Syrah Resources Limited

Plan Delivering Strong Results: On December 3, 2018, Syrah Resources Limited (ASX: SYR) published a press release which stated that production improvement plan with respect to Balama Graphite Operation has been reporting robust results. After the production got resumed, there was a substantial improvement in regard to the graphite recoveries as well as product of the superior quality has also been achieved. With this release, the stock price climbed up 10.736% on December 03, 2018. As per the release, the company has managed to witness graphite recoveries (average) of 74% in November month while in September it was 54% as well as in Q3 2018 it was 53%.


SYR’s Finance (Source: Company Reports)

In Q3 2018 which ended on September 30, 2018, the company has managed to wrap up Institutional Placement. Therefore, as a result, the company managed to garner net proceeds amounting to US$65 million.

Lithium-Ion Batteries Manufacturing To get Supported by Natural Graphite Demand: As per presentation of Syrah Resources in November 2018, the demand with respect to the natural graphite has been witnessing the favourable momentum which would help the lithium-ion batteries’ manufacturing. The company is working towards becoming the important exporter when it comes to the natural graphite on a global basis.  

Stock Analysis from Technical Perspective: Moving Average Convergence Divergence or MACD has been applied on the daily chart of Syrah Resources and default values have been considered. As per the observation, the MACD line has just crossed the signal line and it is expected to witness upward momentum moving forward. Therefore, we maintain our “Hold” rating on the stock at the current market price of A$1.805 per share.  
 

Cooper Energy Ltd

 
Production volumes to rise manifold: Cooper Energy Ltd (ASX: COE) is an ASX listed exploration and production company which generates revenue from the gas supply to south-east Australia and low-cost Cooper Basin oil production. The company has stated via a recent release that it has completed the work on 65 Km pipeline to link the sole production wells to the Orbost gas plant. The contractor for the same has advised the company that whilst conducting the acceptance pressure test an anomaly was identified in form of an opening in the pipeline.
 
The contractor is now assessing the damage and hence developing the plans to repair, prior to the completion of the hydro test. At present, it is expected that this anomaly won’t cause any hindrance in the date of first commercial gas sales planned in July 2019.
 
The year ended June 2018 resulted to be the company’s most successful year till date. The production surged to 54% to reach at 1.49 Mn barrels of oil equivalent (MMboe). This was mainly on the back of full year contributions from the Gas assets acquired in the FY2017. Moreover, the gas production almost doubled at the firm’s Otway basin from 0.68 MMboe to 1.22 MMboe.

The revenue grew by 73% on a Y-o-Y basis due to the increased volumes and significantly higher prices in the oil and gas space. However, this was partially offset by the sale of company’s Indonesian producing assets in the FY 2017
 
Enhanced Gas Production going forth: The gas production is slated to increase more than 5 times from the existing 2P reserves and projects.The sole gas project is slated to its scheduled completion by July 2019. The firm’s Otway basin has already started showing encouraging signs where its success rates are high, and all the requisite infrastructure is in place.

COE’s Production outlook (Source: Company Reports)
 
Stock Analysis from Technical Perspective: Moving Average Convergence Divergence or MACD has been applied on the daily chart of Cooper Energy Limited and default values have been considered. As per the observation, the MACD line is about to cross the signal line and after the crossover, it is expected that MACD line would move upwards which would create the bullish momentum. Therefore, we maintain our “Buy” rating on the stock at the current market price of A$0.440 per share (up 7.317% on December 03, 2018).  
 
 

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