Capital buys Australian driller MDU, lifts 2026 revenue outlook to $455M
What's the deal? Capital LimitedDealroom has a profile for this one. Try Dealroom →, a UK-based global mining services provider, has completed its acquisition of Metres Down Under (MDU)Dealroom has a profile for this one. Try Dealroom →, Australia's underground reverse circulation drilling contractor. The deal value was undisclosed. MDU generated roughly $25 million in revenue and $6 million in adjusted EBITDA over the twelve months to September 2026.
Why now? Capital announced the acquisition alongside strong Q3 2026 results on October 15, 2026. Group revenue reached $115.7 million for the quarter, up 23.2% year-on-year; nine-month revenue climbed 32.2% to $334.7 million.
What's the endgame? The acquisition establishes Capital's footprint in the Australian drilling market, deepens underground drilling expertise, and strengthens ties with AngloGold AshantiDealroom has a profile for this one. Try Dealroom →. Capital expects the deal to be accretive from day one, with MDU consolidated into group results from September 30, 2026.
By the numbers: Capital raised its full-year 2026 revenue guidance to $435–$455 million, up from $430–$450 million, citing MDU's contribution. Laboratory division MSALABSDealroom has a profile for this one. Try Dealroom → posted a record $26.0 million in Q3 revenue, up 23.8% year-on-year, while drilling revenue slipped 0.9% to $64.5 million as rigs were redeployed to higher-yielding projects.
Key hire: Capital appointed Tim Donnelly as chief operating officer — drilling and mining. He previously served as general manager at Artemis GoldDealroom has a profile for this one. Try Dealroom →'s Blackwater Mine and held roles at Centamin, Endeavour MiningDealroom has a profile for this one. Try Dealroom →, and Macmahon HoldingsDealroom has a profile for this one. Try Dealroom →.
Capital also secured a two-year extension and expanded scope for drilling at Fortescue's Belinga Iron Ore Project in Gabon, adding five rigs to bring the fleet to ten. Its investment portfolio reached $126.7 million as of September 30, up from $116.5 million three months earlier, delivering an 11.8% year-to-date return.
The signal: Capital is diversifying beyond cyclical contract drilling, pushing into laboratory services and the Australian market. The MDU deal and guidance upgrade signal a bet that consolidation and geographic expansion can smooth revenue as individual drilling contracts shift.
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