Sandfire Resources NL

SFR Details
· Commodity prices hurting the stock sentiment: Sandfire Resources NL (ASX: SFR) stock fell over 4.9% on November 30, 2016 with commodity price volatility.

· Built a strong track record: The group’s DeGrussa Operation has now produced more than 285,000 tonnes of copper and 160,000 ounces of gold leading to more than $2 billion of revenue generation. SFR is also focusing on their capital position and made an early repayment of their amortizing Facility, cutting the overall debt to $50 million leading to positive cash positive position. SFR saw positive exploration results for 2016 fiscal year with ultra-high grade Monty Copper-Gold Project, discovery situated ten kilometers east of DeGrussa, which forms part of the Springfield Joint Venture with Talisman Mining. Monty promises a major new satellite production center for DeGrussa. SFR also expanded their presence in the Doolgunna region via new tenement acquisitions and strategic Joint Venture agreements.

· Recommendation: Given the positive drilling results and commodity price movements, SFR stock rose over 17.1% (as of November 30, 2016) in the last four weeks alone placing the stock at a relatively higher P/E. We give an “Expensive” recommendation at the current price of – $ 5.79

Western Areas Ltd

WSA Details
· Fall in Nickel prices drove the stock lower: Western Areas Ltd (ASX: WSA) stock fell over 6% on November 30, 2016 impacted by the falling commodity prices.

· New agreement with BHP Billiton Nickel West: The group made a new offtake Contract with BHP Billiton Nickel West. WSA reported that this combination with Tsingshan Group and BHP Billiton Nickel West would lead to better returns from nickel produced in concentrate, as compared to the incumbent contracts which would expire on 31 January 2017.

· Recommendation: WSA generated over 28.3% (as of November 30, 2016) in the last four weeks. We maintain our “Buy” recommendation at the current price of - $ 2.98

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