Capital Share Discussion Threads

[rivaldo] 12/11/2020 07:09

Great news today - Firefinch (ex Mali Lithium) and CAPD are in a substantial partnership, with four rigs to be deployed imminently as an "initial" step.

Looks like there's plenty more work to come through too, including mining services as well as drilling:

[gleach23] 11/11/2020 14:14

Cheers rivaldo - good bit of PR

No need for apologies yasrub :)

Just over 80k available to buy today but Bid seems to strengthen on any buying and is now up to 60.888p for up to 15k shares.

[yasrub] 11/11/2020 12:16

Apologies gleach23, reading back what I wrote does seem a little extreme. I bought as I had been watching for sometime and the recent weakness gave an opportunity for me to buy which I did. The flip side being I was still a little nervous why the recent drop had occurred.

[rivaldo] 11/11/2020 11:36

New interview from yesterday with the MD of Arrow Minerals, who has this to say about CAPD:



"Dr. Allen Alper: I noticed you have a strategic alliance with Capital Drilling. Could you tell us a little bit about that?

Howard Golden: That's correct. Capital Drilling is a very solid investor, we like them a lot, and they also are very good drillers. Capital Drilling actually has two arms, the drilling arm and an investment arm. The investment arm invested in our company when we did one of our capital raisings, but we also, simultaneously, did an independent negotiation for drilling, and they gave us some very fair contract terms.

While we're not required to use them, we usually go to them, they're our first choice because they drill for a fair price and with good quality, we love working with them because they're a loyal investor. So that's our deal with Capital Drilling. It did involve some prepaid drilling, but we've drawn down on that. So at this point, it just continues to be a good relationship."

[gleach23] 10/11/2020 22:59

Not sure the chart looks that horrible yasrub. 60p looks a great base for an upward move to me. It would only look horrible if we slipped down from here imo.

Less than 10k available to buy online all day with decent demand evident on the sell side as the Bid firmed. Very hopeful of a move up from here.

[yasrub] 06/11/2020 15:22

Bought some, chart looks horrible but company specific news looks strong. Not a big buy but may add along the way.

[qs99] 06/11/2020 10:18

Surprised this isn't higher on fundamentals, let alone the potential for new bids being won IMO.....POG heading higher, further supporting exploration spend etc....DYOR

[hpcg] 06/11/2020 09:13

The takeover announcements of RSA and Urban and Civic show just how out of touch investors focused on the London market are in my opinion. Sure this deserves a risk premium for size and geography but investors get paid for taking on risk and the time to take risk is as end markets start to boom.

[troc1958] 06/11/2020 08:50

Rim ...personally I'm not too concerned about the price drop here. I've been trading these for nearly 10 years through all their ups and downs. This is an exceptionally well run company, albeit trading in risky environments. Even given the risk it's a fast growing company vertically integrating into labs, mining services etc. With a MC of 84m and TO of 130m on a pe of 10, with a growing dividend and a very solid balance sheet, it seems cheap at 61 - 63p. Yes, it may have a seller in the background and some political contagion .... E.g. Mali mining code changes etc ...which is suppressing the price. But there is a lot more exploration money around with the upward movement in the gold price and with that there will be a lot more drilling. Capital still have nearly 40 percent of their drilling capacity to deploy. As stated, their tendering pipeline is very buoyant at the moment. So personally I am waiting for new contracts to be announced and a rerating of the share .... but who knows. Mr Market can be very fickle for a long time!

[rimau1] 06/11/2020 08:16

All my gold investments (POLY, PUR and TSG) are flying and this is literally in reverse! Appreciating this lags the gold price, that we have a seller and we have just come out of the wet season in W Africa so maybe bidding activity has been slower. I am very interested in the bear case here i.e why shouldn’t we be loading up at 61p, any views on the downside here and why we are where we are? Geo Political issues? I still added yesterday. My glass half full view is that if we were not confident of landing mining service contracts (that require significant working capital) the board would have initiated a cheeky short term buyback programme. Hopefully an update/award is close.

[hpcg] 05/11/2020 16:49

I bought more today. QE everywhere and gold could have retraced considerably and miners would still be exploring and expanding with gusto but it now looks promising it will make a new high in USD terms. Business is going to be through the roof here.

[dangersimpson2] 05/11/2020 16:21

Gold absolutely flying today - surely has to help clear this pesky overhang.

[shanklin] 05/11/2020 11:01

Wish the non-sensical selling was over... ...bit like the latest lunacy lockdown in what were Tier 1 areas.

[rivaldo] 02/11/2020 07:26

Good news - new drilling programme announced today by Cora Gold at Sanankoro:

[rivaldo] 29/10/2020 12:20

Ah - cheers ds2, I did think aspects of it were a bit strange, but the date and the share price overrode my suspicions. Will check harder in future :o))

[dangersimpson2] 29/10/2020 09:55

This article has to be from October 2019 since it says:

Two weeks ago the company announced a big mining services contract with Allied Gold Corp, together with a $3m investment into that company.

Which was announced on 9th October 2019.


He also calls Craig Burton "Craig Brown" which suggests his knowledge of the company, or attention to detail is limited.

The lock-up he refers to is in the context of the 4.65m shares Burton placed in October 2019.

No such lock-up now exists which is why Burton has been selling in the market down from the 6% to now below 3% - and hopefully much below 3%.

I had hoped that the company would have used its buyback authority to take the majority of these. However, I think it is probably in a close period pending more mining services contract wins. A number of discussions were described as "advanced" in the 2020 Q3 update.

[rivaldo] 29/10/2020 09:34

Nice summary of CAPD by Mark Watson-Mitchell from a few days ago - he sees them going up above 100p. EDIT - it seems this dates from Oct'19, not from a few days ago.....



Conclusion:

"At the current 61p that puts the shares out on 13 times historic, 10 times current year and just over 8 times prospective earnings.

It was no wonder why Craig Browns shares were snapped up so quickly.

My end July profile put out a 76p Target Price by the end of next year, now with these latest announcements I see them easily trading up through the 100p level."

[rivaldo] 28/10/2020 08:59

Cheers Mas. Encouraging to hear that "there are an additional six tenders outstanding at present", with each one likely to add $6m-$10m earnings per mining services contract.

[masurenguy] 28/10/2020 01:02

Riv - here is some initial coverage.

Peel Hunt has raised its target price to 90p from 86p and said it will look at it again if more mining services contracts are won.

[rivaldo] 27/10/2020 12:32

Cheers miti1000, that's good news. Can't see anything online. Hopefully some coverage to come.

[miti 1000] 27/10/2020 10:12

Seems to be a broker upgrade from Peel Hunt from ADD to BUY. Not seen the note though sadly.

[rivaldo] 27/10/2020 09:39

Nice - 250,000 shares just bought at 65p.

[rivaldo] 26/10/2020 07:30

Today's update from Hummingbird contains an encouraging snippet about Yanfolila, where CAPD are contracted:



"Exploration and drilling: As outlined in the exploration and drilling release on 8th October, see here , Hummingbird is seeing further positive results, giving the Company confidence of the overall resource and life of mine potential at Yanfolila. These results can be seen in more detail below but include drill hole 16m @ 9.64 g/t from 47m depth from our Sanioumale East ("SE") deposit"

[shanklin] 23/10/2020 11:42

IMHO, the seller would do so much better taking a break for a little while and then coming back and trying to place the lot, probably at a much higher price.

[frazboy] 23/10/2020 10:20

Agree with the sentiment Rivaldo, lots of stock on offer at 65p - as determined from some dummy trades. I’m sitting back and waiting to see if the sellers patience wears thin and hopefully gives us a better price.