Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CAPE PLC. We currently have 6 research reports from 1 professional analysts.
|20Mar17 10:55||RNS||TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES|
|17Mar17 07:00||RNS||Director / PDMR notification|
|15Mar17 07:00||RNS||Preliminary Results|
|13Mar17 07:00||RNS||Product Liability and IDC Update|
|01Mar17 08:20||RNS||Total Voting Rights|
|01Feb17 07:00||RNS||Total Voting Rights|
|17Jan17 07:00||RNS||Cape awarded work packages in KSA|
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15 Mar 17
Ortac Resources* (OTC LN) 0.04p, mkt cap £3.6m – Sturec mining permit Ortac Resources reports that the District Mining Bureau (DMB) in Banska Bystrica has re-issued the underground mining permit for Ortac’s Sturec Gold Project in Slovakia. The permit was originally issued in 2014 but has since been the subject of legal challenges which concluded on 7 th December 2016 when the company “was notified that the Regional Court in Banska Bystrica (“RC”) had revoked the previously issued underground mining permit.” “The DMB has reviewed the ruling of the RC and amended the original permit to address the insufficient reasoning that the RC felt was lacking in the issuance of the original underground mining permit in 2014.” Commenting on the decision to reinstate the licence, Ortac CEO, Vassilos Carellas, commented “We are naturally pleased that the DMB has re-issued the permit, which has been amended to consider the points raised by the RC. This decision, whilst welcome, does allow for an appeal process to be made by potential complainants, within a period of approximately one month from the issue of this permit, which if triggered, would result in a final judgement on the permit being undertaken by the Slovak Central Mining Bureau (“CMB”).” Conclusion: The reinstatement of the underground mining licence is a step forward for the Sturec gold project, however, it appears that the Slovak legal system could still allow further challenges over the next month. We look forward to the end of April in the hope that no such further actions have emerged.
Full year results preview – figures due out 16 March
26 Feb 16
Cape is due to release its 2015 results on 16 March. We will be looking for updates in three main areas. First, we believe the continued industry focus on cost cutting could result in a downgrade to 2016 expectations at the results. We will look for guidance around this in the outlook given at the time. Second, we expect the 14p dividend to be maintained for 2015 and look for positive guidance that this will continue going forward, which we believe likely and see as a key attraction for the stock. Third, we are keen to see an updated order book (last figure is from June 2015), particularly given the low level of significant contract awards in H2 – this should further inform our forecasts going forward. Overall we feel any downgrade to forecasts and/or a significant fall in order book could create pressure on the shares short-term. Nevertheless we remain keen on the company, believing that the dividend will be maintained in 2015 and 2016 providing downside protection while the shares also give exposure to the upside of oil market recovery. Based on this we have a Buy recommendation and 280p price target.
27 Nov 15
We attended Cape's site visit in Teesside yesterday. This comprised a tour of Cape's operations at two sites of client Sabic: its Wilton polyethylene plant where Cape provides a range of services including access (the company was at pains to point out the innovative HAKI scaffolding it is making increasing use of to reduce setup and takedown times), insulation, coatings and environmental services; and across the river its North Tees site where Cape is combining the tank construction capabilities acquired via Motherwell Bridge and its insulation business to build a 77,000 cubic metre ethane tank to allow the polyethylene plant to begin using this as a feedstock instead of more-expensive naphtha.
05 Aug 15
Cape is due to release its H1 2015 results on Wednesday 26 August. At this time we are hoping for a number of updates. Most important of these will be the dividend both maintenance of the interim dividend but also any further reassurance on this going forward. Clearly we also expect an update on current trading and outlook. For us the most important element here will be the impact that the oil price and consequent industry CAPEX cuts are having both on the progression of current contracts (hopefully minimal) and the effect it is having on future work both margin pressure on maintenance work and timing of new projects. Overall while we believe that there is the very real danger of a downgrade to earnings we think that unless this is extremely severe the dividend will be maintained.
Strong trading leads to upgrades
22 Mar 17
On the back of today’s positive trading update and slightly upgraded profit forecasts for FY2017, FY2018 and FY2019 we have reviewed our DCF analysis. This has led to an increased DCF valuation per share of 1500p (from 1200p) which we have made our new target price (from 1200p). Both TFP and JC Paper have contributed to the upgrades shown in the table below as have favourable currency movements. With the potential for further upgrades due to capitalising 3DP costs to come we maintain our Add recommendation.
Small Cap Breakfast
21 Mar 17
First Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march. Tufton Oceanic Assets- The Company intends to invest in a diversified portfolio of second hand commercial sea-going vessels where the Investment Manager believes that an attractive opportunity exists in shipping. $150m raise. Admission 3 April.
Bang to rights
21 Mar 17
Tullow unexpectedly announced a US$750m rights issue on Friday at a 45.2% discount to the previous close. While this step confirms our investment thesis, the scale of the discount and the timing look like a slap in the face for investors and/or indicative of a weaker financial position than we are modelling. We publish revised estimates to reflect the impact of the issue and cut our Target Price to 215p per share (from 245p). We maintain our Hold recommendation.
Panmure Morning Note 22-03-2017
22 Mar 17
Acacia Mining and Endeavour Mining confirmed merger talks have now ended with Endeavour claiming an inability to “create adequate value for Endeavour shareholders”, most likely, we believe, given the disappointing ruling from the Tanzanian government on copper-gold concentrate sales. We were positive on the merger and believed a credible London listed Pan-African producer capable of challenging Randgold, would have been established. We make no change to our Hold recommendation today, and expect the shares to be marked lower in early trade.