Primary Recommendations

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

March 2023

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.

During the month, I met with Jamie Boyton, executive Chairman and co-founder of Capital Limited, an African-focused, mining services company that helps gold miners extract the metal from the ground. Capital has already beaten forecasts twice in the past six months (most recently in an update on 18 January) with a strong gold price only one of several factors driving its strong performance. Yet despite the broker upgrades, attractive margins, bullish outlook and conservative leverage, the shares are cheap, with Berenberg’s eps forecasts for US 20 cents (16.3p) for FY’23 and 22 cents (17.9p) in ‘24, implying a low prospective PE of 6.3 and then 5.8. One keynote differentiating Capital from rivals is that it is no longer rel ...

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On the Beach - Very encouraging meeting with CEO and founder; upgrades likely

Capital Limited (March 2024)

Capital Limited (December 2023)

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

Capital Limited (June 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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