Capital Limited Secures Major Mining Services Contract at Reko Diq
Why we think this is very good
This contract represents a significant and transformative opportunity for Capital Limited. The long-term nature of the agreement, the substantial annual revenue potential, and the company's proven track record at the Reko Diq project all point to a very positive outlook. The contract's scale, relative to Capital's market capitalization, and the potential for further extension suggest this is a highly strategic and value-accretive deal that should be viewed very favorably by investors.
Key Points
- Signed a major mining services contract with Reko Diq Mining Pakistan Limited, operated by Barrick
- Contract runs through December 2028 with potential 5-year extension
- Expected to generate over $60 million in annual revenue once fully operational
- Covers early works civils and tailings storage facility mining services
- Expands Capital's presence at the world-class Reko Diq copper-gold project
Summary
Capital Limited has signed a transformative mining services contract with Reko Diq Mining Pakistan Limited, operated by Barrick, for the Reko Diq project. The agreement, which runs through December 2028 with a potential 5-year extension, is expected to generate over $60 million in annual revenue once fully operational. The contract covers two major scopes of work: early works civils and tailings storage facility mining services. This represents a significant expansion of Capital's presence at the world-class Reko Diq copper-gold project, which is set to be one of the largest, longest-life, and lowest-cost operations globally.