Capital Share Discussion Threads

[concentrate] 18/4/2023 12:30

Would love to be wrong, but don't think anyone worth their salt has ever bought anything from OTC markets.

It's pretty much the plot of the Wolf of Wall Street.

[rivaldo] 18/4/2023 12:15

An intriguing move. You'd have thought CAPD's advisers would establish there was buying interest in CAPD's shares before doing this? Stifel in particular are a huge American investment bank so should have some heft in making this worthwhile.

[concentrate] 18/4/2023 11:52

RNS - Commencement of Trading on the OTCQX Market

Really don't see the point. Every time I see this it seems a total waste of time and money. I'm convinced that the main benefit it offers is to make it easier to short the stock.

[gleach23] 15/4/2023 21:24

Strength ahead of Q1 update this coming week perhaps?

[podgyted] 15/4/2023 17:12

Yeah.

I was surprised by that - not complaining though.

[tonytyke2] 13/4/2023 17:50

Ex-Div today? Price did not fall

[davebowler] 13/4/2023 15:57

Gold is at an all time high in Yen and Ozzie Dollar.

[rivaldo] 13/4/2023 07:36

Leo Lithium's shares were up 5% overnight on "fantastic" results from drilling at Goulamina (CAPD's stake is worth around £3.5m or so).

And CAPD also get a specific mention in the announcement as the drilling contractor:

[rivaldo] 05/4/2023 07:16

The gold price has surged over $2,000 (now at $2,024).

CAPD are the contractor at Golden Rim's Kada project (and have a £1.5m or so shareholding), and overnight Golden Rim's shares bounced 10% from lows after excellent drill results with lots more drilling to come:

[rivaldo] 04/4/2023 08:57

PDI's shares bounced 6% overnight after good drilling results at Bankan (CAPD are the contractor and of course have a major shareholding in PDI).

Lots more drilling to come:



"“We continue to take great confidence from the quality of infill drilling results at NEB, which is testament to the orebody’s consistency.

“PDI is working diligently towards completion of a Scoping Study by the end of 2023 to facilitate permitting in the first half of 2024. Infill drilling to support further Mineral Resource upgrades in Q3 2023 is a crucial part of our strategy and will enable PDI to deliver a robust Scoping Study based on a significant proportion of Indicated Mineral Resources.

“Separately, we are excited to be ramping up exploration activity at the regional Argo targets, as well as at targets close to the NEB and BC deposits. We look forward to providing updates shortly.”

"Geological understanding has improved significantly, which will assist with future drilling targeting to upgrade the Mineral Resource from Inferred to Indicated and target extensions to the mineralisation. The next phase of drilling at BC will be planned following finalisation of the updated geological model and receipt all outstanding assay results."

[rivaldo] 23/3/2023 11:49

The admirably named HotStockRockets are very keen (subscription-only):



"Capital – 2022 full-year results, a growth and value Buy

By HotStockRockets | Wednesday 22 March 2023

Mining services company Capital (CAPD) has announced results for the 2022 calendar year and that “tendering activity across all business units remains robust, with a number of opportunities progressing”."

[rivaldo] 22/3/2023 12:28

Cheers kaizenkid.

I understand Canaccord have increased their target price to 145p (from 140p) and say Buy.

This compares with Berenberg's current Buy rec and 167p target, and Tamesis Partners' 160p target.

[kaizenkid] 22/3/2023 11:41

Yes impressive presentation. Emphasised the fact they have spent years insulating themselves as much as possible from down-cycles by operating at the mine site at Tier 1 assets low on the cost curve. Seemed confident they will get an extension at Sukari and 2 mining contracts close to fruition. At least $10m of the capex is genuine growth capex related to MSA labs. Reiterating higher ROCE at MSA than the group. Clearly a strong possibility Revenues are decently higher than guidance as mining contracts come through.

[rivaldo] 22/3/2023 11:08

I only caught the end, so will have to listen back.

CAPD are targeting impressive growth to $500m revenues in the next couple of years. Certainly achievable imo considering the rate of growth of each of Chrysos/MSALabs, mining services plus of course the steady growth of the drilling business.

Interesting too that strategic M&A is also a key part of the growth plan.

Plus sounds like there are two new major mining service contracts which could be signed in the coming months, which together would equate to another Sukari.

Will write more when I've listened to the full presentation.

[kaizenkid] 22/3/2023 08:56

Check out InvestorMeet presentation starting shortly

[adamb1978] 20/3/2023 13:08

Hi Shanklin

Looking at my Excel, I believe they had c.$6m investments in 2016 and have since invested $18m (net) getting to a $39m balance in 2022. A simple calculation suggests a 16% IRR. Suggests they're covering the cost of capital, you can argue whether given the locations of investee companies, we should be looking at a higher target return.

There's obviously the operational benefits too. As I've said before, hopefully given the upscaling of client base and MSALABS, the proportion of investments as proportion of the overall business should be falling

Adam

[shanklin] 20/3/2023 11:48

Yes, with debt costing CAPD 10% p.a., the company really needs to show its shareholdings are absolutely fantastic investments. Otherwise they should be monetised.

[adamb1978] 20/3/2023 11:43

Both would be helpful hpcg. Gets both of those shareholdings closer to cash

[hpcg] 20/3/2023 11:15

r.e the portfolio, very likely Allied lists this year, I would think. Secondly I wouldn't be surprised if Predictive is taken out.

[davebowler] 20/3/2023 08:58

According to Bullionvault vault.co.uk/chart-popup.do?metal=gold&timeScale=20y ....over the last few days Gold is hitting an all time high in £s,Aus$, Can $s and Euros and is only marginally below its US $ high. Don't see what motivates sellers here.

[adamb1978] 20/3/2023 08:48

Share price now sub 90p!

You'd think that CAPD was an investor in Credit Suisse....

[johnrxx99] 20/3/2023 08:24

Adam - that's what shareholders are for. Anyway, you know my opinion.

Looks like I'll be buying back soon.

[adamb1978] 20/3/2023 08:06

kaizenkid - understand the argument about the portfolio, and your theory is valid. However the company doesnt ever seem to get credit for it in the valuation

Hopefully it starts to take care of itself though - with greater work for tier 1s (where they wont take an investment position) and MSLABS growing, hopefully the invetment portfolio shrinks as a % of overall val'n

[chillpill] 20/3/2023 08:04

On share buybacks I agree with Warren Buffett in his recent newsletter. He likes them as long as the underlying shares are cheap which by almost every metric CAPD are.

Gold going through $2000 is great for CAPD. Ramelius Resources made a bid for Breaker Resources today.

[adamb1978] 20/3/2023 08:03

Johnrxx99

Share buybacks do add value if done at the right time i.e. when share prices are low. Company is trading below NAV now - how many shares trade below NAV?!?!? Just hoover up shares whilst the price is at the levels