mid-cap

Spike in South32 and Origin Energy prices

Apr 21, 2016 | Team Kalkine

Read Time :5 MINS

Spike in South32 and Origin Energy prices

South32 Ltd

Industry: Metals and Mining

S32 Details

Solid third quarter performance: South32 Ltd (ASX: S32) reported a decent third quarter of 2016 performance while Worsley Alumina reported a 5% rise during March quarter production. Longwall mining at Dendrobium started while Appin Area 9 project finishing led to 35% rise in metallurgical coal production during the March 2016 quarter. S32 is on track to cut controllable costs by US$300 million. This strong performance coupled with recovering commodity prices drove the stock higher by 8% on April 21, 2016.
Recommendation: We maintain our “BUY” recommendation on the stock at the current price of $1.75

Third quarter 2016 performance (Source: Company Reports)

Origin Energy Ltd

Industry: Energy

ORG Details

Recovering oil prices is driving the stock higher: Origin Energy Ltd (ASX: ORG) continued its bullish stance owing to the recovering oil prices this week and generated over 8.8% returns on April 21, 2016. The group is offloading its non-core assets and recently reported that they made a Sale Agreement with KS Orka Renewables Pte Ltd for the sale of its 50% interest in OTP Geothermal Pte Ltd (OTP) for US$30 million.
Recommendation: We believe that ORG has the potential to rise further and maintain our “BUY” recommendation at the current price of $5.55

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