Independence Group NL
.png)
IGO Details
-
First development ore at Nova Project: Independence Group NL (ASX: IGO) stock surged over 7.7% on July 04, 2016 driven by the ongoing recovery in gold prices. In fact, the stock rallied over 6.96% in the last five days (as of July 01, 2016) as the group reported that they mined the first development ore from the high prospect Nova Project in Western Australia. Nova Project is reported to be 90% finished as of May 2016 and is on track to start production of nickel and copper concentrates by December 2016. Other than Nova, the group’s core Tropicana project has major potential to extend mine life beyond its initial 10 years. IGO has a solid cash of $41 million and has the ability to withstand any short term pressures.
-
Recommendation: We maintain our “Buy” recommendation on the stock at the current price of $3.64
.png)
Nova’s competitive operating costs (Source: Company Reports)
XPED Ltd
.png)
XPE Details
-
Agreement with Telink Semiconductor: XPED Ltd (ASX: XPE) stock surged a whopping 18.1% on July 04, 2016 as the group made a Licensing Agreement with Telink Semiconductor. The group would get a licensing fee of 17.95% per chipset sold containing ADRC technology. Telink Semiconductor would start porting ADRC to its present IoT chipset offering. XPED already got major interest in ADRC from its present TIER 1 Telink customers. The group finished its acquisition of JCT and this move would enhance its ADRC technology into Healthcare products. Eddie Jackson would be appointed as CEO of JCT and intends to expand the business in Australia and overseas markets.
-
Recommendation: We believe the stock would continue its positive momentum in the coming months and accordingly give a “Hold” recommendation on the stock at the current price of $0.085
Fortescue Metals Group Ltd
.png)
FMG Details
-
Positive outlook: Fortescue Metals Group Limited (ASX: FMG) stock surged over 7.2% on July 04, 2016 driven by sharp rally in the commodity markets. Moreover, market estimates that iron ore prices may get a boost given FMG’s competitor, Rio Tinto’s move of holding its Simandou project, which in turn could further add potential for FMG stock. Recently, Moody’s upgraded their outlook on the group and issued a stable rating with Ba3 rating. Moody’s reported that the group’s debt reduction efforts for second half of fiscal 2016 had further cut FMG’s breakeven costs leading to a major buffer to maintain leverage metrics at adequate level even when iron ore prices suffered.
-
Recommendation: With the recovering iron ore prices, FMG’s stock would continue to rally in the coming months and hence we give a “Hold” on the stock at the current price of $3.89
Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in: BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.