Resolute Mining Limited

RSG Details
· Boosting capital position: Resolute Mining Limited (ASX: RSG) stock fell over 4.9% on October 07, 2016 due to softening in gold prices. The group is paying a dividend of 1.7 cents per share on October 20, 2016. RSG successfully completed institutional placement of 76.5 million new fully paid ordinary shares to raise A$150 million and intends to use these funds for developing Ravenswood Extension Project in Queensland, Australia and for drilling and evaluation activity at the Bibiani Gold Mine (Bibiani) in Ghana. The group issued a guidance of minimum of 300,000 ounces of gold production for fiscal year of 2017 while All-in-Sustaining-Costs are expected to reach A$1,210/oz. RSG’s core asset, Syama Gold Mine in Mali is fully operational and has a long term mine life to nearly beyond 2028. However, RSG stock delivered outstanding returns of over 554% during this year to date driven by gold prices rally.

· Recommendation: We give an “Expensive” recommendation on the stock at the current price of $1.63, and would review the stock at a later date.

  Orocobre Limited

ORE Details
· Concerns over Lithium prices: Orocobre Limited (ASX: ORE) stock plunged 2.9% on October 07, 2016 partly due to oversupply concerns in the Lithium sector. The group has been focusing on its Olaroz lithium project in Northern Argentina. The group generated an EBITDAX of $7.8 million for the Olaroz project in the last two months of the year. ORE delivered about 6,900 tonnes of production and intends to ramp up the production. ORE stock already delivered over 93% in the last one year but with the raising concerns over a possible bubble in Lithium market, the stock corrected over 19.6% in last one month.

· Recommendation: We give an “Expensive” recommendation on the stock at the current price of $3.32

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