Base Resources (BSE) is an exploration company developing the world-class Kwale Mineral Sands Project in Kenya, East Africa. BSE also boasts a portfolio of early stage exploration projects in Western Australia’s Mid West region, with established targets for iron ore, gold, base metals and uranium. An updated and enhanced definitive feasibility study (DFS) for Kwale will be completed in the June quarter of 2011 with off-take and financing arrangements slated for the third quarter of 2011. BSE is looking strong on a forecast supply shortfall for mineral sands – including ilmenite, rutile and zircon – in 2013 – therefore it will be one of the stocks to watch over the medium term. In the same year Kwale will come into production and Base Resources is poised to meet this supply shortfall. The company released its Quarterly Activities Report at the end of last week, detailing its progress at its key projects. Kwale coup Kwale is an advanced and highly competitive project in a sector with a significant forecast supply shortfall widely expected to emerge in the medium term. The project enjoys a high level of support from the Government of Kenya and is located just 50km from Mombasa, Kenya’s principal port facility. Importantly, two pilot plant operations at Kwale provide confidence in processing behaviour and indicate a suite of readily marketable products. The project’s high value mineral assemblage and low stripping ratio result in a projected revenue to cash cost ratio that would place Kwale in the top quartile of world producers. Minerals sands supply Kwale is being developed via Base Titanium, a subsidiary of BSE. The object of the project is for BSE to capitalise on a forecast sustained opportunity in the mineral sands market. A mineral sands market supply shortfall is slated by 2013, creating upward pressure on prices to motivate sufficient supply, as China is the new driver of world demand growth. Mineral sands include ilmenite, rutile and zircon – essentially the basis of “lifestyle products” via their primary end-uses. All three products are set to face a supply deficit in 2013 – ironically coinciding with the date of Kwale’s first production. Mineral sands demand growth is slated at around 3% per annum as part of a long-term trend. Quarter ramp-up Late last week BSE released its quarterly activities report for the three months of 2011. The quarter’s highlight was the updated JORC-compliant resource estimate of the Kwale project, which we had foreshadowed in our previous coverage of BSE. The miner made good progress on its Enhanced Definitive Feasibility Study (EDFS), which is on schedule to be completed next month. BSE has also made progress in attracting financing for the project, with a lead manager appointed to arrange a syndicated loan of $150 million and combined indicative commitment levels already reaching the $150 million threshold. Outlook BSE is working towards taking advantage of Chinese demand for mineral sands via Kwale, which has the full support of the local government and is close to existing infrastructure. Funding for the project is expected to be in place by the September quarter this year. Base Resource’s current timeline has the Kwale Project in production in mid-2013. This is the same year that a supply shortfall for mineral sands is forecast, creating upward pressure on prices to motivate sufficient supply. Click here for more Shares to Buy Tips.April 29, 2011
Shares to Buy Base Resources (BSE)
Base Resources (BSE) is an exploration company developing the world-class Kwale Mineral Sands Project in Kenya, East Africa. BSE also boasts a portfolio of early stage exploration projects in Western Australia’s Mid West region, with established targets for iron ore, gold, base metals and uranium. An updated and enhanced definitive feasibility study (DFS) for Kwale will be completed in the June quarter of 2011 with off-take and financing arrangements slated for the third quarter of 2011. BSE is looking strong on a forecast supply shortfall for mineral sands – including ilmenite, rutile and zircon – in 2013 – therefore it will be one of the stocks to watch over the medium term. In the same year Kwale will come into production and Base Resources is poised to meet this supply shortfall. The company released its Quarterly Activities Report at the end of last week, detailing its progress at its key projects. Kwale coup Kwale is an advanced and highly competitive project in a sector with a significant forecast supply shortfall widely expected to emerge in the medium term. The project enjoys a high level of support from the Government of Kenya and is located just 50km from Mombasa, Kenya’s principal port facility. Importantly, two pilot plant operations at Kwale provide confidence in processing behaviour and indicate a suite of readily marketable products. The project’s high value mineral assemblage and low stripping ratio result in a projected revenue to cash cost ratio that would place Kwale in the top quartile of world producers. Minerals sands supply Kwale is being developed via Base Titanium, a subsidiary of BSE. The