Pioneer Resources Ltd


PIO Details

Building Lithium Projects portfolio: Pioneer Resources Ltd (ASX: PIO) recently revealed its intention to undertake a share purchase plan for 89.3 million new shares at an issue price of 3.6 cents per share to raise a further $2.5 million while placement of $3.216 million has been completed. PIO under a strategic alliance with International Lithium Corp. is acquiring Mavis Lithium Project situated in the Canadian province of Ontario. Ground magnetic, litho-geochemistry and soil surveys are estimated to finish by July 2016 and then diamond core drilling would follow. The due diligence on said project has been completed. Pioneer will have a total interest of 80% of total C$10 million over 10 years. With this project PIO would have a right to participate in the acquisition of certain other lithium project opportunities identified by ILC. Another Project is Pioneer Dome with 13 mapped pegmatites, while 20% is finished. Other lithium projects are Philip River, Donnelly River at Greenbushes with world’s largest lithium.
 

Mavis Lake Prospect (Source: Company Reports)
 
PIO’s other mineral projects include Acra Gold Project which is 20km long after the nickel project and Blair dome for diamond drilling. Meanwhile, Pioneer is going to raise capital from the market for the exploration expenditure, so ASX granted trading halt to the company and the trading resumed on June 27, 2016. Given strong Lithium projects at hand and growing Lithium demand, we recommend a “Speculative Buy” on the stock at the current price of $0.036
 

PIO Daily Chart (Source: Thomson Reuters)
 
Infigen Energy Ltd


IFN Details

Strengthening balance sheet: The shares of Infigen Energy Ltd (ASX: IFN) recently responded to the article reported in The Australian Financial Review and stated that the company is the largest wind energy producer with 557MW of installed capacity and pipeline of over 1000 MW of projects. The company is also exploring range of options to explore growth opportunities and to maximize value for shareholders. IFN delivered an outstanding stock performance by surging 119.57% in the last six months (as of June 28, 2016). The group's third quarter of fiscal year of 2016 reported a revenue rise by 16% year on year to $39.8 million driven by better Large-scale Generation Certificate (LGC) and electricity prices, wherein the average bundled prices rose by $14.8/MWh to $113.5/MWh during the quarter. However, the production fell by 11% due to lower wind resource. Meanwhile, IFN had divested its US pipeline of solar development projects and diverted these proceeds to strengthen its cash. The group also offloaded its US wind business to decrease its borrowings under the Global Debt Facility. Despite such a positive rally in the stock, we believe that the ongoing strong financial performance by the group in the coming periods would continue to boost the stock further. Accordingly, we give a “Speculative Buy” to the stock at the current price of $1.035
 

IFN Daily Chart (Source: Thomson Reuters)
 
XPED Ltd


XPE Details

Solid expansion efforts via acquisitions and partnerships: XPED Ltd (ASX: XPE) and PT Bakrie Power, the joint venture partner had entered into a term sheet with PT Dalle Energy (Dalle) for the proposed sale of Sokoria Geothermal Project. Dalle is reviewing the project with its team as well as having discussions with relevant government agencies regarding the project development. Meanwhile, Dalle would be surveying the site for the next seven days as announced on June 22, 2016. XPE is waiting for the outcome of the project in the coming weeks. On the other hand, XPE has begun producing a series of engineering support manuals regarding the ADRC technologies and has completed the final step of testing ADRC services against Intel Moon Island gateway platform on the Advantech Embedded IoT Gateway running Linux. With this Xped has been accepted as an approved member of Intel IoT Solutions Alliance and would meet with the automation division for more projects. Xped and Telink are building a customized IoT chip that would provide a sub?GHz 802.15.4 radio covering the 868 MHz and 915 MHz bands and target the industrial, home automation and smart building markets. XPE along with Codium is also building the first Device Browser App in the world and will be released in both Android and iOS Apps stores during the September quarter. Meanwhile, Xped acquired Jackson Care Technologies and JCT Healthcare (JCT) via equity financing. With this move, the group is targeting huge market potential as the global hospital beds market was worth $5.2 billion in 2014 and it is expected to grow at a Compound Annual Growth Rate (CAGR) of 4.5% during 2015-2020. The personal emergency response system market (PERS) is estimated to grow to USD $7.62 billion by 2020. The market for landline PERS is expected to reach USD $4.41 billion by 2020. The company has appointed Former Intel Capital MD, Lisa Zhang to board. XPE stock surged over 100% in the last three months (as of June 27, 2016). Despite this rally, we give a “Speculative Buy” on the stock at the current price of $0.069
 

XPE Daily Chart (Source: Thomson Reuters)
 
Sandfire Resources NL


SFR Details

Update on Springfield Project: Sandfire Resources NL (ASX: SFR) stock corrected over 9.12% (as of June 28, 2016) in last four weeks and updated that its Springfield project (JV with Talisman Mining Limited) progressed with Monty high level study completion with no fatal flaws identified. The feasibility study is on track with exploration activities at Springfield beginning to step-out from the high-grade Monty Deposit. Joint Venture exploration budget has been said to be approved for the three-month period to the end of August. The company has completed the targeted structural diamond drilling program with results to form the basis for a detailed 3D geological model of the Monty Deposit. The maiden Monty Mineral Resource estimate of 1.05Mt at 9.4% Cu and 1.6g/t Au has been mentioned to be exceptionally high-grade and is the first deposit to be discovered outside of Sandfire’s DeGrussa VMS complex. Sandfire Resources has also announced the successful completion of the $40m DeGrussa Solar Power Project, which includes integration with the existing KPS diesel power station.
 

Monty Resource Outline (Source: Company Reports)
 
We believe that SFR is trading at higher valuations and accordingly give an “Expensive” recommendation at the current price of $5.16
 

SFR Daily Chart (Source: Thomson Reuters) 

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