St Barbara Ltd

SBM Details
· Production on track with FY17 guidance: St Barbara Ltd (ASX: SBM) stock fell over 5.5% on October 11, 2016 due to fall in gold prices. The group reported that Gwalia produced 67,118 ounces of gold in the first quarter September 2016, on track with the FY17 guidance of 245,000 to 265,000 ounces. Mined grade averaged 10.4 g/t Au (as compared to 9.3 g/t Au in fourth quarter June 2016). Simberi reported a production of 25,429 ounces of gold on track with the group’s FY17 guidance of 95,000 to 105,000 ounces. SBM also boosted their cash by A$17 million during the quarter to over A$154 million as at 30 September 2016 as compared to A$137 million in June 2016, post debt repayments of A$56 million in July 2016. SBM stock already rallied over 94.4% this year to date (as of October 10, 2016).

· Recommendation: We reiterate “Expensive” recommendation on the stock at the current price of $2.60
 

Production Summary (Source: Company Reports)

Orocobre Limited

ORE Details
· Sector volatility causing concerns: Orocobre Limited (ASX: ORE) stock fell over 2.65% on October 11, 2016. On the other hand, the group reported an EBITDAX of $7.8 million for May/June for the Olaroz project. The group generated over 6,900 tonnes of production from the project (based on the report of September 2016) and intends to ramp up the production by FY17. However, concerns on oversupply of lithium seem to impact the stock. ORE stock has fallen over 27.7% in the last three months (as of October 10, 2016).

· Recommendation: We believe the stock is “Expensive” at the current price of $3.30

---

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.