object of the project is for BSE to capitalise on a forecast sustained opportunity in the mineral sands market. A mineral sands market supply shortfall is slated by 2013, creating upward pressure on prices to motivate sufficient supply, as China is the new driver of world demand growth. Mineral sands include ilmenite, rutile and zircon – essentially the basis of “lifestyle products” via their primary end-uses. All three products are set to face a supply deficit in 2013 – ironically coinciding with the date of Kwale’s first production. Mineral sands demand growth is slated at around 3% per annum as part of a long-term trend. Quarter ramp-up Late last week BSE released its quarterly activities report for the three months of 2011. The quarter’s highlight was the updated JORC-compliant resource estimate of the Kwale project, which we had foreshadowed in our previous coverage of BSE. The miner made good progress on its Enhanced Definitive Feasibility Study (EDFS), which is on schedule to be completed next month. BSE has also made progress in attracting financing for the project, with a lead manager appointed to arrange a syndicated loan of $150 million and combined indicative commitment levels already reaching the $150 million threshold. Outlook BSE is working towards taking advantage of Chinese demand for mineral sands via Kwale, which has the full support of the local government and is close to existing infrastructure. Funding for the project is expected to be in place by the September quarter this year. Base Resource’s current timeline has the Kwale Project in production in mid-2013. This is the same year that a supply shortfall for mineral sands is forecast, creating upward pressure on prices to motivate sufficient supply. Click here for more Shares to Buy Tips.
April 28, 2011
Shares to Sell Lynas Corporation (LYC)
Lynas Corporation (LYC) is involved in the exploration and development of rare earth minerals. LYC owns the richest deposit of Rare Earths in the world at Mt Weld (Western Australia), 35km south of Laverton in Western Australia. Mt Weld is also the world’s largest deposit outside China, with supply due to begin in 3Q11. LYC was one of the market’s shares to sell yesterday amid environmental concerns over its proposed rare earths plant in Malaysia. The Malaysian government said that it would hold off on issuing a license to Lynas Corporation until the panel it set up reports its finding in a month’s time. The plant is crucial for LYC as it looks to develop the rare earths extracted from its Mount Weld mine in WA. LYC shares slumped almost 10% yesterday, making it one of the worst performers in the Australian share market. Click for more Shares to Sell Tips.April 27, 2011
ASX Energy Stocks News Bandanna Energy (BND)
Bandanna Energy (BND) is the largest Australian thermal coal resource of any ASX listed explorer. The group’s market capitalisation of around $614 million places BND in the top 25% of ASX listed coal companies. The group is essentially an emerging coal explorer/developer which is positioned for significant growth. BND confirmed last week that it is currently looking for funding to help complete the development of its key assets. In a strategic review update released last Wednesday, BND said it would also be willing to consider external partners acquiring an interest in its assets. As such, it has invited non-indicative bids from a number of interested parties, with the bids due for submission by the close of business on 4 May, 2011. Bandanna Energy was one of the market’s hot stocks in the days leading to the update. Click for more FREE Stock Tips.April 21, 2011
New Investors and Traders Expo Dates in May!
Due to popular demand and recent success throughout Australasia, Australian Stock Report have released more dates for our Investors and Traders Expo. The Investors and Traders Expo is a multi-speaker daylong event hosted by Australian Stock Report, covering topics including; Technical & Fundamental Analysis, FX trading, CFDs, Options and Charting software The Expo will be the best value and most informative event for investors and traders looking to maximise their returns from the financial markets in 2011. This Trading Expo comes to Brisbane, Sydney, Melbourne & Perth during May, so make sure you come along! Expo Program: 08:30 Registration
09:00 Welcome and Introduction
09:10 The Science of the Markets (Part 1): Technical Analysis and FX Trading
10:00 How to Profit Safely from the CFD Revolution
10:50 Morning Tea (included)
11:15 Practical Fundamental Analysis Techniques
12:10 The Forex Trading Boom & How to Get Involved
13:00 Lunch (included)
14:00 Options as Part of a Comprehensive Investing Approach
14:45 Key Note Speaker's Presentation & Book Signing
16:00 The Science of the Markets (Part 2): Unleash the Power of MetaStock
17:00 Finish Places are limited so it is essential that you reserve your seat now. Tickets to the Investors and Traders Expo include lunch and an Expo-pack containing over $500 of included value. Entry to the Expo is a bargin at only $69.00, so what are you wating for? Click here for more.
