,919,125 |
190,056 |
3,185,450 |
3,375,506 |
154,879,201 |
219,173,832 |
3,767,589 |
222,941,421 |
|
Profit for the year |
- |
- |
- |
- |
- |
- |
- |
20,990,137 |
20,990,137 |
1,740,022 |
22,730,159 |
|
Total comprehensive income for the year |
- |
- |
- |
- |
- |
- |
- |
20,990,137 |
20,990,137 |
1,740,022 |
22,730,159 |
|
Issue of shares |
281 |
1,490,098 |
- |
1,490,379 |
- |
(1,490,379) |
(1,490,379) |
- |
- |
- |
- |
|
Recognition of share-based payments |
- |
- |
- |
- |
- |
2,774,331 |
2,774,331 |
- |
2,774,331 |
- |
2,774,331 |
|
Repurchase of own shares |
- |
- |
(2,474,964) |
(2,474,964) |
- |
- |
- |
- |
(2,474,964) |
- |
(2,474,964) |
|
Adjustment arising from change in non-controlling interest |
- |
- |
- |
- |
- |
- |
- |
(54,608) |
(54,608) |
54,608 |
- |
|
Impact of acquisition of subsidiary |
- |
- |
- |
- |
- |
- |
- |
- |
- |
10,321 |
10,321 |
|
Dividends |
- |
- |
- |
- |
- |
- |
- |
(7,089,184) |
(7,089,184) |
- |
(7,089,184) |
|
Total contributions by and distributions to owners of company recognised directly in equity |
281 |
1,490,098 |
(2,474,964) |
(984,585) |
- |
(1,283,952) |
(1,283,952) |
(7,143,792) |
(6,844,425) |
64,929 |
(6,779,496) |
|
Balance at December 31, 2022 |
19,287 |
62,390,217 |
(2,474,964) |
59,934,540 |
190,056 |
4,469,402 |
4,659,458 |
168,725,546 |
233,319,544 |
5,572,540 |
238,892,084 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
(Audited) |
Share capital |
Share premium |
Treasury shares |
Total share capital |
Other |
Equity-settled employee benefits reserve |
Total reserves |
Retained income |
Total attributable to the equity holders of the Group / Company |
Non-controlling interest |
Total equity |
|
|
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2021 |
18,878 |
60,169,426 |
- |
60,188,304 |
190,056 |
1,926,994 |
2,117,050 |
84,384,101 |
146,689,455 |
1,389,315 |
148,078,770 |
|
Profit for the year |
- |
- |
- |
- |
- |
- |
- |
70,174,784 |
70,174,784 |
113,994 |
70,288,778 |
|
Total comprehensive income for the year |
- |
- |
- |
- |
- |
- |
- |
70,174,784 |
70,174,784 |
113,994 |
70,288,778 |
|
Issue of shares |
128 |
730,693 |
- |
730,821 |
- |
(730,821) |
(730,821) |
- |
- |
- |
- |
|
Recognition of share-based payments |
- |
- |
- |
- |
- |
1,989,277 |
1,989,277 |
- |
1,989,277 |
- |
1,989,277 |
|
Adjustment arising from change in non-controlling interest |
- |
- |
- |
- |
- |
- |
- |
5,071,688 |
5,071,688 |
2,264,280 |
7,335,968 |
|
Dividends |
- |
- |
- |
- |
- |
- |
- |
(4,751,372) |
(4,751,372) |
- |
(4,751,372) |
|
Total contributions by and distributions to owners of company recognised directly in equity |
128 |
730,693 |
- |
730,821 |
- |
1,258,456 |
1,258,456 |
320,316 |
2,309,593 |
2,264,280 |
4,573,873 |
|
Balance at December 31, 2021 |
19,006 |
60,900,119 |
- |
60,919,125 |
190,056 |
3,185,450 |
3,375,506 |
154,879,201 |
219,173,832 |
3,767,589 |
222,941,421 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
(Unaudited) |
Audited |
|
|
|
2022 |
2021 |
|
|
Note |
US$ |
US$ |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
Cash generated from operations |
17 |
73,533,457 |
42,607,564 |
|
Interest income received |
|
34,835 |
244,998 |
|
Finance costs paid |
|
(6,406,712) |
(3,423,815) |
|
Tax paid |
|
(10,585,423) |
(9,030,977) |
|
Net cash from operating activities |
|
56,576,157 |
30,397,770 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
Purchase of property, plant and equipment |
|
(42,974,044) |
(46,303,585) |
|
Proceeds from sale of property, plant and equipment |
|
18,902 |
68,116 |
|
Purchase of intangible asset |
|
(633,921) |
(1,006,021) |
|
Purchase of investments at fair value |
|
(9,010,521) |
(9,150,084) |
|
Proceeds from sale of investments at fair value |
|
10,637,179 |
9,774,463 |
|
Cash paid in advance for property, plant and equipment |
|
(5,542,523) |
(3,548,794) |
|
Proceeds from sale of other investments |
|
- |
107,805 |
|
Net cash from investing activities |
|
(47,504,928) |
(50,058,100) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
Proceeds from new loans |
|
20,716,801 |
27,669,435 |
|
Repayment of loans |
|
(16,665,708) |
(6,973,921) |
|
Repayment of leases |
|
(3,733,798) |
(946,920) |
|
Advance payment on ROU assets |
|
(666,776) |
(418,782) |
|
Dividend s paid |
9 |
(7,089,184) |
(4,751,372) |
|
Repurchase of own shares |
|
(2,474,964) |
- |
|
Amount received from non-controlling interest on rights issue |
|
- |
875,968 |
|
Net cash from financing activities |
|
(9,913,629) |
15,454,408 |
|
Total cash movement for the year |
|
(842,400) |
(4,205,922) |
|
Cash at the beginning of the year |
|
30,577,249 |
35,701,894 |
|
Effect of exchange rate movement on cash balances |
|
(1,355,242) |
(918,723) |
|
Total cash at end of the year |
|
28,379,607 |
30,577,249 |
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2022
1. General information
Capital Limited (the "Company") is incorporated in Bermuda. The Company and its subsidiaries (the "Group") provide drilling, mining (load and haul), mineral assaying and surveying services. The Group also has a portfolio of investments in listed and unlisted exploration and mining companies.
