gretel
23 Mar 2017
New contract win Announced yesterday by Alecto Minerals:[link] Minerals plc (AIM: ALO), the African-focused gold and copper exploration and development company, is pleased to provide a positive operational update in relation to the Mowana Copper Project in Botswana ("Mowana" or the "Project"
. Capital Drilling Limited (LSE: CAPD) has been awarded the contract for Drill and Blast and is currently mobilising its equipment to site"
gretel
16 Mar 2017
Almost 100% upside to target price Finncap have today retained their 95p target price and say the results were in line with expectations. They forecast $20.1m EBITDA this year!To me the outlook looks excellent, but the short-term reaction has been muddied by the (relatively small) non earnings-enhancing new investment and the further investment into new rigs - which is necessary for all the new work, but means the cash position has fallen.Hopefully the market will look at the growth and see what's going on behind the headline numbers. This is one of my smaller investments, but I might buy some more, especially if the gold price is stable and/or continues to rise as it is currently.Finncap conclude: "Valuation.After a strong run, the shares have recently seen some profit taking and now offer an excellent buying opportunity. We recently increased our forecasts with the exploration market starting to see a recovery. The shares are currently trading on an EV/EBITDA of 3.6x in 2018 and a P/E of 13.5x. Our unchanged 95p PT is based on an EV/EBITDA of 6.4x in 2018, which indicates considerable upside. With market activity improving and as new contracts are expected to have a strong drop through to profitability, we consider forecast the risk to be on the upside reinforcing our enthusiastic stance."
onewayticket
09 Mar 2017
Still tracking But with some powder dry.Finals are up on the 16th March.Own due diligence
gretel
23 Feb 2017
New contract win News - looks like a new contract in Egypt for CAPD (near Centamin's mine):[link] Announces That Drilling is Underway to Increase Resources and to Test New Exploration TargetsVANCOUVER, BRITISH COLUMBIA–(Marketwired – Feb. 21, 2017) – Aton Resources Inc. (TSX VENTURE:AAN) (“Aton” or the “Company” is pleased to announce that a diamond drill program is underway at the Company’s Hamama deposit (“Hamama”. The drill program will look to increase sulphide resources at Hamama West, one of three contiguous zones at Hamama, and will also test a new exploration target, the Western Carbonate Zone. Hamama is situated within Aton’s Abu Marawat concession (“Abu Marawat” or the “Concession”, located in the Eastern Desert of Egypt.Highlights:•The Company has contracted Capital Drilling Limited to drill approximately 2,300 metres in 14 holes at Hamama West and the Western Carbonate Zone (see Figure 1 for the proposed drill hole location plan). •Aton plans to drill approximately 1,500 metres in nine holes at Hamama West, which hosts an Inferred Mineral Resource of 341,000 ounces gold equivalent (“AuEq” and an Indicated Mineral Resource of 137,000 ounces AuEq (see news release dated January 24, 2017). •The Company plans to drill approximately 800 metres in five holes at the Western Carbonate Zone, a new target area located approximately 400 metres west-southwest from the western edge of Hamama West. etc"
onewayticket
22 Feb 2017
Re: Shares Magazine mention Thanks for yesterdays opportunity.Own due dili
onewayticket
20 Feb 2017
Shares Magazine mention CAPD is mentioned amongst its Picks for the year.Basically - up 22% to 61p since they said Buy in December and thanks to a very positive trading update on 6th Feb. Rig utilisation rate at 59% which is nearly x2 the start of the year rate. benefiting from mining sector resurgence. Also mentions Fincaps upwardly revised target of 95p.Own due diligence
gretel
06 Feb 2017
Re: RNS:excellent trading update Finncap have increased their target price to 95p (from 85p) today:[link]
gretel
06 Feb 2017
RNS:excellent trading update Excellent 2017 trading update, and 2016 prelims, are out.Most importantly, there's a huge upgrade in the revenue outlook for 2017.Guidance is now for $105m-$112m, compared to Finncap's prior forecast of just $91.5m.2016 results are very good (though cash is down due to investment etc), but the outlook is terrific given the raised expectations and improved market sentiment:"2017 OutlookThe improving market conditions are expected to continue, as evidenced by new contract activity across the sector. Improvements in the gold segment are also driving additional tendering opportunities with Capital Drilling's existing clients in its core markets.Positive market sentiment is evident as Junior mining companies continue to secure capital and raise equity, while existing brownfields projects are expanding exploration activity and moving open pit operations to underground mining.Capital Drilling is in a strong position to capitalise on opportunities as the market continues its upswing. Investments completed during H2 2016 as outlined above both in terms of direct apex and new contract mobilisations have provided a foothold into the West African and Serbian markets. The Company's revenue will continue to be underpinned by its long-term production contracts, including the high performing North Mara contract.As the 2017 year commences, the Company has 8 exploration contracts secured compared to 3 in the first quarter of 2016, together with its ongoing long term production contracts. As a result, the Group expects significant revenue improvement in 2017 and provides guidance for revenues of $105 million to $112 million for the year. "
onewayticket
17 Jan 2017
Re: Acacia and Endeavour M A talk Just read the Financial Times take on this and several others and all seem to be suggesting that it will be good for ~ exploration.That's our game.Own due diligence.
