Capital Share Discussion Threads

[hpcg] 20/5/2022 19:15

Well AJ Bell has some culpability there, I have dollar dividends paid into IG and Sterling into IG and HL well over a week ago. Foreign dividends are hardly unusual.

[phillis] 20/5/2022 15:11

Divi finally credited by AJ Bell
Ridiculous that in this day and age CAPD should be sending dollar cheques drawn on Barclays Jersey

[chillpill] 17/5/2022 08:40

Gold tends to fall when the dollar strengthens.

The USD has risen almost 10% against most currencies so gold is trading close to all time highs for most people around the world.

CAPD is a small cap when fund managers have redemptions-as they will have done over the last month- they have to sell down their portfolio often selling the best/most liquid ones to fund the redemptions.

All normal stuff.

[troc1958] 16/5/2022 12:40

MRN ...read my post 2183 to get my thoughts.I can't see any main reason why share price is dropping ... maybe- gold explorers make up quite a high % of CAPD current and future work .... higher interest rates and lower gold price means higher cost of capital and more difficulty for explorers to raise funds to "drill" which could impact on CAPD future work / earnings (although CAPD state the tendering pipeline is very active)- ongoing Africa contagion (should already be factored into the "low" price)- general market contagion and potential recessionTroc

[mrnumpty] 15/5/2022 21:19

Two basic , maybe silly questions : 1/. Given that inflation has been rising to a disturbing extent in the West , with gold normally seen as a defensive hold in such an environment , why has the price of gold dropped recently to about $ 1811 ? ; with the Company overwhelmingly working for gold companies , and with the P/E ratio of CAPD so low , and the dividend yield quite reasonable , why has the share price of CAPD been so weak recently ? Thanks in advance

[kaizenkid] 10/5/2022 09:45

Geodrill Transcript: "With increased exploration budgets pushing utilization higher, we're now also seeing increased pricing for our services."

[johnrxx99] 10/5/2022 06:43

A rate of 3% marked in by the market apparently.

[adamb1978] 09/5/2022 14:55

hpcg

"My view, based primarily on Hedgeye, is that US interest rates top out much earlier than the market is pricing."

Completely agree. I dont see how central banks will be able to raise rates as people are expecting when the data softens in coming weeks/months

Adam

[hpcg] 09/5/2022 14:16

Its just market selling IMO, small caps always get hit hard, that's the nature of the game. My view, based primarily on Hedgeye, is that US interest rates top out much earlier than the market is pricing. Gold is selling off right now because of margin calls; it is quick and easy to liquidate in an emergency. I'm sure there will be some selling on the end of the gold bull. Share prices move on sentiment much more than anything else and markets are anything but efficient.

[troc1958] 09/5/2022 12:46

Geodrill is becoming quite a competitor for Capital in W and N Africa. Maybe the reason why Capital shares dropped this morning. I do recall Geodrill winning a large contract from Centamin in preference to Capital in Jan 22. However was unaware of the size of the contract ...approx 50m over 5 years. I'm still happy to hold Capital and top up on weakness. 91p was good enough for me.

[kaizenkid] 09/5/2022 09:00

Geodrill Q1 positive tone: “The start to 2022 was the best we have had in the Company’s history. Our record quarterly performance demonstrates steady value generation,” said Greg Borsk, Chief Financial Officer of
Geodrill. “With strong gold and commodity prices driving demand for our services, we expect to keep delivering at this pace, with steady revenue growth and profitability. We continue to maintain a robust balance sheet, while providing the premium drilling services that have set Geodrill apart in the past and will continue to drive growth in the future”.
“Rig for rig, Geodrill continues to outperform, fortifying our position beyond traditional borders and into new geographical regions, diversifying revenue, minimizing risk and ultimately making Geodrill more attractive than ever as an investment,” said Dave Harper, President and Chief
Executive Officer of Geodrill. “This sharp focus on executing on our capital market objectives has put us in a strong position to continue to benefit from the robust exploration environment. With current gold prices rising, we anticipate continued upward adjustments to capital spending by both senior and junior mining companies.”

[rivaldo] 09/5/2022 06:34

CAPD's 2022 drilling campaign for Cora Gold has started well per today's RNS of the first drilling results, with "two new gold discoveries" and "encouraging" results:

[hpcg] 06/5/2022 12:52

The further Sterling plummets the more valuable CAPD's earnings are. Volatility is natural, so it is what it is.

