Northern Star Resources Ltd

NST Details
·         Fluctuation in gold sentiments dragging the stock lower: Northern Star Resources Ltd (ASX: NST) stock lost over 4.25% on April 28, 2017 owing to gold price movement and weakening safe haven trade. On the other hand, the group reported that they are on track to achieve a 485,000-515,000oz gold production for FY17. Moreover, their All-in-Sustaining-Cost (AISC) year to date for FY17 fell to A$1,044/oz, which is on track to meet their full year guidance of A$1,000-A$1,050/oz. The group also does not have a bank debt. The group’s construction of the new 50,000 ozpa Millennium underground mine is ahead of schedule and under budget.

·         Recommendation: NST stock enhanced 19.2% in the last three months (as of April 27, 2017) at the back of earlier commodity price rally. On the other hand, the reducing uncertainty in North Korea and the French election results might impact the gold price sentiment. We give an “Expensive” recommendation on the stock at the current price of $ 4.28

Select Harvests Ltd

SHV Details
·         Below than expected crop estimates impacted the stock sentiment: Select Harvests Ltd (ASX: SHV) stock crashed over 8.4% on April 28, 2017 owing to weakening sentiments as the group’s crop forecasts did not match expectations. The group expects their crop outcome to be 5% to 10% below expectations. The group updated that their field weight was very inconsistent by orchard. Milder growing conditions in spring and early summer would hurt the outcome while the price outlook is expected to be stable.

·         Recommendation: We give an “Expensive” recommendation on the SHV stock at the current price of $ 5.44


Demand Scenario (Source: Company Reports)

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