TPG Telecom Ltd

TPM Details
·         Raising capital: TPG Telecom Ltd (ASX: TPM) stock crashed over 17.4% on April 18, 2017 while the group successfully completed the Institutional Entitlement Offer for $400 million at $5.25 per share. TPM had bid for 2x10MHz of mobile spectrum in the 700MHz band which would enable them to build a mobile network in Australia for over $1.9 billion in the coming three years leading to 80% penetration. The group believes that they have new entrant advantages via this move. To fund their network rollout and the spectrum payments in the coming three years, they made a 1 for 11.13 accelerated non-renounceable pro rata entitlement offer of new TPG ordinary shares. The group got A$320 million out of the total A$400 million under the offer. The retail component now seeks to raise $80.5 million.

·         Recommendation: We believe TPM stock fall is a lucrative buying opportunity given the prospects. We maintain a “Buy” on this dividend yield stock at the current price of $ 5.50

Resolute Mining Ltd

RSG Details
·         Volatile gold prices: Resolute Mining Ltd (ASX: RSG) stock lost over 12.5% on April 18, 2017 on the back of volatile gold prices. The group reported that their Ravenswood Gold Mine in north Queensland resumed operations as the Tropical Cyclone Debbie risk has decreased. The group reported that the quarterly gold production would not be impacted by the operations suspension. The Syama Underground Mine has 12 years and is producing up to 250,000 ozpa at an AISC of US$881/oz. The Ravenswood Expansion Project has a 13-years’ life which could produce over 120,000 ozpa @ AISC of US$880/oz. The group’s Bibiani Gold Project has more than 10 years mine life to produce greater than 100,000 ozpa at an AISC of US$858/oz.

·         Recommendation: RSG stock lost over 23.6% in the last six months (as of April 13, 2017) and given the volatile gold prices we believe the weak stock sentiment would continue. We give an “Expensive” recommendation on the stock at the current price of $ 1.16

Newcrest Mining Ltd

NCM Details
·         Seismic event impacting the stock: Newcrest Mining Ltd (ASX: NCM) stock fell 4.6% on April 18, 2017 due to impact from the Seismic event in the region of Cadia operation. The group reported that they would not meet their production guidance for the 2017 financial year. The preliminary assessment showed no major damage to the mine. The assessment of Panel Cave 1 has not been fully finished while the final mine assessment remains subject to further verification.

·         Recommendation: NCM stock rallied over 14.75% in the last four weeks (as of April 13, 2017) but is trading at a high level. We give an “Expensive” recommendation on the stock at the current price of $ 23.98

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