Capital Share Discussion Threads

[basem1] 03/5/2019 15:19

Ok Thanks I'm with interactive investor. They have credited my account but have not shown where the funds have come from it sounds like I will need to do a currency exchange when the dollars hit my account then

[gleach23] 03/5/2019 14:59

basem1...the divi has historically been paid by cheque in USD which results in cheque clearance delays. In my experience how quickly you receive the payment depends primarily on your broker. For the previous divi due on 5th Oct 2018 I received the divi through shares held with Equiniti on 12th Oct and with AJ Bell on 13th Dec. This is bacause Equiniti were prepared to pre-fund the divi before they actually received cleared funds themselves whereas AJ Bell were not. Apparantly AJ Bell didn't receive cleared funds until 19th Dec so even they ended up pre-funding by 6 days.

Somero used to pay in USD which caused similar issues but recently stated -

"We are in process of establishing the necessary elements to pay dividends in GBP. The specific mechanisms to accomplish this were not previously available to us which is why we always have historically paid in USD. Future dividend payments to UK-based shareholders should be in GBP and thus eliminate the delays you’ve experienced."

I am currently in a dialogue with the CFO from CAPD and AJ Bell about this, to ask if they are similarly able to make use of the same mechanisms. Yet to be clarified but will update when I know.

In the meantime I'm not holding my breath for the payment due today :)

[basem1] 03/5/2019 13:56

Anyone know how the divi is paid The right amount is in my account but not in my transaction history and do not appear to have any currency to convert ?

[rivaldo] 01/5/2019 13:50

Thanks for the heads up, I missed that one! Cora is just the latest of these investments - the 3rd or 4th in recent months. I assume as previously posted it's a strategy designed to get CAPD in on the ground floor of new drilling campaigns.

It looks reasonable to me. CAPD get presumably quite lucrative drilling contracts, which would then lead on to multi-year contracts with any success, and also giving rise to share price upside in the investee companies. Meanwhile, CAPD's downside from their £300k or so investment in each company is reduced by the returns from the drilling contracts.

I wouldn't like there to be too many more of these deals, but with $11m and rising net cash this seems a good use of relatively small dollops of cash which would otherwise sit there unutilised.

[valhamos] 01/5/2019 09:10

I know what you mean. Perhaps it indicates a lack of focus, certainly poor communication as to what it is trying to do. CAPD has form here - nothing much has been said recently about the stake it bought a couple of years ago in MSA Mineral Services Analytical (Canada) Inc.

[basem1] 01/5/2019 08:12

Gosh this is behaving like a D O G Not happy with yesterday's purchase of CORA if I had wanted shares in them I would have bought them from the market not through CAPD. Best avoided.

[deanowls] 30/4/2019 16:56

I’d expect it’s a way for the juniors to be able to finance the drill. Effectively CD are using idle rigs but getting shares in the company. Another way of getting in early on these developments at lower risk?

[troc1958] 30/4/2019 14:43

Interesting RNS re shareholding in Cora gold. CD must have picked up about 8.7 million shares in Cora @ 3.85p each in the recent placing. Maybe cheap shares in the long run, particularly if CD also picks up the Sanankoro drilling contract

[gleach23] 29/4/2019 12:17

Thanks again rivaldo - all grist to the mill for the share price :)

[rivaldo] 29/4/2019 12:05

Good coverage here, including commentarY from Peel Hunt's new Buy rec:

https ://www.proactiveinvestors.co.uk/companies/news/219093/capital-drilling-well-positioned-to-benefit-from-likely-increase-in-exploration-budgets-says-peel-hunt-as-it-initiates-at-buy-219093.html

"Capital Drilling “well positioned” to benefit from likely increase in exploration budgets, says Peel Hunt as it initiates at ‘buy’
11:30 25 Apr 2019

Capital Drilling Limited (LON:CAPD) is “well positioned” to benefit from a likely increase in exploration spending amid an uptick in metals prices, according to analysts at Peel Hunt, who initiated coverage on the firm on Thursday with a ‘buy’ rating and 76p target price.

In its initiation note, the broker said the stronger metal prices and cash flows “should lead to further increases in exploration budgets”, particularly for gold, which has mostly recovered from a slump last summer, which took it below US$1,200 an ounce to around US$1,277 today.

As the firm has around one-third of its drilling rigs in West Africa, a region that accounts for 45% of the continent’s gold exploration spend, analysts said the predicted rise in spending could “lift utilisation rates and revenues”.

If historic peak utilisation rates were reached for Capital’s rigs, Peel Hunt said as much as 50% could be added to their base case of US$28mln in underlying (EBITDA) earnings for 2019.

Analysts added that the US$11mln in cash the group had in the bank at the end of its last fiscal year, gave it “significant flexibility” to reinvest in the business, which in turn would “put it in a better position to win West Africa mining service contracts”.

