Independence Group NL

IGO Details
·         Rise in Gold prices drove the stock sentiment: Independence Group NL (ASX: IGO) stock rose over 4.2% on April 27, 2017 with a sector-wise rally driven by the gold price movement. IGO had reported about 43% improvement in development advance rate by Barminco in 3Q17 for the group’s Nova project. The group’s Nova project would ramp up to full production during September 2017 quarter. Production of 5.0-6.0kt nickel and 1.9-2.3kt copper is expected by the group. IGO reported that their Tropicana performance would be as expected and intends to generate a better performance in terms of year-to-date production and costs. The group reported a cash of $69 million with a net debt of A$131 million with A$200 million of undrawn revolving debt facility. The group has been maintaining a consistent EBITDA margin of 40-50%.

·         Recommendation: We give a “buy” recommendation on the stock at the current price of $ 3.25
 

Nova Project Ramp-up (Source: Company Reports) 

Stockland Corporation Ltd

SGP Details
·         Maintained guidance: Stockland Corporation Ltd (ASX: SGP) stock rose 0.62% on April 27, 2017 as the group delivered decent third quarter results. The group maintained guidance of Funds from Operations (FFO) per security range of 6 – 7% in FY17. They also maintained their Distribution per Security (DPS) of 25.5 cents during the period. The group’s progress of their core businesses during the third quarter has been on track. The Residential business is driven by well-located projects in high growth corridors coupled with their diverse and affordable product mix. East Coast market is trading strong while Perth market is stable. The group delivered a Residential business of 1,891 net deposits in the quarter and 5,984 net deposits in this financial year to date against 4,844 net deposits in the prior corresponding period. The group is targeting more than 6,000 settlements by year end. The group witnessed 54% of first home purchasers while 77% of their residential properties are sold to owner occupiers. Meanwhile, SGP reported for Stage One of the $412 million redevelopment and expansion of Stockland Green Hills Shopping Centre opening for April 2017. The Retirement Living business generated 244 net reservations during the quarter.

·         Recommendation: SGP stock generated over 10.7% returns in the last three months (as of April 26, 2017). We maintain a “Hold” recommendation on the stock at the current price of $ 4.91

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