Kidman Resources Ltd

 
Completion of Kwinana Lithium Refinery PFS and updated Mine & Concentrator Scoping Study:Kidman Resources Ltd.’s (ASX: KDR) stock rose 7.805% on October 24, 2018 at the back of revival of positive sentiments on the group finding support from lithium landscape in relation to battery industry and latest project related updates from the group.
 
KDR lately announced the results of a pre-feasibility study (PFS) that was completed on the proposed Kwinana Lithium Refinery and an updated scoping study on the proposed Mt Holland lithium mine and concentrator. The studies have confirmed that the integrated project, including the Mine & Concentrator and Refinery (together, the Mt Holland Lithium Project), which is being developed by KDR (50%) and joint venture (JV) partner Sociedad Quimica y Minera de Chile S.A. (SQM) (50%), has a compelling business case with attractive economics of post-tax NPV of US$2.3 billion at Roskill pricing, with robust margins, rapid payback (3 years) and a strong IRR of 27.7%. The Mt Holland Lithium Project was projected produce a spodumene concentrate from the Mine & Concentrator, which will be transported to the Refinery and processed to produce an average of approximately 45,254 tonnes per annum of battery-grade lithium hydroxide (LiOH). The project will help in providing refined battery-grade LiOH, primarily for supply to electric vehicle manufacturers. The group is also getting a boost from the rebound in lithium sector sentiments in the positive direction.
 
The stock is trading at the price of level $1.105, and has support at $0.845 and resistance at $1.55. Meanwhile, KDR stock has fallen 34.29% in three months as on October 23, 2018. Based on the foregoing, we maintain a “Buy” recommendation on the stock at the current price of $ 1.105.
 

Summary outcomes of PFS and updated Scoping Study (integrated Mt Holland Lithium Project, 100% basis) (Source: Company Reports)
 

Baby Bunting Group Ltd

 
Positive Outlook for FY 19: Baby Bunting Group Ltd (ASX: BBN) for FY 19 expects EBITDA to be in the range of $24 million and $27 million, which represents growth to be approximately 30% to 40%. For FY 19, comparable sales growth is expected to be mid to high single digits. Gross margin is expected to be more than 34% and the company expects to open 6 new shares. Currently, the company’s gross margins are improving and the company has so far opened two new stores. Therefore, BBN stock has risen 63.33% in three months as on October 23, 2018. However, the stock has fallen below its 50 day moving average and thus the intermediate term outlook needs to be watched. Based on the foregoing, we give a “Speculative Buy” recommendation on the stock at the current price of $ 2.370 while it finds support at $2.33.
 
 

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