During the year ended 31 December 2022, the Group provided drilling services in Côte d'Ivoire, Guinea, Egypt, Kenya, Mauritania, Mali, Saudi Arabia and Tanzania. Mining services are provided in Egypt and mineral analysis services are provided in Canada, Guyana, Mauritania, Nigeria, Côte d'Ivoire, Mali, Tanzania, Kenya and Democratic Republic of the Congo. The Group's administrative office is located in Mauritius.
2. Accounting policies
This preliminary report, which is unaudited, does not include all the notes of the type normally included in an annual financial report. This condensed report is to be read in conjunction with the Annual Report for the year ended 31 December 2021, and any public announcements made by the Group during the reporting period.
The annual financial statements for the year ended 31 December 2021 was prepared in accordance with International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board and the accounting policies applied in this condensed preliminary report are consistent with the polices applied in the annual financial report for the year ended 31 December 2021 unless otherwise noted.The auditor's report on the 31 December 2021 financial statements was unqualified and did not draw attention to any matters by way of emphasis. The financial information for the year ended 31 December 2022 is unaudited.
The preliminary report has been prepared in accordance with accounting policies compliant with International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board.
Going concern
As at 31 December 2022, the Group had a robust balance sheet with a low debt gearing with equity of US$239.9 million and loans and borrowings of US$75.6 million. Cash as at 31 December 2022 was US$28.4 million, with net debt of US$47.2 million. Investments in listed entities at the end of December 2022 amounted to US$30.4 million which provided additional flexibility as these investments could be converted into cash.
This robustness is underpinned by stable revenues generated on long-term contracts. Revenues generated on mine sites and longer-term contracts make up over 85% of Group revenues. Revenues continued to perform strongly in 2022 with increased revenue of 28% compared to 2021. Commercially, the Group continues to secure and extend long-term mining contracts with high quality customers, including the significant contract win at B2Gold's Fekola gold mine and major extensions at the AngloGold Ashanti's Geita gold mine and Barrick's Bulyanhulu gold mine. In addition, there are no major contracts due to expire in 2023 which provides strong support for earnings over the coming year.
In determining the going concern status of the business, the Board has reviewed the Group's forecasts for the 18 months to June 2024, including both forecast liquidity and covenant measurements. In the assessment, management took into consideration the principal risks of the business that are most relevant to the going concern assessment and reverse stressed the forecast model to identify the magnitude of sensitivity required to cause a breach in covenants or risk the going concern of the business, alongside the Group's capacity to mitigate. The most relevant sensitivity was considered to be decrease in EBITDA through loss of contracts, with no redeployment of equipment. EBITDA would need to fall over 70% for a 12-month period to breach the covenant test. Given the strong market demand from existing clients and across a large tendering pipeline, the Group's increased service diversification and the limited contract expiries due during the year, management consider the risk of a deep demand correction to be low.
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2022
2. Accounting policies (continued)
Going concern (continued)
Given the Group's exposure to high quality mine site operations, we consider a decrease of such magnitude to be remote. Based on its assessment of the forecasts, principal risks and uncertainties and mitigating actions considered available to the Group in the event of downside scenarios, the Board confirms that it is satisfied the Group will be able to continue to operate and meet its liabilities as they fall due over the going concern period to June 2024. Accordingly, the Board has concluded that the going concern basis in the preparation of the financial statements is appropriate and that there are no material uncertainties that would cast doubt on that basis of preparation.
