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Judging from today's trades, with a hefty (in these markets) 388k shares traded already, it just looks like there was an early forced/desperate seller who had to get rid. Plenty of funds out there I'd guess having to sell due to redemptions or need for liquidity.
The gold price is still high and looks like remaining so for some time to come. CAPD's core business is thriving. I saw a post from kaizenkid elsewhere noting that the portfolio is still worth $43m - the weak pound is working in CAPD's favour in translation terms, so that's still a very nice £35m or so, i.e around 25% of the m/cap on its own.
It's worth reiterating that the core business is forecast to make $80.5m EBITDA and $53.5m EBIT this year (i.e before investment gains/losses), i.e around £44m - and $37.5m PAT against a now £146m m/cap.
Confirmation overnight that Firefinch's demerged Leo Lithium is to list on the ASX on 23rd June (Thursday):
Https://www2.asx.com.au/markets/company/ffx
And Golden Rim's shares are up on good drilling results from Kada (where CAPD are the contractor), with further drilling to come:
Https://www2.asx.com.au/markets/company/gmr
CAPD are now River & Mercantile UK Microcap Trust's third largest holding. RMMC have just issued their accounts for the six months to 31st March, and had this to say about CAPD:
"Further to previous comments on the breadth of underperformance within the portfolio, there was only one holding that made a significant positive contribution. Capital, a provider of drilling and mining services to gold miners in Africa, gained 32% on the back of continued strong trading. The financial performance of the Quality investment case is geared to the utilisation of their fleet which continues to increase as gold exploration companies commit, given the ongoing strength of the gold price, to new exploration and development activity. The company made a 1.2 percentage point (ppt) contribution to relative performance."
RMMC have also upgraded CAPD re their ESG credentials:
"Capital: S3 to S2. As mentioned, one of the areas we focus engagement is in our S3 rated holdings. We have engaged with Capital several times and attempted to improve disclosure around GHG (green house gas) emissions and the board composition. The company announced the appointment of a new NED (non-executive director) who is heading up the newly formed sustainability committee. The recent annual report includes, for the first time, GHG emissions and the company has committed to announce an emissions target this year."
Berenberg yesterday reiterated their Buy and 154p target:
Https://investing.thisismoney.co.uk/broker-views/CAPD
PDI's shares bounced 12% overnight from a recent decline after excellent news from its Bankan project, where CAPD are the drilling contractors and appear to be exceptionally busy:
Https://www2.asx.com.au/markets/company/pdi
Extracts:
“NE Bankan continues to confirm its emerging Tier-1 status with Hole BNERD0113, our deepest hole drilled to date, extending mineralisation a further 300m down dip of the deepest previously completed hole and intersecting wide zones of good to high-grade gold mineralisation. As well as testing the highgrade shoot, close-spaced and shallow grade control RC drilling has also commenced at NE Bankan to help develop the resource model and contribute to mining studies."
"There remains great potential to expand the mineral resources in the Bankan Project, as the Company aggressively drills out the known systems at NE Bankan and Bankan Creek and progresses higher priority prospects within the broader Bankan permit."
"There are currently 9 active drill rigs on site with three Diamond, two multipurpose Diamond/Reverse Circulation, one Reverse Circulation, one Aircore and two Power Auger drill rigs, all conducting various resource development and exploration programs across the Bankan Project."
APD are the drilling contractor for Aton Resources, who commenced a new drilling programme at Hamama West on 25th May - just in time for CAPD's H1 results to 30th June:
Https://www.juniorminingnetwork.com/junior-miner-news/press-releases/1485-tsx-venture/aan/121956-aton-commences-new-rc-drilling-programme-at-hamama-west.html
"The drilling is being undertaken by Capital Limited using their new state of the art Epiroc Explorac 100 rig (Figure 2)."
And:
"The Company also intends to drill for the first time the West Garida prospect, which is located only 3km to the east of Hamama West, and which has returned assays of up to 99.6 g/t Au from surface sampling (see news release dated October 17, 2017)."
Investee company Awale's shares were up 23% overnight on news of a strategic investment in and exploration agreement for Odienne with Awale by Newmont - the world's largest gold producer.
