Northern Star Resources Ltd

NST Details
· Volatile gold prices hurting the stock sentiment: Northern Star Resources Ltd (ASX: NST) stock fell over 5.1% on January 27, 2017 due to volatility in gold prices. On the other hand, the group produced 124,871oz of gold during the December 2016 Quarter and is on track to reach 485,000-515,000oz forecasts for fiscal year of 2017. The group reported an All-in sustaining costs (AISC) for December Quarter of A$1,063/oz; and is expecting AISC to be in the range of A$1,000- A$1,050/oz for FY17.

· Recommendation: NST stock delivered over 13.3% in last one month (as of January 27, 2017) and has been under some pressure owing to commodity price fluctuations. We give an “Expensive” recommendation on the stock at the current price of – $ 3.75

Evolution Mining Ltd

EVN Details
· Concerns over margins: Evolution Mining Ltd (ASX: EVN) stock lost over 6.6% on January 27, 2017 impacted by the declining gold prices. On the other hand, the group reported a solid quarterly gold production of 217,812 ounces as on December 2016 quarter while their C1 cash costs fell 22% on a Quarter-on-Quarter (QoQ) basis to A$585 per ounce. The group reported an All-in Sustaining Cost (AISC) fall by 15% QoQ to A$900 per ounce. Moreover, EVN reported a solid quarterly Cowal gold production of 71,903 ounces (Evolution share). Mt Carlton produced 25,674 ounces of payable gold at an extremely low AISC of A$604/oz. The group generated an operating mine cash flow of A$170.3 million. However, the gold price fluctuations might affect the group’s margins.

· Recommendation: EVN stock surged over 15.53% in the last four weeks (as of January 27, 2017). We believe that the stock is “Expensive” at the current price of – $ 2.12

Production Results (Source: Company Reports)

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