Regis Resources Limited
.png)
RRL Details
-
Tooheys well gold deposits indicate fresh rock potential: Regis Resources Limited (ASX: RRL) stock surged over 3.3% on June 14, 2016 driven by its positive recent gold results from Tooheys Well which is 2.5 kilometers south of the Garden Well Gold Mine. Several major intersections, include 75m @ 2.27g/t in RRLTWRC094 and indicted exploration scale further to the surrounding surface oxide mineralization. Accordingly, the group reported that its Tooheys Well project has the potential to offer major grade mineralization only 2.5 kilometers from the Garden Well processing plant. Management reported that they would continue to explore the 500 meters of established Tooheys Well mineralized strike and would now prolong to drilling to test for more 1km of strike to the south where ground magnetic surveys show that the host Banded Iron Formation remains and is untested. RRL has already rallied over 40.7% (as of June 10, 2016) during this year to date driven by the gold prices rally, strong quarter performance, hedging activities and positive exploration results. However, we believe that this rally has already placed the stock at higher levels which is trading at an unreasonable P/E.
-
Recommendation: We give an “Expensive” recommendation on this dividend yield stock at the current price of $3.43
Tooheys Well Gold Deposit’s New Drilling Result (Source: Company Reports)
Saracen Mineral Holdings Ltd
SAR Details
-
Higher levels: Saracen Mineral Holdings Limited (ASX: SAR) stock generated over 1.8% on June 14, 2016 even though there is no specific update from the firm, on the back of rising gold prices. The upcoming FOMC event coupled with uncertain Brexit outcome is increasing volatility in the markets and accordingly investors are looking for safe haven assets like gold. SAR developed first gold from Thunderbox ahead of schedule or under budget, while reported a commercial production for Stage 1 of ~125koz pa around 4-5 years. SAR also has solid assets with more than 10 year mine life at Thunderbox, and more than 5 years estimated mine life at Karari / Deep South. Accordingly, the stock already rallied over 205.6% in the last one year (as of June 10, 2016) placing the stock at unreasonable levels. Moreover, the group now expects a lower production of 150-160koz at AISC A$1025-1075/oz (or US$748-785/oz) as compared to their 167koz from Carosue Dam in FY15. SAR is trading at very high P/E.
-
Recommendation: We believe that the stock is “Expensive” at the current price of $1.40
Five-year production outlook (Source: Company Reports)
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.
AU
CA
NZ
UK
US
IND
Please wait processing your request...