Great Southern Mining Limited (ASX: GSN)

Incorporated in 2011, GSN is a gold exploration and evaluation of its deposits in Western Australia and Queensland. Its projects include Southern Star, Mon Ami, Edinburgh Park, East Laverton and Palmer River. Its market capitalization as of 30th September 2021 stood at AUD 26.80 million and the share price stood at AUD 0.053 per share.

Financial & Operational Updates – As per the announcement on 28^th September 2021, following a regional soil survey, large kilometre-scale gold anomalies were identified in Amy Clarke, Duketon Greenstone Belt. On 23^rd September 2021, it was announced that four gold mineralisation was intersected through Reverse Circulation (RC) program at four regional targets covering Duketon Greenstone Belt. As per the Annual Report released on 21^st September 2021, interest and other income was reported as ~AUD 84k in FY21 versus ~AUD 1k in FY20. The group reported a Total Comprehensive Loss of ~AUD 4.56 million, as compared to loss of ~AUD 1.87 million in FY20. Cash at the end of FY21 was reported as ~AUD 1.38 million as of 30^th June 2021 versus ~AUD 3.06 million in PcP.

Technical Analysis: GSN price has been witnessing a consolidation phase and hovering in a range for the past 6 months between AUD 0.038 and AUD 0.065. On the daily chart, the current market price is still struggling to get past the 21-period SMA and 50-period SMA. Along with the RSI (14-period), hovering around the mid-point and trading at ~54.349 levels, that indicates indecision in the stock prices. The immediate support level for the stock is at AUD 0.046 level while resistance is at AUD 0.060 level.

With the substantial increase in the Net Losses for FY21 and its indecisive nature of price levels, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.053 per share, as of 30^th September 2021.

Daily Technical Chart – GSN

Source: REFINITIV

SI6 Metals Limited (ASX: SI6)

Incorporated in 2007, SI6 is an exploration company having a focus in base metals and metal targets like nickel, copper and platinum group elements (PGEs) in Southern Africa and Western Australia.  It also has licenses in gold, silver, cobalt, lithium and tantalum. Its market capitalization as of 30th September 2021 stood at AUD 17.13 million and the share price stood at AUD 0.012 per share.

Financial & Operational Updates – As per the announcement on 21^st September 2021, 33-line AMT survey was started at Dibete, Airstrip and Maibele North Projects in Botswana. As announced on 8^th September 2021, Aircore (AC) drill rig has been secured for its upcoming drill program at Monument Gold Project. The Monument Gold Project was 100% acquired in August 2021, as against a total amount of AUD 0.40 million. As per the full-year accounts just released, SI6 posted revenues of AUD 11.1k in FY21 as compared to AUD 23.9k in FY20. Its loss widened to AUD 2.89 million in FY21 as compared to loss of AUD 686.37k in PcP. Cash balance improved to AUD 4.56 million as of June 30, 2021 as against AUD 799.7k in the prior period.

Technical Analysis: SI6’s price has been in a range-bound movement for the past 5 months and consolidating in the range of AUD 0.010 to AUD 0.016. On the daily chart, the current market price is trading near a 52-week low and struggling to get past the 21-period SMA and 50-period SMA. The RSI (14-period), hovering around the mid-point and trading at ~48.264 levels, indicates a sideways trend. The major support level for the stock is at AUD 0.0100 level while immediate resistance is at AUD 0.014 level.

After considering the company’s drilling updates in its Monument Gold Project and RSI levels, investing in this stock at current price levels should be taken with calculated approach, hence a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.0120 per share, as of 30^th September 2021.

Daily Technical Chart – SI6

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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