SYRAH RESOURCES LIMITED (ASX: SYR)
SYR stock has been one of the top stocks with short selling interests and has plunged about 19.9% in last three months (as at March 23, 2018) while recovered about 5.5% in last one month. Gross short sales of about 354,047 on issued capital of 297,391,995 has been reported to yield 0.11 percentage of issued capital as short sold (as at March 23, 2018). The group has been on a sinusoidal trend with boost coming in from ramp up of production of flake and fines graphite at Balama with increased recoveries and production achieved in February 2018; and a dip witnessed owing to an issue regarding damage to the Fines Dryer refractory bricks and the flame tube from the dryer of the fines graphite circuit (Fines Dryer) at the Balama Operations. The group is yet to comment on extent of production impacts. On the other hand, Mining Agreement signed by his Excellency Ernesto Max Elias Tonela, the Minister of Mineral Resources and Energy, on behalf of Government of the Republic of Mozambique, and SYR’s wholly owned subsidiary, Twigg Exploration and Mining, marked a key milestone from sanctioning standpoint.In view of the potential that SYR still possesses, we have a “Hold” on the stock at the current price $3.53
INDEPENDENCE GROUP NL (ASX: IGO)
IGO is another stock with short interests entailing 0.35 percentage of issued capital as short sold from gross short sales of about 2,067,625 on issued capital of 586,823,475 (as at March 23, 2018). The group had reported NPAT drop of 84.35% to $3.16m for the half-year ended 31 December 2017 while revenue from ordinary activities were up 58.88% to $354.79m against last year. Diluted EPS was 0.54 cents compared to 3.52 cents last year. While the group has been up 37% in last six months in terms of stock price, a fall of 7.7% has been reported for last one month. Given that the group intends to unlock potential from commercial production at Nova, increased Zinc production, and progress at Bentayga and Jaguar, though cash costs need to be managed; we have a “Hold” at the current price of $4.62
GALAXY RESOURCES LIMITED (ASX: GXY)
Galaxy seems to be a victim of significant exposure to many rumours and speculation relating to lithium sector volatility and price downturn. The stock’s short selling interests entailed 0.21 percentage of issued capital as short sold from gross short sales of about 863,693 on issued capital of 407,380,590 (as at March 23, 2018). Meanwhile, Galaxy lately announced a Mineral Resource and Ore Reserve update following drilling activities undertaken at the Mt Cattlin Project in WA. The Company recently completed a 15,000m infill Reverse Circulation drilling program, which was solely focused on further resource development, while outcome of assays and validation of the results is awaited. The updated Mt Cattlin Ore Reserve as at 31 December 2017 was estimated to be 7.6mt at 1.1% Li2O or 81 thousand tonnes of contained Li2O. GXY is also the manager of the Mt Cattlin North Joint Venture, and as per exploration activity underway and planned on Traka’s joint venture tenements adjoining Galaxy’s Mt Cattlin lithium mining operation, the group will accelerate exploration work and drilling, including work on the Mt Cattlin North Joint Venture tenements. The key indication is for an expansive regional greenfield exploration campaign (of up to 60,000m) over the next two years, subject to regulatory approvals. We have a “Hold” on the stock at the current price of $3.16
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