Capital Share Discussion Threads

[rivaldo] 25/8/2021 10:42

Cheers - though I think you meant dangersimpson2!

I found his full post from 17th August, which is even more useful as it posits a possible $20m valuation for CAPD's Allied Gold Corp stake:

"The listed stakes are worth just over $30m, despite some selling down of some of the stakes, (although some cash has been put back into PDI.)

The unlisted, which is mainly Allied Gold, was valued at $10.9m but may well have increased in value. Allied are looking to list in London later this year so we may well get a market value for that going forward. They are looking to raise at least $500m to fund their expansion plans which suggest that CAPD's 2% (IIRC) cannot be worth less than $10m and is probably closer to $20m (assuming the raise & listing goes ahead as planned)."

[otemple3] 25/8/2021 10:19

I'll quote Dangercapital: "Allied are looking to list in London later this year so we may well get a market value for that going forward. They are looking to raise at least $500m to fund their expansion plans which suggest that CAPD's 2% (IIRC) cannot be worth less than $10m and is probably closer to $20m (assuming the raise & listing goes ahead as planned)"

[rivaldo] 25/8/2021 10:12

Agreed - very, very buoyant and confident about all areas of the business.

Good to hear that CAPD are looking to expand and diversify into mining for rare earths/battery metals etc like lithium.

Also encouraging to hear too that the $3m plus value (anyne know precisely how much?) in the large unlisted investment in Allied Gold Corp is likely to be crystallised via an IPO in the next 12 months.

IMO the current share price is EXTREMELY undervalued.

[adamb1978] 25/8/2021 09:44

Investormeet presentation I thought has gone well.

The main point (for me) to highlight for those which weren't on the call was an answer to a question which I asked about medium term targets. CEO view was that the business could get to $500m revenue, of which about 50% would be non-drilling

Other point of interest was confidence expressed a few times that they believe that their industry (or customers in particular) are in the early-stages of the cycle given that there had been a decade of under-investment by those customers.

Generally a very positive call though

[chillpill] 25/8/2021 08:15

It just a matter of time before it we have a chart breakout. The fundamentals are excellent for next 18 months imo.

[rivaldo] 25/8/2021 07:43

Quick reminder - CAPD's InvestorMeet presentation is at 9.00 this morning.

[smithie6] 24/8/2021 15:40

oooh

selling now at 83.0p

all together, shoulder to the wheel & pushhhh !

je je !

----

no no !, the other way, up the hill !
je je

[11_percent] 24/8/2021 07:09

RNS

Stuart Patrick Thomson, CEO - MSALABS, sold an aggregate of 145,000 Ordinary Shares in the Company as follows:

1. 11,694 shares at a price of 80 pence per Ordinary Share;
2. 33,306 shares at a price of 78.71 pence per Ordinary Share;
3. 50,000 shares at a price of 79.5 pence per Ordinary Share; and
4. 50,000 shares at a price of 80.02 pence per Ordinary Share.

[smithie6] 23/8/2021 15:32

this week it might finally go up thru the resistance at ~82p

it has failed quite a few times over recent weeks but it looks to be pushing upwards over time

[clocktower] 23/8/2021 15:14

Have you given up and sold S as I see others seem to have.

Good Luck.

[smithie6] 23/8/2021 11:52

this week it might finally go up thru the resistance at ~82p

it has failed quite a few times over recent weeks but it looks to be pushing upwards over time

[rivaldo] 22/8/2021 12:49

Cheers owenski.

It's worth noting that the front page of Tamesis'new note only has forecasts up to and including this year (13.6c EPS, up from 10.1c underlying EPS last year).

Whereas the back page tells us that next year, following the Sukari expansion, they see 18.6c EPS - that's 13.6p EPS - and $70.4m EBITDA, with a $19m cash pile (the cash pile rises to $61.3m the next year).

[owenski] 22/8/2021 08:44

Results pres in full 44m, don't think it's been posted before.

[tole] 20/8/2021 20:22

https://masterinvestor.co.uk/equities/small-cap-round-up-featuring-anexo-group-surface-transforms-gattaca/Capital Limited (LON:CAPD) – the long slog continuesFocused on the African resources markets, this mining services group yesterday announced its half-time results to end June.They showed a 7% increase in the number of drill rigs to 106, together with an excellent 28.1% rise in the utilisation rate at 73%.Revenues rose 51.6% to $98.7m while its net profits after tax came out 35.3% better at $18.4m. Interim earnings were 140.1% up at 6.7c per share. Even the net asset value per share was 19.2% to the fore at 86.3c.Capex was 295.7% higher at $27.7m, while net debt rose to $32.8m ($0.1m), representing a net debt/equity level of 20.1%.Despite the slight 'fogging' of these figures, which included $5.7m of equity investment gains, these were good results.Tamesis Partners suggest that all parts of the group's business – drilling, mining, investments, and laboratory work – are set to grow materially.They see revenue for the end December year rising to $201.8m ($135m) while its profits after tax could increase from $24.6m to $25.9m, with its earnings coming out at 13.6c (18.1c before the recent funding issue).Tamesis have a price objective of 135p on the group's shares.I sincerely hope that this group is now getting itself into forward gear, so too its share price, which has been impeded by holder disposals of 3m shares at 77p each, combined with the big issue of 51.8m Placing shares at 58p each last December.By the way Investor Meet will be holding an investor presentation for the group next Wednesday.The group's shares, which eased on the results to 80p, may take a lot more time to get up to my price objective.

