Capital Share Discussion Threads

[shanklin] 14/8/2024 08:11

D_t_E

I would be delighted to be proved wrong on CAPD's recent diversifications. Its just a shame they couldn't claim Eco-Detection would be earnings enhancing at some point in the near or distant future. Obviously I would be delighted if it turns into another MSALABS.

P.S. Was there another left field Eco investment in the last couple of years please? I seem to remember one but haven't found it in scanning a number of recent TSs and results RNSes.

[phillis] 14/8/2024 08:00

And what about the Msalabs rollout?

[hpcg] 14/8/2024 07:58

According to Barrick in their Q2 (linked in my post 3193) Nevada Gold Mines continues to go well:

"Goldrush is successfully ramping up underground production, aiming for a more than 35% increase next year, heading to an annual output in excess of 400,000 ounces by 2028 (100% basis)."

and

"At Fourmile, drilling has confirmed a grade which is consistently double that of Goldrush’s along the 2.5-kilometer strike length of mineralization. Ten diamond core rigs are currently on-site drilling in support of an updated mineral resource statement at the end of the year. Prefeasibility options are being assessed for a
year-end decision on an asset that is demonstrating the potential for annual production in excess of 500,000 ounces over more than two decades.7 Fourmile’s proximity to the permitted Goldrush mine will facilitate its advancement.“

[dan_the_epic] 14/8/2024 07:47

I don't stand on the same side of you Shanklin in the water monitoring investment. I'm not an anti-eco person but even if you wanted to be, there is huge regulation and changing requirements in this area going forwards and CAPD will now benefit

We can debate whether the investment portfolio was any good for the equity shareholders but it has not been bad from a capital allocation standpoint except that they should have done more buybacks

Boyton and team are pretty smart folk. They just need to be continued to be focused on what investors and shareholders want. Today could be the most meaningful step in the right direction in years.

It is borderline insane that CAPD stock is where it is with gold basically at all time highs, which is one of the most important lead indicators there is

[phillis] 14/8/2024 07:44

How about much slower progress than expected

[adamb1978] 14/8/2024 07:42

Good that you're back in Shanklin. Agree with you on the Eco investment too - as I've posted before, re-selling their product in mining makes sense but didnt need them to make an investment and certainly nowhere near as large an investment as they did.

To other questions about whether this is linked to other events coming tomorrow, the agreement with the other side would have taken a few weeks to put together so would be surprised if it is linked to other things, particularly as we already have the H1 TS

[hpcg] 14/8/2024 07:36

Indeed, being able to shift a holding without disturbing the share price is the second best outcome other than a take over. Paying down the debt answers a lot of critics who, quite fairly, said that the investments and debt could not be netted.

IMO the answer to why now is either a) to give the announcement its own space or b) it is coincidental and as it has just been inked it has to be released a.s.a.p.

We have H1 numbers anyway, they are in the 28 July update.

Why the price action in the summer? 3 reasons, seasonality, some not liking the MSALABS H2 weighting and "Capital has completed a ~US$7 million strategic investment in Eco-Detection, acquiring a 22% ownership stake in the company.", as expressed by several writers on here.

I hope the chart impresses on the board the requirement for share buybacks here, just as it is needed for all London listed companies. London has one of the worst markets going with small cap investors obsessed by value over growth and the general population masturbating over the 4.5% they can get in a savings account. Buybacks from debt are a no no though so this deal helps tremendously.

With the labs business and now the water monitoring I would be more than happy if no more earth moving contracts turn up. I don't mind if they do either, but the high tech services are much more important as profit engines.

[adamb1978] 14/8/2024 07:32

Certainly a very positive announcement. I'd recently been looking at my CAPD position and considering whether to use it as a source of funds for other things, but this might make me hold on for longer (albeit its one of my smaller positions).

[chillpill] 14/8/2024 07:22

I agree Dan. Finally listening to shareholders.

[phillis] 14/8/2024 07:16

Wait and see Dan as indeed you must

[dan_the_epic] 14/8/2024 07:12

Its underwhelming because they released the RNS at 7.48am lol. Don't mind that as it allowed everyone to miss it and me to buy in ;)

It#ll rally over the rest of the day as the news outlets and investors pick it up

[fozzie] 14/8/2024 07:11

As usual the market reaction is decidedly underwhelming. I agree with you Dan, it’s a very positive move from Boynton, at last. Can’t quite believe we are back in the 80’s, Christ this has been a tough hold.

[dan_the_epic] 14/8/2024 07:06

Phillis you dont just go and sell a big block like this at no discount to the Predictive share price just to cover over something. That doesnt happen it would make sense if you had to swallow like a 20% discount. This is a genuinely great announcement

[dan_the_epic] 14/8/2024 07:04

That's a gamechanging announcement if this is finally recognition from management that they are focusing on running the business. The stock has always been too cheap because institutions would never get the investment portfolio they have. People also worried that they would never be able to realise the investment portfolio at the book value.

I'm in at the open. I can see this doing really well over the coming few months now.

Well done Boyton and team

[phillis] 14/8/2024 06:58

Why now ?
What bit of news in tomorrow’s RNS is this designed to offset?

[chillpill] 14/8/2024 06:51

I really like that announcement. Realising cash but keeping the upside.

Smart.

[mirabeau] 14/8/2024 06:51

nice cash injection

[hpcg] 12/8/2024 16:25

Reko Diq gets its own section in Barrick's Q2


Barrick is generating cash hand over fist.

[chrisdgb] 12/8/2024 14:10

Strong results at Geodrill today............

[smartmoney100] 29/7/2024 08:31

I've had 5000 more. Building a great business, too cheap

[spooky] 29/7/2024 08:25

Management getting exactly what they deserve here. There isn't enough focus on shareholder returns.

[rivaldo] 25/7/2024 07:35

Pleasing news here - CAPD are due to receive payments of around £2m in two tranches over the next year as Leo Lithium distribute their proceeds from asset sales, with more likely to come after that but unspecified as events unwind:



I appreciate your POV Adam. There are good arguments on both sides. For example, if PDI were to receive a bid in the next few weeks/months - which is not out of the question imo - that would immediately bring in £25m or more at a stroke. On the other hand, there are good arguments for CAPD crystallising say £10m of their large PDI gains to date and utilising that on debt reduction and/or buybacks.

CAPD's share price is up over 50% in just over 4 years since I started this thread at 60p, and of course there have been decent dividends paid every year as well. So it's been a pretty respectable performer overall.

Management here can be trusted imo in terms of operational performance - drilling and mining services have both thrived and now MSALabs/Chrysos looks like it could be a gamechanger. I'm happy to hold - and perhaps add even more - to give CAPD the time to realise the large upside which looks on the cards.

[adamb1978] 24/7/2024 16:01

PS: I know that my post above won't meet with universal agreement on here!!!