3. Segment analysis
Operating segments are identified on the basis of internal management reports regarding components of the Group. These are regularly reviewed by the Chairman in order to allocate resources to the segments and to assess their performance. Operating segments are identified based on the regions of operations. For the purposes of the segmental report, the information on the operating segments have been aggregated into the principal regions of operations of the Group. The Group's reportable segments under IFRS 8 are therefore:
|
· Africa: |
Derives revenue from the provision of drilling and mining services, equipment rental, IT support services and mineral assaying.
|
|
· Rest of world: |
Derives revenue from the provision of drilling services, equipment rental, IT support services and mineral assaying. The segment relates to jurisdictions which contribute a relatively small amount of external revenue to the Group. |
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2022
3. Segment analysis (continued)
The following is an analysis of the Group's revenue and results by reportable segment:
|
|
Africa |
|
Rest of world |
|
Consolidated |
|
|
|
US$ |
|
US$ |
|
US$ |
|
|
2022 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue |
|
|
|
|
|
|
|
Drilling services |
202,201,283 |
|
6,361,164 |
|
208,562,447 |
|
|
Mining services |
49,763,175 |
|
- |
|
49,763,175 |
|
|
Laboratory services |
13,803,750 |
|
13,500,935 |
|
27,304,685 |
|
|
Surveying services |
4,333,017 |
|
321,044 |
|
4,654,061 |
|
|
Total external revenue |
270,101,225 |
|
20,183,143 |
|
290,284,368 |
|
|
Segment profit (loss) |
91,428,320 |
|
(31,302,839) |
|
60,125,480 |
|
|
Central administration costs and depreciation |
|
|
|
|
|
(440,508) |
|
Profit from operations |
|
|
|
|
|
59,684,972 |
|
Interest income |
|
|
|
|
|
34,835 |
|
Finance charges |
|
|
|
|
|
(7,355,710) |
|
Fair value gain on investments at fair value |
|
|
|
|
|
(19,797,969) |
|
Profit before tax |
|
|
|
|
|
32,566,128 |
|
|
|
|
|
|
|
|
|
2021 (Audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue |
|
|
|
|
|
|
|
- Drilling services |
|
167,104,052 |
|
5,433,307 |
|
172,537,359 |
|
- Mining services |
|
33,300,731 |
|
- |
|
33,300,731 |
|
- Laboratory services |
|
7,384,006 |
|
8,267,311 |
|
15,651,317 |
|
- Surveying services |
|
4,941,973 |
|
361,886 |
|
5,303,859 |
|
Total external revenue |
|
212,730,761 |
|
14,062,504 |
|
226,793,266 |
|
Segment profit (loss) |
|
84,884,225 |
|
(31,732,012) |
|
53,152,213 |
|
Central administration costs and depreciation |
|
|
|
|
|
(1,274,894) |
|
Profit from operations |
|
|
|
|
|
51,877,319 |
|
Interest income |
|
|
|
|
|
244,998 |
|
Finance charges |
|
|
|
|
|
(3,833,766) |
|
Net loss on financial assets at fair value through profit and loss |
|
|
|
|
|
33,716,756 |
|
Profit before tax |
|
|
|
|
|
82,005,307 |
|
|
|
|
|
|
|
|
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2022
3. Segment analysis (continued)
The following customers from the Africa segment contributed 10% or more to the Group's revenue:
|
|
|
(Unaudited) |
|
(Audited) |
|
|
|
2022 |
|
2021 |
|
|
|
% |
|
% |
|
Customer A |
|
15 |
|
16 |
|
Customer B |
|
39 |
|
37 |
|
|
|
(Unaudited) |
|
(Audited) |
||||
|
|
|
2022 |
|
2021 |
||||
|
|
US$ |
|
US$ |
|||||
|
Segment assets and liabilities: |
||||||||
|
|
|
|
|
|
|
|
|
|
|
The following is an analysis of the Group's assets and liabilities by reportable segment: |
||||||||
|
|
|
|
|
|
|
|
|
|
|
Segment assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa |
|
|
|
|
|
506,043,094 |
|
421,186,192 |
|
Rest of world |
|
|
|
|
|
59,642,347 |
|
75,429,655 |
|
Total segment assets |
|
|
|
|
|
565,685,441 |
|
496,615,847 |
|
Head office companies |
|
|
|
|
|
280,828,362 |
|
278,034,723 |
|
|
|
|
|
|
|
846,513,803 |
|
774,650,570 |
|
Eliminations |
|
|
|
|
|
(459,714,615) |
|
(423,149,052) |
|
Total Assets |
|
|
|
|
|
386,799,188 |
|
351,501,518 |
|
|
|
|
|
|
|
|
|
|
|
Segment liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa |
|
|
|
|
|
239,012,484 |
|
226,314,805 |
|
Rest of world |
|
|
|
|
|
31,752,437 |
|
28,407,677 |
|
Total segment assets |
|
|
|
|
|
270,764,921 |
|
254,722,482 |
|
Head office companies |
|
|
|
|
|
315,694,862 |
|
269,589,374 |
|
|
|
|
|
|
|
586,459,783 |
|
524,311,856 |
|
Eliminations |
|
|
|
|
|
(438,552,679) |
|
(395,751,759) |
|
Total Liabilities |
|
|
|
|
|
147,907,104 |
|
128,560,097 |
Segmental reporting summary by region:
|
|
Revenue |
Non-current assets |
|||
|
(Unaudited) |
(Audited) |
(Unaudited) |
(Audited) |
||
|
2022 |
2021 |
2022 |
2021 |
||
|
Middle East/North Africa |
121,287,573 |
89,307,774 |
77,014,240 |
75,919,256 |
|
|
South & East Africa |
70,266,325 |
52,055,578 |
36,970,552 |
34,338,287 |
|
|
West Africa |
78,854,825 |
78,186,571 |
56,262,245 |
39,508,301 |
|
|
Others |
19,875,644 |
7,243,343 |
28,735,966 |
12,678,515 |
|
|
|
290,284,368 |
226,793,266 |
198,983,003 |
162,444,359 |
|
The business has considered this segmental distribution to be appropriate as it represents the discrete areas of operations that make up the Group's revenue stream.