Shares to Buy Wesfarmers (WES)
Wesfarmers (WES) is Australia’s leading conglomerate, headquartered in Perth, Western Australia. Since listing on the ASX in 1984, the company has recorded strong growth in assets and profits. Wesfarmers owns several iconic Australian businesses, including supermarket chain Coles, hardware retailer Bunning’s Warehouse, discount department stores Target and K-Mart, and office supplies provider Officeworks. WES also involves in industrials supplies distribution, coal mining, fertilisers, chemicals and general insurance. WES is also one of the market’s blue chip stocks and has been considered among the shares to buy for a number of years. WES reported its third quarter retails sales results today, with the results coming in above market expectations. Standout supermarkets The Coles business was the standout performer, with its Food and Liquor division sales growing by 7.1% and Convenience division sales increasing by 12.1%. These numbers beats its long term rival Woolworths (WOW) which only achieved 4.6% growth in its Australian Food and Liquor division. We believe Coles has been stealing market share from Woolworths over the past few months, on the back of its aggressive expansion and discounting strategy. Bunnings also delivered impressive results. The home improvement businesses grew its sales by 8.1%, also beating consensus estimates on the back of enhancements made to its customer offering and solid sales contribution from newly-opened stores. Officeworks also delivered positive growth despite challenging operating conditions and subdued spending from small businesses. The office supplies division achieved 3.5% growth. Target sales declined by 0.1%, due to the continued price deflation in general products, and lower volume of sales in electrical products. Target did manage to somewhat offset this by solid growth in apparel and homeware products. Kmart sales slightly disappointed, with revenue falling by 2.5% due to price cuts. The lower prices has helped Kmart to increase its overall sales volume and may help them to grow its market share, which we believe will benefit the business over the longer term. Shares not on sale WES is trading at 16.5 times FY11 earnings, which looks fairly valued at current price levels. If Coles continues to turn around and coal price remain solid, we do some further upside to WES’s valuation. WES could also unlock significant value if it can spin off some of its non-core business, with some analysts finally losing patience with the company’s trademark diverse earnings base. Some investors have argued that WES has grown too big and has lost some operating efficiency due to the distinctive nature of businesses they currently own. If WES spins off its fertiliser or general insurance businesses or its coal assets, it may help to unlock hidden value for WES shareholders. If these businesses were trading as standalone entities, they would undoubtedly attract greater takeover interest from domestic and international corporations. Click for more Shares to Buy.April 20, 2011
ASX Gold Shares News Newcrest Mining (NCM)
Newcrest Mining (ASX:NCM) is Australia’s largest gold producer, with mining and exploration projects in Australia, Papua New Guinea (PNG), Indonesia and the US. The miner also has a smaller exposure to copper, mostly as a by-product of its gold production. The company is also considered among the market’s blue chip stocks by virtue of its size and performance. Furthermore, due to its leverage to rising gold prices, NCM has been one of the hot stocks over the past month. NCM reported its latest quarterly production numbers yesterday. The results showed a 16% decline in gold output from the previous quarter. Gold output was hit by wet weather events in eastern Australia, low rainfall which hurt production at Lihir, and civil unrest in the Ivory Coast leading to the suspension of operations at Bonriko. As a result, NCM said cash costs for the quarter rose from $440 to $497 per ounce. Newcrest Mining also downgraded full year gold production guidance to 2.82 million ounces (plus or minus 35,000 ounces). This compares to previous guidance of between 2.85 million and 2.95 million ounces. Copper production guidance was left unchanged at 75,000 – 80,000 tonnes, with cash cost guidance also remaining the same. Click for more FREE Shares Tips.April 19, 2011
Blue Chip Stocks News Woolworths (WOW)
