George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Hi Cloudsurfer737. The investment portfolio is essentially a complete bonus, since it's not valued in the share price at all.
One of the largest components in the portfolio is around a £10m investment in the privately held Allied Gold Corp, which was mooted to IPO in 2021 but then Covid etc intervened. Hopefully the IPO will be resurrected, at which time there could be substantial upside. The other investments have been highly successful to date, and given that most of them have been successfully financed now going forward in booming gold market conditions one can hope for further upside.
In summary, Tamesis Partners' latest forecast for last year is 15.7c EPS, i.e around 13.1p EPS, so a historic P/E of 8.1.
They forecast 19.6c EPS this year, i.e 16.33p EPS and a P/E of just 6.5.
The investment portfolio also backs up around 20% of the entire m/cap. Tamesis currently have a 160p target price.
Just flagged this one up and quite like all the fundamentals. The only question mark I have is the investment performance from non core activity capital investments that seem to have been picked up from partners over time:
Direct Investments Update
-- The total value of investments (listed and unlisted) was US$38.7 million as of 31 December 2022, versus $47.3 million at 30 June 2022 and versus US$60.2 million at the end of 2021; The portfolio recorded investment losses (unrealised) of US$9.55 million in H2 2022;
-- Capital was a net seller in 2022 and has invested a net total of $12.5 million in the investment strategy since forming the Investment Committee formally in January 2019;
Does anyone have any understanding of the threats posed by loss in value of these investments that the company holds (or alternatively any potential major gains that might be expected). I'm not a big fan of investing in African miners directly (so not a big fan of these investments) but do like the services side of the company which to a certain extent is quite protected from the feast/famine of mining/exploration.
Indeed, all looking good here. I too will look to add on any weakness.
I am anticipating good FY22 results. Added today now my biggest holding.
Jhaylock
Looks like Chrysos' growth continues to boom. The worldwide aspect is particularly pleasing, with expansion to Kazakhstan and Canada.
The current PDAC convention should also keep interest bubbling:
Https://uk.advfn.com/stock-market/london/capital-CAPD/share-news/Capital-Limited-MSALABS-Trading-Update/90419338
"The first few months of 2023 have seen MSALABS maintain its significant growth momentum from 2022, with the delivery of a strong operational performance from existing contracts, as well as the successful commissioning of a number of new laboratories"
""We look forward to many strong years ahead of us as we further grow and develop our global footprint, including the deployment of 21 Chrysos PhotonAssay(TM) units by 2025."
The Q3 numbers from Major Drilling are good, and there are some nice quotes applicable to CAPD:
"improved pricing environment"
"most of our senior gold customers have committed to elevated exploration efforts in calendar 2023"
“As new mineral deposits will be increasingly located in areas more challenging to access or requiring complex drilling solutions, our strategy to remain the leader in specialized drilling has been key to providing top-quality service to our valued customers through safe and productive drill programs, as evidenced by our industry-recognized hole completion rates,” concluded Mr. Larocque"
Chrysos announced their H1'23 results last week. They read rather well. Good to see the Morila unit being redeployed quickly and a mention for CAPD's MSA Labs:
Https://wcsecure.weblink.com.au/pdf/C79/02635227.pdf
Extracts:
• For MSALABS we are currently installing units in both East and West Canada
• Chrysos is also working with MSALABS to redeploy the Morila facility unit to a new location within Mali
"Outlook
Demand for Chrysos’ PhotonAssayTM technology remains robust and its sales pipeline continues to grow. The Group’s deployment schedule extends into 2025 and is underpinned by annuity-style revenue from contracts with strategic customers across key global mining regions. Leveraging operations teams across Africa, Australia and North America, Chrysos is on track for 21 deployed units by the end of FY23. As the business continues to execute its unit clustering strategy, it expects unit costs for co-located deployments to decrease.
Chrysos remains on track to deliver on its Prospectus forecasts for FY23:
• Total Revenue of $26.6m
• Pro forma EBITDA of $3.2m
• Expansion of the deployed unit base to 21 units
The business is well-positioned for sustained growth through FY23 and beyond, with a strong cash balance and increased debt available."
Good news for CAPD as Golden Rim announce a "significant" drilling programme at Kada:
Https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02636788-3A613726?access_token=83ff96335c2d45a094df02a206a39ff4
"Golden Rim commences 3,500m Diamond Drilling program at Kada Oxide Gold Project
West African gold explorer Golden Rim Resources Ltd (ASX: GMR; Golden Rim or Company) is pleased to announce it has commenced a 3,500m diamond drilling (DD) program at its flagship Kada Gold Project (Kada) in Guinea.
Highlights
• Extensive diamond drill program to investigate the structural controls and confirm mineralisation widths of Kada’s Massan and Bereko prospects.
• Diamond drilling program is anticipated to take approx. two months with first results expected early April 2023.
