Mineral Resources Limited

• Expansion at Iron Valley: Mineral Resources Limited (ASX: MIN) surged over 4.93% on April 12, 2016 given the recovering oil and commodity prices ahead of the OPEC meeting this week. Moreover, MIN stock surged over 56.5% during this year to date (as on April 11, 2016) driven by its ongoing positive updates. MIN is also getting support from BC Iron for potential expansion to 16Mtpa at Iron Valley by virtue of completing water table environmental approvals. On the other hand, the ongoing slowdown in China and oversupply might continue to pressurize the group’s performance in the coming periods.
• Recommendation: Despite the short term momentum, we believe that the stock is trading at “Expensive” levels at the current price of $6.60, given the uncertain commodity market conditions.

Independence Group NL

• Strong gold resource potential: Independence Group NL (ASX: IGO) surged over 3.2% (as of April 12, 2016) driven by the ongoing increase in gold prices coupled with its solid resource potential. Recently the group reported that they held back from the Darlot Joint Venture agreement in order to cut their exploration costs. Management also reported that they would continue to focus on their interests at the Fraser Range (Tropicana and Nova), the Bryah Basin and Lake Mackay.
• Recommendation: We remain bullish on IGO and reiterate our “BUY” recommendation at the current price of $2.94