Primary Recommendation

Capital Drilling - Outsourced rig supplier to second tier mining companies

February 2011

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.

Capital Drilling is one of two mining support services companies on the Full List, the other of course being Shaft Sinkers (SHFT; 172p), which we mentioned last month. The work that both companies do is hard and dirty but the businesses are very different in what they do. Shaft Sinkersâ€™ mainstay is the project-based development of deep mine shafts whereas Capital Drilling owns and operates a fleet of drilling rigs that create holes in rock. These rigs are often mounted on trucks and are deployed together with their crews to remote locations to drill small bore holes. Most mining companies routinely outsource their drilling requirements to ensure that they have adequate drilling capacity to sample sub surface deposits or to estim ...

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Market Comment - February '11

Creston - Possible rags to riches story

Capital Drilling (September 2012)

Capital Drilling (April 2012)

Capital Drilling (December 2011)

Capital Drilling (September 2011)

Capital Drilling (July 2011)

Capital Drilling (April 2011)

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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