CAPD are also the drilling contractor at Odienne:
Https://finance.yahoo.com/news/awal-resources-announces-strategic-investment-115000820.html
"We have always considered Odienné has the potential to produce a Tier One asset which, based on work performed to date, is now supported by Newmont through this transaction. Our shareholders can share in the delivery of a project of this potential scale."
Predictive Discovery, where CAPD have a large investment and are also the main drilling contractor, have just raised $55m from institutional investors, which should ensure substantial drilling revenues for CAPD as follows:
Https://www2.asx.com.au/markets/company/pdi
“The funds raised will allow Predictive to accelerate its comprehensive drilling program and build further on the 3.65 million ounces already discovered, as well as deliver a scoping study which will include our baseline and environmental study results in late 2023.
“Bankan is potentially one of many significant gold deposits and marks the beginning of our journey in developing Guinea’s Siguiri basin into one of the most exciting new gold addresses in West Africa.”
Good to see (1) CAPD's MSALabs working for SHG as per today's RNS from SHG...and (2) CAPD are also the drilling contractor for SHG at West Kenya. Today's drilling results look good - and have led to the drilling programme through 2022 being expanded, so further good news for CAPD:
"Phase 2 drilling programme aimed at converting resources to Indicated at Isulu-Bushiangala; in addition, drilling has also now expanded to district targets at Ramula and adjacent anomalies"
"Having just started work on the feasibility study workstream earlier this month, this is a hugely exciting time for the Company and our stakeholders as the West Kenyan resource expands toward a multi-million ounce gold district comparable with other prolific greenstone belts in the world."
https://www.investegate.co.uk/shanta-gold-limited--shg-/rns/west-kenya-drilling-update/202205230700063976M/
LOT OF PEOPLE IN NICE PROFIT HERE!!
TIME TO CASH!!
More work for CAPD's MSALabs - and their new Chrysos machine - per this article today (nice picture of the machine too):
Https://www.bakersfield.com/ap/news/new-found-commences-shipment-of-drill-core-samples-to-msalabs-chrysos-photonassay-facility-in-val/article_7950a611-514a-5274-83d3-f4acddc32407.html
"New Found Commences Shipment of Drill Core Samples to MSALAB's Chrysos PhotonAssay™ Facility in Val d'Or, Quebec
May 5, 2022
VANCOUVER, British Columbia--(BUSINESS WIRE)--May 5, 2022--
New Found Gold Corp. (“ New Found ” or the “ Company ”) (TSX-V: NFG, NYSE-A: NFGC) is pleased to announce that it has commenced shipping drill core samples from its Queensway project to MSALAB's newly commissioned Chrysos PhotonAssay ™ lab in Val d'Or, Quebec. New Found is conducting a 400,000m drill campaign on its 100% owned approximately 1500km 2 Queensway project accessible via the Trans-Canada Highway approximately 15km west of Gander, Newfoundland.
etc"
Thanks Slimbo79, I'll give that a try too.
Personally I don't recall seeing any of that info in any CAPD releases.
I'd suggest contacting CAPD directly or submitting questions for their next IMC presentation (there was one last Thursday).
Presumably you could ask Centamin too?
first time poster to Capital Share Chat - does anybody know the answers to the following:
1) In addition to Capital's fleet , how many of Centamin's own haul-trucks and/or excavators have been or are currently being used by Capital employees to transport 'Contract Specific Waste' from the east wall of the Sukari open pit in Egypt?
2) Does Capital bear the cost & exclusively utilize its own employees to maintain its fleet (mechanics, refueling personnel, tire maintenance crew) or is that work and cost carried out by Centamin's own maintenance crews?
3) Has Capital ever paid a Centamin, Buchanan or any third party employee (past or present) a Finders' Fee or equivalent payment in connection with the awarding of the Sukari open pit waste movement contract?
4) Was Capital the sole bidder for the Sukari waste movement contract, and if not, which other companies submitted bids?
5) As Centamin retains the right to purchase Capital's equipment post contract — has a purchase price been pre-negotiated? What are the specific monetary valuations, terms and items of equipment under consideration?
Thanks in advance for those who might provide details/answers
CAPD's 18.95m shares in Firefinch were up 16% overnight on news that the demerger of Firefinch's lithium assets is going ahead, with an associated A$100m fundraising.
CAPD's Firefinch shareholding is now worth £12.1m.
