Q2 Operating Results, Momentum Building for Strong H2

Capital have released their Q2 operating results. Overall results have improved QoQ, being driven by improved Drilling and MSALABS revenues, while Mining is tracking expectations. Drilling is notably delivering an increasing ARPOR YoY and QoQ of 15.3% and 4.5% (see fig 2 below). The increase is a result of the ramp up of high quality contracts executed last year, and increased focus on efficiency at existing sites. We see momentum building for a strong H2, driven by Nevada Gold Mines Contract ra

Q1 Operating Results

Another Good Year of Diversified Growth with More to Come in 2024 CCapital have released their Q1 operating results. Overall, revenue has come in slightly lower than expected at $80.2m vs TamE of $85.9m but is largely tracking in line with our FY24 annual estimate and we note the company has maintained guidance. Drilling revenue for this quarter was impacted by a fall in utilisaztion rates as well as general remobilisation geographically but we expect a strong recovery throughout the year as k

FY 2023 Results

Another Good Year of Diversified Growth with More to Come in 2024 Capital Limited released its full year results (YE Dec 2023) last week. Please find below our comments on the results and our updated block model. It should be noted first off we were taken aback by the immediate sell off in the shares given that 1) the results were in line generally if not ahead 2) the guidance for revenue this year was certainly above our expectations and 3) all the elements of the business model and investmen

Update ahead of Results Next Week

Capital are due to release their results next week. We set out our expectations for the company both figuratively and strategically based around our summary forecast – see table 1. Our block model is shown at the back. The key figure for the company is revenue given the margin is relatively constant. The capital required to maintain the company's extraordinary track record in growth is an important figure too and then what the company is doing with additional net cash of which there is good

SP Angel Morning View: Copper Tc/Rcs fall to $20/t/20c on disruptions to copper supply in Panama, Indonesia, Peru and Chile

Q4 & FY2023 Trading Update

Capital Limited (LSE: CAPD) this morning provided its Q4 & FY2023 trading update. The Company has continued to perform well in 2023 with Q4 revenue 8.2% higher QoQ and the full year figure of $318.4m 10% higher YoY. We note the latter is a marginal miss vs guidance of $320-340m reflecting difficulties in West Africa for which the company is now skillfully adjusting its strategy.

MSALABS Announces New Major Contract

MSALABS Announces Largest Contract in its History This morning Capital announced the finalisation of a new major five-year comprehensive laboratory services contract by MSALABS (majority-owned subsidiary of Capital) and Nevada Gold Mines (NGM, USA). MSALABS will operate a state-of-the-art hybrid laboratory incorporating both Chrysos PhotonAssayTM technology and traditional fire assay methods as well as full multi-element assaying capabilities. This contract builds on the partnership announced i

Major New Partnership for MSALABS & Deepening of Barrick Relationship

Major New Partnership for MSALABS & Deepening of Barrick Relationship Yesterday morning Capital Ltd (LSE: CAPD) released an announcement outlining a new partnership between MSALABS Limited (majority controlled business by Capital), Barrick Gold (TSX:ABX, NYSE:GOLD, Mkt Cap $28bn), and Chrysos Corporation (ASX: C79, Mkt Cap $413m), to deliver PhotonAssay™ technology to Barrick mine sites across four continents. The partnership starts with the deployment of three MSALABS contracted PhotonAssay™

SP Angel Morning View: Copper climbs on better-than-expected Chinese GDP although property sector remains a drag

Q3 2023 Trading Update

Steady Q3 Results This morning Capital Ltd released its Q3 2023 trading update for the period of 1 July – 30 September 2023. Overall group revenue of $79.7m came in below our forecast of $85.2m but the company has maintained guidance for the full year of $320-340m (another record). Q3 revenue is still up 9% y-o-y and 4% q-o-q with major growth seen in mining services (+38% y-o-y and 26% q-o-q) and MSALABS (36% y-o-y and 9% q-o-q). Both segments now make up over ~30% of the company revenue pro

SP Angel Morning View: Iron ore prices consolidate at new high despite warning of peak demand from Rio Tinto

Major New Drilling Contract in the US

Capital Ltd, a leading mining services company, is pleased to announce the award of a material drilling contract in Nevada and associated rig purchases, together with an update on the ramp up of operations at its Ivindo iron ore contract. The former is not only a major new contract in its own right - paying c.$35m p.a. in revenue (an additional10.35% to our FY25 forecast) once up and running – but is in a whole new jurisdiction and awarded by the best in class Barrick; one of two truly global go

SP Angel Morning View: China trusts miss more payments intensifying liquidity crisis

H1 2023 Financial Results - Another Good Set of Results

This morning Capital Ltd released its H1 Financial Results.

