DUET Group

        
DUE Details
·         Acquisition update: DUET Group (ASX: DUE) stock rallied over 9.5% on April 21, 2017, at the back of Australian Federal Treasurer’s (FIRB) approval of the proposed CKI Consortium acquisition of the group. Based on the acquisition terms, the overall cash proceeds are proposed at $3.03 per DUET stapled security. This move sets in for generating future growth platform for the group. The stock will be removed from S&P/ASX 200 Index effective May 02, 2017, subject to a final court approval on acquisition by the investment consortium.

·         Recommendation:DUET stock enhanced over 14.1% in the last six months (as of April 20, 2017) and now trades at a higher level, and is “Expensive” at the current price of $ 3.01 

Duet Group Timeline (Source: Company Reports) 

OZ Minerals Ltd

OZL Details
·         Recovering stock sentiment after heavy fall: OZ Minerals Ltd (ASX: OZL) stock rose over 2.6% on April 21, 2017 after falling over 14.12% in the last four weeks (as at April 20, 2017). The group has given out a positive update on it Carrapateena project (commercial ore production expected in H2 2019) and reported a copper production of 25,079 tonnes while their gold production reached 26,135 ounces at Prominent Hill during the first quarter 2017. Their Prominent Hill annual guidance is as expected while Mine plan production is expected to ramp up in the second half with completion of second permanent underground decline in Q3. The group’s Power Purchase Agreement (PPA) for Prominent Hill is also on track while new exploration earn-in agreements for sites in Portugal and Mexico have been signed. The group will hold its Annual General Meeting on May 24, 2017.

·         Recommendation: On the other hand, OZL stock has been under pressure given the volatile commodity prices and lost over 19.1% in the last three months (as of April 20, 2017). Given the sector driven headwinds, we give an “Expensive” recommendation on the stock at the current price of $ 7.43

Western Areas Ltd

WSA Details
·         Mill Recovery Enhancement Project got approved: Western Areas Ltd (ASX: WSA) stock rose over 6.2% on April 21, 2017 at the back of overall gain in the Metal and mining sector and improved sentiments. Lately, the group reported that their Mill Recovery Enhancement Project got approval and the mill recoveries increased by 3% to 5% over the Life of Mine. This project has up to an additional 1,400 nickel tonnes which has an estimated capital cost of A$17.5m. Unit cash operating cost is A$2.44/lb of nickel in concentrate. The group forecasts an initial production of high grade nickel sulphide (45% ? 50% nickel grade) in March Quarter 2018. The group gave EPC contract to GR Engineering Services for engineering design.

·         Recommendation: WSA stock lost over 19.6% in the last three months (as at April 20, 2017) placing them at reasonable levels. We give a “Buy” recommendation on the stock at the current price of $ 2.22

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