Capital Share Discussion Threads

[dangersimpson2] 02/12/2020 13:24

We discussed today's announcement in detail on today's scl, including feedback from the Centamin call.

Link here:

It is at the start of the #small-caps-live channel.

[earwacks] 02/12/2020 11:41

Miti. In true tradition of placings by the time placing is done and dusted you will be able to buy around 58p anyway. I see they did a book build a year ago to get ints to buy 4 million of Burtons shares, maybe they could use some of this placing to finish Burton off

[hpcg] 02/12/2020 11:32

deanowls - They mention trade finance from Epiroc, so there are some new rigs in the offing. Presumably the similar situation with Sandvik is for stripping equipment.

[mfhmfh] 02/12/2020 10:48

Interesting comment from CEY on the RNS they released today, particularly the 2nd paragraph:

'Capital was selected as the preferred contract-miner based on an assessment matrix of cost, speed of implementation, local content and training commitments and ability to execute the contract given the local conditions.

Under the terms of the Capital Waste Contract, Capital is utilising mining equipment consistent with Sukari's current fleet. Centamin has the contractual right to purchase the Capital mining equipment at the end of the Capital Waste Contract. This provides a number of synergies in respect of fleet maintenance during the contract term and provides flexibility for Sukari's fleet replacement strategy and life of mine planning.'

Also, I wish CB would hurry up and sell out.

[miti 1000] 02/12/2020 10:04

Have applied for the placing but I hear demand is strong so doubt will have get any.

[deanowls] 02/12/2020 10:00

Centamin is more protected now, the government takes 50% of take so pays to keep them mining.

What is interesting for me is if they are utilizing their current rigs which decreases costs and if they are buying equipment from CEY and at what prices.

[qs99] 02/12/2020 09:33

Yes looks like a c.$60m p.a. over 4 years, a material piece of work to the business and hopefully at decent margins.

More contracts being bid for by the sounds of things, not necessarily this big, but shows the potential.

I would like to know what broker notes are saying before buying anymore! Also, the placing needs to be out of the way, also that muppet CB cleared so the buying then starts to help it re-rate.....

watching and waiting to add to my not insubstantial holding

DYOR

[valhamos] 02/12/2020 09:32

Hi Adam - Already corrected! Increases by 50% still huge increase for one mine.

[adamb1978] 02/12/2020 09:29

Hi Val

I dont think this triples revenues - my reading is that it is $235m - $260m IN TOTAL over 4 years, rather than that amount per annum. Still a huge increase and kicker to the financial performance, but I dont think it brings the concentration risk which you mention.

I would buy more but am already overweight CAPD!

Adam

[sphere25] 02/12/2020 09:26

Added a few more.

Noted 153,850 bought at 65p.

Any estimates of how many Craig Burton has left? In other words:
are there any keen trade trackers here :-)

Inclusive of today's buying, a few big chunks to clear out here by the looks of a high level view of the trades since Craig Burton's last disclosure of 4.1m as at the 18th September. Surely this is the type of news that will stir enough demand to eat through his position.

It looks a gift this whilst the overhang shares are in play imo. Bear in mind that shares almost across the board have been rallying strong on fund raising to navigate the crisis let alone fund raising for transformative reasons.

Fireworks to follow when he is out?

All imo

DYOR

[gleach23] 02/12/2020 09:23

Yes shanklin. As usual supply of stock becoming evident after the early buying. Appears to me as though over 350k shares currently available to buy and the underlying Offer price has been dropping.

However fantastic news this morning. Miles more sweet than bitter and will be topping up (again) if price continues to drop.

[valhamos] 02/12/2020 09:22

Huge contract and good to see this longstanding relationship with Centamin develop further. It will be interesting to see what profit margins there are in the waste stripping contract.

One issue to face though is concentration risk. Although the political environment is a lot better than it was, some years ago in the last downcycle Sukhari was a larger proportion of the total business than it has been in the recent past and then there were a series of obstructive legal claims by a number of Egyptian organisations culminating in unsuccessful legal action to cancel the mine concession.

[death by donut] 02/12/2020 09:19

Thankyou I'm still learning, so trying to wrap my head around these placings.DbD

[qs99] 02/12/2020 09:04

already in for too many!

[shanklin] 02/12/2020 09:04

Not possible to get an online price for selling 1k at HL vs 64.7p to buy. Hopefully this is due to CB being prepared to sell whatever MMs want but that may be overly optimistic.

[molatovkid] 02/12/2020 08:51

In for a a few.....

[farukequity] 02/12/2020 08:45

Bought as well. Been on my watchlist for ages, now a new position in the portfolio.

[genierub] 02/12/2020 08:21

Bought. Took a while but finally got a piece. Market cap is insanely low with in relation to this announcement. Only a matter of time before investors digest the magnitude of the RNS.

[sphere25] 02/12/2020 08:06

Bought. This looked cheap before the announcement imo let alone with a monster contract award like that.

[catsick] 02/12/2020 08:00

The way I would look at is if the issue of shares to raise cash for investment gets them 20% returns on the cash raised which the contract size seems to indicate that it easily does then the trade is going to be very accretive to earnings per share and therefore a very good thing, also a larger company is going get them on more funds radars which they are too small for at the moment

[tiswas] 02/12/2020 07:38

If the share price goes down to the placing price then a good opportunity for us private shareholders to top up.

If the share price races away on the contract news then you have to ask why the big discount. It is not a rescue placing like we have seen from so many companies this year.

[spooky] 02/12/2020 07:35

This may have been what was holding the share price back.

[death by donut] 02/12/2020 07:34

Buying work?Genuine questionDbD - I hold