Our precious metals mining tip produces a golden glow

GOLD was trading at just over $1,500 (£ 1,100) a troy ounce in January 2020. Six months later, the price had risen to $1,800 an ounce and today it is flirting with $ 1,900 as investors look to gold as a bulwark against e c o n o mi c u n c e r t a i n t y and rising inflation.

Capital Ltd is a prime beneficiary of optimism about the precious metal. Offering a range of mining services to gold producers, the company recently reported its best ever first quarter. The second quarter, to June 30, is likely to be even better.

Demand is at record levels and brokers expect full-year sales to ri se more t han 40 per cent to $192 million, with underlying profits e q u a l l y wel l a h e a d a t a r o u n d $50 million.

Midas recommended Capital in May 2020 when the price was 61p. The shares have since risen 34 per cent t o 82p and should deliver further growth.

Capital specialises in helping mining giants such as Barrick Gold and Anglo Gold Ashanti to drill. The business has moved into related areas t oo, i ncluding earthmoving and geological analysis.

Earthmoving is big business and Capital won its biggest ever deal l a s t Dece mber, a $ 2 5 0 mi l l i o n four- year contract from Londonlisted Centamin.