Syrah Resources Ltd
SYR Details
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Balama project prospects: Syrah Resources Ltd (ASX: SYR) stock plunged over 11.1% on July 19, 2016 in response to commodity price movement. On the other hand, we believe that the group’s Balama project has strong prospects. The group earlier raised over $194 million of further capital to develop its Balama project.
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Recommendation: We maintain our “Hold” recommendation on the stock at the current price of $4.97
South32 Ltd
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S32 Details
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Competitive cost position: South32 Ltd (ASX: S32) plunged over 4.6% on July 19, 2016 on the back of falling commodity prices. On the other hand, S32 is on track to cut its costs by US$300 million for FY16 while intends to control its capital expenditure by US$218M in FY16. This operational efficiency seems to boost the performance while UBS suggests for a mixed fourth quarter output report, due coming Thursday with higher quarterly coal output, weaker manganese ore production and flat aluminum and nickel production. S32 holds a cash of US$18 million as at March 31st, 2016 and is well placed among the competitive cost curves in the industry.
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Recommendation: The stock delivered over 118.89% in the last six months and still we maintain our “Buy” recommendation at the current price of $1.88
Rio Tinto Limited
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RIO Details
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Decent second quarter performance: Rio Tinto Limited (ASX: RIO) stock fell over 2.3% on July 19, 2016 due to falling commodity prices even though the group reported a decent quarter performance. The group reported that its Pilbara iron ore sales delivered a run-rate of close to 330 million tonnes per annum (100 per cent basis) on track with its annual guidance. Sales surpassed production in the quarter, partially unwinding the inventory build in the first quarter. Meanwhile, Bauxite production rose 9% as compared to the first half of 2015. Kitimat smelter was expanded and generated a first full quarter at nameplate capacity. On the other side, Rio Tinto along with its partners - the Government of Mongolia and Turquoise Hill Resources, reported a next stage in the development of Oyu Tolgoi.
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Recommendation: We maintain our “Buy” stance on this dividend yield stock at the current price of $48.99
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Rio Tinto second quarter performance (Source: Company Reports)
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