Queensland Bauxite Ltd

QBL Details
·         Positive prospects: Queensland Bauxite Ltd (ASX: QBL) stock rallied 60% on March 16, 2017 given the group’s positive half year update and prospects. The group is working towards final approval to secure the Minerals Development Licence (MDL) for the South Johnstone Bauxite Project. Post this MDL grant, the group would be able further ship from South Johnstone Bauxite project to effectively prove the long-term economic and operational feasibility of the project. Meanwhile, the group also acquired 55% of unlisted public company, Medical Cannabis Limited (MCL) to tap the medical Cannabis sector and hemp seed food industry, in Australia and worldwide. MCL’s licenses for ‘live seed’ importation would help the group to capture commercialization opportunities in the hemp seed food market. Moreover, Vitahemp which is MCL’s subsidiary is a hemp seed food company with an objective to produce Australia’s first legal hemp seed food products. QBL has recently obtained an approval from NSW Department of Primary Industries to grow indoors a selection of its plant varieties (cannabis) at a private location.
 
·         Recommendation: The stock is trading at higher levels post the recent rally and we give an “Expensive” recommendation on the stock at the current price of – $ 0.024

Independence Group NL

IGO Details
·         Gold prices boosted the stock sentiment: Independence Group NL (ASX: IGO) stock rallied over 6.4% on March 16, 2017 driven by the rising gold prices buoyed by US Federal Reserve’s interest rate hike decision. The group continued to deliver a good operational and financial performance in 1H17 as Tropicana and Long projects performed better than expected. The group’s plans of ramping up to name plate in 2017 is ongoing. The group has a A$33M exploration budget and is focusing on generative and Greenfields projects. IGO expects to enhance their exploration spend to A$50 million in FY18.Meanwhile, Orion Gold NL has become a substantial holder for the group’s securities and lately secured a JV agreement with IGO on Fraser Range Nickel-Copper Project.
 
·         Recommendation: IGO stock corrected over 20.8% in the last four weeks (as of March 15, 2017) opening an investment opportunity. We give a “Buy” recommendation on the stock at the current price of - $ 3.65 

FY17 Exploration Budget (Source: Company Reports)

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