Capital Share Discussion Threads

[concentrate] 29/4/2022 13:30

This company is great, and their investment portfolio clearly does very well - but I'm guessing people are being very selective about when they mention share price movements of the portfolio?

Every week I read that one of the stocks in their portfolio has gone up double digit %!!

Otherwise, some great research in this thread.

[kaizenkid] 29/4/2022 09:26

PDI also strong +9%.

[rivaldo] 29/4/2022 07:35

CAPD's 18.95m shares in Firefinch were up 16% overnight on news that the demerger of Firefinch's lithium assets is going ahead, with an associated A$100m fundraising.

CAPD's Firefinch shareholding is now worth £12.1m.

Lots of detail here, including a presentation noting what should hopefully be some juicy work for CAPD on pages 21 & 22 from "extensive" drilling planned for this year leading to initial production in H1'24:

[kaizenkid] 28/4/2022 16:04

Confident tone from Jamie at the AGM presentation - which is on Investor Meet. Absolutely no sign of the cycle slowing and repeating that tendering environment is very strong with utilization in Q1 at over 80%. Apor dipped in Q1 due to rig movements and I think likely it bounces back. Reassuring that Capex can be pulled back if need be in any slowdown - a point I think underestimated by the low rating.

[rivaldo] 27/4/2022 06:33

PDI were up 13% overnight on impressive drilling results at Bankan.

Most importantly, there was this juicy snippet re an "aggressive drilling campaign over next 12 months":

"The Company....following a competitive tender has awarded a new drilling contract to Capital Drilling, with a minimum of four diamond drill rigs expected on site in the near-term delivering a significant ramp-up in drilling activity."

[rivaldo] 26/4/2022 06:42

Altus announce today "highly encouraging" drilling results from Tabakorole, where CAPD are the contractor - with follow-up surveys "ahead of further drilling":

[rivaldo] 25/4/2022 06:30

From Hummingbird's trading update today - Kouroussa is progressing well (CAPD being the appointed contractor):

"Kouroussa, Guinea: As previously announced, official construction began at Kouroussa in January and is rapidly advancing, with civil works now underway. The project remains on schedule for first gold pour by the end of Q2 2023"

"We continued to receive the final results from our 2021 group-wide drilling campaign during the quarter for both Yanfolila and particularly Kouroussa where we have continued to intersect many significant intercepts. These results are now being incorporated i nto our updated Company Resources and Reserves statement, which is expected to be released later this quarter."

[rivaldo] 21/4/2022 11:08

Berenberg reiterate their Buy today, and have increased their target price to 154p (from 150p).

Every little helps....Berenberg have now increased their target price six times in the last seven months :o))

[rivaldo] 21/4/2022 07:52

It's worth remembering that in last year's Q1 update CAPD similarly maintained the prior revenue guidance for the year, which at the time was $185m-$195m.

The year end outturn for last year came in at $227m!

[chillpill] 21/4/2022 07:30

I think you are right…in time.

They have at least 3 years of the current commodity cycle left, probably 5-10 years imo.

[owenski] 21/4/2022 07:20

PT of 160 seems ultra conservative, would think 300 region is not over stretched.

[rivaldo] 21/4/2022 06:54

Tamesis Partners reiterate their 160p price target:

"Conclusion: This most recent trading update confirms the accelerated growth trajectory the company is now on across its three main business streams: drilling, mine services and laboratory testing. With the current strong macro background of high gold prices and increasing mining activity in Africa we see this growth lasting well into 2024. Despite the shares being up 50% over the last 12 months we believe that they continue to look extremely undervalued; trading on a 2022E EV/EBITDA and P/E of 2.9x and 7.0x respectively – see Block Model. We remain confident in our recently set PT of 160p."

[rivaldo] 21/4/2022 06:21

Yep, an outstanding Q1 update.