Woolworths (WOW) is primarily an Australian and New Zealand supermarket company, and is widely considered among the market’s blue chip stocks. WOW has branched our beyond its supermarket business and has built a massive empire which boasts an array of brand retailers and a heavy sprinkling of supermarkets throughout every major city in Australia. On 18 April, WOW reported a 5.1% increase in third quarter sales from a year earlier. The group also reaffirmed its full year guidance of 5% - 8% profit growth. WOW said that sales were impacted by continued price deflation as well as the recent natural disasters. The trading environment was likely to remain difficult due to a combination of lower consumer confidence, inflationary uncertainty, potential rate hikes and a stronger Australian dollar. For further FREE Woolworths Shares news and Blue Chip Stocks advice, click here.April 18, 2011
Top Shares NRW Holdings (NWH)
NRW Holdings (NWH) provides a diverse range of specialist services to Australia's mining and resources organisations. The group’s business units are split into four divisions: Civil, Mining, Action Mining Services and Action Drill & Blast. NWH has been one of the shares to buy since June last year, with its stock price more than tripling from those lows. Last week, NWH confirmed that it is on track to achieve an FY11 revenue target of at least $700 million. However, adverse weather has impacted productivity at a number of NWH’s sites. As a result, NWH expects FY11 net profit to be at the lower end of consensus estimates between $40 million and $45 million. In addition, NWH has announced a $70 million capital raising. The issue price of $2.74 is an approximately 4% discount to NWH’s closing price on 13 April. NWH said it would use the proceeds to moderate its gearing levels following the acquisition of plant and equipment from Comiskey Earthmoving. For more FREE Top Shares and NRW Holdings Advice, click here.April 15, 2011
Shares to Buy Medusa Mining (MML)
Medusa Mining (MML) is an Australian-based gold and copper miner, focused solely on operating in the Philippines. MML’s assets include the high grade, underground, narrow vein Co-O Gold Mine and the Lingig copper prospect. The miner has a 5-year, 2-phase growth path to production of 400,000 ounces per year underpinned by strong cash flow from the Co-O Mine. With total current resources of over 2 million ounces (oz) of gold, Medusa Mining is in prime position to become a prominent gold producer. The group is impressively debt-free and un-hedged, with long-term cash costs slated for around US$200 per ounce but currently sitting comfortably below this level. The company is also looking robust at present on an encouraging environment for gold, which has continued to linger around all-time highs. Key upside drivers MML’s board recently approved construction of a new Co-O plant with capacity to produce 200,000 oz per year. Surface drilling results from the Co-O have already yielded an exceptionally wide and high grade zone. Elsewhere in MML's large tenement holding, work is progressing on a number of prospects, including the Bananghilig deposit. A pipeline of deposits is now being established within the Bananghilig Deposit (650,000 ounces at 1.3 g/t gold), and planning is now underway to commence a pre-feasibility study drilling campaign in July this year. MML’s projects have excellent exploration upside, with high grade vein and disseminated bulk gold targets, plus six porphyry copper targets. Its current exploration budget for FY11 is US$21 million. Revised production for FY11 of 102,000 oz at cash costs of US$190 per oz would see MML become an extremely profitable miner. Gold price rally We expect gold and silver prices to remain strong, as many investors seek to hedge the market with precious metals such as silver and gold. Gold is currently at record highs with the trend likely to continue in the short to medium term. In fact, MML has been one of the hot stocks since August last year on surging bullion prices. Key upside drivers for the gold price include inflation fears and US dollar weakness. Gold is now well above US$1450 and looks poised for further gains. First half joy MML recently reported a record first half profit. EBITDA was up 101% to $63.3 million (from $31.5 million) on year. EPS nearly doubled to $0.31 based on a NPAT of US$58.1 million. Revenues increased 90% to