Capital Share Discussion Threads

[rhomboid] 25/7/2017 18:21

Yup that was me 🙄clearing out the last lump..I was in a hurry as I wrongly thought Bodycote which was where I was rotating to was likely to rise during the day. I was also selling last Friday so doubly guilty. Like you probably I have vivid memories of how sh*t shaped it went in Egypt and I didn't want to start doing a reenactment 🙂 Plus the bulk was bought at 24p which plus divis wasn't too shabby..

[gleach23] 25/7/2017 17:34

Hope yours wasn't the 110k @ 36.5 rhomboid! Good luck anyway.

Frustrating is the word. I had to follow some of the selling last Fri morning to reduce what was an overexposed position.

One could take the view that the share price is now half of what it might have been were it not for this Tanzania issue which seems very harsh. Anyone know exactly what proportion of CAPD's business is in Tanzania?

Interims due shortly btw....17th August

[kinbasket] 25/7/2017 17:11

Yep, it's very frustrating, this is a good little company and they can't seem to catch a break. First it was problems in Egypt now this. I'm less hopeful about a good outcome with Tanzania than Egypt. Experience elsewhere has taught me that when African governments talk about local shareholdings and local partners, they don't mean any locals, they mean "me and my mates". Unfortunately this makes it impossible for UK companies to do business thanks to the corruption laws here. Difficult to see a fair resolution in the near to medium term.

[rhomboid] 25/7/2017 16:36

I finally sold my last chunk this morning, Tanzania looks like going the Mugabe route which elevates risks beyond where I'm comfortable, I'm sure holders will do well from here as it really is in the Bargain bucket now

[paleje] 18/7/2017 14:42

Not so straightforward, services and goods co providers to the mining industry under the spotlight too.

[twistednik] 10/7/2017 08:28

Yes, thought the results looked positive and we would see a bounce to the shares!

Just the Tanzania uncertainty and we all know that markets hate...

[gleach23] 10/7/2017 08:19

Has to be down to the uncertainty over the Tanzania situation.

The only other hints of negativity I can see are -

- reduction in revenue in Q2 vs Q1 although Q2 was still 26% then last year
- marginally reduced levels of tendering but this is mitigated by supportive market conditions and commodity prices

[lord gnome] 10/7/2017 08:10

So much for the floor then. What did I miss?

[gleach23] 10/7/2017 07:59

Trading pretty much as expected I think - good to see utilisation continue to rise in Q2 even though revenue dipped slightly from a strong Q1.

Good cash result too. Just wish there weren't quite so many mentions of Tanzania!

[lord gnome] 10/7/2017 07:47

Nothing to worry about then. We seem to be making good progress overall. A few clouds about, but there always are. Hopefully this will set a firm floor under the share price. Onwards and upwards from here.

[paleje] 07/7/2017 17:20

Fair comment, I'm sure it will come. If it had been me though, with uncertainties around, I would have made double the effort to get it out promptly.

[gleach23] 07/7/2017 17:04

To me it was always touch and go whether it would be this week so I'm not treating it as a miss. I am expecting it early next week now though.

[paleje] 07/7/2017 16:54

Were.

Odd they've been very consistent last few years, then this week with the Tanz gov mining reforms and a customer ALO on the brink, they miss.

[twistednik] 07/7/2017 13:13

Are expecting a trading update this week?

[paleje] 05/7/2017 15:17

A more tangible concern might be the contract taken out in March with ALO at their Mowana copper resource. ALO issued a grim RNS yesterday flagging danger of, though not definite, going under.

We don't know the project value or terms.

[paleje] 04/7/2017 14:34

Tanzania won't stop mining imo, kinbasket, they'll change the rules so miners will have to comply or lose their licences. Some miners 'might' exit but others will take their place and they'll still need service companies like us. So as I see it we might see some disruption to normal service in just one of the jurisdictions we operate in or there might be hardly any at all, but bearing on mind our revenue streams are well diversified I would imagine it won't cause any lasting damage and the current share price might be a good entry point. Imo.

[kinbasket] 04/7/2017 11:31

The problem will effect potential investment. As of yesterday, any mining company in Tanzania has no idea what it's future looks like. Any big plans are now on hold. That means drilling and services are on hold.

[paleje] 04/7/2017 10:39

Yep fair point they're all a bit dodgy but it looks like NRRP are silver/zinc miners whereas we are services, which we can offer to any miner white or black or in between so perhaps not too much at risk, fingers crossed.

[kinbasket] 04/7/2017 09:44

It's worth having a quick look at Namibia where they've been doing something similar. It's been a complete disaster for companies like NRRP. Don't think an African government wouldn't shoot itself in the foot. Sadly they don't usually work in the interests of the general population. I was lining up a re-entry here as I'm a big fan of this little Co. but I'm a little wary now.

[paleje] 04/7/2017 09:11

I think you might have been right actually, gleach23, maybe not entirely innocuous but overall with Tanz only a part of our geographical spread and with good management to take action to mitigate any knock-on effect, the selling is hopefully overdone. Roll on the TU.

[gleach23] 04/7/2017 08:32

Thanks paleje...perhaps I was being a bit naive to think the announcement was fairly innocuous. I notice CAPD deals with 2 of the 3 mining companies mentioned - Acacia and AngloGold Ashanti. I guess we await developments.

[flagon] 03/7/2017 16:28

There is no date for H1 TS ... looking at previous years releases would imply very short odds for this week.

[mfhmfh] 03/7/2017 15:27

is there a date mentioned for the H1 trading update? I know it was on the 7th July last year but can't find any date mentioned for this year.

[gleach23] 03/7/2017 14:02

The news today comes across as fairly innocuous to me but obviously they felt compelled to announce it. The timing is terrible though, just as I thought we had a bottom in and were starting to build strength towards the update. I still can't imagine the update being anything other than good, unless of course something nasty does actually come out of these court proceedings.