Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Looks like Shanta's West Kenya drilling (a new client for CAPD) is going extremely well, with "consistently strong" exploration results and lots more drilling to come:
Https://www.investegate.co.uk/shanta-gold-limited--shg-/rns/west-kenya-phase-2-and-regional-drilling-results/202111290700078025T/
" "This is the most consistently high-grade drilling programme we've ever conducted at any asset in Shanta's history. This announcement, which confirms another set of high-grade drilling results at our West Kenya Project across the Bushiangala and Isulu deposits, gives us significant confidence in the wider prospectivity in our vast licence area. Both of these deposits have proven to be high-grade ore bodies and today's results - with a hit of 6.4 m grading 47.3 g/t at Bushiangala - reaffirm our excitement at the potential of West Kenya to transform Shanta to a mid-tier gold producer.
Regional exploration drilling also commenced at the third target area, Ramula, with visible gold identified in 5 occurrences in the first hole, and further encouraging results reported including the potential for a bulk zone following an intersection of 60.8 m grading 3.75 g/t - signalling the potential for even more high quality discoveries across the broader licence area.
As we continue to progress our exploration drilling programme at West Kenya, our ambition is to increase the resource conversion rate and ultimately the total resource estimates, further strengthening our future development portfolio.
We will complete 35-40% of total planned drilling of 84,000m at West Kenya by the end of this year and look forward to providing a resource update in early 2022."
On the other hand, HUM's RNS this morning details a small hiatus in their operations in Mali due to troubles in the region - sounds like just a very temporary delay.
it's been a crazily good overnight move for CAPD's investment portfolio:
PDI +12.5 percent
Marvel +9 percent
Firefinch +3 percent
Tanga +15 percent
Aya +7%
CAPD have just tweeted that industry drilling activity is at record highs as per September's figures:
Https://twitter.com/_CapitalLimited/status/1460796673492283392
"Drilling activity continued to increase in Sept, record high of 401 projects reporting drilling activity, & no. of drill holes up 3.7% MoM to 6,437, beating the previous record of 6,291 (Oct18). Gold drilling activity rose 7%, 2021 avg is 365 projects/mth, ahead of 2020's 223 avg"
(1) Marvel Gold (CAPD's third largest investment holding) has just IPO'd its Tanzanian Graphite business called Evolution Energy Minerals in Australia. Theshares were up 200% on the debut. Marvel remains the largest shareholder with 30%, and CAPD owns 2.3m shares or 1.5%. CAPD's holding is therefore now worth around $1.5m. A nice option to have. Importantly this should lead to mining services work in the future when it goes into full construction/production etc etc.
The ASX announcement dated 12th November details the top 20 shareholders, with CAPD holding 2.374m shares and the EV1 shares trading at AUS$0.62, so another AUS$1.5m of asset value conjured from nowhere. Very nice work:
Https://evolutionenergyminerals.com.au/asx-announcements/
(2) Marvel Gold themselves are up another 7% to new highs this morning:
Https://www2.asx.com.au/markets/company/MVL
(3) The additional value created above is likely to have pushed the listed & unlisted equity stakes above a $60m valuation for the first time - almost 30% of CAPD's entire m/cap!
(4) And some positive news for CAPD's MSA Labs in Canada..."We will be working closely with New Found Gold Corp. to build a new laboratory that will support Newfoundland and Eastern Canada. The ‘Atlantic Provinces’ are seeing increasing investment in gold exploration and development, with drill programs returning some promising high grade results.
The new lab will include a PhotonAssay unit, the groundbreaking new technology which has delivered more accurate results for the ‘nuggety’ gold found in this area, as well as delivering much faster turnaround time on results, in a environmentally friendly replacement for fire assay."
Https://lnkd.in/gaPhhJpw
Good to see CAPD's large investment in PDI back at its highs now, up 9% overnight to AUS$0.25 - this holding alone is now worth around £19.4m by my calculations (over 12% of CAPD's total m/cap):
Https://www.google.com/search?client=firefox-b-d&q=quote+%22predictive+discovery%22
And of course gold has surged again and is now up to $1,863, which has to be good for CAPD's clientele.
Tanga Resources have this week announced encouraging results from their Namibian project being drilled by CAPD - their shares were up 20% overnight to AU$0.054.
CAPD's investment is currently worth around £400k AFAICS, so not too material just yet - but there should be lots of drilling work coming CAPD's way:
Https://www.tangaresources.com.au/investors/asx-announcements/
"Such a coherent and high-grade gold in soil anomaly is rare in this geological context and we feel that we are close to identifying a major new gold discovery and are planning on drilling to commence in early 2022.”
