Aeris Resources Limited (ASX: AIS)

AIS was founded in 2010, engaged in the exploration and development of diversified mining portfolio of mainly copper and gold. Its projects include Tritton Copper operations, Torrens, Canbelego and Cracow Gold project. Its market capitalization stood at AUD 370.15 million as of 16^th November 2021.

Financial and Operational Updates: As per the Constellation Drilling Update on 9^th November 2021, significant copper deposits along with the extension of further 150m at Tritton Copper Tenement. As per the recent Quarterly Reports, Gold production of 14,691 ounces and Copper production of 4,534 tonnes was reported. AIS became debt-free with Cash & Receivables of ~AUD 75 million as of September 2021 (1QFY22) versus ~AUD 105.9 million at the end of 30^th June 2021. For FY22, AIS expects production of ~67-71koz gold and ~21-22kt of copper. As per the Annual Report on 26^th October 2021, it converted its Net losses after tax of ~AUD 38.35 million for FY20 to Net Profits after Tax of ~AUD 61.24 million in FY21. The main reason of improvement in profitability is due to almost doubling its revenue from contracts with customers for FY21 from ~AUD 227.31 million in FY20 to ~AUD 431.29 million.

Technical Analysis: After making its 52-week high levels of AUD 0.245 in August 2021, AIS stock prices took sharp downside correction. However, prices are now trading above its crucial support levels i.e., 0.16 from past two months. RSI (14-period) is recovered from the lower end (oversold zone) is hovering at ~44.820 on a daily chart further indicates that the stock is gaining momentum and shows a possible short-term bullish stance. Immediate support levels are AUD 0.150 and AUD 0.130 while immediate resistance levels are AUD 0.195 and AUD 0.230.

Along with the current Gold and Copper production and its improved profitability, it is prudent 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 market price of AUD 0.165 per share, as of 16th November 2021, 10:19 AM (GMT+10), Sydney, Eastern Australia. However, the risk levels are extremely high in view of the prospective findings, its production and related saleability.

Daily Technical Chart – AIS

Source: REFINITIV

Delta Drone International Limited (ASX: DLT)

DLT is a data-service and technology company with the use Drone. It provides services like aerial surveying and mapping, security and surveillance, and blast monitoring and fragment analysis. Its market capitalization stood at AUD 10.74 million as of 16^th November 2021.

Financial and Operational Updates: On 5^th November 2021, Mr Paul Williamson has been appointed as Chief Financial Officer (CFO) of DLT. As per the Quarterly Update on 29^th October 2021, its sales receipts for 3QFY21 increased by ~AUD 95k (over PcP) and was reported as ~AUD 1.427 million. The cash operating outflows hiked by ~AUD 177k and totalled to ~AUD 2.42 million for 3QFY21, mainly owing to product manufacturing, operating and staff & administrative costs. It had closed the quarter with a cash balance of ~AUD 1.57 million at the end of 30^th September 2021 versus ~AUD 2.95 million at the end of 30^th June 2021. As per the Half Yearly Report released on 31^st August 2021, revenue from operations were reported as ~AUD 2.49 million in 1HFY21 versus ~AUD 1.63 million in 1HFY20. It converted its net profitability of ~AUD 0.16 million in 1HFY20 to the net losses after tax to ~AUD 1.46 million for 1HFY21.

Technical Analysis: DLT stock prices are trading below the horizontal trend line resistance zone at AUD 0.031 on the weekly chart and facing the resistance of the same. Moreover, prices are trading below 21-period SMA and 50-period which may act as a crucial resistance level for the stock. However, the momentum oscillator RSI (14-period) is trading near an oversold zone at ~36.26 levels, which indicates the possibility of rebound in the stock. An important support level for the stock, is placed at AUD 0.018 while the key resistance level is placed at AUD 0.024.

It is prudent to suggest the scrip as A ‘Watch’ stance after considering the conversion of Net Profit into Net Losses and current resistance faced. The stock was analysed as per the closing price of AUD 0.021 per share, as of 16^th November 2021.

Weekly Technical Chart – DLT

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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