Lepidico Limited (ASX: LPD)
LPD was incorporated in 1979 and is involved in exploration and development of minerals. It owns clean-technology (L-Max®) and uses non-conventional sources in metallurgical processes to produce lithium carbonate like - lithium-rich mica minerals including lepidolite and zinnwaldite. It has its projects in Australia, Canada and Portugal. As on 24th November 2021, the market capitalization of the company stood at AUD 286.08 million.
Financial & Operational Updates – On 11th November 2021, LPD presented clarity on the wrong email sent by the name of LPD having multiple inaccuracies and without being reviewed by the Management, resulting in trading halt for 10th November. As per the Quarterly Update on 27th October 2021, it lodged for the provisional patent to manufacture Cs-Rb-K catalyst compounds from lithium mica minerals. Selection of the long lead packages (two) were completed for Front End Engineering and Design (FEED) - for Karibib concentrator, and other works is scheduled to be completed by December 2021.
Its sales receipts for 1QFY22 were reported as Nil and closed the quarter with a cash balance of ~AUD 11.9 million at the end of 30th September 2021 (with no debt) versus ~AUD 14.74 million at the end of 30th June 2021. As per the Annual Year Report released on 18th October 2021, other income was reported as ~AUD 4.14 million in FY21 versus ~AUD 63.56k in FY20. It converted its Net Losses after Taxes of ~AUD 10.12 million in FY20 to the Net Profits after tax of ~AUD 0.28 million for FY21.
Technical Analysis: LPD stock price witnessed a robust rally from the low of AUD 0.026 to a 52-week high of AUD 0.054 tested on November 09, 2021. Moreover, the momentum oscillator RSI (14-period) is trading in an overbought zone at (~70.99 level) and formed negative divergence on the weekly chart, which indicates the possibility of a downside correction from the higher levels. However, the prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, which may act as crucial support zone. An immediate support level for the stock is at AUD 0.042 while immediate resistance level is AUD 0.052.
After considering its current higher trading levels, RSI negative divergence and nil core revenues for 1QFY22, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.047 per share, up by ~2.173% as of 24th November 2021.
Weekly Technical Chart – LPD
Source: REFINITIV
Calima Energy Limited (ASX: CE1)
CE1 was incorporated in 2005 and is involved in exploration and development of oil and natural gas assets in the Sedimentary Basin of Western Canadian. It currently holds market capitalization at AUD 105.38 million as of 24th November 2021.
Financial and Operational Updates: On 17th November 2021, it commenced its production at all three wells (16-5 oil battery facilities) at Thorsby Alberta – owned by Blackspur. As per the Quarterly Activities Report on 29th October 2021, it produced ~302,653 boe (gross) of oil and natural gas averaging at 3,290 boe/d.
It had reported ~AUD 17.8 million of sales with adjusted EBITDA of ~AUD 8.4 million for the 3QFY21 versus YTD sales of ~AUD 28.1 million and adjusted EBITDA of ~AUD 12.3 million. For 2022, CE1 plans to invest ~C$ 35 million in the development of the Brooks and Thorsby oil assets. It closed the September 2021 quarter with a cash balance of ~AUD 1.92 million at the end of 30th September 2021 versus ~AUD 2.24 million at the end of 30th June 2021. On 25th October 2021, it expressed the intent to spend ~30% of its free cashflow to shareholders from 2022. As per Half Yearly Report, total revenue reported was ~AUD 8.26 million with Net Profit after Taxes reported as ~AUD 10.04 million in 1HFY21.
Technical Analysis: CE1’s prices are trading in an ascending channel pattern between 0.180 to 0.275 since past few weeks and is broadly moving along with the 50-period SMA and 21-period SMA. The momentum oscillator RSI (14-period) is trading in a moderate range at ~49.448 level lacks a signal and indicates a directionless movement. The crucial support and resistance points are AUD 0.175 and AUD 0.223, respectively.
The possible directionless movement in near future suggests the scrip as a ‘Watch’. The stock was analysed as per the closing price of AUD 0.200 per share, down by ~2.440%, as of 24th November 2021.
Weekly Technical Chart – CE1
Source: REFINITIV
Infinity Lithium Corporation Limited (ASX: INF)
INF was founded in 2010, it is engaged in producing battery-grade lithium chemicals from a mica feedstock at its 75% owned San Jose Lithium project in Spain. Its market capitalization stood at AUD 78.44 million as of 24th November 2021.
Financial and Operational Updates: As per the update on 18th November 2021, it has incorporated Infinity GreenTech Pty Ltd and lodged provisional patent applications, to develop sustainable and novel lithium hydrometallurgical conversion processes. As per the update on 15th November 2021, it completed its Tranche 2 payment of € 0.20 million with respect to San Jose Lithium Project in partnership with EIT InnoEnergy and Dorfner Anzaplan.
As per the Quarterly Activities Report on 29th October 2021, its sales receipts for 1QFY22 were reported as Nil and closed the quarter with a cash balance of ~AUD 18.62 million at the end of 30th September 2021 versus ~AUD 19.13 million at the end of 30th June 2021. It confirmed its first production of battery-grade lithium hydroxide monohydrate and lithium carbonate (Phase I) with the partners in Germany. To integrate National Value Chain (including Lithium extraction and processing), Federal Government has committed COVID-19 recovery funds of total € 4.3 billion. As per Annual Report, it converted its Net losses after tax of ~AUD 1.89 million for FY20 to Net Profits after Tax of ~AUD 2.46 million in FY21, with an increase in revenue to ~AUD 0.26 million in FY21.
Technical Analysis: On the weekly chart, INF has started to correct from higher levels after making a high of AUD 0.250 on November 15, 2021; however, trading above 21-period SMA and 50-period SMA. The momentum oscillator RSI (14-period) has reversed from an overbought zone and is now placed at ~57.627 levels, indicating a loss in the upside momentum and supporting a downside direction for the short-term. The crucial support level for the stock is placed at AUD 0.155, while the key resistance is at AUD 0.210.
Due to lack of cash receipts from customers in 1QFY22 and its expected downside movement, it is prudent to suggest the scrip as a ‘Watch’. The stock was analysed as per the closing price of AUD 0.185 per share, down by ~2.632%, as of 24th November 2021.
Weekly Technical Chart – INF
Source: REFINITIV
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.
Technical Indicators Defined: -
Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.
The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period, then it shows prices are currently trading in a bullish trend, (Vice – Versa).
The Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 50-period, then it shows prices are currently trading in a bullish trend, (Vice – Versa).
The Yellow colour line represents the Trendline.
The Purple colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.
Disclosure: Calima Energy Limited (Company) is a client of Kalkine Media Pty Ltd (Kalkine Media), an affiliate of Kalkine. However, under no circumstances have Kalkine or its related entities been, directly or indirectly influenced in making any related insights concerning Company as contained in this report, and no form of compensation is or will be received by Kalkine, Kalkine Media or Kalkine’s other related entities for the publication of this report.
Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.
Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.
There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.
You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.
The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.
Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.
Please also read our Terms & Conditions and Financial Services Guide for further information.
On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website.
Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.