Latest Research

Argonaut Mining Services Interims Preview - Where to Now?

We had Hold calls on all our covered resource-exposed industrials by end August 2016. This followed the earnings reporting season and a period of strong share price gains. Since then all except GNG have been upgraded to Buy, largely on the back of share price pull-backs. Valuation and recommendation discipline is needed in a volatile sector where share price growth and earnings growth often diverge.

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Argonaut Metals & Mining- December Quarterly Review

Argonaut LogoArgonaut provides a preview for the December Q 2016. In general, commodities performed well over the Q, despite the appreciation of the USD. Iron ore was the biggest mover, up 24% Q-on-Q, while base metals also performed well, with copper, zinc and lead all averaging significantly higher prices compared to the September Q. Heading into CY17, Argonaut still prefers zinc amongst the base metals and sees continued volatility in the gold price as Donald Trump is inaugurated as the US president. We retain a preference for domestic Australian mid-tier gold producers. Production forecasts and stock specific comments are detailed in Table 1 (page 2).

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Sino Gas & Energy (SEH) - Back on Track

Sino Gas & Energy LogoSino Gas and Energy (SEH) has received Chinese Reserve Report (CRR) endorsement from Production Sharing Contract (PSC) partners for both Sanjiaobei (SJB) and Linxing (LX). SJB has also attained CRR endorsement by the National Centre of Coal Bed Methane, the regulatory body that oversees CRR and Overall Development Plan (ODP) reports. ODP’s for both assets have now commenced, with SJB approval expected late-2017 to early-2018 followed by LX in mid-2018. Operations continue to ramp-up with gross production currently at 16MMscf/d. The Company expects to reach total installed capacity of 25MMscf/d in the coming weeks. BUY maintained with a $0.23 target price.

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