Capital Share Discussion Threads

[hpcg] 14/6/2022 11:27

Almost nothing can escape the market. 5 stocks in the SP500 up yesterday, and Oracle announced a good quarter after the close to see a north of 10% rise after hours and in the pre-market. Personally at this time I'd rather own real assets than cash, which is losing money everyday. Of course at this time it is losing less than equities, but ultimately the market will gravitate to companies that can hold their own. Gold is likely to find support from two sources. Firstly flight from crypto. Though most crypto 'wealth' will be destroyed plenty will look to the historical alternative currency. Secondly interest rates are likely to undershoot, and where real rates are negative cash is a loser. At some point in time USD will drop too, but that probably won't be until the tightening cycle ends. There is no certainty of course.

As at the AGM the company signalled investor returns as an objective a conservative buyback programme would be appreciated.

[gleach23] 14/6/2022 11:19

Yes rivaldo...and H1 results a month after that in mid-Aug

[rivaldo] 14/6/2022 10:55

Fortunately the H1 trading update is coming up in only a month's time. It should be rather positive given the Q1 outlook and everything we know about the sector at present.

[yasx] 14/6/2022 10:35

CAPD never really motored while the markets were favourable - now that they are less so, it is starting to retreat....

[hpcg] 13/6/2022 09:09

Should see relative strength here. Gold is holding up even against the dollar and Sterling cash looks a terrible place to be, can easily 10% downside against the dollar in relatively short order. With inflation running high cash is not a good place to be, but finding alternative is tricky. This still looks one of the best places to have money parked.

[hpcg] 09/6/2022 08:39

Also, to be clear, Major Drilling should be higher rated than Capital. It does a lot of business in territories with a reliable rule of law, and has a better spread of metals for which it is a drilling contractor.

[dangersimpson2] 08/6/2022 21:07

I doubt Jamie would answer the phone unless the proposed offer begins with a 2 and is all in cash. And management & connected parties own enough to block any speculative attempt to take it out on the cheap.

[hpcg] 08/6/2022 14:23

Makes Capital a potential takeover candidate. Someone like Major drilling could bid a 50% premium and still be hugely positive for their ratios. They don't have the money for a cash deal, debt facilities included. Of course one wants to use expensive paper to buy cheap paper, and that is a lot more difficult to get over the line. Completely complimentary geographic cover too.

[kaizenkid] 08/6/2022 14:08

Major Drilling +15% - something like 8x EBITDA, CAPD less than 3x

[kaizenkid] 08/6/2022 07:49

Very strong results from Major Drilling: “With these fundamentals still firmly in place, the outlook for our Company remains extremely positive."

[rivaldo] 06/6/2022 07:20

CAPD are the drilling contractor for Aton Resources, who commenced a new drilling programme at Hamama West on 25th May - just in time for CAPD's H1 results to 30th June:



"The drilling is being undertaken by Capital Limited using their new state of the art Epiroc Explorac 100 rig (Figure 2)."

And:

"The Company also intends to drill for the first time the West Garida prospect, which is located only 3km to the east of Hamama West, and which has returned assays of up to 99.6 g/t Au from surface sampling (see news release dated October 17, 2017)."

[podgyted] 03/6/2022 11:35

Thanks R

No I haven't - apologies.

[jatin724] 03/6/2022 07:42

Firefinch shares fell due to demerger of Leo Lithium (ASX: LLL)

[rivaldo] 03/6/2022 07:41

Podgyted, you haven't been reading prior posts have you?!

Firefinch is demerging its lithum interests into Leo Lithium via a dividend distribution in-specie to its shareholders, so Firefinch shareholders will have interests in both companies. Firefinch went ex-div yesterday, which accounts for the fall.

When Leo Lithium has its IPO (in the next couple of weeks from memory?) then we'll be able to calculate whether Firefinch shareholders (including CAPD) have benefited or not in immediate value terms from the demerger.

[podgyted] 03/6/2022 07:03

Has Firefinch actually fallen 60%+ or has there been some capital event?

[kaizenkid] 01/6/2022 13:09

hxxps://english.alarabiya.net/News/middle-east/2022/06/01/Egypt-awards-eight-gold-metal-mining-exploration-licenses-Ministry

Generally helpful for investment in the sector which should filter to CAPD at some point.