Lots of detail here, including a presentation noting what should hopefully be some juicy work for CAPD on pages 21 & 22 from "extensive" drilling planned for this year leading to initial production in H1'24:
Https://www2.asx.com.au/markets/trade-our-cash-market/announcements.ffx
CAPD's investee company PDI were up 13% overnight on impressive drilling results at Bankan.
Most importantly, there was this juicy news re an "aggressive drilling campaign over next 12 months":
"The Company....following a competitive tender has awarded a new drilling contract to Capital Drilling, with a minimum of four diamond drill rigs expected on site in the near-term delivering a significant ramp-up in drilling activity."
Https://www2.asx.com.au/markets/company/pdi
I don't feel the same I'm afraid. I think this is a fairly straightforward update, as you were basically. Q1 is in line with Q4 (0.6% growth) so was spot on my forecast of 67. They are still investing in more rigs so that should fuel growth in Q2 and beyond. Contract wins were also fairly run of the mill.
Lots still to come, but it does need another large contract to beat the forecasts. I hope they land another one this year to really move the dial. If they don't then they will move to ex-growth this year, which would be very disappointing.
In summary, Q1 ok, still all to play for over the rest of the year.
JL
Berenberg reiterate their Buy today, and have increased their target price to 154p (from 150p).
Every little helps....Berenberg have now increased their target price six times in the last seven months :o))
Https://www.sharecast.com/equity/Capital_Limited_DI/broker-views
It's worth remembering that in last year's Q1 update CAPD similarly maintained the prior revenue guidance for the year, which at the time was $185m-$195m.
The year end outturn for last year came in at $227m!
Tamesis Partners reiterate their 160p price target:
"Conclusion: This most recent trading update confirms the accelerated growth trajectory the company is now on across its three main business streams: drilling, mine services and laboratory testing. With the current strong macro background of high gold prices and increasing mining activity in Africa we see this growth lasting well into 2024. Despite the shares being up 50% over the last 12 months we believe that they continue to look extremely undervalued; trading on a 2022E EV/EBITDA and P/E of 2.9x and 7.0x respectively – see Block Model. We remain confident in our recently set PT of 160p."
An outstanding Q1 update.
CAPD are conservatively reiterating prior guidance, but Q1 revenues of $66.9m suggest that the year's guidance of $270m-$280m will be blown out of the water. That forecast would imply almost no growth during the year, despite all the drill contract wins, the expansion of mining services and especially the accelerating expansion of the labs business.
ARPOR is down slightly, but fleet utilisation is up hugely to a terrific 82%, and the fleet size continues to increase.
With such a supportive long-term backdrop CAPD remains extremely undervalued at these levels imho.
Https://www.fool.co.uk/2022/04/17/the-5-best-uk-stocks-to-buy-and-watch-now/
"In the current robust commodity price environment, I like the look of Capital. The business provides a range of drilling and mine site services to mineral exploration and mining companies. And with the share price near 106p, the forward-looking dividend yield is around 3.5%. In March, the company delivered an impressive set of full-year results and said, “Tendering activity across all business units remains robust, with a number of opportunities progressing”.
Just bought £10k. I've read about this company whilst researching keeping up with my various goldies including SHG,CEY & HUM. OK yes they are capital intensive but their move into lab services is astute and I couldn't resist the geographically and functionally diversified nature of their business. A current PE of 5-6 on underlying operational earnings and 3 on IAS PE
Roll the dice...!
River and Mercantile UK Micro Cap Unvestment Trust have today released their monthly review for March.
Their portfolio commentary includes this rather pleasing commentary on CAPD - which is now the Trust's third largest holding at 4.8% of the total portfolio:
"Capital, the African gold drilling and mining business, was the final material contributor. The shares gained 14% in the month following strong results and remains good value despite trading at all-time highs. We also promoted Capital from an S3 to S2 sustainability rating which follows a few years of engagement with the company and recognises the progress they have made on our key pillars."
Encouraging new tweet overnight from CAPD (click link for the drilling activity chart):
Https://twitter.com/_CapitalLimited/status/1513714843445985282
"Capital Limited
@_CapitalLimited
Strong activity continues in the drilling sector, positive indicator for our drilling business, S&P Global’s Mar data shows drilling remained strong through the qtr, with a record # of projects reporting, up 2.5% MoM to 414. Distinct drillholes increased by 2.0% to 6,231 projects"