Updates

Capital Limited

March 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The shares jumped after Capital announced a major new contract win for its MSALABS division. It’s genuinely a quantum leap for this division and is anticipated to generate US$140m over five years with annual revenues of US$30m once fully operational, making it the largest single award in its history. To provide context, Lab revenues were only US$20m in 2022. The reason the shares haven’t risen further was the Q4 ‘23 update, which said 2023 revenues were marginally below guidance of US$320m-US$340m due to subdued activity in Mali, operations not yet re-commencing in Sudan and MSALABS itself slightly behind its targets even though it increased revenues 40% year-on-year. Q4 drilling revenue fell 5% to US$51.4m. That win for MS ...

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Lords

TMI Trader Portfolio

Capital Group - Growth of higher margin labs business should re-rate shares (July 2024)

Capital Limited (December 2023)

Capital Limited - New contract to add US$30m to sales (August 2023)

Capital Limited (June 2023)

Capital Ltd - Mining services firm enjoys buoyant gold market; rising margins not reflected in PE of 6.3 (March 2023)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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