The strong net cash position also allowed the company to continue paying dividends in addition to these investments, Peel Hunt said.

In late-morning trading on Thursday, Capital Drilling shares were steady at 51.5p, a 48% discount to the brokers target price."

[mfhmfh] 26/4/2019 17:08

looks like all buys today

[mfhmfh] 25/4/2019 16:25

76p is a very conservative target price IMO

[rivaldo] 25/4/2019 08:28

Great to see Peel Hunt initiating coverage today with a Buy and a 76p target:



And initial targets are usually pretty conservative, to leave room for upgrades later on.

[rivaldo] 24/4/2019 09:56

Centamin's update today reports production ahead of guidance, and good progress and optimism re exploration. Which is all good news for CAPD.

I've also noticed that, as with the previous deal with Golden Rim, CAPD have cornerstoned with $350k a small fundraising for Predictive Discovery (again quoted in Oz) to fund exploration at new properties in Guinea, West Africa.

This again looks a sound move, presumably guaranteeing future work in Guinea and elsewhere in West Africa as per this quote:

https ://www.proactiveinvestors.co.uk/companies/news/218627/predictive-discovery-raises-up-to-531000-in-placement-for-guinea-exploration-218627.html

“At present, we are developing new drill targets in Guinea, especially on the Nonta and Kankan properties and we plan to be ready to test them in late 2019.

“The new strategic relationship with Capital Drilling initiated by this placement will ensure that we are well positioned to fund and execute drilling programs in Guinea or elsewhere in our West African portfolio once we are ready to drill.”

[mfhmfh] 18/4/2019 14:18

consistent buying today. i'd be happy with 91p.

[rivaldo] 18/4/2019 13:43

Tamesis Partners have updated - they have a 91p valuation:



"Our view – overall a solid start to the year

Capital reported it is on track to achieve full year revenue guidance and we are confident that the company will be able to deliver the US$29.3 million quarterly average revenue for the remainder of 2019 to hit the mid-point of guidance (US$110-120 million). The quarterly result is slightly below our forecast at the revenue level due to seasonal effects in Q1. Encouragingly, the company reported increased profitability from key contracts over the period – reinforcing our investment thesis from the FY/2018 results that Capital continues to outperform at blue-chip contracts with top tier mining companies including Kinross, Anglogold Ashanti, Resolute, Acacia, and Centamin.

The West African hub continues to grow, highlighted by an exploration contract win with Golden Rim Resources (ASX: GMR) in Burkina Faso. The company is seeing robust tendering activity – any further contract wins will be incremental to the published
guidance. Metals prices remain strong, and Capital is best placed to take advantage of any increased exploration spending by the majors and mid-tiers to replace depleting ounces or tonnes.

We value Capital Drilling at 91p/share, representing 5x forecast 2019 EV/EBITDA of US$29.3 million and a 1.8x multiple on the current share price. Our forecast 2019 free cash flow is US$13.9 million, implying a 15.7% yield which easily covers the current dividend yield of 3.2%. At the current share price, Capital feels materially undervalued – trading at 2.7x 2019 EV/EBITDA, a strong balance sheet, covered dividend and further growth opportunities in the pipeline."

[rivaldo] 18/4/2019 07:27

A good, solid Q1 trading statement today in line with guidance:

- nicely up on last year's Q1
- net cash is up strongly to almost $11m
- increase in fleet utilisation to 52% from 44%



Most importantly, the outlook remains strong:

"We continue to see robust tendering activity in West Africa and remain confident of further contract wins in the region in the coming months"

[basem1] 17/4/2019 12:55

Well I'd be peed off if I'd bought at 53 or 54p this morning. The market is as bent as hell at present.

[dangersimpson2] 17/4/2019 11:34

Yeah strange, months of indifference, followed by an hour of intense buying - sounds like a tip! it is quite easy to make the argument that a company that has performed so well recently deserves to be on a higher rating than its current 2.6 EV/EBITDA, and 7 x EV/FCF.

Think that with Burton's recent share sale, management and former management no longer hold greater than 50% of the share register. Realistically they could still block any unwelcome takeover attempt, though, which is the other reason you tend to see these buying sprees, so think this would be unlikely.

[mfhmfh] 17/4/2019 11:12

from 10.21am onwards just seems to be buys, buys buys...

[gleach23] 17/4/2019 10:45

Must have been a strong tip somewhere going by the sudden volume of trades?

[basem1] 17/4/2019 10:39

Nice move up and juicy dividend to come too.

[gleach23] 17/4/2019 10:34

Q1 update due at end of month

[basem1] 17/4/2019 10:28

Here we go......

[mfhmfh] 17/4/2019 10:00

45,000 shares bought yesterday at 51p.