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2022
4. Administrative expenses
|
|
2022
|
2021 |
|
|
US$
|
US$
|
|
|
|
|
|
Employee cost (Note 6) |
16,324,024 |
14,962,199 |
|
Professional fees |
3,848,105 |
3,747,479 |
|
Insurance |
1,886,037 |
1,412,108 |
|
Rental cost |
1,549,375 |
1,268,795 |
|
Share based payment expenses |
2,774,331 |
1,989,277 |
|
Bad debts written off |
1,457,548 |
- |
|
Expected credit loss provision |
2,980,656 |
- |
|
Travel & Accommodation |
2,499,292 |
825,399 |
|
Bank charges |
1,277,475 |
730,294 |
|
Foreign exchange loss |
1,711,081 |
1,586,329 |
|
Software costs |
1,104,203 |
535,765 |
|
Other expenses |
6,918,435 |
5,969,701 |
|
Total administration expenses |
44,330,562 |
33,027,346 |
5. Profit from operations
The following items have been recognised as expenses in determining profit from operations:
|
Depreciation, amortisation and impairments |
|
|
|
|
2022
|
2021 |
|
|
US$
|
US$
|
|
Rights of use assets |
3,457,633 |
880,871 |
|
Computer software |
4,178 |
4,179 |
|
Drilling rigs |
10,373,050 |
7,959,524 |
|
Associated drilling equipment |
3,134,579 |
2,022,454 |
|
Vehicles and trucks |
3,180,506 |
1,870,873 |
|
Camp and associated equipment |
1,389,635 |
1,207,651 |
|
Mining equipment |
8,876,658 |
7,451,803 |
|
Total depreciation, amortisation and impairments |
30,416,239 |
21,397,355 |
|
Operating lease expense |
|
|
|
Short term equipment rental |
6,457,446
|
7,601,916
|
|
|
|
|
|
Employee costs |
|
|
|
Salaries, wages, bonuses and other benefits |
79,560,382 |
65,554,872 |
|
Share based compensation expense |
2,774,331 |
1,989,277 |
|
Total employee costs |
82,334,713 |
67,544,149 |
|
Other
|
|
|
|
Loss on disposal of property, plant and equipment |
668,817 |
453,869 |
|
Legal and professional fees |
3,848,105 |
3,747,479 |
|
Stock write off and provision |
945,103 |
313,250 |
|
Allowance for credit losses |
2,980,656 |
- |
|
Bad debts written off |
1,457,548 |
- |
|
Other taxes |
333,257 |
278,487 |
|
(Decrease)/ increase in provisions for other taxes |
(287,678) |
856,692 |
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2022
6. Finance costs
|
|
2022 |
2021 |
|
|
US$ |
US$ |
|
Lease liabilities |
818,249 |
177,962 |
|
Interest on bank loans |
4,219,977 |
2,517,390 |
|
Interest on supplier credit facilities |
1,005,158 |
699,865
|
|
Amortised debt arrangement costs |
438,663 |
- |
|
Other interest paid |
873,663 |
438,549 |
|
Total finance charges |
7,355,710 |
3,833,766 |
7. Taxation
Capital Limited is incorporated in Bermuda. No taxation is payable on the results of the Bermuda business. Taxation for other jurisdictions is calculated in terms of the legislation and rates prevailing in the respective jurisdictions.
The Group operates in multiple jurisdictions with complex legal and tax regulatory environments. In certain of these jurisdictions, the Group has taken income tax positions that management believes are supportable and are intended to withstand challenge by tax authorities. Some of these positions are inherently uncertain and relates to the interpretation of income tax laws. The Group periodically reassesses its tax positions. Changes to the financial statement recognition, measurement, and disclosure of tax positions is based on management's best judgment given any changes in the facts, circumstances, information available and applicable tax laws. Considering all available information and the history of resolving income tax uncertainties, the Group believes that the ultimate resolution of such matters will not likely have a material effect on the Group's financial position, statements of operations or cash flows.
Refer to Note 19 (Contingencies) for more detail on Tanzania, Zambia, Mauritania, Mali and Ivory Coast.
