Tempus Resources Ltd
TMR Details
This report is an updated version of the report published on 17 May 2022 at 3:12 PM GMT.
Q3FY22 Highlights: Tempus Resources Ltd (ASX: TMR) is engaged in mineral exploration in Canada and Ecuador. During the quarter ended March 2022, the company started a large-scale soil sampling program at its Valle Del Tigre Project in Ecuador. It received assays from Blue Vein drilling at Elizabeth Project, which was finished in October 2021.
- TMR announced a Canadian non-brokered private placement of up to C$1,000,000 for the sale of units at a price of C$0.07 per unit.
- TMR closed the quarter with a cash balance of $1,527,000 as compared to $2,474,000 as of 31 December 2021.
Cash Balance (Source: Analysis by Kalkine Group)
Key Risks: The company is exposed to risks arising from the adverse movement in the prices of commodities. In addition, the business could also be affected by the change in the climate.
Outlook: Looking forward, the company would be focused on the expansion of the mineral resource for the project and its 2023 Elizabeth drill program would include ~30 drill holes.
Stock Recommendation: The stock of TMR is trading near its 52-week low level of $0.067, offering a decent opportunity for accumulation. The stock has been corrected by ~20.83% in the past month. Considering the virtual debt-free position, commencement of soil sampling, private placement, decent outlook, current trading levels, technical factors mentioned below, and key risks associated with the business, we recommend a ‘Speculative Buy’ rating on the stock at the current market price of $0.070, as on 17 May 2022. 10:30 AM (GMT+10), Sydney, Eastern Australia.
Technical Commentary: TMR price came down significantly from the higher levels and made an all-time low level of AUD 0.067. However, prices are currently getting support of the downward sloping trend line that indicates prices are likely to move up in the coming sessions. There is a positive RSI divergence with price clearly visible on a weekly chart that further indicates that also support our bullish stance. RSI (14-period) is trying to move up from oversold region at ~32.794 level on a daily chart that further indicates that prices are getting bullish momentum. Immediate support levels are AUD 0.063 and AUD 0.057 while key resistance levels are AUD 0.084 and AUD 0.096.
Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
TMR Daily Technical Chart, Data 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 analysis has been achieved and subject to the factors discussed above alongside support levels provided.
Technical Indicators Defined: -
Support: A level where-in stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in stock prices tend to find resistance when they are rising, and a uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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