Galaxy Resources Limited

GXY Details
Started full production at Mt Cattlin: Galaxy Resources Limited (ASX: GXY) stock is down 6% on December 13, 2016 with some market volatility. On the other hand, the group has become global supplier of high quality lithium with the acquisition of General Mining.

 

Asset Portfolio (Source: Company Reports)
 
GXY recently reported that their Mt Cattlin now started 24-hour production and is aiming to produce a lithium concentrate of 5.5% Li₂O grade with a less than 5% mica concentration. Moreover, short-term production tests have been planned to continue with scheduled maintenance shutdowns to ensure that reliability is sustained through the continued ramp-up to name plate production. Part of the short-term production tests are the planned phased unit process tests to enhance the final concentrate grade to 6%, and the improvements to product yield. 2017 production guidance for Mt Cattlin has been 160kt spodumene. Even, the group’s Sal de Vida lithium and potash brine development project indicated low cost, long life and robust operations through revised Definitive Feasibility Study (DFS). GXY stock has risen 36.1% in just last four weeks and 292% this year to date (as on December 12, 2016), and still trading at an attractive P/E. Based on the foregoing, we give a “Buy” recommendation on the stock at the current price of – $ 0.46

 
GXY Daily Chart (Source: Thomson Reuters) 

Beadell Resources Ltd

BDR Details
AISC per ounce cost guidance enhanced for CY 2016: Beadell Resources Ltd (ASX: BDR) has got positive results from the Tucano gold mine in northern Brazil with high grade oxide drill outcome received from Tap AB1 and Tap AB2 Trough lodes. BDR expects to achieve the production forecast of 145,000 to 160,000 ounces of gold for CY2016, while AISC per ounce cost guidance of US$715 to US$815 per ounce has been now increased to US$830 to US$930 per ounce for CY2016 owing to appreciation of Brazilian Real.

 

September Quarter performance (Source: Company Reports)
 
BDR has reported gold sales for September quarter of totaled 39,607 ounces at an average cash price of US$1,315 per ounce. The gold production for the September 2016 quarter has been 46,855 ounces, which is an increase of 57% over the September 2015 quarter. Moreover, the substantial completion of the planned cutbacks during the September quarter has led to in access to higher grade ores, significantly increased gold sales and lowered AISC reported per ounce. BDR stock has surged 127.6% this year to date (as at December 12, 2016). Given the potential, we put a “Speculative Buy” recommendation on the stock at the current price of – $ 0.32

 
BDR Daily Chart (Source: Thomson Reuters)

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