Two stocks rising on ASX – Mineral Resources Ltd and Nextdc Ltd

Mineral Resources Limited

MIN Details
· Better than estimated performance: Mineral Resources Limited (ASX: MIN) stock rose over 1.6% on November 17, 2016 driven by the better than estimated performance for fiscal year of 2016. MIN has reported revenue of $1.2bn in FY 16 and NPAT of $110m in line with prior corresponding period. MIN witnessed lower transaction revenue (EPC) in the Mining Services and lower global iron ore prices, which was offset by rising export volumes in the commodity business. Moreover, MIN has renewed $400 million syndicated debt facility for 4 years for FY 17, while MIN expects the EBITDA to be in the range of A$380m and A$420m after assuming proportional consolidation of Mt Marion. Additionally, MIN assumed that there will be full production at Mt Marion by end FY17 and capital expenditure is expected to be in the range of A$100m and A$150m (excluding Wodgina acquisition). On the other hand, MIN stock has already risen over 194% during this year to date as on November 16, 2016 and is trading close to its 52-week high price.

· Recommendation: Given the volatile commodity environment, we give an “Expensive” recommendation on the stock at the current price of – $ 12.01
 

FY 16 Financial Performance (Source: Company Reports) 

NEXTDC Ltd

NXT Details
· Boosting funds flexibility: NEXTDC Ltd (ASX: NXT) stock rose over 2.33% on November 17, 2016 after falling over 14.29% in the last four weeks (as at November 16, 2016). NXT is raising capital $150 million in which $50million is being raised via institutional investors and $100 million through the retail entitlement offer. The capital is being raised to fund the second Sydney data center. Moreover, the revenue enhanced 52% to $92.8 million in FY 16, beating the guidance of $85 million to $90 million. EBITDA has increased 247% to $27.7 million, meeting the top of its guidance range of $25 million to $28 million. NXT has reported a statutory net profit of $1.8 million, against a net loss of $10.3 million in FY 15. In addition, NXT forecasts the revenue to be in the range of $115 million to $122 million for fiscal year of 2017, up 24% to 31% on FY 16. The EBITDA is expected to be in the range of $46 million to $50 million, an increase of 66% to 80% on FY 16. The group will conduct its AGM on November 24, 2016.

· Recommendation: We give a “Hold” recommendation on the stock at the current price of – $ 3.07

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