• Further results from the current 10,000m reverse circulation (RC) drilling program are expected early March 2023"
CAPD are the drilling contractors at Cora's Sanankoro mine - Cora have now raised almost $20m to commence development of the mine:
Https://www.londonstockexchange.com/news-article/CORA/fundraising-update-and-closing/15850178
Lots more drilling planned at Shanta's West Kenya project where CAPD are contracted, with a big increase in resources:
Https://www.londonstockexchange.com/news-article/SHG/west-kenya-project-resource-update/15846437
"· Further work being planned including expansion drilling across the 4 high priority targets in Ramula Region, metallurgical testing, scoping study, and infill drilling for conversion to mineable resources;
· 2023-24 planned drilling on the targets adjacent to Ramula aims to deliver substantial resource additions and new discoveries."
CAPD were the main Buy tip in Saturday's new edition of Momentum Investor magazine - they've tweeted the full write-up:
https://www.capdrill.com/media/news/TMI-March-23.pdf
Good to see CAPD getting some more tip attention. A pretty decent write-up too. Though yesterday judging by the large volumes I suspect something else was going on. It looked to me like some large sells were being nicely soaked up.
PDI's shares rose 10% overnight on good drilling results from Bankan. CAPD are the driller, and they also own a £15m or stake in PDI at the current price.
Drilling is continuing, and there's potential for more:
Https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02633528-6A1137226?access_token=83ff96335c2d45a094df02a206a39ff4
"“Regionally, the Bankan Project has significant potential for additional gold discoveries. Geophysics surveys are underway on the northern Argo permit, and we look forward to receiving results and commencing RC drilling at these exciting targets.”
Plus it seems CAPD have been buying more shares in Golden Rim:
Https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02633429-3A612980?access_token=83ff96335c2d45a094df02a206a39ff4
CAPD now have 87.2m shares, worth around £1.5m at the current price.
Excellent results overnight from CAPD investee company Golden Rim's drilling for gold at Kada, where CAPD are also the drilling contractor.
Lots more drilling now scheduled for the coming months:
Https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02633231-3A612943?access_token=83ff96335c2d45a094df02a206a39ff4
"RC drilling at Bereko and Massan is now paused until further assays are received, and the Company will then commence a 5,000m air-core (AC) drilling exploration program. This AC drilling will test newly identified targets on both the Kada and the Bamfele licence areas.
Golden Rim expects to commence a 3,500m diamond drilling campaign at Kada in mid-February 2023. At Bereko, diamond drilling will focus on confirming the width, grade and extensions of the gold mineralisation discovered in the initial RC drilling program and providing structural information needed for resource estimation."
Fully agree
The macros here are starting to look extremely promising and the company is positioned perfectly to benefit.
Very encouraging chart/info for the sector in this new tweet from CAPD:
Https://twitter.com/_CapitalLimited/status/1624947208159387650
"Capital Limited
@_CapitalLimited
S&P Global’s Jan drilling report showed a strong start to 2023, with a number of record highs, including no. distinct drill holes reached 8,678, highest since records began in 2014, total projects a 4-month high & no. projects increasing m-o-m across all development stages. #CAPD"
Cheers PortfolioPower - not much I can dd on OMI though, just a case of patience and waiting for the re-rate!
More investee company news - CAPD have around a $10.9m investment in the privately owned Allied Gold Corp, which was due to IPO back in 2021 before the IPO was pulled for obvious reasons at the time.
This news snippet from a couple of weeks ago sounds encouraging:
Https://www.mining.com/web/mali-industrial-gold-production-rises-4-4-to-66-2-tonnes-in-2022/
"Output has increased due to better performance in existing mines, particularly at Allied Gold Corp’s Sadiola mine, Mamadou Sidibe, head of the mines ministry’s statistics department, told Reuters.
Sadiola produced 6.6 tonnes of gold in 2022 compared with 3.4 tonnes in 2021, he said."
Also, CAPD have a substantial investment in PDI worth around £15m from memory at PDI's current A$0.18 share price. Sprott have just issued a new research note on PDI raising their target price to A$0.55. Which would be nice :o))
Https://sprott.com/media/6139/230206-pdi-scp-mre.pdf
@Rivaldo
Always enjoy your knowledgeable posts on here.
If you are still in OMI it would be good to see you pop in on the bb over there as we close on on the joint venture agreement with Newmont & Agnico
Keep up the excellent work here.
...and also a good RNS this morning from CAPD's point of view from long-term client Resolute Mining re Syama:
Https://www.investegate.co.uk/resolute-mining-ltd--rsg-/rns/december-2022-quarterly-results-and-cy23-guidance/202301310700013802O/
"I am pleased to report that Resolute has recorded its fifth consecutive quarter of increased production, closing out a productive year for the Company with 353,069oz gold poured, exceeding our 2022 guidance of 345,000oz."
"Total exploration spend for the December quarter was $3.9 million, with intensive drilling programs continuing in Syama throughout the Quarter. The full year exploration expenditure was marginally higher than the $15 million guidance due to accelerated drilling at Syama North in the December Quarter based upon the positive results being returned."
"The Syama North gold deposit remains open down-dip over the entire 6km strike length. Diamond drilling is ongoing and expected to continue throughout 2023 to extend and increase Mineral Resource confidence in the deposit."
