Pilbara Minerals Ltd

PLS Details

Positive pre-feasibility study for Pilgangoora Lithium-Tantalum Project: Pilbara Minerals Ltd.’s (ASX: PLS) 100% owned Pilgangoora Lithium-Tantalum Project at Pilbara region is showing progress with pre-feasibility study that indicated development of the 2Mtpa being possible. With this project indicating a promising lithium-tantalum reserve potential to the group, the PLS stock delivered an outstanding performance and rallied over 57.53% in the last four weeks and surged by 91.67% during this year to date (as of April 11, 2016).
 

Peer comparison of Pilbara Minerals exploration targets (Source: Company Reports)
 
In fact, the Pilgangoora Lithium-Tantalum Project is the second largest resource base with spodumene-tantalite in the world. Therefore, PLS made eight product off-take memorandum of understanding with major chemical and technical grade customers for its future production. Consequently, PLS estimates to finish the project construction by December 2016 and intends to start the production from December 2017. PLS recently announced a capital raising of over $100 million for its Pilgangoora Lithium-Tantalum Project. We are bullish on PLS stock and accordingly give a “BUY” recommendation at the current price of $0.60
 
 
PLS Daily Chart (Source: Thomson Reuters)
 

Galaxy Resources Ltd

GXY Details
 
Production resumption at Mt Cattlin: Galaxy Resources Limited (ASX: GXY) got Production Notice from General Mining Corporation for mining and processing operations at Mt Cattlin Project. Both the parties made an agreement on September 2015, wherein General Mining Corporation would contribute the initial $7 million of capital for restarting the production at Mt Cattlin by December 2015. The processing at the facility is estimated to deliver a throughput rate of 800,000tpa by the end of June 2016 via its three month ramp up. Both the groups are negotiating with China based off-takers as the initial delivery is on track by July or August 2016. The recent indications include completion of the first stratigraphic diamond drill hole at Mt Cattlin Lithium-Tantalum deposit to a depth of 879.6m, and repetitions of spodumene-bearing pegmatite throughout the stratigraphy. Given the outstanding prospects, the GXY stock surged over 666.67% in the last six months and generated over 176% during this year to date (as of April 11, 2016). Still the stock is trading at very cheap P/E. Based on the foregoing, we issue a “Speculative Buy” at the current price of $0.355
 
 
GXY Daily Chart (Source: Thomson Reuters)
 

Western Mining Network Ltd

WMN Details
 
Ongoing pressure: Western Mining Network Ltd (ASX: WMN) recently reported that they finished assays check, the initial move for scoping study process for the Tamboli project. The group adopted better LECO method and intends to appoint geologist Andrew Scogings for independent third-party review. The group’s due diligence on Balai Sebut project is on track and it is reviewing graphite pipeline and other projects.
 

Western Mining Network Ltd tenements as of March 2015 (Source: Company Reports)
 
On the other hand, the group’s stock has plunged by 66.67% during this year to date (as at April 11, 2016) given the ongoing commodity prices pressure. We believe that the stock may not witness an upside in the near term and put an “Expensive” recommendation at the current price of $0.045
 
 
WMN Daily Chart (Source: Thomson Reuters)
 

Carbine Tungsten Ltd

CNQ Details
 
Weak performance: Carbine Tungsten Ltd (ASX: CNQ) faced shortfall in raising capital position during its placement. But the group finished this shortfall by issuing 40 million new shares to Lanstead Capital via Tranche B subscription agreement and raised $232,500 via new 9.3 million shares at $0.025 per share. CNQ continues to report a loss of $1,448,074 in the half year ended on December 31, 2015 as compared to half year loss of $2,348,141 in the prior corresponding period. CNQ stock declined by 65.9% (as of April 11, 2016) in the last six months due to falling commodity prices and challenging market conditions, and we believe the stock will continue to face headwinds in the coming months. Based on the foregoing, we give an “Expensive” recommendation on this stock at the current price of $0.021
 
 
CNQ Daily Chart (Source: Thomson Reuters)
 

Mustang Resources Ltd

MUS Details
 
Strong Montepuez Ruby Project potential: Mustang Resources Ltd (ASX: MUS) stock has also been under pressure since the last six months like its peers and fell by 70.45% (as of April 11, 2016) during the period. On the other hand, the group’s management believes that its Montepuez Ruby Project has a strong potential of resources while its low cost bulk sampling program is estimated for June 2016.
 

Similar geological features and rock types on Mustang Licenses(Source: Company Reports)
 
Preliminary ruby targets were found having similar geological features with identified ruby artisanal activities near the region and the bulk sampling equipment has been mobilised. We believe that MUS has the potential to rise in the coming months and accordingly give a “Speculative Buy” on this stock at the current price of $0.065
 
 
MUS Daily Chart (Source: Thomson Reuters)
 

Lithium Australia NL

LIT Details
 
Approval for Mineral Exploration License: Lithium Australia NL (ASX: LIT) got the grant of the mineral Exploration License at Bynoe Pegmatite Field in the Northern Territory, Australia encompassing greater than 60 square kilometers having a minimum of 20 known pegmatites.
 

Bynoe Lithium Project location (Source: Company Reports)
 
Management reported that lithium mineralization at said location is high. With this license approval the group intends to enhance its lithium resource in Australia to supplement its market-leading Sileach™ metal extraction technology. LIT’s shareholders had approved the issue of 2m performance rights with performance hurdle of $50m market capitalization to the Managing Direction, and the same have now been converted to 2m shares as the performance hurdle was exceeded. With the stock rising over 72.41% in the last one month (as of April 11, 2016), we give a “Speculative Buy” on the stock at the current price of $0.26
 
 
LIT Daily Chart (Source: Thomson Reuters)

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