Good news today from CAPD's drilling in Diba for Altus:
Https://www.investegate.co.uk/altus-strategies-plc--als-/rns/drilling-intersects-at-diba-gold-project--mali/202111030700061370R/
"Steven Poulton, Chief Executive of Altus, commented:
"A near-surface intersection of 21.9 g/t over 10.2m represents an outstanding start to the current drilling campaign at the Diba gold project in western Mali. The drilling will comprise up to 10,100m of DD and RC and will be supplemented by up to 2,500m of AC drilling. These programmes are designed to test the potential down-dip and along-strike extensions of the Diba Deposit, as well as increase the resource confidence. At the Diba NW discovery, the drilling will test the strike extent and down dip continuation of the mineralisation. We look forward to updating shareholders on the results of this programme when they are received."
Diba Project: Drilling Programme
The drilling is being undertaken by Capital Drilling Limited and will comprise up to seven DD holes to an average depth of 150m for a total of approximately 1,100m and up to 60 RC drill holes to an average depth of 150m for approximately 9,000m.
etc"
(1) from exploration drilling for CORA:
https://www.investegate.co.uk/cora-gold-limited/rns/final-drill-results-from-zone-b-deposit--sanankoro/202110220700028753P/
(2) and from drilling at Kouroussa for Hummingbird - encouraging results, more exploration drilling coming next year and production commencing in 2023:
Https://www.investegate.co.uk/hummingbird-res.--hum-/rns/kouroussa--guinea-drilling-update/202110220701038814P/
Further encouraging drill results from Cora this morning - and interestingly they've "identified a new mineralised structure.....that will need further drilling but offers yet more potentially significant upside at the Selin deposit alone."
More work for CAPD then:
Https://www.investegate.co.uk/cora-gold-limited--cora-/rns/final-drill-results-from-selin/202110200700055880P/
Looks like a good quarterly report from CEY this morning - all of production, capital spend and the exploration portfolio going to plan and progressing well:
Https://www.investegate.co.uk/centamin-plc--cey-/rns/q3-2021-report/202110190700044390P/
CAPD remain on an EV/EBITDA of around only 2.8, with almost a quarter of the m/cap covered by the value of the investment portfolio. The share price just seems ridiculously low IMHO.
Capital Limited's (LSE:CAPD) Jamie Boyton joins Proactive London to talk about their increased revenue guidance for the second time this year after a strong third quarter for the Africa-focused mining service group...
Https://www.youtube.com/watch?v=EKXo9-9tX4o
And I note that the Private Punter has written about his holding in and views on CAPD in a market update column as follows:
Https://martinflitton1.wixsite.com/privatepunter/post/updates-on-clx-capd-g4m-spa-and-rdt-13-10-21
Thanks Riv. I wonder how many times CAPD will have to beat to attract more buying pressure? Have been invested here since circa 60p mark - progress always feels like it has been very hard earned. I’m sure the penny will drop with others before too long and we get a much larger and sustained rise in the share price. Business doing very well, much better placed for future sustainable growth than in previous business cycles, and the credibility of management should shine through to attract more investors. Take care and thanks so much for all of your contributions to this BB - much appreciated. Kind regards, B.
Berenberg have gone out on a limb and raised their target price by a massive 2p to 127p (from 125p)......
Https://investing.thisismoney.co.uk/broker-views/CAPD
That's still nearly 50% upside from here. I suspect Berenberg are being prudent and keeping their powder dry for the year end after this Q4.
Great to see the bid price now up to 86.8p. The share price is at its highest since early 2012 - almost 10 years ago.
Loads of upside from here though imho.
I agree.. more good figures. What is not to like? It only takes a flat performance in Q4 for them to hit their revenue target for the year. So could be under-promising and over delivering yet again.
Still my largest holding, otherwise I would buy yet more!
JL
The decision to invest in infrastructure over the years is paying dividends now as Capital Drilling deliver the highest quarterly revenues to date! Second revenue guidance increase of the year to $220-225 million compared to $200-210 million at the Q2 trading update and $185-195 million originally guided at the FY20 results.
Commenting on the trading update, Jamie Boyton, Executive Chairman, said:
"The third quarter of 2021 has again seen Capital hit its strongest revenue performance since its inception. While we saw a slight seasonal dip in drill rig utilisation, ARPOR remained strong and performance for the Group improved as contribution from the Company's non-drilling services increased. This reinforces Capital's strategy of diversifying its revenue streams and focusing on mine sites to drive strong organic growth and ensure a sustainable business through the cycle.
