Core Lithium Limited (ASX: CXO)

Incorporated in 2010, CXO is an Australian mineral exploration company focussing on Finniss Lithium Project and other projects in in the Northern Territory (NT) and South Australia. It also deals in zinc, silver, gold, uranium, copper and lead projects. Its market capitalization stood at $642.38 million and trading at $0.405 as of September 27, 2021.

Financial & Operational Updates – As per the release on 23^rd September 2021, CXO has signed a mining services agreement with Core Lithium and Lucas TCS for the Finniss Lithium Project. As per the Annual Report released on 21^st September 2021, revenue from other income was reported as ~$0.315 million in FY21 versus ~$0.214 in FY20. The group reported a Total Comprehensive Loss of ~$2.91 million, as compared to loss of ~$4.38 million in FY20. Cash at the end of FY21 was reported as ~$38.11 million as of 30^th June 2021 versus ~$8.67 million in PcP.

Technical Analysis: Technical Analysis: CXO’s prices started to correct on the downside after making a new high of $0.490 at the start of September 2021. On the daily chart, prices are still sustaining above 21-period SMA and act as the support level for the stock. The RSI (14-period) is moving around the mid-point and fell from an overbought territory after forming a negative divergence with the price action, indicated the possibility of a further downside correction. Immediate support levels are $0.365 and $0.330, while resistance levels are $0.490 and $0.510.

After considering the company’s updates on its Finniss Lithium Project and RSI levels, investing in this stock at such uncertain levels should be taken with calculated approach, hence a ‘Watch’ stance is suggested. The stock was analyzed as per the closing market price of $0.405 per share, down by ~2.410%, as of 27^th September 2021.

Daily Technical Chart – CXO

Source: REFINITIV

Hexagon Energy Materials Limited (ASX: HXG)

Incorporated in 2001, HXG is an Australian company focussing on resources, clean energy and energy materials. Dealing in gold, nickel, platinum group elements (PGEs) and graphite, its projects are in Australia, along with interest in an early-stage graphite exploration project in Alabama, USA. Its market capitalization stood at $34.78 million and trading at $0.079 as of September 27, 2021.

Financial & Operational Updates – As per the Annual Report released on 23^rd September 2021, revenue from other income was reported as ~$0.38 million in FY21 versus ~$0.51 million in FY20. The group reported a Total Comprehensive Loss of ~$1.81 million, as compared to loss of ~$2.41 million in FY20. Cash at the end of FY21 was reported as ~$5.05 million as of 30^th June 2021 versus ~$1.20 million in PcP. As per the updated released on 19^th August 2021, Hexagon has confirmed the potential of Ni-Cu-PGM mineralisation at Mclntosh Project.  As released on 22^nd July 2021, five high-priority targets were identified after the competition of airborne electromagnetic survey at Halls Creek Project for conductive massive sulphide mineralisation. A prefeasibility study was initiated in newly acquired Pedrika Blue Hydrogen Project, which is expected to be completed by December 2021.

Technical Analysis: On the daily chart, HXG’s prices are in a consolidation phase for the past 2 months and are currently, trading around the upper band of the pattern. RSI (14-period) is trading around the mid-point at ~52.805 and is unable to indicate the short-term direction. However, the price has just managed to cross 21-period SMA that supports an upward direction in the stock.

After considering the company’s updates on the Halls Creek Gold Project and Pedrika Blue Hydrogen Project and RSI levels, investing in this stock at such uncertain levels should be taken with calculated approach, hence a ‘Watch’ stance is suggested. The stock was analyzed as per the closing market price of $0.079 per share, up by ~1.282%, as of 27^th September 2021.

Daily Technical Chart – HXG

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 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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