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2022
8. Earnings per share
|
|
|
(Unaudited) |
|
(Audited) |
|
|
|
2022 |
|
2021 |
|
|
|
|
|
|
|
Basic earnings per share |
|
|
|
|
|
|
|
|
|
|
|
The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows: |
|
|
|
|
|
|
|
|
|
|
|
Earnings for the year, used in the calculation of basic earnings per share |
|
20,990,137 |
|
70,174,784 |
|
Adjusted for: |
|
|
|
|
|
Fair value loss/ (gain) on investments |
|
19,797,969 |
|
(33,716,756) |
|
Earnings for the year, used in the calculation of basic earnings per share (adjusted) |
|
40,788,106 |
|
36,458,028 |
|
|
|
|
|
|
|
Weighted average number of ordinary shares for the purposes of basic earnings per share |
|
189,653,369 |
|
189,765,149 |
|
|
|
|
|
|
|
Basic earnings per share (US$ c) |
|
11.07 |
|
36.98 |
|
Basic earnings per share (adjusted) (US$ c) |
|
21.51 |
|
19.21 |
|
|
|
(Unaudited) |
|
(Audited) |
|
|
|
2022 |
|
2021 |
|
Diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
The earnings used in the calculations of all diluted earnings per share measures are the same as those used in the equivalent basic earnings per share measures, as outlined above. |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares used in the calculation of basic earnings per share |
|
189,653,369 |
|
189,765,149 |
|
|
|
|
|
|
|
Shares deemed to be issued for no consideration in respect of: |
|
|
|
|
|
|
|
|
|
|
|
- Effect of STIP and LTIP shares |
|
6,263,799 |
|
3,021,654 |
|
Weighted average number of ordinary shares used in the calculation of diluted earnings per share |
|
195,917,168 |
|
192,786,803 |
|
|
|
|
|
|
|
Diluted earnings per share (US$ c) |
|
10.71 |
|
36.40 |
|
Diluted earnings per share (adjusted) (US$ c) |
|
20.82 |
|
18.91 |
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2022
9. Dividends
|
|
|
(Unaudited) |
|
(Audited) |
|
|
|
2022 |
|
2021 |
|
|
|
US$ |
|
US$ |
|
Dividends |
|
7,089,184 |
|
4,751,372 |
|
|
|
|
|
|
During the 12 months ended 31 December 2022, a dividend of 2.4 cents (2021: 1.3 cents) per ordinary share, totalling to US$4,607,599 (2021: US$2,470,713) was declared as the final dividend for 2021 and paid to the shareholders on 10 May 2022 (2021: 04 May 2021) followed by a further dividend of 1.3 cents (2021: 1.2 cents) per share which was declared as interim dividend for 2022 totalling US$2,481,586 (2021: US$2,280,658) and paid on 3 October 2022 (2021: 24 September 2021). The total dividend paid is US$7,089,184 (2021: US$4,751,372).
In respect of the year ended 31 December 2022, the Directors propose that a final dividend of 2.6 cents (2021: 2.4 cents) per share be paid to shareholders on 9 May 2023 (2021: 10 May 2022). This final dividend has not been included as a liability in these Consolidated Financial Statements. The proposed final dividend is payable to all shareholders on the Register of Members on 14 April 2023 (2021: 8April 2022). The total estimated final dividend to be paid is US$5.0 million (2021: US$4.59 million). The payment of this final dividend will not have any tax consequences for the Group.
10. Property, plant and equipment
The net movement in property, plant and equipment in the year is an increase of US$29.1 million (2021: US$54.6 million). This is primarily as a result of:
· additions in the year of US$56.7 million (2021: S$75.7 million) on drilling rigs, heavy mining equipment and other assets to expand its operations and replace existing assets;
· disposals of property, plant and equipment with a net book value of US$0.7 million (2021: US$0.5 million) during the year; and
· Depreciation charge of US$27.0 million (2021: US$20.5 million).
The Group's property plant and equipment includes assets not yet commissioned totalling US$24.6 million (2021: US$19.9 million). The assets will be depreciated once commissioned and available for use. A loss of US$0.7 million (2021: US$0.5 million) was incurred on the disposal of property, plant and equipment. Not reflected in the Cash Flow is a US$9.0 million asset finance facility obtained from Epiroc Financial Solutions for the purchase of 9 Rigs and US$0.1 million of assets purchased on credit.
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2022
11. Inventory
|
|
2022 |
2021 |
|
|
US$ |
US$ |
|
Consumables |
58,310,073 |
36,303,937 |
|
Goods in transit |
1,035,386 |
2,197,983 |
|
Gross carrying value of inventory |
59,345,459 |
38,501,920 |
|
Less impairment of inventory |
(650,480) |
(566,808) |
|
|
58,694,979 |
37,935,112 |
The cost of inventories recognised as an expense in the current year amounts to US$18.3 million (2021: US$13.4 million). During the year, the Group wrote off US$0.2 million (2021: US$1.3 million) of inventory. A provision of US$0.7 million (2021: US$1.0 million - reversal of provision) was made during the year, resulting in an increase in the carrying amount of the provision .
12. Trade receivables
|
|
(Unaudited) |
(Audited) |
|
|
2022 |
2021 |
|
US$ |
US$ |
|
|
Trade receivables |
44,522,523 |
42,212,147 |
|
Less: Allowance for credit losses |
(2,980,656) |
- |
|
Total trade receivables |
41,541,867 |
42,212,147 |
As the Group does not have historical credit losses, the expected loss rates have been based on current and forward-looking information on micro macroeconomic factors affecting the Group's customers. The Group has identified the metals and mining sector's credit loss probability rates as the key macroeconomic factor in countries where the Group operates.
