Dundas Minerals Limited (ASX: DUN)

Dundas Minerals Limited is engaged in the exploration of gold, nickel, and copper. It operates the Dundas project and the Triton project in Western Australia.  

In a latest update, DUN issued ~30.09 million shares on 25 February 2022 (options to be listed under the code ASX: DUNO). These shares were issued as part of a deal previously declared to the market.

Operations & Financials in 1HFY22:

• DUN recently received the exploration licence (E) 63/2124 for nine of twelve tenements on the Dundas project from the Department of Mines, Industry Regulation and Safety (DMIRS). It has initiated an airborne magnetic and radiometric survey at the Dundas project in February 2022 and finished an inaugural drilling program at the Kokoda gold prospect and the Jumbuck nickel prospect on 6 February 2022. DUN expects to receive most of the assays from the exploration program in March 2022.
• DUN shares started trading on ASX on 12 November 2021, post-IPO completion of ~30 million new shares at $0.20 per share to raise up to ~$6 million.
• The net loss after tax rose to ~$462,354 in 1HFY22 versus ~$377,166 in 2HFY21.
• DUN held ~$5.173 million cash and cash equivalents as of 31 December 2021 versus ~$897K as of 30 June 2021. The total current assets improved to ~$5.342 million as of 31 December 2021 compared to ~$1.010 million as of 30 June 2021.

Technical Analysis: DUN price broke the descending channel pattern by downside indicating a weak price trend. Prices are also trading below their 21-period and 50-period SMA on a daily chart that also shows weakness in the stock prices. RSI (14-period) is hovering at ~38.11 indicating weak price momentum. Immediate support levels are AUD 0.14 and AUD 0.13 while immediate resistance levels are AUD 0.155 and AUD 0.185.

After considering the company’s current technical levels and ongoing early-stage project exploration, investing in this stock at current levels must be considered with a careful approach, hence it's suggested to ‘Watch’ and re-evaluate the stock once the prices approach the support & resistance levels. The stock was analyzed as per the closing price of AUD 0.150 per share, up by ~3.448%, as of 1^st March 2022. Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Daily Technical Chart – DUN

Source: REFINITIV

Xantippe Resources Limited (ASX: XTC)

Xantippe Resources Limited (ASX: XTC) is engaged in exploration activities in Southern Cross, Western Australia, and South Korea. As of 1 March 2022, the company’s market capitalisation stood at AUD ~42.19 million.

Acquisition of Carachi Pampa Lithium Project:

• Trading Suspension: On 25 February 2022, ASX announced that the suspension of trading of the XTC securities will be removed post the company’s news update regarding the recent acquisition and capital raising. XTC had requested for a trading halt on 22 February 2022 and were suspended from trading on 24 February 2022.
• XTC has recently acquired rights to purchase all the shares in Carolina Lithium Pty Ltd by entering an option agreement with the shareholders of Carolina Lithium Pty Limited. It has now obtained rights to acquire a four-tenements package under the Carachi Pampa lithium project via the purchase of the Luz Maria tenement in Catamarca, Argentina. XTC plans to undertake exploration after completing phase I due diligence.
• Capital Raising: XTC has secured commitments to raise ~$15.22 million from domestic and overseas institutions. It proposes to issue ~1.522 billion shares at ~$0.01 per share along-with a 1-for 2 attaching option on 14 April 2022. ~262.0 million placement shares will be issued post seeking shareholder approval at a general meeting. The funds are being raised in a due diligence exercise to acquire the Carachi Pampa project, undertake exploration, potential new acquisitions, and working capital.

Q2FY22 (Ended 31 December 2021) Results:

• In Q2FY22, XTC commenced discussions with a Korean institution for partnering and developing work on the prospects & costs of DLE (Direct Lithium Exchange) technology.
• XTC incurred ~$516k of negative cashflows and held ~$1.480k cash and cash equivalents as of 31 December 2021.
• After the close of Q2FY22, XTC started a formal request to the Bolivian Government through an in-country partner EZC (Energy Zero Carbon) to discover and develop green energy avenues in the Peoples Republic of Bolivia.

Technical Analysis: After getting a significant rally in January 2022, XTC prices are getting correction from higher levels and the prices are consolidating between AUD 0.008 and AUD 0.012 and currently trading at the lower band of the range. Prices are also getting resistant to the downward sloping trend line that also indicates weak price momentum for the stock. RSI (14-period) also came down to a moderate zone at ~55.48 level which also indicates the stock is losing momentum. Immediate support levels are AUD 0.0069 and AUD 0.0060 while immediate resistances are AUD 0.009 and AUD 0.010.

Considering the stock’s volatility and current technical levels, investing in this stock at current levels must be considered with a careful approach, hence it's suggested to ‘Watch’ and re-evaluate the stock once the prices approach the support & resistance levels. The stock was analyzed as per the closing price of AUD 0.008 per share, as of 1^st March 2022. Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Weekly Technical Chart – XTC 

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 Orange 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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