Galaxy Resources Limited


GXY Details

·       Drilling confirmed the significant deep mineralized zone: Galaxy Resources Limited (ASX: GXY) stock surged over 6.67% on 27 September 2016 with some commodity price movement. GXY has lately provided an update on exploration activities at the Mt Cattlin Project near Ravensthorpe in the south-west of Western Australia. Initial drill results from diamond drilling program confirmed major deep mineralized zone over 500m width. The mineralization is open in all directions, particularly to the east and there is scope for finding additional repetitions in upthrust faulted positions. GXY is making efforts to position itself for the growing lithium opportunities from existing production and has a world class asset development in pipeline. On September 26, 2016, the company also advised that Baillieu Holst has initiated research coverage on the company. GXY stock is trading at a very cheap P/E.

·       Recommendation: We give a “Buy” recommendation on the stock at the current price of $0.32


Plan View of Drill hole location plan at Mt Cattlin (Source: Company Reports)
 
Evolution Mining Ltd


EVN Details

·       Raising funds: Evolution Mining Ltd (ASX: EVN) stock rose 1.6% on 27 September 2016 while the company announced for Change of director Jacob Klein’s relevant interests in the securities. Moreover, EVN is boosting its capital position to raise over A$311 million via institutional component of the Entitlement Offer. EVN has successfully completed the retail entitlement offer component of its fully underwritten 2-for-15 accelerated, renounceable entitlement offer. EVN stock has already surged 61.16% in the last six months as on 26 September, 2016 and looks overvalued at the current levels.

·       Recommendation: We give an “Expensive” recommendation on the stock at the current price of $2.53

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