Independence Group NL
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IGO Details
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Reaffirmed guidance for fiscal year 2016: Independence Group NL (ASX: IGO) stock rose 6.1% on July 11, 2016 after the group reiterated their production estimates. Gold production at Tropicana for the June quarter is 28,651 ounces and IGO affirmed the FY16 guidance. In addition, the average annualized processing plant rate at Tropicana for the June quarter reached 6.88 Mtpa while an annualized rate of more than 7.25 Mtpa is achieved for the months of May and June. Meanwhile, IGO’s Zinc production at Jaguar was down 7.3% which is in line with the guidance while copper production has increased 2.88% which exceeded the guidance for the June quarter. Moreover, the annualized mining and processing rates for the quarter were 470,637 and 490,672 tonnes per annum, respectively; and for FY16, the Jaguar processing plant has achieved a throughput rate of 505,578 tonnes. The average zinc and copper recoveries for the quarter were 84.5% and 91.7%, respectively, and the nickel production at Long in the June quarter is 2,008 tonnes.
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Recommendation: We maintain our “Buy” recommendation on the stock at the current price of $4.01
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Production Estimates (Source: Company Reports)
Iluka Resources Limited
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ILU Details
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Management changes: Iluka Resources Limited (ASX: ILU) stock rose 10.8% on July 11, 2016 driven by the recovering metal prices. Meanwhile, ILU has appointed Tom O’Leary as the new Chief Executive Officer and Managing Director of the company. Moreover, ILU has met the further expenditure requirement to secure an additional 29% interest in E70/2464 under the Farm-in and Exploration Joint Venture Agreement, while enhanced its interest to 80%. In addition, ILU along with its joint venture Astro Resources NL, had inferred Mineral Resource of 18.8 Mt @ 4.7% HM in accordance with the guidelines outlined in the JORC Code (2012) for reporting of Exploration Results, Mineral Resources and Ore Reserves.
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Recommendation: We maintain our positive stance on the stock and give a “Buy” recommendation at the current price of $7.16
Sirtex Medical Limited
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SRX Details
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Sales growth on the higher side: Sirtex Medical Limited (ASX: SRX) stock rose 6.5% on July 11, 2016 after the company reported 16.4% growth in the full year of 2016 sales of SIR-Spheres® Y-90 resin microspheres as compared to the corresponding period of 2015. This performance from the group is on the upper end of its 15-17% dose sales guidance given on the June 01, 2016. Moreover, the Americas recorded second half and full year dose sales growth of 19.2% and 19.0%, respectively which is also within the previous guidance range. EMEA reported the full year dose sales growth of 11.2% while APAC grew 8.9% over the pcp. Meanwhile, SRX stock has fallen 32.46% (as of July 08, 2016) in the last six months on investors’ fear regarding the ongoing challenging conditions impact on the group’s performance especially in EMEA. However, we believe that investor’s need to leverage this correction as an entry opportunity.
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Recommendation: Based on the foregoing, we give a “Buy” recommendation on the stock at the current price of $27.88
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