Saracen Mineral Holdings Limited

SAR Details
· Got financing facility from three major international banks: Saracen Mineral Holdings Limited (ASX: SAR) stock fell over 6.82% on November 07, 2016 at the back of commodity price movement. The group got a long-term senior corporate financing facility worth A$150 million with three major international banks. Initial facility had $45 million of loan and $5 million of bank guarantee. The group has the provision to request the facility to be extended till A$150m (with the approval of syndicate members). Being a debt free firm, the new facility is currently undrawn. On the other hand, Saracen stock fell over 26.5% in the last three months (as of November 04, 2016) and still trading at an unreasonable P/E.

· Recommendation: We give an “Expensive” recommendation at the current price of – $ 1.23

Evolution Mining Ltd

EVN Details
· Finished Ernest Henry acquisition: Evolution Mining Ltd (ASX: EVN) stock fell over 6.5% on November 07, 2016 due to falling gold prices. The group recently reported that all conditions precedent to the Ernest Henry acquisition are currently satisfied or waived and the acquisition has been completed. Being a high quality Australian copper-gold asset, Ernest Henry is positioned at over 35km north east of Cloncurry in Queensland, Australia. The mine has a long life of at least 11 years. Ernest Henry has good growth prospects beyond its current reserve life via its large resource base and extension potential at depth. Ernest Henry is expected to immediately contribute annualized gold production of over 85,000oz at a very low All-In Sustaining Cost, including copper and silver by-product credits. The group believes that this low cost gold production asset would contribute to their high quality, long life asset. EVN is expecting a gold production of 800,000 – 860,000 ounces at an AISC of A$900 – A$960 per ounce for fiscal year of 2017, which includes attributable production from Ernest Henry. On the other hand, EVN corrected over 14.2% in the last three months (as of November 04, 2016) and we believe this stock pressure to continue even for the coming months.

· Recommendation: We give an “Expensive” recommendation at the current price of - $ 2.29

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