Market Update & Important Indicators
Stocks dropped Monday, but pared their steepest losses by the afternoon, following the latest setback in bailout talks between Greece and its European creditors. The Dow Jones Industrial Average lost 108 points, or 0.6%, to 17,791, after shedding as much as 200 points earlier in the session. The S&P 500 index lost 10 points, or 0.5%, to 2,084.
In Europe the Stoxx Europe 600 index ended the session off 1.6%, led lower by a 4.7% slide on Athens main index. The falls came after European officials Sunday dismissed the Greek government's latest proposals, describing them as “vague and repetitive”. Last week the International Monetary Fund pulled out of the Greek bailout talks, citing lack of progress, which had made markets jittery.
Stocks across Asia fell Monday as pressures from elsewhere in the world weighed on markets from Hong Kong to Japan. Hong Kong's Hang Seng Index fell 1.5%, while Japan, Australia and Korea edged lower. The Nikkei Stock Average finished down 0.1%, its seventh loss in 10 days. In China, investors were factoring in Beijing's ruling Friday on margin financing, a practice that has driven the Shanghai index up nearly 60% this year. The benchmark finished down 2% Monday.
Base metals were weaker on the LME overnight, with copper down 1.8% and nickel off 1.4%. Brent crude finished higher, up 1.2% to $63.88/bbl. Gold also gained, climbing 0.4% to $1,186/oz.
In This Issue
Troy Resources (TRY)
With the commissioning of the high grade Karouni mine imminent, a high impact, A$12m exploration program commencing in the coming months and the balance sheet strengthened, the recent share price depreciation and the upcoming reweighting of the Van Eck’s GDXJ index (expected 19th June) presents a buying opportunity. Commissioning and operating risks during the ramp up period are significantly lowered with the high grade and robustness of the Reserve. In addition, a sound balance sheet and recently improved repayment schedule further reduces the risks. The stock is too cheap to ignore, trading on a Fully Funded (FF) EV at <2.5x FCF from Karouni alone, and compares favourably with peers on a relative FF EV / production basis.
Argonaut’s Stock Coverage & Recommendations
Recent Contacts & Presentations
Pacific Energy (PEA), Orbital (OEC), Peet (PPC), Alexium (AJX), Austal (ASB), Empired (EPD), Rewardle (RXH), Saracen (SAR), Kibaran (KNL), Sino Gas & Energy (SEH), Dacian (DCN), Saracen (SAR), Fertoz (FTZ), Atrum (ATU), Doray (DRM), Buru Energy (BRU), Carnarvon Energy (CVN), Otto Energy (OEL), Empire Oil & Gas (EGO), Pura Vida Energy NL (PVD), MZI Resources (MZI), High Peak Royalties (HPR)
Please read Argonaut's Important Disclaimers & disclosures
Log in to the client area below to download the full Morning Note PDF