Capital Share Discussion Threads

[rivaldo] 02/5/2024 06:30

PDI have announced a successful A$50m fundraising at the excellent price of A$0.19.

CAPD may or may not have invested further, and the PDI share price understandably reverted back overnight to A$0.195.

The good news is that CAPD are the drilling contractor at PDI's core project at Bankan - and this will fund "and accelerate the multiple drilling programs" there:

[rivaldo] 30/4/2024 10:09

40k shares bought in four 10k lots just now at 104.015p, and around a net 70k in total so far today.

Good to see buying still coming in after the recent rise (although imho CAPD remains excellent value at the current price!).

[rivaldo] 30/4/2024 07:33

Last year's was 18th May, so not long now. I don't think this year's date has been published yet (couldn't see it in the Annual Report).

[phillis] 29/4/2024 15:12

AGM
When and where?
Anybody know?

[rivaldo] 25/4/2024 09:50

CAPD has "further to go" (subscription-only):

[hpcg] 24/4/2024 17:55

Traditionally what happens in a high gold price scenario is miners low grade, making margin on those areas whilst they can. This should mean more step out drilling and delineation of marginal ore bodies. Equally they'll turn their attention to exploration. That all equals rig demand.

[death by donut] 24/4/2024 16:10

Ooh 'ello , whats all this then.Pleasant surprise after picking up all my materials for tomorrows job.DbD - Long :-)

[adamb1978] 24/4/2024 16:08

Strong gold price (and undervalued company). Strong gold price should mean CAPD's customers are more flush with cash, making them able to finance more activity and presumably the price now makes some projects viable which otherwise wouldnt have been with a lower price.

Really hoping there is some consolidation in the sector and CAPD's investee companies get taken out....

[phillis] 24/4/2024 15:41

So what gives?

[rivaldo] 24/4/2024 09:58

WIA Gold were up another 10.5% last night to A$0.105 - this holding is now worth almost exactly £10m.

[rivaldo] 23/4/2024 13:23

Great to see buying coming in now at 98.82p.

[davebowler] 23/4/2024 12:33

Stocko pedia is showing this as a buy due to its appearance in the alert screen triggered by its 'Golden Cross' chart formation. Every bit helps!

[hpcg] 23/4/2024 07:39

Perhaps Adam - I mean obviously that helps, especially the dividend minded. I just feel a large portion of the UK public are not investment minded, and for those that are all-world, Nasdaq and SP500 trackers really are the first option. Small cap investing, which is all but the top 50 listed companies, at least by the hedge fund definition, is a niche endeavour. Alas plenty of those so inclined will fall into the intensively promoted cult stock trap, though it has to be said even those are thin on the ground right now.

[adamb1978] 23/4/2024 07:25

Hi hpcg

We *should* see something of a reversal of people ignoring small caps over the next 6-12 months as interest rates get cut. Earning 5%-6% risk free with savings narrows the gap too much to what people perceive they might make on small caps on a risk-adjusted basis.

Once savings products or similar low/no risk things start offering returns beginning with a 3 then small caps should become more in vogue. My view is that rates will tumble very soon given how low inflation is - if you take the last 6-9 months, inflation in the UK is sub 1% but figures are masked by large monthly jumps last spring (dont have precise figres to hand).

Adam

[hpcg] 23/4/2024 07:18

The continuous of acquisitions at the smallish end of the UK market must be providing some institutions with pause to cast their net further, especially as the ratio of dross to solid companies gets ever larger. Equally watchlists must be shrinking as quality members are taken over. It is still difficult to fight the tides of money being withdrawn. A place to aim is the FTSE250, but we are a way off that with realistically a £400mn market cap being the entry level, though with depletion in that index who knows.

[rivaldo] 23/4/2024 06:35

CAPD have a new institutional investor - Rockwood Strategic disclosed as follows in their recent monthly factsheet for last month:



"We purchased two new holdings this quarter.....Secondly we bought Capital Limited. This business has grown consistently, building a world leading position in the provision of drilling services to Mining companies. Asset rich, it has, over time, diversified by geography and client, breaking into the majors, such as Barrick. It has an unparalleled safety record, and been developing a Laboratory services business which is totally ignored in the valuation of the shares on a ‘24 PE of 6.2x and EV/Ebitda 4x. Equity owning, proven management should address this in time. We believe its ‘hue’ of resources has created a blind spot for generalist investors."

[rivaldo] 22/4/2024 05:54

CAPD's holding in WIA Gold has risen another 12% overnight (after a successful fundraising) to new highs at $AD0.098 - it's now worth £9.3m:

[davebowler] 19/4/2024 04:04

Gold testing all time highs again in various currencies overnight.

[rivaldo] 18/4/2024 22:07

Very encouraging performance today given both the usual trend on results day and especially going ex-div too.

Interesting little 8,776 buy at 95.4p reported late as well.

[spooky] 18/4/2024 17:12

That must be the first results day in memory where the shares didn't sell off.

[hpcg] 18/4/2024 15:15

Good response to the trading update considering we are XD today.

[deanowls] 18/4/2024 11:42

What’s the value of the sukaru kit?

[rivaldo] 18/4/2024 10:42

Tamesis Partners reiterate their 160p target price and forecast 18.7c EPS this year, or exactly 15p EPS.

They summarise:

"Investments.

Total value of investments (listed and unlisted) was $51.7m as at 31 March 2024 up from ($47.2m) at as 31 December 2023). Strong growth in the investments over the quarter, driven by the gold rally as a majority of the investments are gold companies (namely Allied Gold, Predictive Discovery and WIA Gold). Predictive released their long awaited PFS this week, and WIA announced an updated MRE with a 63% increase in contained gold at their Kokoseb asset in Namibia .

• Outlook.

Revenue guidance has been re-iterated at $355-375m. We expect strong improved performance across Drilling and MSALABs, while Mining is ticking along as expected. The Sukari kit has the ability to be redeployed and deliver step changes to the P&L, while the elevated commodity prices sets the scene for further potential drilling contracts. We maintain our current revenue estimate of $358m.

Investment Case

We remain positive on the outlook for a strong operational performance through 2024. Key growth projects in the Capital business are ramping well, projects continue to be won with high quality clients and rigs are being mobilised to higher quality contracts.

MSALABS is developing momentum, both at their NGM labs contract and their partnership with Barrick. The mining services business has the potential for another big contract. The company is trading on EV/EBITDA and PE multiples for FY24 of 2.4x and 6.2x, and for FY25 2.2x and 5.4x, while delivering a dividend yield of 3.4%. We remain comfortable with our 160p PT."