Capital (LSE:CAPD) has completed the acquisition of 100% of Metres Down Under Pty (MDU), a specialist underground drilling company based in Kalgoorlie-Boulder, Western Australia, marking its entry into the Australian drilling market.
The mining services group, which provides exploration, grade control and laboratory services to miners with particular strength in Africa, is paying total consideration of up to approximately $16 million, split between an upfront payment of approximately $11 million and a milestone-based earn-out of up to roughly $5 million.
MDU generated revenue of approximately $25 million and adjusted EBITDA of approximately $6 million in the twelve months to 30 September, and brings existing drilling contracts at AngloGold Ashanti's Sunrise Dam and Tropicana operations, taking Capital's footprint with AngloGold to five mine sites.
Capital raised its 2026 group revenue guidance to $435 million to $455 million, up from the $430 million to $450 million range set at its half-year results in August, itself an increase on the $410 million to $440 million guided at the 2025 full-year results.
The company attributed the latest upgrade to the consolidation of MDU's revenue from 30 September.
MSALABS revenue guidance was reiterated at $85 million to $95 million, as was capital expenditure guidance of $55 million to $65 million.
Founded in 1997, MDU describes itself as Australia's largest specialist underground reverse circulation drilling company, with a track record of more than three million drilled metres across a fleet of 11 rigs; Capital said the deal positions it as the world's leading provider of such specialist services.
"With MDU's contracted revenues contributing to the Group in Q4, we are pleased to announce an increase in our 2026 Group revenue guidance to US$435 - US$455 million", said Jamie Boyton, Capital's executive chair.
MDU will continue to operate as a distinct business within the group, with Capital's initial priorities centred on maintaining uninterrupted service and integrating the two operations before pursuing a broader growth strategy.
Capital will host a third-quarter 2026 trading update presentation via Investor Meet Company during mid-October to provide further detail on the transaction.