Whitehaven Coal and Mantra are moving up on ASX

small-cap

Whitehaven Coal and Mantra are moving up on ASX

Jul 07, 2016 | Team Kalkine

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Whitehaven Coal and Mantra are moving up on ASX

Whitehaven Coal Ltd

WHC Details

Low cost player: Whitehaven Coal Ltd (ASX: WHC) continued to rise 4.2% on July 07, 2016 driven by the recovering commodity prices. At the same time, WHC has also positioned itself to withstand the low cost prices environment. WHC is controlling its costs and forecast costs to be $57/t for FY2016. Moreover, WHC achieved average prices of US$61.77 a tonne in March from metallurgical coal and expects slightly higher prices in the June quarter of between US$64 and US$67 a tonne. In addition, the company had reported 21% increase in ROM coal production to 5.7Mt yoy basis in the March quarter 2016 while the coal sales reached 5.5Mt which is an increase by 48% on a yoy basis during March quarter 2016.
Recommendation: We maintain our “Speculative Buy” recommendation on the stock at the current price of $1.23

Mantra Group Ltd

MTR Details

Raising capital position: Mantra Group Ltd (ASX: MTR) stock surged over 4.6% on July 07, 2016 as the stock was upgraded by Moelis & Company with strong upside. Meanwhile, MTR is boosting its capital position and raising equity of $100 million at the underwritten floor price of $3.70 to fund acquisitions. Mantra is acquiring ALM Management Services Hawaii, that operates the Ala Moana Hotel, Honolulu as well as acquiring associated real estate for a purchase price of US$52.5 million (about A$71 million) to expand its presence in key offshore regions. The company had resorted to Share Purchase Plan (SPP) at $3.84 for which the new shares were allotted recently.
Recommendation: We maintain our “Buy” recommendation on the stock at the current price of $3.15

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