Syrah Resources Ltd

SYR Details
 
Binding sales agreement with Zhanjiang Juxin: Syrah Resources Ltd (ASX: SYR) stock rose 7.6% on December 04, 2017 after the company reported about signing of the binding sales agreement with Zhanjiang Juxin New Energy Materials Co. Ltd. The agreement is regarding the 20,000 tonnes of natural graphite from the Balama operation in 2018. All other terms of the agreement are confidential. Moreover, Balama is the only major graphite project SYR is currently commissioning and moving into operations, with target production for 2018 of 160,000 to 180,000 tonnes. The project will place SYR in a strong position to meet the demand from growth in electric vehicle and energy storage markets. Meanwhile, SYR stock has risen 41.43% in last three months as on December 01, 2017 at the back of positive developments. The group quite lately announced the first production of bagged saleable flake graphite from the Balama Project in Mozambique. Based on the prospects, we give a “Hold” recommendation on the stock at the current price of $4.40



SYR Daily Chart (Source: Thomson Reuters)
 

Liquefied Natural Gas Ltd

LNG Details
 
Extended Meridian LNG Offtake Agreement: Liquefied Natural Gas Ltd (ASX: LNG), through its 100% owned Magnolia LNG, LLC (Magnolia), and Meridian LNG Holdings Corporation (Meridian LNG) have extended the financial close date of their legally binding offtake agreement to March 31, 2018. LNG had signed the offtake agreement with Meridian LNG, which included firm capacity rights at Magnolia, for up to 2 million tonnes per annum (mtpa) for an initial term of 20 years with an option to extend by a further five years. Moreover, LNG is confident in signing offtake agreements with credit-worthy buyers later this year or early in 2018. Further, Magnolia LNG is poised to lead the next round of LNG projects.

 

LNG Demand Growth (Source: Company Reports)
 
Meanwhile, LNG stock has fallen 14.02% in last three months as on December 01, 2017 at the back of volatility. On the other hand, the group is expected to witness next wave of LNG construction driven by supply and demand fundamentals through to 2022. Given the potential, we put a “Buy” recommendation on the stock at the current price of $0.46



LNG Daily Chart (Source: Thomson Reuters)
 

South32 Ltd

S32 Details
 
Approved the 4.3 billion South African Rand Klipspruit Life Extension project: South32 Ltd (ASX: S32) has approved the 4.3 billion South African Rand (US$301M) Klipspruit Life Extension project (KPSX) at South Africa Energy Coal. The development activity is expected to start in the current quarter with first coal expected from the open-cut operation in FY19. The approval of the project will secure the future of the colliery for at least another 20 years and the investment is expected to generate an internal rate of return (IRR) of more than 20%. Moreover, S32 will manage South Africa Energy Coal (SAEC) as a stand-alone business from April 2018. Further, work would include restructuring SAEC and managing it separately from the rest of the Group with tailored functional support, systems and governance processes. Meanwhile, S32 stock has risen 9.18% in three months as on December 01, 2017. We maintain a “Hold” recommendation on the stock at the current price of $3.26


S32 Daily Chart (Source: Thomson Reuters)
 

Galaxy Resources Ltd

GXY Details
 
Significant mineral resource upgrade:Galaxy Resources Ltd.’s (ASX: GXY) stock moved up a bit after announcing about the significant mineral resource upgrade as a result of the 2017 drilling campaign at the James Bay Project in Quebec, Canada. There is a significant increase in the mineral resource to 40.8 Mt @1.40% Li₂O (all classified as Indicated (JORC 2012)), which confirms the James Bay project as a world class hard rock lithium asset.

 

JORC 2012 Mineral Resource (Source: Company Reports)
 
Moreover, preparation for the feasibility study is ongoing and upgrade of resources to reserves is expected in H1 of 2018. The group has lately executed binding long-term offtake contracts with multiple customers throughout Asia for selling 100% of the planned production of lithium concentrate from Mt Cattlin for 5 years beginning in 2018. Meanwhile, GXY stock has risen 86.27% in three months as on December 01, 2017. We give a “Hold” recommendation on the stock at the current price of $3.83



GXY Daily Chart (Source: Thomson Reuters)

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