The lifetime expected loss provision for trade receivables is as follows:
|
31 December 2022 (Unaudited) |
Current |
More than 30 days past due |
More than 60 days past due |
More than 120 days past due |
Total |
|
|
US$ |
US$ |
US$ |
US$ |
US$ |
|
Expected loss rate |
1% |
6% |
13% |
38% |
7% |
|
Gross carrying amount |
35,802,704 |
1,299,057 |
740,146 |
6,680,616 |
44,522,524 |
|
Loss provision |
232,820 |
80,441 |
99,522 |
2,567,873 |
2,980,656 |
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2022
12. Trade receivables (continued)
Movements in the impairment allowance for trade receivables are as follows:
|
|
(Unaudited) |
(Audited) |
|
|
2022 |
2021 |
|
US$ |
US$ |
|
|
Opening provision for impairment of trade receivables |
- |
- |
|
Increase during the year |
4,438,204 |
- |
|
Receivables written off during the year as uncollectible |
(1,457,548) |
- |
|
At 31 December |
2,980,656 |
- |
13. Share capital and Share premium
|
|
(Unaudited) |
|
(Audited) |
|
|
2022 |
|
2021 |
|
|
US$ |
|
US$ |
|
Authorised |
|
|
|
|
2,000,000,000 (2021: 2,000,000,000) ordinary shares of US$0.0001 (2021: US$0.0001) each |
200,000 |
|
200,000 |
|
|
|
|
|
|
Issued share capital |
|
|
|
|
192,864,738 (2021: 190,054,838) ordinary shares of US$0.0001 (2021: US$0.0001) each |
19,287 |
|
19,006 |
|
|
(Unaudited) |
|
(Audited) |
|
Share premium |
2022 |
|
2021 |
|
|
US$ |
|
US$ |
|
Balance at beginning of period |
60,900,119 |
|
60,169,426 |
|
Shar e issue |
1,490,098 |
|
730,693 |
|
Balance at end of period |
62,390,217 |
|
60,900,119 |
In March and April 2022, the Company issued 2,809,900 new common shares (valued at US$ 1,490,379 ) pursuant to the Company's employee short term incentive plan. The shares rank pari passu with the existing ordinary shares. Fully paid ordinary shares which have a par value of 0.01 cents, carry one vote per share and carry rights to dividends.
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2022
14. Treasury shares
|
|
2022
|
|
2021 |
|
|
US$
|
|
US$
|
|
Balance at 1 January |
- |
|
- |
|
Acquired in the year |
2,474,964 |
|
- |
|
Balance at 31 December 2022 |
2,474,964 |
|
- |
The treasury shares reserve represents the cost of shares in Capital Limited purchased in the market and held by the Company to satisfy options under the Group's share options plans. The number of ordinary shares held by the Company at 31 December 2022 was 1,973,551 (2021: nil).
15. Loans and borrowings
|
|
(Unaudited) |
|
(Audited) |
|
|
2022 |
|
2021 |
|
|
US$ |
|
US$ |
|
Bank loans |
57,944,781 |
|
48,735,961 |
|
Supplier credit facilities |
17,674,372 |
|
13,719,399 |
|
|
75,619,153 |
|
62,455,360 |
|
Less: Unamortised debt arrangement costs |
(717,531) |
|
- |
|
|
|
|
|
|
Total loans and borrowings |
74,901,622 |
|
62,455,360 |
|
|
|
|
|
|
Current |
18,036,811 |
|
16,887,692 |
|
Non-current |
56,864,811 |
|
45,567,668 |
|
Total loans and borrowings |
74,901,622 |
|
62,455,360 |
(a) US$25 million revolving credit facility ("RCF") provided by Standard Bank (Mauritius) Limited
The RCF was renewed on 19 July 2022 for a further term of 3 years. The interest rate on the RCF is the prevailing three-month SOFR (payable in arrears) plus a margin of 5.75%, and an annual commitment fee of 2.275% is charged on any undrawn balances. The amount utilised on the RCF is US$25 million as at 31 December 2022 (2021: US$15 million).
Under the terms of the RCF, the Group is required to comply with certain financial covenants relating to:
|
• |
Interest Cover Ratio |
|
• |
Debt EBITDA Ratio |
|
• |
Debt Equity Ratio |
|
• |
Total Tangible Net Worth |
In addition, CAPD (Mauritius) Limited, as borrower, is also required to comply with the Total Tangible Net Worth covenant.
Security for the Standard Bank (Mauritius) Limited facility comprises:
The RCF is secured by various pledges over the shares and claims of the Group's entities in Cote d'Ivoire and Tanzania together with the assignment of material contracts and their collection accounts in these jurisdictions and a debenture over the rigs in Tanzania.
As at the reporting date and during the period under review, the Group has complied with all covenants attached to the loan facilities.
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2022
15. Loans and borrowings (continued)
(b) US$32.5 million term loan provided by Macquarie Bank Limited (London Branch)
On 15 September 2022, the Group refinanced the senior secured, asset backed term loan facility with Macquarie Bank Limited. The term of the loan is three years repayable in quarterly instalments with an interest rate on the facility of the prevailing three-month SOFR plus a margin of 6.5% per annum (payable quarterly in arrears). The loan is secured over certain assets owned by the Group and currently located in Egypt together with guarantees provided by Capital Limited, Capital Drilling Egypt LLC and Capital Mining Services. The Group drew an additional US$10.6 million in 2022. As at 31 December 2022, the term loan was fully drawn.