CAPD are conservatively reiterating prior guidance, but Q1 revenues of $66.9m suggest that the year's guidance of $270m-$280m will be blown out of the water. That forecast would imply almost no growth during the year, despite all the drill contract wins, the expansion of mining services and especially the accelerating expansion of the labs business.

ARPOR is down slightly, but fleet utilisation is up hugely to a terrific 82%, and the fleet size continues to increase.

With such a supportive long-term backdrop CAPD remains extremely undervalued at these levels imho.

[chillpill] 21/4/2022 06:09

Going gangbusters.

[tole] 18/4/2022 18:37

A little write up spotted this weekend.https://www.fool.co.uk/2022/04/17/the-5-best-uk-stocks-to-buy-and-watch-now/In the current robust commodity price environment, I like the look of Capital. The business provides a range of drilling and mine site services to mineral exploration and mining companies. And with the share price near 106p, the forward-looking dividend yield is around 3.5%. In March, the company delivered an impressive set of full-year results and said, "Tendering activity across all business units remains robust, with a number of opportunities progressing".

[kaizenkid] 14/4/2022 13:20

Good also to see that CAPD are hiring exploration project managers...Linked in Advert goes to this site....hxxps://www.capdrill.com/were-hiring-project-managers-1

[rivaldo] 14/4/2022 10:59

Well, as I posted above, March drilling activity is at record levels, despite inflationary pressures having been in place for a while now - such activity merely needs to be at healthy levels going forward for CAPD to thrive, let alone hit new records:



"Capital Limited
@_CapitalLimited

Strong activity continues in the drilling sector, positive indicator for our drilling business, S&P Global’s Mar data shows drilling remained strong through the qtr, with a record # of projects reporting, up 2.5% MoM to 414. Distinct drillholes increased by 2.0% to 6,231 projects"

[kinbasket] 14/4/2022 06:39

Gold is up about 10% over the last year and double that over the last two. The problem is the input costs of everything else in mining has gone parabolic. From diesel to food. Construction materials, reagents, tyres, electricity, everything. I'm not sure which if any of the miners are making more money in this environment and which are seeing AISC soaring. I think we'll need a few Qs of results to see what's really happening in the industry. Inflation could well be squashing budgets rather than expanding them and we may well need much higher commodity prices to unlock investment.

[hpcg] 13/4/2022 17:20

Gold is looking extremely perky. Were is to break all time highs then Capital's holdings should also do well. Plus all customers should be flush with cash and explorers should be able to raise drilling money.

[rivaldo] 13/4/2022 10:07

River and Mercantile UK Micro Cap Unvestment Trust have today released their monthly review for March.

Their portfolio commentary includes this rather pleasing commentary on CAPD - which is now the Trust's third largest holding at 4.8% of the total portfolio:

"Capital, the African gold drilling and mining business, was the final material contributor. The shares gained 14% in the month following strong results and remains
good value despite trading at all-time highs. We also promoted Capital from an S3 to S2 sustainability rating which follows a few years of engagement with the company and recognises the progress they have made on our key pillars."

[rivaldo] 12/4/2022 22:15

Nice tweet today from CAPD (click link for the drilling activity chart):



"Capital Limited
@_CapitalLimited

Strong activity continues in the drilling sector, positive indicator for our drilling business, S&P Global’s Mar data shows drilling remained strong through the qtr, with a record # of projects reporting, up 2.5% MoM to 414. Distinct drillholes increased by 2.0% to 6,231 projects"

[shanklin] 11/4/2022 15:26

No change in holding

[livewireplus] 11/4/2022 15:20

.... held for the discretionary clients of Ruffer LLP and its subsidiaries....

[livewireplus] 11/4/2022 15:18

RNS out for Ruffer LLP now holding near 5% of shares.

[dangersimpson2] 11/4/2022 13:45

It would take Chrysos years to find the sites for labs, build client relationships, win contracts, get accreditation for the labs etc. MSALABS as part of Capital provide all of that allowing Chrysos to focus on the tech and manufacturing. It is a great partnership.