Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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That's a bit more like it - just over £20,000 of buybacks on Friday at 88.8p:
Https://www.investegate.co.uk/capital-limited--capd-/rns/transaction-in-own-shares/202201100715078844X/
Don't worry EV_Bull, I'll stop posting them when I get bored!
Yes, 14,625 of 2 million shares which is 0.73% of the planned buyback, no need to report every single one though Riv!
Another buyback announced today - just 4,625 shares this time. They got a good price though at 86.5p :o))
Just announced - the first share buyback was made yesterday, 10k at 88p. Good to see, but hopefully some rather larger purchases still to come :o))
Https://uk.advfn.com/stock-market/london/capital-CAPD/share-news/Capital-Limited-Transaction-in-Own-Shares/86955181
Tamesis Partners have issued a new research note - a P/E of 6.8 is ridiculously low even without 30% of the m/cap being backed up by the investment portfolio alone!
Https://www.tamesispartners.com/research-portal#/portal/tamesis-partners/research/37_2022010409425277386
Extracts:
"The shares have barely moved over the last six months despite a slew of good news highlighting the health of the drilling business, the potential of the mining services contract, the growth in MSALABS and success of their investment arm. It reflects management’s confidence in the business and their frustration at the valuation – see below."
"Valuation
As mentioned above the size of the return of capital is small and as such does not have a major impact on our eps forecasts. Our modelling suggests that the 2 million share buyback, costing US$1.7m at yesterday’s closing price of 84.2p and a GBPUSD rate of 1.35, with increase the EPS from 16.7cps to 16.8cps. The average daily volume in the last six months has been c.450k shares or $0.45m so a 2m share order would theoretically take 8-9 days to fill assuming the order was 100% of the daily volume ie it will probably take at least a month. It should however highlight the extremely attractive set of valuation metrics upon which the shares trade. Based on our (company guided) forecasts, which we believe are conservative if anything, the share price is trading on EV/EBITDA multiples of 3.1x and 2.7x for 2021 and 2022 and P/E ratios of 7.5x and 6.8x respectively. Our Target Price assumes a modest 5x EV/EBITDA multiple for 2022."
FYI from the news wires today - some Berenberg commentary included, as they've reiterated their Buy and 127p valuation:
"Capital's decision to implement a share buyback, as well as a recent contract win with Johannesburg-listed gold miner Anglogold Ashanti, means the mining services company goes into the new year with strong momentum, German bank Berenberg said on Tuesday.
Capital, focused on African markets, on Tuesday said it will buyback potentially USD2.5 million worth of its shares.
Berenberg maintained its Buy recommendation for the stock, as well as its 127 pence price target. Capital shares were 6.1% higher at 89.33p each in London on Tuesday afternoon. Capital shares had risen by over a quarter over the course of 2021.
The buyback will be arranged by Stifel Nicolaus Europe. The programme will not exceed 2.0 million shares or USD2.5 million.
"While we remain primarily focused on growth, today's announcement of a share buyback programme demonstrates the board's confidence in the business, especially after the successful ramp up of the Sukari mining contract and the continued successful growth of our drilling and laboratory operations," Capital Executive Chair Jamie Boyton said.
The buyback will go towards reducing the company's share capital and meeting obligations from share option programmes.
Analysts at Berenberg said: "This is an encouraging sign from Capital and shows confidence in the business. We expect a modest positive impact on the shares, and would expect the buyback to be supportive for the share price.
"We retain our Buy rating on Capital, and think that the company is in a strong position entering into 2022, with the Sukari (Egypt) contract performing well and the announcement on 22 December of a further contract win at AngloGold Ashanti's Geita mine in Tanzania."
In December, Capital said it was awarded a surface production drilling contract from AngloGold at the Geita mine. The production drilling contract started in December and is anticipated to generate revenue of USD33 million over its term."
More good news for CAPD's investment portfolio - Firefinch is up another 6.4% overnight to new highs of AUS$0.92.
CAPD now own 18.95m shares in Firefinch, so I make this holding now worth around £9.4m.
This is on the good news announced yesterday that "a Final Investment
Decision (FID) for the Goulamina Lithium Project (Goulamina or the Project) has been approved."