During the year under review, the Group has complied with all covenants attached to the term loan.
(c) Epiroc Financial Solutions AB credit agreements
The Group has a number of credit agreements with Epiroc, drawn down against the purchase of rigs. The term of the agreements is four years repayable in 46 monthly instalments. The rate of interest on some of the agreements is three-month US LIBOR plus a margin of 4.8%, with a fixed rate of interest of the remaining agreements of 8.25% . As at 31 December 2022, the total drawn under these credit agreements was US$11.7m (2021: US$6.1 million).
No covenants are attached to this facility.
(d) US$8.5 million term loan facility with Sandvik Financial Services AB (PUBL)
The Group has term loan facility agreement with Sandvik Financial Services AB (PUBL). The facility is for the purchase of equipment from Sandvik AB, available in not more than four tranches. Interest is payable quarterly in arrears at 5.45% per annum on the drawn amount. The facility is no longer available to drawn on and as at 31 December 2022 the balance outstanding was US$5.9 million (2021: US$7.5 million).
No covenants are attached to this facility.
16. Provisions
|
|
(Unaudited) |
|
(Audited) |
|
|
2022 |
|
2021 |
|
Current |
US$ |
|
US$ |
|
At 1 January |
- |
|
- |
|
Charge to profit or loss |
2,636,640 |
|
- |
|
|
|
|
|
|
At 31 December |
2,636,640 |
|
- |
|
|
|
|
- |
Provisions relate to project closure (redundancy costs) in respect of contracts concluded during the year and various operational claims and disputes that are expected to be settled during 2023. The provisions represent management's best estimate of the Group's liability as at 31 December 2022.
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2022
17. Cash generated from operations
|
|
(Unaudited) |
|
(Audited) |
|
|
2022 US$ |
|
2021 US$ |
|
Profit before taxation
|
32,566,128 |
|
82,005,307 |
|
Adjustments for:
|
|
|
|
|
Depreciation, amortisation and impairments |
26,958,606 |
|
20,516,484 |
|
Loss on disposals |
668,817 |
|
453,869 |
|
Depreciation of Right of use assets |
3,457,029 |
|
883,923 |
|
Share-based payment |
2,774,331 |
|
1,989,277 |
|
Fair value loss/ (gain) on investments |
19,797,969 |
|
(33,716,756) |
|
Interest income |
(34,835) |
|
(244,998) |
|
Finance costs |
7,355,710 |
|
3,833,766 |
|
Unrealised foreign exchange loss on foreign cash held
|
1,355,242 |
|
918,723 |
|
Increase in expected credit loss provision |
2,980,656 |
|
- |
|
Bad debts written off |
1,457,548 |
|
- |
|
|
|
|
|
|
Changes in working capital:
|
|
|
|
|
Increase in inventories |
(20,759,867) |
|
(13,246,010) |
|
Increase in trade and other receivables |
(4,883,111) |
|
(26,879,489) |
|
(Decrease)/ increase in trade and other payables |
(2,797,406) |
|
6,093,468 |
|
Increase in provisions |
2,636,640 |
|
- |
|
Cash generated from operations |
73,533,457 |
|
42,607,564 |
18. Commitments
The Group has the following commitments:
|
|
(Unaudited) |
|
(Audited) |
|
|
2022 |
|
2021 |
|
|
US $ |
|
US$ |
|
Committed capital expenditure |
18,685,619 |
|
13,424,141 |
The Group had outstanding purchase orders amounting to US$29.7 million (2021: US$30.3 million) at the end of the reporting period of which US$18.7 million (2021: US$13.4 million) were for capital expenditure.
NOTES TO THE CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
For the year ended 31 December 2022
19. Contingencies
19.1 Zambia tax
Capital Drilling (Zambia) Limited ("CDZ"), a subsidiary of Capital Limited, is a party to various tax claims made by the Zambian Revenue Authority (ZRA) for the tax years 2007 to 2013, totalling Zambian Kwacha 150 million (US$8.2 million).
No subsequent communication has been received from the ZRA regarding this matter since June 2016. As CDZ is in the final stages of a court approved liquidation, the provision of US$1.6 million previously recognised has been released during the year.
19.2 Tanzania tax
Capital Drilling (T) Ltd ("CDT")
2009-15 tax audit
Capital Drilling (T) Ltd ("CDT"), was party to a payroll tax claim (US$9.8 million including interest) made by the Tanzanian Revenue Authority ("TRA") for the tax years 2009-2015.
During the year, CDT reached a final agreement with the TRA and the deed of settlement was lodged with the Tax Revenue Appeals Tribunal on 29 June 2022. The final payment of US$0.7 million was made in August 2022, bringing the total paid to $1.8m. As part of the settlement, the TRA waived penalties and interest in full.
2016-18 tax audit
The TRA issued an initial assessment of US$4.5 million for 2016-18 in December 2019. Through negotiation, the tax claim was reduced to US$2.4 million in May 2020 and a payment of US$0.7 million was made in order to proceed with lodging formal objections.
During the year, the audit was formally closed with a further US$0.1 million payment as final settlement, bring the total tax paid to US$0.8 million.