[qs99] 06/5/2022 12:12

Looks v. odd as a drop given recent forecasts, yield, trading etc. Maybe market is marking it down if its investments are down? DYOR

[adamb1978] 06/5/2022 11:58

Feels like baby/bathwater. Good chance to add to core positions IMO

[shanklin] 06/5/2022 11:52

Today’s share price drop seems quite bizarre. If this carries on, I will be buying more shares.

P.S. Thank you rivaldo for answering my question

[rivaldo] 06/5/2022 11:26

CAPD don't appear in the top 20 Chrysos shareholders list on Chrysos's web site. One would think CAPD have other priorities for their cash pile, and are also much cannier investors than to chase high valuations, especially given the success of their investment portfolio.

[shanklin] 06/5/2022 11:08

I wonder if CAPD bought any shares in the IPO?

[rivaldo] 06/5/2022 10:51

Not that it makes any direct difference to CAPD, but Chrysos could hardly have timed today's flotation on the ASX any worse after the US markets sank overnight! The IPO's been a bit of an early disaster.

But the figures for potential growth and prospects look very good for MSALabs - see also the narrative in the New Found Gold Corp post above:

[rivaldo] 05/5/2022 13:56

More work for MSALabs - and their new Chrysos machine - per this article today (nice picture of the machine too):



"New Found Commences Shipment of Drill Core Samples to MSALAB's Chrysos PhotonAssay™ Facility in Val d'Or, Quebec

May 5, 2022

VANCOUVER, British Columbia--(BUSINESS WIRE)--May 5, 2022--

New Found Gold Corp. (“ New Found ” or the “ Company ”) (TSX-V: NFG, NYSE-A: NFGC) is pleased to announce that it has commenced shipping drill core samples from its Queensway project to MSALAB's newly commissioned Chrysos PhotonAssay ™ lab in Val d'Or, Quebec. New Found is conducting a 400,000m drill campaign on its 100% owned approximately 1500km 2 Queensway project accessible via the Trans-Canada Highway approximately 15km west of Gander, Newfoundland.

etc"

[yasx] 05/5/2022 10:54

Troc,

Good, well balanced summary.

One Director has been a persistent seller - not sure of his personal circumstances, but it makes you wonder why he has been so keen to exit.

[shearluc] 04/5/2022 10:04

Agree. No brainer / safe hold. 'Buckets & Spades'. The pressure to find drills by the Junior Miners will only increase.

[troc1958] 04/5/2022 09:32

I've been trading Capital ltd (Capital Drilling) for more than 12 years through all its ups and down and thankfully have done very well. In May 2011 it hit a high of 109p during the last gold cycle, with a subsequent low of 16p in 2013 after the crash. In this cycle so far it has yet to reach its previous high. 108p was its recent highThere are a number of things I would emphasise about the growth since it's previous high in 2011:- it's a much more diversified company than it was, with a range of additional revenue streams and assets to its conventional drilling (e.g. labs, mining services, range of shares in other explorers etc).- much higher drilling rig count- much more concentrated drilling area (I.e used to be spread globally, now predomindantly west and north africa) so easier to control- has an exceptionally strong balance sheetEven though it has more shares in issue since 2011 and thus a higher market cap the current share price is discounting what I believe to be an unnecessarily high risk premium associated with mining, exploration, and particularly Africa.This company to me is a "hidden gem" with huge upside potential given the continuation of the current gold / mining super cycle.Obviously it's not without risks- cost inflation- competition from the many drillers out there- africa contagion etcBut when you look at the low PE and other "ratios" and multiples its trading on; its current low share price in comparison to historical highs defies logic!Either the Market has got this valuation wrong or there is something underlying I am missing.I continue to be a strong holder and will top up on any weakness. Comments please ....

[shanklin] 03/5/2022 10:25

Mark, that would be a very impressive outcome.

P.S. Shame we are not allowed to download the prospectus in the UK. Quite possible it contains information highly relevant to CAPD.

[dangersimpson2] 03/5/2022 09:51

So MSALabs are going to be very much a minority user of Chrysos machines?

Or a much much bigger company?