onewayticket
16 Jan 2017
Acacia and Endeavour M+A talk Acacia - another one of CAPD's many income providers it would appear is in talks with Endeavour about a potential £3 billion gold merger.If it goes through it may well provide some more work for Capital Drilling.Can't be bad.Plenty of articles on the potential merger[link] due diligence
onewayticket
10 Jan 2017
Re: Finncap top tip for 2017 Gretel,Its good to see another turning positive on CAPD.That probably explains the trade that has just went through that I have a mighty suspicion is a Buy. 363,571 shares at 57p. There's market maker manipulation going on behind the scenes but I have to say the need for it in the present commodities backdrop and with the company on the turn is reassuring.57.00 363,571 15:20 It shouldn't be too long before there is a 59p / 60p breakout.Own due diligence as always.
gretel
10 Jan 2017
Finncap top tip for 2017 Finncap have released their top 10 stock ideas for 2017. CAPD is one of them ((I also hold IDEA - not impressed with most of the others, as too expensive etc):http ://www.iii.co.uk/articles/381415/top-10-small-cap-share-tips-2017"Capital DrillingUsing the downturn wisely by increasing capacity in its rig fleet, Capital Drilling (CAPD) is well prepared for the next phase of its cyclical story. Despite low activity levels, it's managed to stay profitable and has used its cash pot to pay out above-average dividends. Further contract wins should drop straight to the bottom line.Largely exposed to African gold mining contracts, the swing in sentiment towards the yellow metal underpinned the group's share price turnaround, further supported by the bounce in other minerals like copper and iron ore.Not only are 80% of its revenues multi-year contracts - so there is turnover visibility - but nearly half its customers are cash generative mining giants with strong balance sheets.Capital shares surged by nearly 200% last year from their low of 20p in January 2016, but are still changing hands for less-than half their previous peak.Luckily for Capital, geopolitical risk is unlikely to ease in 2017, so gold should benefit from its safe-haven status, although a rise in US interest rates could weaken the price somewhat. An 85p target price gives the shares 42% potential upside from their 60p share price."
onewayticket
09 Jan 2017
Centamin 2017 Guidance Statement. Capital Drilling have been involved with Centamin now over several years.Here's the final comments off the Centamin Q4 and 2017 Guidance RNS this morning.""We remain committed to our disciplined approach to capital allocation, as well as the potential for exploration to deliver significant shareholder value over the long-term. Results from our programmes in Burkina Faso and Côte d'Ivoire continue to build momentum and warrant further investment, and we again exit the year with a robust financial and operating base on which to continue delivering our growth strategy."Own due diligence
onewayticket
29 Dec 2016
Re: Tipped by Shares Mag for 2017 Next quarterly update should be about Mid-Jan if my counting is correct.Hopefully continued momentum to follow as the likes of BHP, Glencore, Evraz and Anglo Americans and many others have all seen their share prices fly over the last 6 to 12 months.Own due diligence
gretel
29 Dec 2016
Re: Tipped by Shares Mag for 2017 Thanks to another poster for providing some detail from the tip as follows......"much of it is what we already know such as the increase in commodity prices driving renewed confidence in exploration spending by miners which in turn bodes well for a recovery in earnings for CAPD.Snippets from the article in summary - - Shares believes the share price rerating has only just begun in earnest - Operational gearing should allow for increases in revenue to fall straight to bottom line - Fleet utilisation of just 43% (per late Oct) gives plenty of headroom for increases in revenue providing it can win the contracts - Pace of new work is picking up with plenty of contract awards in last 6 months - Positive signs in market - existing customer Acacia Mining last month announced it would be increasing the amount of drilling in 2017 by 40% yoy and has budgeted $25m - At top end, BHP Billiton said it would spend $800m on exploration in its FY2017 - At lower end, a recent BDO report suggests Australian junior miners have begun to increase exploration spend - FinCapp forecasting $4m pre-tax profit in 2017 and has a 70p price target in next 12 months - Divi forecast of 4.4c (3.5p) implies prospective yield of 7% for 2017 (based on a share price quoted in the article of 49.9p)"
