KGL Resources Limited (ASX: KGL)
KGL was founded in 1998 which is involved in mineral exploration and development. Its main project is Jervois Copper Project in the Northern Territory. Its market capitalization stood at AUD 278.54 million as of 11th November 2021.
Financial and Operational Updates: As per the Announcement on 10th November 2021 related to Rockface North lode, massive high-grades sulphides were confirmed in Copper and Silver assays. New intersection of sulphides extended the high-grade zone by 40 m and four massive intercepts increased by 85 m. On 4th November 2021, ~35% - ~40% sulphide minerals were estimated at Rockface. As per Quarterly Update on 29th October 2021, feasibility study for Jervois Copper Mine Project completed and drilling continued. Its sales receipts for 3QFY22 were reported as ~AUD 549k and cash balance at the end of 30th September 2021 was reported at ~AUD 18.06 million versus ~AUD 25.02 million at the end of 30th June 2021. On 21st October 2021 update at Bellbird Mineral Resource, 25 holes intersected reportable copper from 26 drillholes. On 15th October 2021, Ms Fiona Murdoch resigned from the board of directors. On 12th of October 2021, Paradice Investment Management Pty Ltd increased its substantial shareholding from ~6.352% to ~7.529%. Visual estimates of 90% copper sulphides (3.02m true thickness) were found at Jervois.
Technical Analysis: KGL stock prices are trading above the rising trend line support zone at AUD 0.52 and continuously taking support of the same on the weekly chart. Moreover, the momentum oscillator RSI (14-period) is trading at 57.63 levels, indicating bullish momentum. Prices are trading above 21-period SMA and 50-period which may act as a crucial support level for the stock. An important support level for the stock, is placed at AUD 0.63 while the key resistance level is placed at AUD 0.82.
After considering the recent anomalies and its current price levels, the investors with a high-risk appetite might consider a ‘Speculative Buy’ stance for the scrip along with incorporating the support and resistance as one of the tools while analysing the investment opportunity. The stock was analysed as per the current price of AUD 0.69 per share, 11:57 AM (GMT+10), Sydney, Eastern Australia, as of 11th November 2021. However, the risk levels are extremely high in view of the prospective findings, its development and related saleability.
Weekly Technical Chart – KGL
Source: REFINITIV
Vanadium Resources Limited (ASX: VR8)
VR8 operates Steelpoortdrift Vanadium Project in South Africa. Other project Quartz Bore Project is in Western Australia. Its market capitalization stood at AUD 34.13 million as of 11th November 2021.
Financial and Operational Updates: As per the Quarterly Update on 28th October 2021, the company completed strategic placement of AUD 4.6 million at AU 0.104c per share. In order to develop Photovoltaic Solar Energy Supply solution, it’s associate Vanadium Resource (Pty) Ltd entered into a Joint Development Agreement with Senergy Africa. Steelpoortdrift’s maiden Ore Reserve estimate was declared and the total expenses of AUD 0.18 million were spent during the Quarter. Its sales receipts for 1QFY22 were reported as nil and cash balance at the end of 30th September 2021 was reported at ~AUD 1.45 million versus ~AUD 1.80 million at the end of 30th June 2021. In the month of October, AMA Casa Props 122 Proprietary Ltd (from 7.75% to 5.90%), Kumane Investments Pty Ltd (from 12.78% to 9.72%), Raubex Group Ltd (from Nil to 9.56%), Danterne Pty Ltd (from 12.78% to 9.72%) and Faldi Ismail and Associated Entities (to Nil) changed their substantial shareholding. As per the Annual Report released on 29th September 2021, the revenue from operations dropped from ~AUD 524 in FY20 to ~AUD 65 in FY21. The net losses after tax reduced to ~AUD 0.58 million for FY21 as against ~AUD 2.86 million in FY20.
Technical Analysis: On a weekly chart, VR8's prices are sustaining above an upward sloping trend line and trend following indicators 21-period SMA and 50-period SMA, indicating an upward trend for the stock. The RSI (14-period) is trading above mid-point and currently trading at ~57.10 levels, further supporting a positive bias. Now an important resistance level for the stock is placed at 0.082, while support is at 0.061 level.
Along with the recent strategic placement and agreement related to Photovoltaic Solar Energy Supply solution and its current price levels suggest the investors with a high-risk appetite a ‘Speculative Buy’ stance along with incorporating the support and resistance as one of the tools while analysing the investment opportunity. The stock was analysed as per the current price of AUD 0.070 per share, 12:33 PM (GMT+10), Sydney, Eastern Australia, as of 11th November 2021. However, the risk levels are extremely high in view of the prospective findings, its development and related saleability.
