Beadell Resources Ltd (5% down on ASX on October 30, 2017)

BDR Details

Expects a better free cash flow while full year production will be around lower end of guidance:Beadell Resources Ltd (ASX: BDR) forecasts 2017 annual gold production to fall at the lower end of their annual guidance range of 140,000 ounces - 150,000 ounces. Moreover, the group saw a rising costs in the first half of 2017 impacted by stronger than expected Brazilian Real and accordingly forecasts the AISC per ounce for CY17 to be in US$1,000 to US$1,100 per ounce range. On the other hand, BDR sees rising production in the coming nine months, as grade increases with depth in the Tap AB complex. Consistency in head grade and production would lead from the mine being fully optimized post finishing the plant upgrade in mid-2018. BDR forecasts a better free cash flow going forward and continues to have the focus to build a long-term business at Tucano.

While the group has been facing few performance-related headwinds given the past weakness in 1H production result and softness in full year result, improved mining conditions and millupgrade at Tucano will support the group to some extent. We give a “Buy” on the stock at the current price of $0.185
 

Pilbara Minerals Ltd (up 3.2% on ASX on October 30, 2017)

PLS Details

Off-take agreement for stage 2 production: Pilbara Minerals Ltd(ASX:PLS) finalized the Off-take Agreement with Great Wall Motor Company for Stage 2 production from their Pilgangoora Lithium-Tantalum Project in Western Australia. Great Wall finished A$28M equity investment in Pilbara Minerals which helped for finishing of Stage 1 of the Pilgangoora Project development and financing of the Stage 2 Definitive Feasibility Study. Great Wall’s off-take comprises 75,000tpa of chemical grade spodumene concentrate (SC6.0 basis) over an initial 5-year term, with the ability to extend for up to a further 10 years via two 5-year options.Given the past stock run-up and ongoing momentum, we maintain a “Hold” on the stock at the current price of $0.805

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 do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.