15.3 Ivory Coast tax
2018-19 tax audit
A tax audit of Capital Drilling Cote D'Ivoire (CDCI) for the two years ended 31 December 2019 is currently underway. Through negotiations, the total tax claimed has been reduced from US$1.5 million to US$0.4 million.
The underlying facts would not trigger any additional tax liability and the tax authorities verbally confirmed they would undertake a full review. However, a demand for payment was issued in February 2023 and accordingly the exposure of US$0.4 million has been provided in full as at 31 December 2022.
19.4 Mauritania Tax
2021 tax audit
During the year, the Mauritania tax authority ('MRA') commenced a routine tax audit of Capital Drilling Mauritania ('CDM') for the year ended 31 December 2021. The exchange of information with the MRA is ongoing and no formal assessment or demand for payment has been received.
20. Events after the reporting period
There have been no significant events affecting the Group since the year end.
GLOSSARY
A description of various acronyms is detailed below:
|
ARPOR |
Average Revenue Per Operating Rig |
|
CAPEX |
Capital Expenditure |
|
EBIT |
Earnings Before Interest and Taxes and fair value gain/loss on investments |
|
EBITDA |
Earnings Before Interest, Taxes, Depreciation, Amortisation and fair value gain/loss on investments |
|
EBITDA (adjusted for IFRS 16 leases) |
EBITDA pre fair value gain/ loss on investments, net of cash cost of the IFRS 16 leases |
|
Cash from operations (adjusted for IFRS 16 leases) |
Cash generated from operations net of cash cost of IFRS 16 leases |
|
Basic EPS |
Basic Earnings Per Share |
|
Basic EPS (adjusted) |
Basic Earnings Per Share adjusted for fair value gain/loss on investments |
|
ETR |
Effective Tax Rate |
|
HSSE |
Health, Safety, Social and Environment |
|
KPI |
Key Performance Indicator |
|
LTI |
Lost Time Injury |
|
LTM |
Last Twelve Months |
|
PBT |
Profit Before Tax |
|
NPAT |
Net Profit After Tax |
|
Adjusted NPAT |
NPAT pre fair value gain/ loss on investments |
|
YOY |
Year-On-Year |
|
Return on capital employed |
EBIT / Average capital employed |
|
Average capital employed |
Average yearly capital employed pre investments at fair value and goodwill. |
RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES TO THE PRELIMINARY FINANCIAL RESULTS:
|
|
2022 |
|
2021 |
|
|
US$ |
|
US$ |
ARPOR can be reconciled from the financial statements as per the below:
|
Revenue per financial statements ($) |
290,284,368 |
|
226,793,226 |
|
Non-drilling revenue ($) |
(89,793,368) |
|
(57,130,266) |
|
Revenue used in the calculation of ARPOR ($) |
200,491,000 |
|
169,663,000 |
|
|
|
|
|
|
Monthly Average active operating Rigs |
93 |
|
78 |
|
Monthly Average operating Rigs |
118 |
|
104 |
|
ARPOR (rounded to nearest $'000) |
180,000 |
|
181,000 |
EBITDA can be reconciled from the financial statements as per the below:
|
Profit for the year |
22,730,159 |
|
70,288,778 |
|
Depreciation |
30,416,239 |
|
21,397,355 |
|
Taxation |
9,835,969 |
|
11,716,529 |
|
Interest income |
(34,835) |
|
(244,998) |
|
Finance charges |
7,355,711 |
|
3,833,766 |
|
Fair value adjustments |
19,797,969 |
|
(33,716,756) |
|
EBITDA |
90,101,212 |
|
73,274,674 |
|
|
2022 |
|
2021 |
|
|
US$ |
|
US$ |
|
Operating profit (EBIT) |
59,684,973 |
|
51,877,319 |
|
Depreciation, amortisation and impairments |
30,416,239 |
|
21,397,355 |
|
EBITDA |
90,101,212 |
|
73,274,674 |
|
Gross profit |
134,431,773 |
|
106,302,020 |
|
Administration expenses |
(44,330,561) |
|
(33,027,346) |
|
EBITDA |
90,101,212 |
|
73,274,674 |
|
EBITDA Margin |
31.0% |
|
32.3% |
EBITDA (adjusted for IFRS 16 leases):
|
EBITDA |
90,101,212 |
|
73,274,674 |
|
Repayment of leases |
(3,733,798) |
|
(946,920) |
|
EBITDA (adjusted for IFRS 16 leases) |
86,367,414 |
|
72,327,754 |
Cash generated from operations (adjusted for IFRS 16 leases):
|
Cash generated from operations |
73,533,457 |
|
42,607,564 |
|
Repayment of leases |
(3,733,798) |
|
(946,920) |
|
EBITDA (adjusted for IFRS 16 leases) |
69,799,659 |
|
41,660,644 |
Net cash (debt) can be reconciled from the financial statements as per the below:
|
Cash and cash equivalents |
28,379,607 |
|
30,577,249 |
|
Long-term borrowings |
(57,153,863) |
|
(45,567,668) |
|
Current portion of long-term borrowings |
(18,465,290) |
|
(16,887,692) |
|
Net debt |
(47,239,546) |
|
(31,878,111) |
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