Weekly Technical Chart – VR8
Source: REFINITIV
Magnis Energy Technologies Limited (ASX: MNS)
Incorporated in 2005, having three major segments as battery technologies, giga factories and graphite, MNS is a lithium-ion battery cells producer. Its market capitalization stood at AUD 594.83 million as of 11th November 2021.
Financial & Operational Updates – As per the Annual Report released on 1st November 2021, the total income decreased from ~AUD 0.85 million in FY20 to ~AUD 0.62 million in FY21. Its Net losses after tax increased more than twice and recorded as ~AUD 16.26 million for FY21 as against ~AUD 7.37 million in FY20. Cash balance at the end of 30th September 2021 was reported as AUD 87.93 million, which increased substantially on PcP basis from ~AUD 72.89 million at the end of 30th June 2021, due to the funding of ~AUD 69.32 million by iM3NY. The funds are likely to be deployed in the 1.8GWh Lithium-Ion Battery Plant (LIB) operated by Imperium3 New York Inc (iM3NY), major shareholding by MNS. Moreover, as stated in the Quarter Report on 28th October 2021, it raised funding of AUD 20 million from two US institutions: The Lind Partners and SBC Global Investment Fund. As per the announcement on 20th October 2021, NY LIB Plant got ~33% completed and received Air and Aquifer Permit.
Technical Analysis: MNS stock price witnessed a robust rally from the low of AUD 0.37 to a high of AUD 0.755 tested on November 09, 2021. Currently, prices are facing the resistance of horizontal trendline at AUD 0.76 and prices are sustaining below the trend line resistance level. Moreover, the momentum oscillator RSI (14-period) is trading in an overbought zone at (~79.50 level) indicating the possibility of a downside correction from the higher levels. However, the prices are trading above the trend-following indicators 21-perid and 50-period SMA which may act as a crucial support level for the prices. The important for the support levels stock is placed at AUD 0.630 while resistance level is at AUD 0.76.
A ‘Watch’ stance is suggested after considering its double folded increase in Net Losses, the current higher RSI levels and the formation of negative divergence. The stock was analysed as per the closing price of AUD 0.685 per share, up by ~7.031%, as of 11th November 2021.
Weekly Technical Chart – MNS
Source: REFINITIV
Ionic Rare Earths Limited (ASX: IXR)
Found in 1998, IXR is a mineral mining and exploration company having its flagship project as Makuutu Rare Earths Project, which consists of five licenses. Its market capitalization stood at AUD 132.30 million as of 11th November 2021.
Financial and Operational Updates: As per the recent Quarterly Report published on 29th October 2021, Cash and cash equivalents status at the end of 30th September 2021 was ~AUD 9.51 million versus as ~AUD 11.05 million at the end of 30th June 2021. With the completion of Phase 4 drilling program at Makuutu Rare Earths Project, IXR got a new North-Western tenement Exploration License 00257 and its Exploration License 1766 got approved to Retention License 00234 by Ugandan DGSM. On 26th October 2021, rare earth bearing clays’ presence was found, along with the License increasing the area by ~300 km2. As per the Annual Report, The Net Losses reported for the FY21 was ~AUD 2.37 million as compared to ~AUD 1.48 million in FY20, mainly contributed by increase in administrative expenses as ~AUD 0.50 million in FY21 to ~AUD 0.21 million in FY20.
Technical Analysis: Though, IXR’s prices are trading in an ascending channel pattern and consolidating in the present range between AUD 0.037 to AUD 0.045. Prices are moving above the trend-following indicators 21-period SMA and 50-period SMA on the weekly chart. Moreover, the momentum oscillator RSI (14-period) is trading in a moderate range at ~57.917, showing indecision in the stock. The important for the support levels stock is placed at AUD 0.037 and AUD 0.033 while resistance level is at AUD 0.045 and AUD 0.056.
It is prudent to suggest A ‘Watch’ stance, after considering its current consolidation phase and increase in Net Losses during FY21. The stock was analysed as per the closing price of AUD 0.0400 per share, up by ~2.564% as of 11th November 2021.
Weekly Technical Chart – IXR
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 reflects the Trendline, which shows whether the direction of the scrip is upwards or downwards.
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.
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