[tole] 20/8/2021 19:56

A bit of coverage on TMFhttps://www.fool.co.uk/investing/2021/08/20/for-thursday-2-penny-stocks-to-buy-now-and-one-to-avoid/Profit from goldMy second pick is a company I've owned before and probably shouldn't have sold. Capital (LSE: CAPD) is a mining services company. Formerly known as Capital Drilling, the group provides drilling and other services for some of the biggest gold miners in Africa.The growth story here's quite exciting, in my view. Historically, the company just provided drilling rigs for hire. But under chairman Jamie Boyton, who has a 12% shareholding, Capital is expanding to offer other services, such as earth moving. Effectively, the group appears to be moving towards becoming a contract mining company that can operate gold mines on behalf of their owners.What could go wrong? Capital is having to invest significant amounts in new equipment to win bigger contracts. If the contracts don't deliver the level of profitability that's expected, then the group could find itself losing cash fast.So far, progress seems good. Capital shares are broadly flat on a year ago, but profits are rising steadily. The shares look reasonably valued to me, on less than 10 times earnings. I'm tempted to buy back in.

[tole] 20/8/2021 19:54

Great summary. Thanks for sharing.

[shanklin] 20/8/2021 15:43

Very interesting Mark, thank you.

IMHO the only bit not too like, which seemed overly-conservative to me, was CAPD not increasing their forecast 2021 revenue range.

[owenski] 20/8/2021 15:35

rivaldo
dangersimpson

Thanks for the posts

[dangersimpson2] 20/8/2021 14:06

I've written up my thoughts on the H1 results, including why I think the Tamesis forecasts appear light, here:

Summary

In Capital we have a company:

- That has beaten expectations.

- Is likely to beat expectations going forward.

- Is growing rapidly in a market where demand is outstripping supply at the moment.

- Generates higher EBITDA margins than competitors throughout the cycle.

- Has a younger fleet than competitors.

- Has longer-term contracts than competitors so is less exposed to the mining cycle.

- Has hidden value in a rapidly growing labs business and equity portfolio.

- Trades at a material discount to the market and to listed-peers.

- Yet the price went down on the results.

This is what opportunity smells like.

[rivaldo] 20/8/2021 07:47

New interview with not surprisingly a rather buoyant CEO - demand for drilling is the "highest for a decade", and CAPD are "positioned very well for the next few years":



"Capital Ltd report 'financial strength across the board' as rig utilisation rates increase to 79%

Capital Ltd's (LON:CAPD) Jamie Boyton caught up with Proactive London after reporting their strongest half-year in its history with revenues up by 52%.

Operating profits also more than doubled as gold drilling activity continues to increase.

And the interim dividend has been increased by a third to reflect the strength across all areas of the business.

Revenues for the six months to end June rose to US$98.7mln (US$65.1mln) while operating profits rose to US$20.1mlm from US$9.6mln. Pre-tax profits were US$24.3mln (US$19.1mln)."

[fozzie] 19/8/2021 13:40

Good job the company released very good H1 results with a positive outlook ;o)

[rivaldo] 19/8/2021 13:21

Here's the new presentation for today's H1 results:



"Outlook & Guidance

Revenue guidance for 2021 increased to $200 to $210 million, representing 52% growth on 2020 ($135 million)
Gold price remains at comfortably high levels, a strong tailwind for Capital with c.90% of revenue exposed to the African gold mining sector
Mining equity market activity continued to escalate through 2021 resulting in decade high capital raisings, a strong lead indicator for demand
Strong industry fundamentals, improved operating cash flows for producers and a fundamental need to replace depleted resources and reserves
Demand accelerating across all business units, with drilling demand at previous peak demand levels
Elevated capital spend in 2020 / 2021 as we expand our rig and HME fleet for long term contract awards
Maintain a strong balance sheet, supported by improving H2 cash flow, providing flexibility for future growth opportunities and continued shareholder returns"

[deanowls] 19/8/2021 13:13

Hi shanklin would that be down to expansion costs?

[shanklin] 19/8/2021 12:16

FWIW, I just revisited the CAPD IMC presentation from 25-Mar-21. Just after 28 minutes in, Jamie Boynton describes MSALabs as a "high margin, low capex", "high return" business and talks about its strong growth trajectory.

Hopefully the higher margin profits will kick in fairly soon as from the "Non-controlling interest" number in the H1 results, MSA Labs made a profit of circa $324k in H1 on $6.5m of revenue, $81k of which went to the minority owner. So an operating margin of circa 5%

[capitalist] 19/8/2021 11:03

There will probably be a number of sellers on news. Hopefully these results will result in a revaulation of the share price (upwards that is).