WorleyParsons Ltd

WOR Details
Bagged Nuclear Owner's Support Services Agreement: WorleyParsons Ltd (ASX: WOR) edged a little higher on May 10, 2017 post announcing that the group has been awarded the Nuclear Owner's Support Services Agreement by Ontario Power Generation (OPG) (Agreement) for a five-year term with options for two additional five year terms. Under this new Agreement, the WOR will provide operations, maintenance and technical services and owner's support services including work protection, projects and modifications, radiation protection, preventative maintenance, regulatory support and engineering support services. The stock has risen about 39% in last six months (as May 09, 2017). The group had otherwise reported net loss of $2.4m for the half-year ended 31 December 2016 while revenue from ordinary activities slipped 35.02% from last year. Given the current set of projects in hand and growth prospects, we maintain a “Hold” at the current price of $ 11.03


WOR Daily Chart (Source: Thomson Reuters) 

Lithium Australia NL

LIT Details
Developments for a large-scale pilot plant: With regards to Lithium Australia commercialisation strategy for low cost SiLeach^TM technology, Lithium Australia NL (ASX: LIT) has recently announced about awarding of the engineering design study for a large-scale pilot plant to Perth based CPC Project Design Pty Ltd (CPC). Project deliverables included, capital cost estimates, operating cost estimates and comparative logistic costs for a number of Western Australian and overseas sites. The company has also identified an attractive overseas site and has elected to extend the scope of work for CPC in an attempt to improve the capital and operating cost estimate for the location for a preliminary feasibility study. The group will be receiving other areas concerning substantial capital cost savings as identified by CPC, around the middle of June. 

Pilot Plant Project Schedule (Source: Company Reports)
 
Meanwhile, the group has extended the Takeover Offer Period for Lepidico Ltd to 19 May 2017. LIT stock lost about 5.7% on May 10, 2017 and has fallen about 38% in last six months (as at May 09, 2017) owing to volatile conditions. The lithium play seems to progress well with the group’s efforts while the demand also remains robust. We give a “Speculative Buy” at the current price of $ 0.098


LIT Daily Chart (Source: Thomson Reuters) 

Origin Energy Ltd

ORG Details
New long-term power purchase agreement: Origin Energy Ltd (ASX: ORG) had reported for a quarterly production of 79.7 PJe (March 2017 update) representing a 31% increase on the corresponding period in FY2016, at the back of commencement of production from Australia Pacific LNG’s second train with first cargo produced during October 2016. The group has committed to 1,200 MW of new renewables in a little over a year, and has recently committed to a 530 MW long-term power purchase agreement (PPA) for the Stockyard Hill Wind Farm. This has set a new benchmark for renewable PPA pricing in the market. By 2020, the group expects renewables to be more than 25% of the energy in the generation mix. On another note, the group had increased its share in the Beetaloo Joint Venture to 70% after acquiring Sasol Petroleum Australia Ltd’s (Sasol) 35% share. 

FY17 Guidance (Source: Company Reports)
 
ORG in its priorities, aims to execute the IPO for Lattice Energy (conventional upstream business that Origin intends to divest) and complete its asset sales program while maximising earnings and operating cash flow. Origin is reported to have hired Bank of America Merrill Lynch to work on the proposed float of its $1.5 billion-plus oil and gas business, as a joint lead manager alongside Macquarie Capital and UBS. IPO is now expected in the second half of the year rather than the earlier targeted June quarter. The group has a competitive gas position with supply length beyond 2020, and has gas supply agreements with Engie addressing energy security in SA. The group has also increased generation at Eraring and gas fired power stations support energy security. ORG lately appointed Ms Teresa Engelhard as an independent Non-executive Director to fill a vacancy. Recently, Silver Star-1 well (ORG having 33.75% participating interest) is reported to have met certain criteria of reservoir properties. The stock has moved up about 50% in last six months (as at May 09, 2017). We give a “Buy” at the current price of $ 7.85


ORG Daily Chart (Source: Thomson Reuters) 

Monadelphous Group Ltd

MND Details
Building key customer relationships:Monadelphous Group Ltd (ASX: MND) has won a major, long-term offshore maintenance services contract for INPEX Operations Australia associated with the world-class Ichthys LNG Project. The contract is for an initial period of six years and there is a possibility of two 2-year extension option. MND has been engaged to deliver operational, campaign and shutdown maintenance services and brownfield projects implementation associated with the Ichthys Central Processing Facility 'Ichthys Explorer' (CPF) and Floating Production Storage and Offloading facility 'Ichthys Venturer' (FPSO). The group had secured new contracts and additional works for customers in the resources, energy and infrastructure markets with a combined value of approximately $120 million. These include two new contracts with wholly owned subsidiaries of Fortescue Metals Group, and an upgrade to the Water Treatment Plant providing the potable water supply, treatment and distribution system at BHP Billiton Western Australia Iron Ore’s Mining Area C operation. Monadelphous reported a drop in NPAT by 24.11% to $28.57m for the half-year ended 31 December 2016. Revenues from ordinary activities also slipped 15.15% from the same period last year. Diluted EPS was 30.46 cents compared to 40.37 cents. The stock is nearing its 52-week high price and looks “Expensive” at the current price of $ 12.72


MND Daily Chart (Source: Thomson Reuters) 

Doray Minerals Ltd

DRM Details
Decent gold and copper production update: Doray Minerals Ltd (ASX: DRM) in its March 2017 Quarterly Activities Report highlighted about total group production of 24,497 ounces of gold and 1,438 tonnes of copper, with revenue of $60.5M. The group has $31.9M as cash, gold and concentrate-on-hand and has 95,911 ounces of gold hedged at A$1,610 per ounce. DRM has reported 13,042 ounces of gold produced at an AISC of A$1,498 per ounce at the Andy Well Gold Mine while Deflector Gold Copper Mine reported for 11,455 ounces of gold and 1,438 tonnes of copper produced from transitional ore. The stock moved up 7% on May 09, 2017 buoyed by stability on commodity prices while the stock has been down 47% in last six months (as at May 09, 2017). Given the volatility and commodity price scenario coupled with extent of potential so far demonstrated at the group’s key projects, we give an “Expensive” recommendation at the current price of $ 0.31


DRM Daily Chart (Source: Thomson Reuters)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.