a record US$78.3 million, due to increased gold production and a higher price received on sale of gold. Following the solid result, MML paid a maiden un-franked dividend of 5 cents on 8 November. The unhedged gold miner achieved an average gold price of US$1,291 per oz. Cash costs were marginally lower at US$186 per oz than the previous corresponding period’s costs of US$189 per oz. This is considerably lower than Australian based miners like NCM and OZL which have cash costs $400+ per oz. Looking ahead The Philippines presents a reasonably safe mining environment with plenty of government support. The region has an excellent mineralized structural framework with world class gold-copper deposits. There has been an abundance of discoveries in the area. MML has huge potential for long mine life at the Co-O Mine with a conceptual exploration target size of 3 to 7 million oz. The miner has a good history of production upgrades which presents significant upside, so it will be one of the stocks to watch in coming months. In a sign of balance sheet health, MML advised that it is debt free. With money in the bank and solid cash generation, the company can afford to ramp up production organically, or perhaps through an acquisition. For FREE Daily Shares to Buy Advice & Medusa Mining news, click here.April 14, 2011
Mining Shares News Rio Tinto (RIO)
Rio Tinto (ASX:RIO) is one of the world’s largest miners, mining and processing a wide range of metals and minerals including all the key base metals, precious metals, diamonds, iron ore and energy products. The miner is also widely considered among the market’s blue chip stocks. On 13 April RIO reported its first quarter production numbers. RIO said wet weather conditions impacted iron ore output, which fell 3% on-year during the quarter. Coal production was also affected by the flooding and cyclones. Hard coking coal output declined 12% from the 1Q10. Mined copper was 14% lower than the prior corresponding period, due primarily to lower grades at Escondida and Grasberg. For FREE Daily Mining Shares News and RIO Shares Advice, click here.April 13, 2011
ASX Materials Shares News Iluka Resources (ILU)
Iluka Resources (ILU) is a major participant in the global mineral sands sector and is involved in the production, sales and marketing of titanium mineral products (rutile, ilmenite, leucoxene and synthetic rutile) and zircon. ILU is the largest producer of zircon in the world, with an approximate market share of 34% and the second largest producer of titanium dioxide minerals with an approximate market share of 18%. It has been one of the shares to buy over the past year, with its stock price quadrupling since the beginning of 2010. On 13 April, ILU reported its latest quarterly production report. The group announced a 29.4% on-year increase in mineral sands production for the March 2011 quarter. Zircon and rutile production met or exceeded ILU’s internal expectations. Iluka Resources gave FY11 production guidance of approximately 500,000 tonnes of zircon and 250,000 tonnes of rutile. Revenue surged 51% from the March 2010 quarter, to $226.3 million, driven by stronger zircon demand, and a global supply shortage of titanium leading to higher selling prices. For more FREE ASX Materials Shares News & Iluka Resources Advice, click here.April 12, 2011
Woodside Petroleum (WPL) Shares Takeover News
Woodside Petroleum (WPL) is Australia’s largest oil and gas explorer and producer, and one of the world’s leading producers of liquefied natural gas (LNG). Based in Perth, WPL has major operational assets and exploration and development interests in five continents, but predominantly Australia and the United States WPL was involved in takeover speculation yesterday after BHP Billiton (ASX:BHP) was rumoured to be preparing a $47 billion takeover offer. News reports suggested that BHP would purchase Shell’s 34% stake, in WPL in return for giving up some of its assets, such as the Sunrise gas field. According to the reports, BHP would then make a formal offer for all of WPL’s shares once the stake is acquired. BHP and Woodside Petroleum denied the rumours and it is unclear whether the deal would receive regulatory approval. WA premier, Colin Burnett, immediately signalled his opposition to any bid. WPL has been one of the hot stocks in recent weeks, with its gains coming mostly on the BHP takeover rumours. For more FREE Woodside Petroleum Shares Takeover news and advice, click here.April 11, 2011
