Capital Share Discussion Threads

[valhamos] 25/8/2015 10:23

deanowls

The call was based on the presentation on the website.

Key points:

-Gross profit margin% being maintained and costs being reduced (slide 7)

-the new CEO Mark Parsons has examined the business model and implemented improvements in pricing and contract management. Example given Cupric Canyon Capital Botswana (slide 14).

-Strong cash generation (slide 8) expected to continue into H2

-Capex is only for refurb of fully utilised production rigs (slide 9)

-CAPD is confident of its position on the Zambian tax dispute - an indication of this was the declaration of the interim dividend.

-Outlook as per slide 18

I'm not totally convinced by CAPD regards the Zambian tax claim probably because of my experience with Zambeef. My concern is that once an African country makes a tax claim if you want to continue to operate in that country you have to give ground no matter how unmerited the claim is. I hope I'm wrong.

[deanowls] 25/8/2015 08:57

Could you do a brief summary valhamos? unless there will be a playback feature?

[valhamos] 25/8/2015 08:42

Nice dividend shame about the increased tax expense and disputed tax claim from Zambia (seems to be a feature for that country). Let's see what the conference call brings.

[inflectionpoint] 20/7/2015 08:46

i guess it depends on who out of Centamin/Acacia/Anglo cancels any production contracts.
I think fine for now, as long as Gold stabilises

[valhamos] 15/7/2015 19:34

"they would have to be bold to pay a dividend."

But CAPD have already paid a dividend and stated that future dividend policy will be such that "the Board will aim to approve an annual dividend within the range of 25-50% of the Company's free cash flow (being operating cash flow less capital expenditure)." [2014 Annual Results]

In the recent half year update CAPD demonstrated good operating cashflow and expected the same for H2. It is also worth repeating the statement from this update that 70% of revenue for H1 came from longer term production drilling contracts rather than exploration.

Based on on this I would suggest CAPD paying dividends is a reasonable proposition.

[koolio] 15/7/2015 18:25

It's a long time since I have done any research in this stock, just lurking on the board. If anybody on this board can confirm CAPD's drilling backlog it would provide all we need to know. The mining companies are going to have less to spend, Fact. There will be more rig availability chasing fewer projects, Fact. Even if CAPD win their share of the fewer projects they will spend more time in mobilisations between the smaller projects and less time drilling. Times are going to get tough but that may be priced in, they would have to be bold to pay a dividend. Good luck all.

[deanowls] 15/7/2015 16:23

I don't think cents in are going to stop drilling so that forms the backbone of the company. I'm hoping for another small divi at half year. With Iran agreeing a deal and possible grexit avoided gold is dropping, they'll be another crisis around the corner to pump it back up.

[inflectionpoint] 15/7/2015 15:00

kinbasket
If Gold breaks support here and goes through 1000 then what do you think people will be willing to pay for the equipment and contracts? Not a lot

[dr know] 09/6/2015 11:31

It pays dividends as well. From the MAY IMS : "We finished the 2014 year with net debt of 0.4% and we expect to move to a net cash position over the course of 2015, in conjunction with the Group paying its maiden dividend in May 2015. "

Market cap is below net assets as a good safety net.

All this is with rig utilisation of only 33%. If they could get this up then there is good upside in the shares.

[kinbasket] 09/6/2015 10:38

Nonsense.

CAPD is cash generative and probably only has about 10m of debt at this point in time (net debt is zero). They have one of the strongest balance sheets in the business.

It's worth whatever someone will pay for all the equipment and contracts. Which I would suggest is already some way above the current share price Even in a fire sale.

[inflectionpoint] 09/6/2015 09:42

if Gold can hold the 1150 level this stock should double in NTM. If not, it could be worth zero. Big old call option

[dotsie] 07/6/2015 22:28

Looking at small investment here, seems to be cheapish with little downside but probably need to hold med to long term.

[gleach23] 22/5/2015 13:04

ok thanks and good luck

[sailing john] 22/5/2015 11:34

Gleach
I have sent a complaint today given that Halifax paid on the 12th May some 9 days earlier. Also queried the exchange rate used.

I doubt anything will improve so the only answer is to transfer funds to my other Brokers as and when I trade out of positions.

Will update if I get a meaningful response!

[gleach23] 22/5/2015 10:45

Same here sj - I had asked them what issue Selftrade has with its 'custodians' that others brokers didn't seem to have but didn't get an answer.

Anyway, got it now and very nice divi it was too!

[sailing john] 22/5/2015 10:42

Finally - Selftrade have processed divi
Timed at 12.28 yesterday

[sailing john] 19/5/2015 15:40

gleach - thanks for the update

Selftrade will lose customers if they can't process foreign currency divis faster. Not the first time that they have been at the back of the pack. I was hoping a change of ownership would improve things - obviously not and there are other issues that I'm not happy with eg order placement - no option to cancel electronically since transfer of business - so I'm not placing any with selftrade - more business lost!

[gleach23] 19/5/2015 15:24

Thanks for the info sailing john. Selftrade advised -

"We are currently awaiting the Custodians to credit us with the dividend and as soon as we have that it will be applied to your account."

I don't understand this process but I'm not sure why it should differ so much - it's been a week after Halifax and still nothing

[sailing john] 15/5/2015 17:34

gleach
I'm also with Selftrade and no payment yet
Halifax paid 12th May
SJ

[gleach23] 15/5/2015 11:56

thanks sebass - Selftrade seem to be quick on some, slow on others!

[sebass] 15/5/2015 11:45

With Hargreaves as well and received mine on 13th

[gleach23] 15/5/2015 11:41

ok thanks WJ

[wjccghcc] 15/5/2015 11:31

Got mine on 13/5 with Hargreaves.

[gleach23] 15/5/2015 11:24

hi sebass - assuming you are a holder, did you receive the recent 1.9c dividend payable on 8th May? I haven't yet and have just written to Selftrade about it

[sebass] 15/5/2015 11:18

"On current demand forecasts the Group has no further requirement for rig purchases in 2015 and we expect to generate strong cash flows over the year allowing further balance sheet management initiatives for shareholders".

Sounds like possibility could be further dividend increase or share buybacks at the end of the year