Two stocks rocketing up — Western Areas Ltd and South32 Ltd

Focusing on costs to withstand the nickel prices volatility: Western Areas Ltd (ASX: WSA) stock surged over 7.8% on October 28, 2016 partly driven by recovering sentiments. The group reported positive cash flow even during weak nickel prices period. Western Areas is also focusing on costs to withstand the nickel price environment volatility. Cash Costs before smelting/refining fell to $2.26/tn during the year from $2.31/tn in the prior corresponding period. The group also enhanced their flexibility via capital raising of $75 million during FY16 while deferred $34 million of capital costs from FY16 to FY17. As a result, Western Areas has $76 million in cash at bank and zero debt by FY16 period end. The group continues their efforts on development of Cosmos and has continued their exploration at both Cosmos and Western Gawler region. The group will hold its AGM on November 24, 2016. WSA stock corrected over 14.4% in the last four weeks (as of October 26, 2016).

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