Galaxy Resources Limited

GXY Details
· Major progress at Mt Cattlin: Galaxy Resources Limited (ASX: GXY) stock surged over 8.19% on October 14, 2016, wherein the stock rallied mostly from the second half of the day at the back of slightly improving sentiments on commodities and company’s recent updates. The Primero Group, which is managing the group’s Mt Cattlin Project recently reported a major progress and also ahead of the schedule. Wet commissioning of the feed classification circuit is on track while the tantalum beneficiation circuit wet commissioning is planned one week ahead of schedule. Final stages of piping and electrical installation are ongoing along the critical path and achieved major progress within the dense medium separation area. Final commissioning is finished on the ore preparation area with automated sequence runs conducted. We believe investors need to leverage the subdued levels while the stock is trading at an attractive P/E.

· Recommendation: We give a “Buy” recommendation on the stock at the current price of $ 0.33


Feed Conveyors Sequence Testing (Source: Company Reports) 

Alumina Limited

AWC Details
· Maintained production with ongoing costs control in Alcoa: Alumina Limited (ASX: AWC) continued to rally over 4.8% on October 14, 2016 leading to a total rally of over 8.6% in the last four weeks with commodity price movement. Recently, management reported that they have witnessed a rebound from the recent lows in API prices which had reduced margins in the third quarter of 2016 from the end of September 2016. However, the group continued to generate positive impacts from their portfolio restructuring as well as from their cost improvements which continued to generate cash in AWAC. Meanwhile, AWAC’s production of alumina has been unchanged with the production in line with its earlier quarter levels (3.2 million tonnes) even though the entire curtailment of Point Comfort has been offset by higher production at the other refineries. The group got US$91.8 million of dividends, distributions and capital returns from AWAC during the September 2016 quarter leading to total proceeds of US$175.5 million till this year to date. AWC did not make any capital contributions to AWAC for the year to date while their net debt reached over US$81 million at the end of September 2016.
 

· Recommendation: While AWC stock is trading close to its 52-week high price, we give a “Hold” at the current price of $ 1.52

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