Saracen Mineral Holdings Ltd

SAR Details
·         Lower than expected impact on the production lifted the stock sentiment: Saracen Mineral Holdings Ltd (ASX: SAR) stock rose 5.4% on April 12, 2017 partly owing to the recent gold price movement. The group’s March quarter production has been released and the same is short of only over 5,000oz from the guidance. The group delivered a March quarter gold production of 65,131oz which comprises 39,033oz from Carosue Dam and 26,098oz from Thunder box. Management also reiterated that their June quarter production guidance of 80,000oz is on track. The group’s grade mined at every ore source enhanced leading to an increase to an average of 2.3g/t as compared to 1.8g/t during the December quarter. The group’s drilling is underway at Carosue Dam North and made $25m farm-in JV with AngloGold. Meanwhile, the group is also considering selling their non-core mines at King of the Hills and Red October.
 
·         Recommendation: SAR stock fell in the last six months by over 17.9% (as of April 11, 2017). Moreover, the decrease in production might impact the all-in sustaining costs (AISC) while the group expects this to be within 10% of their guidance for the quarter of A$1410/oz.We give an “Expensive” recommendation on the stock at the current price of $ 1.08 

Capital, exploration and one-off closure costs for the March quarter 2017 (Source: Company Reports) 

SKY and Space Global Ltd

SAS Details
·         Finished testing of Ground and Space Communication systems and software: SKY and Space Global Ltd (ASX: SAS) stock enhanced over 4.5% on April 12, 2017 as the group successfully completed a thorough testing cycle of its Ground and Space Communication systems and software ahead of the 3 Diamonds nano-satellites launch, recently confirmed for late May 2017.The group reported that their testing program validated the performance of the full communication cycle, starting with transmitting data from a customized hotspot (ground segment) and then via Radio Frequency (RF) to the nano-satellites (space segment).
 
·         Recommendation: SAS stock rallied over 479% in the last six months (as of April 11, 2017) and we believe this momentum would continue in the coming months. Given the trading scenario and positive progress ahead of the launch, we give a “Hold” recommendation on the stock at the current price of $ 0.23  

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