Brightstar Resources Limited

BTR Details

Business Update: Brightstar Resources Limited (ASX: BTR) is a mineral exploration company and has operations in Western Australia. As per a recent update, the company has announced that it has received the initial batch of assays from its drilling program at the Cork Tree Well project.

• The assays depicted significant gold and nickel grades from the drilling program, which tracks closely to BTR’s geological model.
• Managing Director, Mr Hobba has confirmed the assay results from the first 26 holes and witnessed significant intercepts from 18 holes.

September 2021 Quarter Update:

• During the period, the company successfully procured and deployed Strike Drilling as the drilling company for the Cork Tree Well (CTW) RC drill program.
• It commenced the 12,000-metre drilling program on 10 September 2021 and has completed 24 holes for 3,430 metres as of 30 September 2021.
• Cash outflow from operations during the period was at $738,000.
• It ended the period with cash & equivalents of $272,000 as of 30 September 2021.

Trend in Cash & Short-Term Investments (Source: Analysis by Kalkine Group)

Key Risks: The company is its development phase and requires sufficient funds in order to sustain its operations and exploration activities. Any challenge on this front might impact its business continuity.

Outlook: As per the company, the assay results have depicted that the ore body is showing good continuity at depth and along strike, which augurs well for further JORC Resource growth and ultimately conversion to JORC Reserves for future mining studies at Cork Tree Well.

Stock Recommendation: The stock of BTR gave a negative return of ~9.43% in the past one week and a positive return of ~4.34% in the past one month. The stock is currently trading below its 52-weeks’ average levels of $0.024-$0.079. Considering the current trading levels, positive assay results from the drilling program at Cork Tree Well project, presence of gold & nickel grades and the key risks associated with the business, we give a ‘Speculative Buy’ rating on the stock at the closing market price of $0.047, down by ~4.08% as of 19 November 2021.

Technical Insights:

On the daily chart, BTR prices are sustaining above the rising trend line support level at AUD 0.041 and continuously taking support of the same. The leading indicator RSI (14-period) is trading at ~47.19 level indicating lack of strength in the trend. The important support level of the stock is placed at AUD 0.041 while resistance level is at AUD 0.055.

BTR Daily Technical Chart, Data Source: REFINITIV 

Tempus Resources Limited

TMR Details

Business Update: Tempus Resources Limited (ASX: TMR) is engaged in mineral exploration and has gold projects located within Canada & Ecuador. As per a recent announcement, the company has provided an update on its financial performance during September 2021 quarter. 

• It reported other income of $140 during the period and reported an uptick in employee benefits expense to $153,706 during the quarter.
• The loss during the quarter widened to $615,357, compared to a loss of $295,075 in the pcp. The loss has been amplified by an increase in other expenses and depreciation costs.
• However, the company reported an increase in cash & equivalent to $4.34 million as of 30 September 2021, from a level of $1.01 million as of 30 June 2021.
  

Trend in Cash Position (Source: Analysis by Kalkine Group) 

Key Risks: The company’s line of operations makes it prone to regulatory risks which might have an impact on its business & exploration activities.

Outlook: During the 2021 September quarter, the company completed the placement of $6.28 million. The proceeds are expected to be utilised in completing the ongoing 12,000 metre drilling program at Elizabeth, and also for its Ecuador projects.

Stock Recommendation: The stock of TMR gave a negative return of ~18.91% in the past six months. The stock is currently trading at par to its 52-weeks’ low levels of $0.145. Considering the current trading levels, strong balance sheet, successful fund rising, project developments and the key risks associated with the business, we give a ‘Speculative Buy’ rating on the stock at the current market price of $0.145, as of 19 November 2021, 01:41 PM (GMT+10), Sydney, Eastern Australia.  

Technical Insights:

On the daily chart, TMR stock prices are hovering near the horizontal trend line support zone at AUD 0.14 level. The momentum oscillator RSI (14-period) is trading in an oversold zone at ~25.34 level, which indicates the possibility of a rebound in the stock from the lower levels. levels. The important support level of the stock is placed at AUD 0.125 while the resistance level is at AUD 0.195.

TMR Daily Technical Chart, Data Source: REFINITIV 

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors’ appetite on 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 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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