[rivaldo] 01/6/2022 06:17

Investee company Awale's shares were up 23% overnight on news of a strategic investment in and exploration agreement for Odienne with Awale by Newmont - the world's largest gold producer.

CAPD are also the drilling contractor at Odienne:



"We have always considered Odienné has the potential to produce a Tier One asset which, based on work performed to date, is now supported by Newmont through this transaction. Our shareholders can share in the delivery of a project of this potential scale."

[rivaldo] 30/5/2022 06:10

Predictive have actually raised $55m, which should ensure substantial drilling revenues for CAPD as follows:



“The funds raised will allow Predictive to accelerate its comprehensive drilling program and build further on the 3.65 million ounces already discovered, as well as deliver a scoping study which will include our baseline and environmental study results in late 2023.

“Bankan is potentially one of many significant gold deposits and marks the beginning of our journey in developing Guinea’s Siguiri basin into one of the most exciting new gold addresses in West Africa.”

[kaizenkid] 26/5/2022 05:41

West African gold hopeful Predictive Discovery put a $50 million equity raising to institutional investors, seeking fresh funds for works at its flagship Bankan gold project. A key holding of Capd and a client.

[kaizenkid] 25/5/2022 09:54

ALS in Australia - a potential peer to MSA Labs..."The Commodities division, particularly Geochemistry and Metallurgy, are continuing to benefit from strong demand
for commodities and energy metals. Strong volume, price increases and increased capacity in Geochemistry are driving further volume growth and margin accretion in the first months of FY23. "The Commodities division reported revenue growth of 31.1%, of which was organic with a 1.7% contribution from the recently acquired MinAnalytical. The continued high demand for commodities drove an underlying EBIT margin of 29.9% which was an increase of 230 bps for the year. "

[rivaldo] 23/5/2022 07:32

Indeed - and CAPD are also the drilling contractor for SHG at West Kenya. Today's drilling results look good - and have led to the drilling programme through 2022 being expanded:

"Phase 2 drilling programme aimed at converting resources to Indicated at Isulu-Bushiangala; in addition, drilling has also now expanded to district targets at Ramula and adjacent anomalies"

"Having just started work on the feasibility study workstream earlier this month, this is a hugely exciting time for the Company and our stakeholders as the West Kenyan resource expands toward a multi-million ounce gold district comparable with other prolific greenstone belts in the world."

[shanklin] 23/5/2022 06:04

Good to see MSALABS working for SHG as per today's SHG RNS...

[mrnumpty] 21/5/2022 08:45

Having only been invested in CAPD for a few months , I have learnt that , when interest rates rise ( especially the US dollar ) , by making the holding of cash more attractive against gold ( which obviously pays no interest ) , the price of gold falls correspondingly . It seems that this is at least part of the reason for the recent weakness in the spot price of gold . However , with inflation at about 9% so far ( ! ) , it is my belief that it will be completely impossible for the Western banking system to increase interest rates sufficiently to catch up with inflation , because individuals and nations are so heavily indebted ( ie the sufficiently large increases in interest rates would destroy individuals and countries ) . Thus it seems to me that gold must continue to appreciate in value . It’s nice therefore to see this apparently reflected by the Ruffer Investment Trust , with the Money section of today’s Telegraph commenting ( page 6 ) “ Popular ‘ capital preservation ‘ investment trusts , such as Ruffer Investment Company , have topped up their positions in gold , which now makes up 10% of the portfolio . Gavin Trodd of Numis recommended Ruffer when markets were volatile or falling . “ During the global financial crisis the value of its assets rose by 26% in 2008 against a 30% fall in the FTSE All-Share index , he said . “ it can be regarded as an attractive portfolio diversifier “ . We seem to fe in good company , but do your own research .

[phillis] 21/5/2022 08:33

No
It is simply that AJ Bell do not pre fund dividends until they are in credit themselves

CAPD should on declaring the dollar dividend , establish a dollar exchange rate and put the broker in sterling cash funds

As it happened I got a slightly better exchange rate than that pertaining on 10 May
That small exchange benefit was on this occasion collected by those brokers that pre fund