Evolution Mining Limited

EVN Details
·         Rising gold prices boosted the stock sentiment: Evolution Mining Limited (ASX: EVN) stock rallied over 5.4% on March 27, 2017 driven by the rising gold prices. The group recently reported that Ernest Henry mine performance is on track. During the first two months of the year, the production from group’s stake in Ernest Henry reached 13,112 ounces of payable gold at a negative All-in Sustaining Cost of A$(378) per ounce. The group’s overall gold production in the March 2017 quarter is forecasted to be over 200,000 ounces. Management also reported that they are on track to reach a production guidance of 800,000 – 860,000 ounces at an AISC of A$900 – A$960 per ounce for fiscal year of 2017. On the other hand, the group has advised that it has taken precautions to prepare its Mt Carlton gold operation in Queensland to withstand any impact from the Tropical Cyclone Debbie (expected to cross the coast near Ayr in Far North Queensland on March 28, 2017).

·         Recommendation: EVN stock corrected over 17.7% in the last six months (as of March 24, 2017) owing to volatile conditions. We believe that the stock is still “Expensive” at the current price of – $ 2.16

Mesoblast Limited

MSB Details 
·         Boosting capital position: Mesoblast Limited (ASX: MSB) stock lost over 6.7% on March 27, 2017 while the group successfully raised US$40 million via a fully underwritten institutional placement of 26.25 million new shares (approx. 6% of issued capital). The group intends to use these proceeds for their ongoing Phase 3 clinical programs including chronic heart failure, as well as for manufacturing requirements associated with product commercialization. The Company expects to report multiple clinical and regulatory outcomes related to its Tier 1 product candidates in this year which could facilitate strategic alliances with partners. The group recently announced a 36-month result from the randomized, placebo-controlled 100-patient Phase 2 trial of its proprietary allogeneic Mesenchymal Precursor Cells (MPCs) in patients with chronic low back pain (CLBP) due to intervertebral disc degeneration. A single intra-discal injection of 6 million MPCs improved pain as well as function that were durable for at least 36 months.

·         Recommendation: MSB stock rallied over 112.4% in the last six months (as of March 24, 2017) and we expect the recent slip to be a short-term one. We give a “Hold” recommendation on the stock at the current price of – $ 2.23

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