Capital Share Discussion Threads

[swanvesta] 13/7/2023 20:49

Chariot have a JV with Total Eren:

[allstar_07] 13/7/2023 13:43

Meant to post this yesterday, have i dreamt it? but i thought Capd had already started a joint venture with a renewable energy provider many months ago?Is this the same or a different one...

[rivaldo] 13/7/2023 09:51

You can see the post, there's no further info so why bother making the cynical comment. It is what it is, i.e fairly obviously the announcement of an early stage new venture which will hopefully provide good reward in the fullness of time given the track record of CAPD's management.

If you wanted to contribute something useful you could have looked up some info about Enerwhere:



"Since the company was founded in 2012, we have helped our customers save a lot of money and reduce their CO2 emissions by a significant amount.

Today, we are one of the largest solar contractors under DEWA’ Shams Dubai programme, and have a large project pipeline in the UAE, Oman, Nigeria, and numerous countries in Africa."

[johnrxx99] 13/7/2023 07:56

Any figures mentioned or just hype?

[rivaldo] 13/7/2023 06:25

Posted by CAPD on Tuesday:



"Capital Limited
@_CapitalLimited

We are very pleased to announce the formation of Mine Power Solutions (MPS), a joint venture between Enerwhere, a leading provider of hybrid and renewable power solutions, and Capital Limited. MPS will provide holistic renewable hybrid power solutions to the mining and exploration sectors in Africa and the Middle East, delivering clients environmental and financial benefits. The JV is the first of its kind for both companies and combines Enerwhere’s expertise in hybrid and renewable power, and Capital’s established African and Middle Eastern presence and extensive experience in the mining and exploration sectors.

Pictured are Jeff Court, Capital Chief Executive Officer – Mining and Daniel Zywietz, Enerwhere Founder and Chairman following signing of the JV. Contact [e-mail] for more information on how we can assist your project with a renewable power solution."

[allstar_07] 12/7/2023 14:01

Agreed! sorry my post wasn't in response to yours.

[adamb1978] 12/7/2023 12:41

Very true...but I'd prefer not to have that opportunity!

[allstar_07] 12/7/2023 12:35

Well you can now buy at 8% less than the 99p the CEO and CFO paid for their 50k, and presumably where institutions paid 98.5p for the 5mill shares.

[adamb1978] 12/7/2023 12:08

Q2 results in a week or so. Would be nice if there was something in them which managed to stop the consistent falls in the share price over the last 6 months or so...however aside from some increased revenue forecasts, I'm not sure I see it.

I know I've said this more than once before but whilst the company continues to operate very well, I think the board level and governance of the company has been poor over the 3 years which I've been invested and that as a result, the share price performance hasn't been as strong as it could have been.

Crossing fingers for some nice surprises next week

[adamb1978] 12/7/2023 11:22

Thanks Concentrate. Thats helpful. CAPD have only $16m lease liabilities on their balance sheet so there must be break clauses or similar. Otherwise they'd need to capitalise the outstanding amounts for all the machines which they have access to

[concentrate] 12/7/2023 09:42

I should add that the A$560 is over 38 machines. Previously it was A$452 over 33 machines. So just short of US$10m per machine. Latest machines are much more expensive - perhaps they are using very different terms with their new customers.

[concentrate] 12/7/2023 09:36

Note that it is total contract value. The lease could be 20 years and include estimated usage fees.

[adamb1978] 12/7/2023 08:42

Hi Concentrate

Where did those A$108.6 and 559.8 figures come from? They seem massive and an order of magnitude higher than I would expect.
Thanks

Adam

[concentrate] 08/7/2023 11:23

Thank you for the comments. I’m not against investing in businesses, I’m just trying to understand the RNS and learn a little. MSALABS has been presented as the real growth story, and I totally agree that CAPD should seek to minimise the price they pay for equity.

“ •Five new PhotonAssay lease agreementssigned,increasingChrysos’; Total Contract Value (“TCV”)by A$108.6mto A$559.8m”

So we are talking a total contract value of A$20m per machine. MSA have around 20 of them. This suggests a huge ongoing capital outlay for these machines, so a relatively modest valuation (vs their ongoing future commitments) surprises me. My understanding was that the key drawback was the lack of availability of these machines.

I may try and research this a little better, because I don’t currently understand it.

I guess in any case if the profitability fails then CAPD can probably pull the plug pretty easily.

Also, it’s perhaps wrong of me to try value MSA higher in the context of the whole group having a relatively small valuation. I’m guessing the transaction wasn’t at the upper limit, but rather somewhere like $20-30m.

[stemis] 07/7/2023 14:37

The uplift in equity suggests that the valuation was no higher than $45m

I'd agree with that. However the 'valuation' is only that agreed between Capital and the minorities for the purpose of issuing new shares. If the minorities can't stump up the money but believe the value of their holdings will increase through the fund raise (or alternatively Capital just set the value as majority holder) then Capital held the whip hand.

[concentrate] 07/7/2023 13:28

Thanks for that update.

"We don't know what the valuation or circunstances were"

On the contrary, as per my previous message, we can infer quite a lot based on the values. The uplift in equity suggests that the valuation was no higher than $45m, and potentially much lower.


A dividend in specie would be interesting. I hope the resulting distribution would still be ISA eligible.

[rivaldo] 07/7/2023 13:12

We don't know what the valuation or circunstances were - but we do know that CAPD are absolutely the people in the right place to assess whether spending a further block of cash on MSA Labs will be worthwhile. Given the apparent speedy growth I suspect it will be.

Mark Simpson has issued his weekly Small Caps Live blog summary, and has an interesting take on a potential spin-out of MSA:

"Capital Limited (CAPD.L) - MSALABS Trading Update

We are not sure we would call this a trading update given that there are no revenue or EBITDA figures given, more of an operational update. However, the update confirms that their significant growth trajectory is on track:

We look forward to many strong years ahead of us as we further grow and develop our global footprint, including the deployment of 21 Chrysos PhotonAssay™ units by 2025.

This is perhaps the key bit they really wanted to announce to the market:

Capital agreed to fund any shareholder not willing to participate and as a result Capital's shareholding in MSALABS has increased from 77.76% to 81.79%.

This is the result of an equity raise at the subsidiary level, with minority holders (mainly MSALABS management) not being able to put in their full share in, meaning Capital increases their stake in this significant growth business. Which is good news.

Reporting these separately also is perhaps continuing the precedent that may lead to MSALABS being distributed in specie or otherwise separately listed when it reaches sufficient scale."

[shanklin] 07/7/2023 06:41

It’s definitely not a TS as it provides no financials other than details of the placing. But otherwise good.

[rivaldo] 07/7/2023 06:24

Today's very positive update on Chrysos and MSA Labs confirms that the Chrysos rollout is on track and going rather well, with expanding global coverage.

And CAPD have raised their stake in MSA Labs to over 81% in a fundraising to enable further growth:

[rivaldo] 05/7/2023 06:30

Yep, good to see CEO buying a maiden stake and particularly the CFO spending almost £50k on CAPD shares.

Golden Rim's shares were up 13% overnight to 9 month highs on "encouraging" drilling results at Kada, where CAPD are the drilling contractor (and also own around £1.5m of shares):

[adamb1978] 28/6/2023 13:28

CEO following CFO's example and buying shares - 50k

[jonesj] 28/6/2023 12:54

Mr Boyton lives in Hong Kong, so I suspect he is paying closer to 0% tax than 50%. Which is fair enough.