So hopefully more work for CAPD in the lithium drilling here:
"Next Steps
Ganfeng and Firefinch continue to move forward with early-stage engineering, drilling and various community and environmental works to fast track the development of the Project. Firefinch’s costs will be re-imbursed by the Goulamina JV once it is established."
"Firefinch (ASX: FFX) is a Mali focussed gold miner and lithium developer. Firefinch has an 80% interest in the Morila Gold Mine (Morila) and it currently owns 100% of the Goulamina Lithium Project (Goulamina).
Goulamina is one of the world’s largest undeveloped high quality spodumene deposits. In partnership with Ganfeng, Firefinch will bring the project into production."
Happy New Year everyone.
And some good news to start 2022 - CAPD are to begin share buybacks of up to $2.5m, which just shows what they think about the current share price.....
Https://uk.advfn.com/stock-market/london/capital-CAPD/share-news/Capital-Limited-Share-Buyback-Programme/86930887
"Commenting on the Share Buyback Programme, Jamie Boyton, Executive Chairman, said:
"Capital remains focused on delivering growth and shareholder returns though its balanced capital allocation policy. While we remain primarily focused on growth, today's announcement of a share buyback programme demonstrates the Board's confidence in the business, especially after the successful ramp up of the Sukari mining contract and the continued successful growth of our drilling and laboratory operations."
The current 86p mid-price is up from 68.5p at the start of this year - a gain of 25.5% for the year. I'll happily take that.
CAPD was heavily undervalued at the start of 2021 and is now even more heavily undervalued imho.
Patience will reap further rewards. This coming year could see anything from another 25% up to 100% or more upside if the core business and the portfolio continues to thrive and the gold price is stable at these highs (I note it's up today to around $1,815 last time I looked).
Nice close and up to 84p-86p last night.
The gold price has risen well above $1,800 now. Plus great to see the portfolio's larger holdings ending the year with a bang - Predictive were up 4% overnight to near their highs (and up 325% in the year), Golden Rim up another 4%, and Firefinch also up 4% to new highs (and up around 350% in the year).
The portfolio gains on the year will be huge.
Plus it was a good day for Predictive Discovery - up 4% overnight at A$ 0.25. This stake is now worth around £19m.
Together with the Firefinch stake, that's £27.4m of asset value against the £157m m/cap. Not to mention the single-digit P/E and the substantial value of the rest of the quoted holdings. Plus the $10.9m value of the Allied Gold Corp holding, which is expected to IPO in the near future.
Firefinch were up another 9% last night in Australia to new highs - they're now at AUS$0.82, up from AUS$0.17 in the last year. Which makes CAPD's holding in this one stock worth around £8.4m or so at present:
Https://www2.asx.com.au/markets/company/ffx
Worth keeping an eye on this fund's six-monthly newsletters - below 3% so not disclosable yet, they now hold 4.05m shares (as at 30/9/21), and have increased very nicely since 31/3/21 when they only held 1.27m shares:
Https://www.aegisfunds.com/documents
Aegis Value Fund are a small cap fund who say "We focus on inefficiently-priced, underfollowed stocks trading at low multiples of book value and cash flow".
https://twitter.com/surprised_trade/status/1473934656781406210
disconnect remains between share price & company value not being reflected yet in the sp...excellent business, figures and growth
Berenberg reiterate their Buy and 127p target:
Https://www.sharecast.com/equity/Capital_Limited_DI/broker-views
I know - it's just crazy imo! We know that the results will be very good. They may even beat upgraded expectations again. The prospects for the next couple of years for the core business are even better. The current year P/E is only around 7 and will of course reduce next month even further.
Then there's the substantial portion of the m/cap covered by the investment portfolio, which is essentially thrown in for free at present, despite growing hugely and is now at $50m or more against the £152m m/cap.
Then there's the likely flotation of Allied Gold Corp, which is likely to crystallise a further $10.9m of investment value at current valuation plus presumably an IPO premium.
Then there's the value of the fast-growing MSA Labs business, including the new Chrysos gold-testing technology.
Not to mention the expansion into waste mining services and the likely further - and probably highly material - contract wins which the directors have broadly hinted at, following the huge contract win at Centamin's Sukari pit.
good spot rivaldo, more excellent news.....the sp action once again suggest we lost a £30 milion contarct not just secured one ...face palm....lol
on top of today's contract win.
