OceanaGold Corporation

OGC Details
·         Strong first quarter results: OceanaGold Corporation (ASX: OGC) stock enhanced over 4.7% on April 28, 2017 driven by their decent first quarter of 2017 results. OGC reported an All-In Sustaining Costs of $521 per ounce on sales of 114,022 ounces of gold (excluding Haile) and 4,148 tonnes of copper. This solid result was mainly driven by Didipio coupled with starting production of the newest asset - Haile. OGC delivered an EBITDA of $101.7 million, which is a strong rise of 52% over fourth quarter of 2016 as the group controlled their general and administrative costs. The group holds $85.8 million which comprises a cash balance of $70.6 million, while this does not include $90.2 million in marketable securities from strategic investments.

·         Recommendation: The group reported an increase in revenue of $161.8 million in the first quarter of 2017 as compared to $147.432 million in fourth quarter of 2016 but was flat when compared to the same period of last year. The net profit fell to $36.005 million during the quarter from $42.574 million in the fourth quarter of 2016. The heavy impairment charge of $17.7 million on the mining assets held in El Salvador impacted the bottom line during the quarter. The volatility in the gold prices might pose pressure on the group’s ability to hold their strong margins. OGC stock is trading at a reasonably higher level despite losing over 5.2% in the last three months (as of April 27, 2017). We give an “Expensive” recommendation on the stock at the current price of $ 4.24 

Operations Overview (Source: Company Reports) 

IOOF Holdings Ltd

IFL Details
·         Positive net flows: IOOF Holdings Ltd (ASX: IFL) stock enhanced over 3% on April 28, 2017 as the group witnessed positive net flows of $998 million for the third quarter of 2017 financial year for funds under management, administration and advice (FUMA) with total FUMA now standing at $112.8 billion as of 31 March 2017 while Funds under supervision were $30.6 billion. The group’s organic growth indicates their strong market reputation while decent capital markets performance also supported the momentum. IOOF’s Advice businesses witnessed an outstanding increase to $545 million for the quarter as compared to $204 million in the prior corresponding period which comprises $154 million of funds under advice from an initial cohort of advisers who joined the IOOF Group during March 2017. The platform businesses performance also contributed to the net inflows wherein overall platform net flows were $306 million for the quarter as compared to $71 million in the prior corresponding period (pcp). IOOF’s flagship platforms generated a quarterly net inflow of $314 million during the quarter against $74 million in prior corresponding period. Investment management inflows also rose to $147 million from $79 million in pcp signaling the solid performance of their complementary business as well.

·         Recommendation:Considering the trading scenario, we recommend a “Hold” on the stock at the current price of $ 8.82

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.