CAPD own 141m shares in PDI worth £16m and are the drilling contractor at Bankan in Guinea.
PDI announced overnight "outstanding drilling results", with further drilling planned, and the shares rose 5%. Plus there's this commentary which reflects well on CAPD:
Https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02624871-6A1133453?access_token=83ff96335c2d45a094df02a206a39ff4
“Overall, our current drilling program is ahead of schedule due to recent strong performance and improved productivity by our drilling contractor.
“I am also delighted with initial progress made by our new regional exploration team, and look forward to activity ramping up in 2023 as we seek to prove up the enormous potential of the overall Bankan Gold Project.”
In addition, Leo Lithium's shares have risen nicely recently - they were up another 8% last night and are now worth exactly £4m.
rivaldo, thanks, v useful background, I have only just seen your reply.
i bought in early Tues, will likely add more on any dip. It was the IC alerted me to this share.
After reading up it seems the IC article was right to pick the only non obvious risk factor is the large % of revenues from 1 customer, Centamin. hopefully as revenue grows that % will redue, and is only a risk should the contract be lost, for instance if CEY were taken over .
All in all the co still looks too cheap.
CAPD are the drilling contractor for Shanta at their West Kenya project, who announced today a 91% increase in indicated Resource/ounces. Which presumably puts CAPD in pole position as the mine develops into full production:
Https://www.investegate.co.uk/shanta-gold-limited--shg-/rns/west-kenya-resource-announcement/202301260700048795N/
"Eric Zurrin, Chief Executive Officer, commented:
"The West Kenya project continues to deliver material growth and quality results, with the latest Mineral Resource Estimate demonstrating a substantial 91% increase in the Indicated ounces category and an overall increase to 1.72 Moz. Not only was there a significant conversion of the deposit into Indicated ounces, but these ounces yet again demonstrated high-grades, averaging 11.45 g/t Au.
The drilling results that have been delivered at the West Kenya project over the past year have been some of the best we have ever delivered, and it is clear to the team here at Shanta that we possess a potentially very high quality high-grade African gold mine. The high-grade Indicated category from today's results points towards a high margin cash flow during future operations."
Https://www.sharecast.com/equity/Capital_Limited_DI/broker-views
Lower target than other analysts, but still decent upside and good to see more coverage. Hopefully they'll upgrade after the results as is usual practice.
Great analysis of the trading update from Mark Simpson's Small Caps Live - here's the conclusion:
Https://smallcapslife.substack.com/p/small-caps-live-weekly-summary-8fd
"The company is starting to be more than a drilling company, with MSALABS showing continued growth:
• MSALABS now has four units commissioned across Africa and Canada, with three further units due to begin operations in Q1 2023, including Barrick's Kibali Gold Mine;
• Trials with major mining companies are continuing with PhotonAssay in high demand globally. The expanded relationship with Chrysos will see MSALABS deploy 21 units by 2025, giving the company a strong competitive position in the coming years;
The guidance for revenue for the year just gone from MSALABS is around $30m, which from four newly commissioned Chrysos units and their existing fire assay business makes their 2025 estimate of $80m revenue from 21 Chrysos units look very conservative. Of course, the first units will go where they get maximum utilisation. But still, it is easy to see a route to $100m+ revenue here. With 25-30% EBITDA margin, their 75% stake in this business could represent a significant part of the current market cap.
Anyway, in summary have yet another beat, pretty significant on a quarterly basis, confirmation of further imminent progress at MSLABS and an upbeat outlook statement.
Despite this, the initial share price increase in response to this positive statement was met with selling. Partly this reflects that the share price had been strong in the run up to this trading statement and investors were “buying the rumour and selling the fact.”
It goes to show that the company’s shares are still pretty illiquid. It seems a few smaller investors may have been overweight and would be sellers at any price on the day. If this is the case, then it is easy to see why the share would be volatile.
However, those sellers may come to regret it, since this remains one of the cheapest shares on the market with excellent short and medium-term business momentum."
Nice tweet from CAPD about the booming number of mining financings (with a bar chart I can't replicate) - bodes well for CAPD:
Https://mobile.twitter.com/_CapitalLimited/status/1617339593170489345
"S&P Global’s Dec 22 financing data - 62% increase in funds raised by junior & intermediate miners, & a 75% increase in the no. of transactions, a 12-month high. Material increase in significant financings (US$2M +) to 90, from 58 in Nov. Gold financings up 146% on Nov to US$374M."
Hi Genghis15. CAPD took advantage of the poor equity markets in 2019 when financing for gold companies became extremely difficult. At that time they took a number of stakes in mainly listed companies in Australia and Canada which needed financing at knock-down prices. Since then the value of those investments has rocketed, and even with a decline in 2022 the value of the portfolio has tripled despite some share sales by CAPD. The value of this portfolio is completely unrecognised in the share price despite backing up nearly 15% of the entire m/cap!
One of CAPD's investments is a $10.9m investment in an unlisted company called Allied Gold Corp. Allied have said previously that they intend to list at some point, and they initially tried a year or more ago but were thwarted by the poor equity markets - when they do the upside could be very large indeed given the amount invested.