Capital Share Discussion Threads

[rivaldo] 10/12/2024 08:44

Great to see FIL (Fidelity) have almost doubled their holding in CAPD to over 10%.

They now own 19.624m shares:

[rivaldo] 06/12/2024 07:14

Firstly, Leo Lithium have just announced a first tranche distribution of funds to shareholders of A$0.172 per share.

This means that CAPD will receive an initial £0.9m or so (if my early morning brain is working correctly!) in late January, with a further tranche in July:



Secondly, Sanu Gold's share price has rocketed 56% overnight to C$0.18 following a strategic partnership and investment announcement. This makes CAPD's recent CS1.2m investment (made at C$0.05) now worth C$4.32m.

Not a bad few weeks' return!

[davebowler] 22/11/2024 12:12

Gold has just hit an all time high today in Sterling.

[rivaldo] 19/11/2024 11:58

Missed this from last week - Aberforth Partners have been buying. They're now above 10%, with 19.99m shares:

[rivaldo] 15/11/2024 10:13

CAPD have increased their holding in WIA Gold to 242.9m shares (almost exactly 18%).

At the current A$0.13 that's worth £16.1m:

[rivaldo] 13/11/2024 09:18

Cheers Jeff H. And two further pieces of good news.

Firstly, Sanu Gold has just announced the start of drilling at its Daina Gold operations in Guinea, where it says:

"The Company is excited to be drilling at Daina where auger gold results, rock chip sampling and ground geophysics have contributed to the understanding of key targets most of which remain largely untested. Capital, our new strategic shareholder, has done an excellent job at Diguifara and will also be conducting the drilling at Daina."



Secondly, Leo Lithium has announced that "net proceeds3 from the US$161 million Tranche 1 payment, the US$10.5 million deposit and the Firefinch Payment are to be distributed to shareholders in January 2025 (Tranche 1 Distribution)".

In my thread header post I noted that CAPD's holding was worth almost £4m, so hopefully this first distribution might be worth low £millions given that over $170m should have been received by Leo Lithium:

[jeff h] 09/11/2024 13:42

I don't think the below has been reported, apologies if it has:-

"...Aton has executed a new driling contract with Capital Drilling Egypt Ltd (“Capital”) to undertake a minimum of 5,000m of RC drilling on the retained exploration areas at the Abu Marawat Concession. Drilling is planned at the Abu Marawat deposit and the Semna gold mine project, as well as other to date undrilled high priority targets on the Concession, including Sir Bakis and Bohlog..."

[indiestu] 07/11/2024 14:55

Does anyone have the cumulative revenue figures for YTD 2024 handy? Trying to work out what they need to book in Q4 to beat on the top end 375m.

[robsy2] 05/11/2024 10:47

Thanks Rivaldo

[rivaldo] 05/11/2024 09:44

WIA Gold have just announced they've raised A$30m at A$0.15, which is almost no discount to their current multi-year high share price, with "Strong support received from local and offshore institutional and sophisticated investors".

So this solidifies the value of CAPD's shareholding now worth over £14m. It'll be interesting to see whether they've increased their holding further.

And of course as drilling contractor CAPD should benefit further from the further drilling work to be undertaken:

[rivaldo] 31/10/2024 09:16

News overnight from Sanu Gold:



"Sanu Gold Corporation (CSE: SANU) (OTCQB: SNGCF) (FSE: L73) ("Sanu Gold" or the "Company") is pleased to announce the start of its phase 1 drilling plans for the Diguifara project in Guinea. The project is located only 20km from the Siguiri gold mine which is owned and operated by AngloGold Ashanti plc ("AngloGold Ashanti"). The drilling will be completed by Capital Limited which has extensive experience in drilling out large deposits in Guinea and whose investment arm (Capital DI) heavily participated in Sanu Gold's last financing."

Also, WIA Gold's share price is now at A$0.155, so CAPD's stake is worth £14.4m.

[davebowler] 30/10/2024 15:41

Gold at an all time high.