Q2 2023 Trading Update - On Track for Another Record Year

This morning Capital Ltd released its Q2 2023 trading update for the quarter and six months ending 30 June. Overall the results (comprising operational data and revenue) is in line with our estimates and leaves the company on track to meet its guidance of $320-340m revenue; which will be the 4th yr in a row it has set a record. YoY growth in revenue, ARPOR and average fleet size was 12%, 9% and 11% respectively.

Judges Scientific+ (JDG, House Stock at 11,300p) - Challenging H1 trading update, forecasts reduced

Activity building after period of strategic change

eEnergy’s H1 update confirms that trading remains in line with expectations with momentum building at the start H2’24. As previously reported, H1 started slowly as a result of weak market conditions and balance sheet constraints, which were resolved by the sale of the Energy Management (EM) division in Q1. Encouragingly, market conditions have improved and full year revenue guidance has been maintained at £25-26m. We make no changes to our underlying forecasts or fair value of 13p/ share. In o

Judges Scientific+ (JDG, House Stock at 10,100p) - Geotek acquisition, synergistic

Invinity Energy Systems - Inaugural Capital Markets Day

Invinity hosted their inaugural capital markets day at their manufacturing facilities in Scotland. The day marked the official opening of the company’s new 26,000 sq. ft assembly facility in Motherwell and included a tour of their current Bathgate facility near Edinburgh, consisting of a deep dive into their technology, manufacturing and R&D focus areas. Our key takeaway from the event is that Invinity are well placed to take advantage of accelerating demand for long duration electricity storage

AUCTUS ON FRIDAY - 26/07/2024

AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; target of A$0.75 per share: Diversified and high impact newsflow over the balance of 2024 – ADX has confirmed a very busy programme of activity from September. The overall unrisked value of the programme is ~A$1.70 per share, which represents 17x the current share price. In early September, ADX will drill the Anshof-2A side track. The well is expected to intersect thick Eocene reservoirs similar to that encountere

discoverIE Group - FY25 earnings expectations maintained

discoverIE’s Q125 trading update confirmed that underlying earnings expectations for FY25 are unchanged. While the Q125 revenue decline reflects the lower bookings environment in previous quarters, book-to-bill was above one and bookings increased organically year-on-year despite ongoing destocking by customers in the industrial market. Robust gross margins and a well-controlled cost base support the company’s 13.5% target operating margin for FY25 and we maintain our forecasts.

SigmaRoc (SRC LN) - Initiation: Major player in a key market

SigmaRoc now holds the number one or two position in a duopoly market structure within the European lime and limestone market. This makes it the only UK listed peer with this level of exposure to a fundamentally important sector exhibiting significant organic growth opportunities and strong pricing power. SigmaRoc is now capable of generating revenue in excess of £1bn with EBITDA margins towards 25%, backed by a high-quality asset base and long-term contracts with OEMs. Investors have been patie

Strix (KETL LN) - H1 trading reassuring, strong cash performance

Strix has released a trading update for the six months to June (H1 24) confirming that trading remains in line with expectations (Zeus FY24e PBT: £24.2m). Cash generation in the period has been strong and follows an exceptional performance in FY23, where management converted over 100% of EBITDA into operating cash flow. Net debt is now comfortably below 2.0x and Zeus forecast it to reach 1.7x by year end. Leverage risk has materially reduced in the last six to eight months and gearing could reac

PROGRESSIVE: Van Elle: First in line for housing and infrastructure boost

We initiate coverage of Van Elle, the UK’s largest ground engineering and foundations specialist. Van Elle is at the ‘front end’ of the construction process and, in our view, will be among the first companies to benefit from national priorities of housebuilding and investment in creaking water and energy transmission sectors, all of which Van Elle has targeted for growth. These sectors should be supported by the Labour government, which has pledged 1.5 million new homes and aims to speed up plan

Judges Scientific+ (JDG, House Stock at 9,500p) - Developing the portfolio

Judges Scientific+ (JDG, House Stock at 10,350p) - Refinancing to 2028

Morning Note – 25 July 2024

Hybridan Small Cap Feast 07/07/23

Joiners: No joiners today. Leavers: Medica Group plc has left the Premium Segment of the Main Market. What’s cooking in the IPO kitchen?** Blackpoint Biotech plc, a medical cannabinoids company established to fulfil gaps in the medical cannabis market by creating products that provide fast onset of action and accurate dosing, intends to join intends to join the Access Segment of the AQSE Growth Market. Expected Admission 20 July 2023. Metals One Plc, a company focusing on acquiring natural resou

PROGRESSIVE: Forterra: Housebuilding slowdown dampens demand

Forterra has indicated that recent industry-wide data showing declines in brick deliveries as a result of lower housebuilding volumes is likely to impact its expected FY23 volumes, leading the group to moderate current year guidance for revenue and PBT. Forterra has responded by outlining further steps to align production with demand, but notes that heightened political focus on increasing housing supply reinforces its long-term confidence.

Morning Note – 22 March 2024