Australian Shares News Ten Network Holdings (TEN)
Ten Network Holdings (TEN) is a major media company with businesses in television and out-of-home advertising. Network Ten possesses a highly distinctive programming line-up which makes it the network of choice for viewers under 50, and is broadcast in standard definition digital and analogue. TEN was one of the shares to sell in February amid a worrying profit outlook. However, the stock has bounced back impressively from mid-March, making it one of the better performers in the Australian share market in recent weeks. On 7 April, TEN reported a 15.6% drop in 1H11 net profit to $49.5 million. Group EBITDA fell 9.8% on-year to $106 million despite a 2.2% growth in revenue to $484.2 million. Television revenue was 2.2% higher than the prior year, with the result weighed down by a poorly rating 2010 Delhi Commonwealth Games and a late launch of TEN's third digital channel. Acting CEO Lachlan Murdoch said the result was unacceptable and that the group would focus on controlling costs in order to turn around the company’s fortunes. For daily FREE Australian Shares News and TEN Shares Advice, click here.April 8, 2011
Stocks to Buy Kingsrose Mining (KRM)
[caption id="attachment_11536" align="alignleft" width="130" caption="ASX:KRM"]
[/caption] Kingsrose Mining (KRM) is a gold and silver exploration and development company with projects located in Australia and Indonesia. Its main project is the Way Linggo gold-silver project, which the company acquired in January 2009, and is currently in production. The project is located in Sumatra, Indonesia specialising in high grade, narrow vein underground mining. KRM’s new mill has been successfully commissioned and is now operating at 70%. Retro-fitting a SAG mill (by June 2011) will lift its capacity to 140,000 tpa. An aggressive exploration campaign is underway, with 6 surface diamond drill rigs and 1 underground diamond drill rig currently in place. Production rate for the March 2011 Quarter is expected to be in excess of 10,000oz of gold. KRM also has the SARNIC Project which is located in the south-western mineral province in Sardinia, Italy. With plenty of zinc, lead and silver in one of the largest historic mining districts in Europe, the project has plenty of potential. Quarterly update For the quarter ending 31 December 2010, cash costs fell to an average of US$342/oz as productivity increased. In December, cash costs fell to as low as US$150 per oz. The company managed to raise $13 million which allowed it to repay various outstanding loans. KRM finished the quarter with a closing cash balance and bullion of $20.096 million. For the quarter, KRM produced 6,918 oz of gold and 75,464 oz of silver. The increase in gold production was a function of a 25% increase in tonnes milled and a 29% rise in the reconciled gold head grade. An average gold price of $1,361 per oz was achieved and an average silver price of $26.88 per oz was received. Gold sales of US$6.8 million and silver sales of US$1.46 million were generated for the quarter. Half year numbers For the half ended 31 December, posted a loss of $1.33 million which was narrower than a loss of $3.21 million reported in the previous year. However, KRM posted a gross profit of $2.75 million which was a marked improvement from $154k reported in the previous year. During the period, KRM completed construction of the ore processing plant. Looking ahead The target is steady state production of 45,000 oz of gold per annum at US$150 per oz operating cost. Gold production for the March quarter should reach 10,000 oz. The mined grade in the March 2011 quarter is expected to average between 14-16 grams per tonne. We expect gold and silver prices to remain strong, as many investors seek to hedge the market with precious metals such as silver and gold. Silver’s wide industrial applications will also make it benefit from economic activities recovery. Gold and silver are currently at record highs with the trend likely to continue in the short to medium term. Gold closed at $1453 overnight and silver at $39.20. With KRM steadily improving production rate and reducing costs, it is on track to become a highly profitable miner and will be one of the stocks to watch in coming months. For more FREE Stocks to Buy & Kingrose Mining news, click here.