[davebowler] 22/10/2024 11:20

Bullish articles on King World News on PMs

[rivaldo] 22/10/2024 11:08

Chers darlocst, good to know. That will presumably reduce debt even further this H2 after the PDI disposal, though it's unfortunate that they've missed out on a 20% rise since then.

[darlocst] 22/10/2024 10:49

Yes, they said a recent presentation/webcast that they were almost completely out of their Allied Gold position. Share price at the time was around $3 area.

[rivaldo] 22/10/2024 08:39

Quick question. The recent update noted CAPD's $31m investment portfolio "continues to be focused on a select few key companies with our holdings in WIA Gold, Leo Lithium, Asara Resources and Sanu Gold comprising the majority of our investments".

Have CAPD formally disclosed anywhere that they've disposed of their holding in Allied Gold post Allied's IPO? I missed it if so.

Allied's share price appears to be benefiting from the record gold price and has bounced nicely in recent days to $3.70.

[davebowler] 21/10/2024 10:36

Hmm.. Maybe the market will ascribe a greater value as the months and bull market in PMs progresses?

[adamb1978] 21/10/2024 08:41

Market has never shown any willingness to attribute value to those holdings Dave.

Whether they've gone up or down in value, there hasn't seemed to be any reaction in the share price.

It doesn't feel that any value is ascribed to them, hence my view that it would be better if they could be sold down where possible

[davebowler] 21/10/2024 07:44

This should really be acting from now on as a turbo charged play on Precious Metals, in my view, due to its increasingly valuable holdings in exploration companies.

[rivaldo] 21/10/2024 07:44

Sanu Gold have just announced their inaugural phase 1 drilling programme at Diguifara in Guinea, designed together with AngloGold Ashanti.

They note:

"The project is located only 20km from the Siguiri gold mine which is owned and operated by AngloGold Ashanti plc ("AngloGold Ashanti"). The drilling will be completed by Capital Limited which has extensive experience in drilling out large deposits in Guinea and whose investment arm (Capital DI) heavily participated in Sanu Gold's last financing".

"Drilling is scheduled to begin in the second half of October"

[adamb1978] 20/10/2024 14:04

Its quite a lot harder to forecast CAPD now given the transition of the business. And that's not just in terms of the revenue line, however also not as easy to forecast the rate of gross margin decline due to increasing services element this year and in 2025, plus how much the depreciation charge (which is $40m+) changes with the fleet changes/disposals and ramps up of labs, plus timing of the interest cost reduce when they use the cash balance to reduce debt etc.

I haven't sold any of my position due to the statements about using the Predictive proceeds for debt reduction and similarly with asset sale, plus the entry into the register of the value/activist investor. All of those change the investment case, or at least raise the prospects of value being 'outed' sooner.

From a valuation perspective, the main metric which I'm looking at is P/NAV given the above challenges with P&L forecasting. On that basis its very cheap. I'm hoping the new shareholder agitates more and more and that we get a buyback before too long

[gleach23] 18/10/2024 13:10

I can't help thinking that the good old Capital Drilling I initially invested in years ago would be 150p+ by now if it hadn't 'de-risked' into its other activities which have themselves made great progress. Bizarre really.

[davebowler] 18/10/2024 12:04

Precious Metals hitting all time high yet CAPD price is struggling???

[davebowler] 17/10/2024 08:24

Tamesis research -
Valuation -
Capital are working on a structural transition of their business. Drilling has already seen the improvement, and the roll-out into the US has been slower than anticipated but this is ramping up now. The update on FMG is unexpected, but we believe Capital can tender for an alternate contract, or sell the equipment. Our revenue forecast for 2024 is now on low end of guidance at $356m vs $359m before. We have had to downgrade our revenue forecast for 2025 (by 7.0%) and 2026 (by 6.8%) driven by FMG’s early termination of their mining contract at Belinga, and the delayed ramp up at MSALABS. Despite the revenue downgrade the shares are still trading on undemanding valuation multiples - EV/EBITDA for FY2024 and FY2025 of 2.7x and 2.8x, and a PE of 6.1x and 7.1x and a FCF yield of 8% and 20%. We continue to expect the company to use its strong balance sheet to deliver further growth too and remain comfortable with our PT 160p.