Tanga Resources has changed its name to Wia Gold (ASX: WIA). It's raised $4.6m of new funding, and has announced good news from its recent drilling in the Ivory Coast. All the news is here:
Https://wiagold.com.au/investors/asx-announcements/
It seems CAPD has increased its holding to 40m shares (8.65%). At the current AUD0.063 - up 26% over the last year - this is now worth around £1.35m and has become a relatively material holding (asuming my calculation from Aussie dollars is correct).
excellent contract on top of the consistent securing of contracts across the industry, the company has produced excellent results along with forward guidance and excelent earnings, the sp as per the brokers note is way behind reflecting the success the company is enjoying and at some point this coiled spring of an sp will surely head towards faireer value of closer to 140p+
https://twitter.com/surprised_trade/status/1473551879770566658
excellent contract on top of the consistent securingof contractsacross the industry, the company hasproduced excellent results along with forward guidance od excelent earnings, the so as per the brokers note is way behind reflecting the success the company is enjoying andat some point this coiled spring of an sp will surely head towards faireer value of closer to 140p+
A new $33m contract with AngloGold, securing additional revenues through to 2025 and showing the quality of CAPD's relationship with one of the mining giants:
Https://uk.advfn.com/stock-market/london/capital-CAPD/share-news/Capital-Limited-New-Contract-Award-Geita-Gold-Mi/86869767
This should get the share price moving.....
Golden Rim's shares are up 15% overnight on good results announced from drilling in Kada in Guinea (CAPD are the drilling contractor).
At AUS$0.12, CAPD's 198m shares are now worth around £1.3m (if I've used the right amount of zeroes!):
Https://www.marketscreener.com/quote/stock/GOLDEN-RIM-RESOURCES-LTD-57143063/news/GOLDEN-RIM-KADA-DELIVERS-ITS-WIDEST-OXIDE-GOLD-INTERSECTION-TO-DATE-62M-1-3-GT-GOLD-37317434/
And CAPD's drilling program has been extended:
"Golden Rim has extended RC drilling program to 9,000m (from 6,550m) on the promising early results; 2,040m completed to date.
Golden Rim on track to deliver Kada maiden Mineral Resource Estimate in late January 2022.
Regional auger drilling ongoing across Kada with two rigs in operation and assays for 536 auger holes pending."
Peel Hunt this morning reiterate their Buy and 124p target price (note that Berenberg also say Buy with a 127p target price):
Https://investing.thisismoney.co.uk/broker-views/CAPD
Chris5, who knows - seems ridiculously cheap to me! Presumably some legacy sellers/profit-takers out there. But CAPD appear to be in the middle of a multi-year boom period with loads of good news flow to come, imho anyway.
Very strong numbers and outlook for CAPD's sector from the largest player in the industry (Major Drilling) reported last night - they have more than 600 rigs.
Highlights:
• Revenue of $170.7 million, up 50% compared to same period last year, and up 13% from last quarter.
• EBITDA(1) for the quarter was $30.7 million, an increase of ~60% compared to same period last year.
• Net earnings of $14.3 million or $0.17 per share, highest in 9 years and up ~100% from same period last year.
• Net debt(1) reduced in the quarter by $14.5 million to $30.0 mill
“Given the history of mining cycles and the projected near-term supply deficit for many mining commodities, I believe we are in the early stages of a significant mining industry upcycle,” noted Mr. Larocque. “We are encouraged that some of our senior gold customers are indicating higher levels of drilling activity for calendar 2022 and that junior mining companies continue to raise capital to fund exploration programs. While most base metal companies have yet to finalize their 2022 budgets, copper prices have remained at historical highs for most of calendar 2021. We expect this to lead to substantial investment in copper and other base metal exploration projects as we help discover the metals that allow the world to accelerate its efforts toward decarbonization."
New video interview with the highly impressive Chairman on Mines & Money:
Https://www.capdrill.com/news/jamie-boyton-executive-chairman-virtual-mines-and-money-interview-with-commodity-tv
The tone of bullishness and optimism and the info on the slides once again paint a picture which will imo finally be rewarded with rather nice share price gains in the next few months.
Particularly with the Q4 trading update due in just over a month's time.
Also, MSA Labs are featured in December's issue of "Australias Paydirt" magazine. It highlights MSALabs' expansion of PhotonAssay technology throughout its global network after its first successful installation at Barrick Gold Corporation Bulyanhulu mine....