[/caption] Kingsrose Mining (KRM) is a gold and silver exploration and development company with projects located in Australia and Indonesia. Its main project is the Way Linggo gold-silver project, which the company acquired in January 2009, and is currently in production. The project is located in Sumatra, Indonesia specialising in high grade, narrow vein underground mining. KRM’s new mill has been successfully commissioned and is now operating at 70%. Retro-fitting a SAG mill (by June 2011) will lift its capacity to 140,000 tpa. An aggressive exploration campaign is underway, with 6 surface diamond drill rigs and 1 underground diamond drill rig currently in place. Production rate for the March 2011 Quarter is expected to be in excess of 10,000oz of gold. KRM also has the SARNIC Project which is located in the south-western mineral province in Sardinia, Italy. With plenty of zinc, lead and silver in one of the largest historic mining districts in Europe, the project has plenty of potential. Quarterly update For the quarter ending 31 December 2010, cash costs fell to an average of US$342/oz as productivity increased. In December, cash costs fell to as low as US$150 per oz. The company managed to raise $13 million which allowed it to repay various outstanding loans. KRM finished the quarter with a closing cash balance and bullion of $20.096 million. For the quarter, KRM produced 6,918 oz of gold and 75,464 oz of silver. The increase in gold production was a function of a 25% increase in tonnes milled and a 29% rise in the reconciled gold head grade. An average gold price of $1,361 per oz was achieved and an average silver price of $26.88 per oz was received. Gold sales of US$6.8 million and silver sales of US$1.46 million were generated for the quarter. Half year numbers For the half ended 31 December, posted a loss of $1.33 million which was narrower than a loss of $3.21 million reported in the previous year. However, KRM posted a gross profit of $2.75 million which was a marked improvement from $154k reported in the previous year. During the period, KRM completed construction of the ore processing plant. Looking ahead The target is steady state production of 45,000 oz of gold per annum at US$150 per oz operating cost. Gold production for the March quarter should reach 10,000 oz. The mined grade in the March 2011 quarter is expected to average between 14-16 grams per tonne. We expect gold and silver prices to remain strong, as many investors seek to hedge the market with precious metals such as silver and gold. Silver’s wide industrial applications will also make it benefit from economic activities recovery. Gold and silver are currently at record highs with the trend likely to continue in the short to medium term. Gold closed at $1453 overnight and silver at $39.20. With KRM steadily improving production rate and reducing costs, it is on track to become a highly profitable miner and will be one of the stocks to watch in coming months. For more FREE Stocks to Buy & Kingrose Mining news, click here.April 7, 2011
Buy Shares Fletcher Building Limited (FBU)
Fletcher Building Limited (FBU) is a leading property construction and building products provider listed in New Zealand, it is currently the largest listed company across the Tasman. FBU operates in five separate divisions, building products, steel, laminates & panels, infrastructure and distribution. Rebuilding effort The city of Christchurch in New Zealand was struck by a 6.3 magnitude earthquake on 22 February, causing widespread damage and caused the deaths of over 160 people. The impact of the quake was exacerbated by the effects of an earthquake that had struck the city six months earlier. The damage from the quake (based on cost to the insurance industry) is estimated at around $12 billion, and will require significant rebuilding efforts. Fletcher Building, as the dominant construction company in New Zealand will play a major part in the recovery. Takeover battle In November FBU launched a takeover offer for embattled pipeline and plumbing supplier Crane group (CRG). The bid was rejected, and Fletcher Building launched a revised bid in January this year, of $3.50 in cash and one FBU share per CRG share. This revised bid was endorsed by CRG’s board, which led to most CRG shareholders accepting the offer. Fletcher has just moved to compulsory acquisition stage, which will see it mop up the remaining shares in CRG that it hasn’t received acceptances for. We expect Fletcher Building to benefit from significant synergies from the CRG takeover, given its unique market positioning and cross-selling opportunities to be created for the combined group. FBU acquired CRG at a very reasonable price and as a result, we expect the deal to create significant long term value for shareholders. FBU will be one of the stocks to watch in coming months. For further FREE Buy Shares and Fletcher Building News, click here.April 5, 2011
