PUNT OF THE WEEK: Capital Drilling provides equipment and know-how to help miners
Key deal: At the start of October Capital Drilling announced a contract in West Africa
What is it?
Rather than actually drilling for minerals itself, like the host of miners listed on the London Stock Exchange, Capital Drilling provides the equipment and know-how to help miners.
What’s the latest?
At the start of October, Capital announced a contract in West Africa which shareholders hope could be a game changer.
They were carrying out the production drilling for Allied Gold, but are taking over the load-and-haul operations too.
Who backs it?
Jamie Boyton, a former Macquarie banker who is chairman of the company, is the largest shareholder with a 15 per cent stake.
Director Brian Rudd and founder Craig Burton are also among the top ten shareholders.
Why should you invest?
Jonathan Guy at Numis points out that investing in mining services, rather than more volatile miners and explorers whose share price goes up and down when metal prices vary, can give more stability.
And why shouldn’t you?
Individuals connected to the company own a large chunk of the shares – meaning they aren’t too easy for investors to buy and sell when they want to.