Latest Research

Finders Resources (FND) - Hedge Book Monetised To Repay Debt

Finders Resources LogoFinders Resources (FND) has restructured its hedge book, releasing US$42.5m in net proceeds. 21.6kt of Cu cathode was closed out at a see through price of US$2.55/lb and 16.5kt was re-struck at an average forward price of US$2.18/lb. The proceeds will be used to repay debt, lowering the outstanding balance to US$103m. FND recently announced the 25ktpa Cu cathode plant at the Wetar project in Indonesia (72% FND) had attained 87% of nameplate capacity. The project, incorporating the smaller 3ktpa cathode plant, is guided to produce at a 28ktpa rate from Q4 CY16. Wetar is a low cost Cu operation (AISC ~US$1.50/lb) with significant potential to extend the current 8-year mine life from multiple VMS targets. BUY maintained with a revised target price of $0.24.

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Gold Road Resources (GOR) - Gruyere Matures With Depth

Gold Road Resources LogoGold Road Resources (GOR) has announced the results of deep diamond drilling to test the extension of the interpreted southerly plunging high grade zone at Gruyere. High grade intercepts of 88m @ 1.7g/t and 85m @ 1.53g/t Au were returned which show mineralisation extends ~200m below the base of existing resources. This paves the way for further mining studies in Q4CY16 to determine the viability of an underground bulk mining scenario. Maintain BUY and target price of A$0.93ps.

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Berkeley Energia (BKY) - Zona 7 Continues At Depth

Berkeley Energia LogoBerkeley Energia (BKY) released results for further drilling at its 100% owned Zona 7 deposit, part of the Salamanca Project in Spain. The drilling confirmed continuity of mineralisation at depth with best results including 14m @ 1,776ppm U3O8 from 207m and 26m @ 1,103ppm U3O8 from 43m. These intercepts highlight the potential to extend the mine life of Zona 7 and delay capital required to develop the next schedule mine at Alameda. BKY has commenced minor site works at Salamanca with major development expected to commence H1 2017. We believe ongoing exploration at Salamanca will generate steady news flow as the project progresses through the current off-take and financing stages. BUY maintained with a $2.05 price target.

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Dacian Gold (DCN) - Vectoring In On Cameron Well

Dacian Gold LogoDacian Gold (DCN) released results from recent reconnaissance drilling at the Cameron Well prospect, part of the Mt Morgans Gold Project (MMGP). The program has extended the anomalous gold area from 2km x 1km to 2.5km x 2km, and it remains open to the north and northeast. This growing anomaly highlights the strong prospectively for satellite deposits in the Mt Morgans region. Exploration drilling is also ongoing at regional targets near the Jupiter deposit and Callisto prospect. Argonaut understands the first of two holes at Callisto has been completed and the second hole is underway. DCN is due to release the Definitive Feasibility Study (DFS) on the MMGP in the December Q 2016.

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Orbital (OEC) - Waiting On Orders

Orbital LogoAlthough OEC’s results (an underlying loss of $6.4m) were below expectations, our focus is on the significant growth opportunities. Following a business and capital restructure during FY17, OEC’s solid net cash position puts it in a good position to deliver on this potential. The pace of growth is uncertain however, and we believe delivery of some of the earnings promise is required to support further share price gains. We have reviewed our forecasts (which still show strong growth) and valuation, which is reduced to $0.85 (from $1.10). We downgrade our recommendation from speculative buy to hold.

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