Hot Shares Equinox Minerals (EQN)
Equinox Minerals (EQN) is an international mining company that is dual listed in Canada and Australia, focused primarily on copper but with some small exposure to other resources (such as uranium and gold). EQN boasts operations in Western Australia and Peru but the company's main project is the development of its 100%-owned Lumwana Project (Zambia), one of the largest new copper mines to be developed globally over the last decade. On 4 April, EQN received a takeover offer from Hong-Kong based Minmetals. The $6.99 per share offer represents a 33% premium to the 20 day trade value weighted average price of EQN’s shares. The all-cash bid is conditional on EQN terminating its proposed offer for Canadian-based Lundin Mining. EQN was one of the hot shares in the day’s share market action, surging almost 30% on the news. For further FREE Hot Shares & Equinox Minerals Shares advice, click here.April 4, 2011
Best Shares Biota Holdings (BTA)
Biota Holdings (BTA) is an Australian based, anti-infective drug development company. The group specialises in the discovery and development of pharmaceuticals, focusing on research for the treatment of viral respiratory diseases, particularly influenza (flu). It was one of the shares to sell from mid-February following a disappointing half year result. However, BTA surged on Friday after it was awarded a US$231 million contract for the advanced development of its laninamivir drug. Laninamivir is an influenza antiviral, which offers the ability to treat an influenza infection. The contract will be fully funded over five years and is dependent on Biota Holdings achieving key milestones throughout the period. BTA rocketed over 35% following the announcement, making it the best performer in the Australian share market. For FREE Best Shares and Biota Holdings advice, click here.April 1, 2011
Stocks to Watch Prima BioMed (PRR)
Prima BioMed (PRR) is a biotechnology company focused on cancer immunotherapy, which stimulates the body’s own immune system to attack tumours. Its lead product is the CVac ovarian cancer immune therapeutic or known as therapeutic cancer vaccine. CVac has completed two successful clinical trials and is progressing toward eventual commercialisation in the US, Australia, Europe, and globally. This product is a maintenance therapy for patients with ovarian cancer administered post surgery and post chemotherapy to delay relapse and control metastases. The company’s strategy is to commercialise CVac into the multi-billion dollar global oncology therapeutic market. PRR has other products in the development pipeline like the Oral HPV vaccine created using dense gas technology. PRR plans to list on the Nasdaq Global Market in the United States. Subject to approval, the company will have a dual listing of its securities on both the ASX and Nasdaq. PRR has also been one of the hot stocks recently, with its share price surging more than 50% in the past few weeks. Projects progressing CVac results from phase I and phase IIa trials have been very promising. It has also been evaluated for a registration study in breast cancer. The global market size for ovarian cancer is estimated to grow to US$3.6 billion in the near future. CVac would be the first of its type in the market and would and would initially aim to take a conservative 10%-25% of the ovarian cancer treatment market. A conservative 10% market share equates to approximately US$360 million per annum. CVac also has potential indications in several additional cancers. Trial for ovarian cancer patients in remission is planned to commence by third quarter 2011. Financials Being in infancy, PRR’s financial record is yet to gain traction. The company recently announced the appointment of Ian Bangs as its new CFO to bolster its financial affairs. For the half ended 31 December, PRR reported a marked increase in revenue to $0.51 million. The company also saw its net loss narrow to $6.9 million (from $7.9 million) on year. With PRR progressing rapidly to commercialisation of world’s first ovarian cancer vaccine, we feel this result will be turned around soon. PRR is well funded with $40 million committed for current work. Looking ahead PRR’s CVac addresses a major global unmet medical need. The company has top tier scientific advisors and project managers with a track record of successful commercialisation. Its long term goal is to develop commercial cancer treatment technologies and programs for global markets. Successful results will see Prima BioMed capture a significant share of the multibillion dollar cancer vaccine market. Trials indicate CVac is a strong candidate for treatment of ovarian cancer patients in remission. Success will provide considerable investment return over the next 2 to 3 years therefore PRR will be one of the stocks to watch. For futher FREE stocks to watch and Prima BioMed advice, click here.
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