Sukari mining has hit target run rates having outperformed contract expectations, and with new contract wins cementing the outlook for drilling for the remainder of the year, today we have raised our revenue guidance once again for 2021. Amongst the strong momentum across all areas of the business it is of particular note that we have seen continued excellence in our safety performance.
Looking ahead we continue to see strong demand across all our business areas with the tender pipeline looking very encouraging. We see increased activity with our existing clients, given high commodity prices, but also new opportunities are opening in our key market Egypt, with exploration in the country showing very positive signs as we begin exploration contracts at Sukari and also with Thani and Allied."
Hi rivaldo, excellent figures and the share price clearly lagging the actual business peformance by a huge margin currently. At some point the share price will catch up as this well run business keeps on delivering above and beyond expectations :-)
You beat me to it Surprised :o))
To summarise, Tamesis have retained their 140p target price "with conviction".
They note that to achieve just the bottom end of the new guidance range, CAPD would only have to achieve a repeat of the seasonally weaker Q3 - so the top end or another lifting of expectations is on the cards.
They now see underlying 15.2c EPS this year, with 10.4c of operating cash flow and a P/E of just 7.3 - which excludes the likely large gains on the investment portfolio.
They conclude:
"Estimate changes and valuation. As a result of today’s update we lift our full year revenue estimate for 2021 to US$222m and EBITDA to $63.2m and for 2022 revenue to grow further to $248.6m and EBITDA to $71.0m - see table below. It leaves the shares trading on undemanding multiples including PE ratios for 2021 and 2022 of 7.3x and 6.7x and EV/EBITDA of 3.0x and just 2.7x. The business model is delivering growth and diversification and we are now through peak funding for the Sukari contract allowing cash generation to pick up and with it the dividend (+33% in H1) leaving the yield on 3.3%. We retain our PT of 140p with conviction."
https://twitter.com/surprised_trade/status/1448177382079311872
Broker note out - new target 140p
Yet another terrific trading update out this morning for Q3.
Guidance is increased once again, to $220m-$225m revenues from the $185m-$195m first envisaged this year.
A series of new contracts have been won.
Sukari timetables are an extremely impressive three months ahead of schedule.
Diversification to non-drilling revenues is accelerating at 26% of revenues.
And there's a very bullish outlook, with "strong demand across all our business areas with the tender pipeline looking very encouraging."
This share price is just cheap, cheap, cheap imho :o))
Berenberg have raised their target price to 125p (from 113p) and say Buy:
Https://www.sharecast.com/equity/Capital_Limited_DI/broker-views
It seems the last set of AC & RC drilling at Diba was done by International Drilling - so this is a contract win:
hTTps://www.investegate.co.uk/altus-strategies-plc--als-/rns/drilling-commences-at-diba-gold-project--mali/202105250700046523Z/
Also, here's a presentation on CAPD's third largest holding (Marvel Gold) which is doing a spin out IPO of its Graphite Mine - CAPDs stake is worth around $3m, but evidently could have multi-bagger potential:
Https://www.investi.com.au/api/announcements/mvl/d43101f5-552.pdf
Today's RNS from Altus Strategies shows CAPD have recommenced drilling at Diba after the rainy season, - a "significant 11,300m combined DD and RC programme is now underway, which is being supplemented by up to 7,500m of AC drilling":
Https://www.investegate.co.uk/altus-strategies-plc--als-/rns/drilling-underway-at-diba-gold-project--mali/202110070700082773O/
"The drilling programmes are being undertaken by Capital Drilling Limited and comprise approximately nine DD holes to an average depth of 150m for a total of approximately 1,300m and approximately 60 RC drill holes to an average depth of 150m for approximately 10,000m."
PDI - where CAPD hold 141m shares - was up 13% overnight to AUD0.26. That holding alone is now worth around £20m.
And also good news from Altus Strategies' exploration at Tabakorole this morning. CAPD get a specific mention in doing the diamond drilling, and the results are nicely positive with lots more drilling to come:
Https://www.investegate.co.uk/altus-strategies-plc--als-/rns/gold-resource-exceeds-1moz-at-tabakorole-in-mali/202110050700089950N/
"Tabakorole is shaping up as a significant potential development project in west Africa with substantial upside"
There was a nice upwards flurry at the close on Friday. Hopefully the very healthy volumes after the investment uplift news has cleared out a few more of those seemingly endless (and inexplicable) sellers!
This seems to have been confirmed by today's action so far - the published spread has increased to 82p-87p, but sellers are getting an even bigger premium at 83.7p and there's been buying at 85p.