Global Energy Ventures Limited (ASX: GEV)

GEV is an Australian company focussed on the development of compressed natural gas (CNG) through the use of CNG Optimum marine gas transport solution. It was incorporated in 2004, holding a market capitalization of AUD 45.71 million as of 12^th October 2021, at the stock price of AUD 0.100 per share.

Financial & Operational Updates – On 7^th October 2021, the company commenced its first feasibility study for hydrogen export using its proprietary marine supply chain. It had appointed key consultants to assist the project. As announced on 6^th October 2021, GEV got an approval in principle from American Bureau of Shipping (ABS) for its pilot compressed hydrogen ship with 430-tonne cargo capacity after signing its MOU with HyEnergy Project. As per the Annual Report released on 26^th August 2021, the company is yet to commercialize its production, and reported an increase of ~7% Y-o-Y in net loss and reported as ~AUD 3.08 million in FY21 versus ~AUD 2.88 million reported last year. Cash at the end of FY21 was reported as ~AUD 6.56 million as of 30^th June 2021 versus ~AUD 3.13 million in PcP.

Technical Analysis: On the weekly chart, GEV stock price witnessed a breakout of the horizontal trendline resistance at AUD 0.94 level on October 11, 2021 and sustaining above the same. Moreover, the prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, indicating a bullish trend. The leading indicator RSI (14-period) is trading at ~59.645 level indicating positive momentum. Immediate support and resistance levels are placed at AUD 0.089 and AUD 0.120, respectively.

With the recent progress in its long-awaited pilot compressed hydrogen shipment project and in hopes of getting Full Class Approvals for the same by late FY2022, GEV has a promising year to look for. On the technical front, keeping the support and resistance level as crucial points, investors with a high-risk appetite might consider a ‘Speculative Buy’ position. The stock was analysed as per the closing price of AUD 0.100, as of 12^th October 2021. However, the risk levels are high depending on the approvals and developments in the pilot project.

Weekly Technical Chart – GEV

Source: REFINITIV

Neometals Limited (ASX: NMT)

NMT was incorporated in 2001, is an Australian mineral-based project developer, involved in Lithium, Titanium and Vanadium, and Others. Its main work is to recover and re-cycle the constituents from cell production scrap and end-of-life lithium-ion batteries (LIBs). Its market capitalization as of 12^th October 2021 stood at AUD 468.86 million and the share price stood at AUD 0.835 per share.

Financial & Operational Updates – As per the release of Annual Report on 30^th September 2021, NMT reported other revenue for the FY21 as ~AUD 35.82 million versus ~AUD 0.43 in the FY20. This was mainly due to an amount of AUD 30.00 million from the sale of Mt Marion’s spodumene offtake. Its total comprehensive loss for FY20 of ~AUD 14.55 million turned into a total comprehensive profit of ~AUD 16.34 million in FY21. Cash at the end of FY21 was reported as ~AUD 93.89 million as of 30^th June 2021 versus ~AUD 77.04 million in PcP. As announced on 15^th September 2021, the company’s joint venture entity, Primobius GmbH, commenced wet commissioning of hydrometallurgical refinery of its battery recycling demonstration plant stage 2 commenced. The Demonstration Plant (DP) trials Li-B (Lithium Battery) re-cycling at Hilchenbach, Germany, are expected to start in October 2021 till November 2021, thereafter, modifying the capacity to 10tpd in Q1 2022. On 13^th September 2021, the company’s Vanadium Recovery Project partner Critical Metals Limited has signed a non-binding MOU with H2 Green Steel in order to evaluate the H2G’s prospective vanadium containing steel-by-products (Slag) and its commercial terms for the supply agreement. On 30^th August 2021, it signed MOU with Manikaran Power Limited on jointly funding the evaluation of development of an Indian Lithium Refinery and declared merger of Widgie Nickel Limited, a company solely holding its Mt Edwards assets in nickel exploration.

Technical Analysis: On the daily chart, NMT prices are continuously sustaining below the rising trend line and facing the resistance of the same. Moreover, the prices are trading below the trend-following indicator 21-period, which may act as a crucial resistance level for the prices. Furthermore, the momentum oscillator RSI (14-period) is trading at ~50.78 level, which indicates indecisive momentum for the stock.

The risk attached in investing in the scrip at current price and SMA levels, seems to be on a higher side as NMT has a long way to reach to its commercialisation phase, therefore, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.835 per share, down by ~2.340%, as of 12^th October 2021.

Daily Technical Chart – NMT

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 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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