This report is an updated version of the report published on the 16 May 2023 at 2:35 PM GMT+10.
Section 1: Company Overview and Fundamentals Insights
1.1 Company Overview: Metals X Limited (ASX: MLX) is a tin producer based in Australia and is primarily engaged in operation of tin mines, exploration and development of base metals projects in Australia. The company owns approximately 50% equity interest in the Renison Tin Operation through its equity ownership in the Bluestone Mines Tasmania Joint Venture. The nickel division of Metals X consists of its ownership of nickel assets in the Central Musgrave Project, which straddles the triple-point of the Western Australia, Northern Territory and South Australia borders. Kalkine’s Growth Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.
1.2 The Key Positives, Negatives, Investment Highlights, and Risks
1.3 Top 10 Shareholders:
The top 10 shareholders together form ~43.35% of the total shareholding. APAC Resources Ltd and Old Peak Ltd. are holding maximum stakes in the company at ~19.80% and ~9.73%, respectively.
1.4 Key Metrics: In FY22, underlying EBITDA jumped 144% YoY. Below is captured other metrics showing the trend of EBITDA and net income over the past five years:
Section 2: Business Updates, Financial and Operational Highlights
2.1 Recent Business Updates:
2.2 Results Highlights: Below mentioned are some key financial highlights:
2.3 Historical Financial Trend
Section 3: Key Risks and Outlook:
Section 4: Stock Recommendation Summary
4.1 Price Performance and Technical Summary
The stock price has plunged by ~14% in last 1 month and over the last 6 months, stock price has decreased by ~16%. The stock has a 52-week low and 52-week high of AUD 0.240 and AUD 0.530, respectively, and is currently trading close to the 52-week low-levels.
(Source: REFINITIV, Analysis by Kalkine Group)
4.2 Technical Commentary
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is neither an indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 16 May 2023. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: Dividend Yield may vary as per the stock price movement.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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