Tietto Minerals Limited (ASX: TIE)

Incorporated in 2010, TIE is an Australian company involved in gold exploration in West Africa specifically in Cote D'Ivoire and Liberia. Its main project is Abujar Gold Project. Its market capitalization stood at $164.22 million and trading at $0.365 as of September 28, 2021.

Financial & Operational Updates – As per the release on 22^nd September 2021, TIE had reported high grade gold (16m @17.60 g/t AU) from the second batch of infill drilling at the Abujar-Gludehi deposit. As per the unaudited report, the company posted nil revenue receipts from customers for the whole year. And cash at the end of FY21 stood at ~$45.19 million, down from $51.79 million reported in the preceding quarter. In April 2021, TIE completed its pre-feasibility report for Abujar Gold Project, with a forecast of 200,000 ounces gold in the first year and then 168,000 ounces every year for six years.

Technical Analysis: On the daily chart, TIE’s prices are in a consolidation phase since the start of the year, trading in a range from AUD 0.285 to AUD 0.475 ever since. Moving ahead towards overbought level, RSI (14-period) is placed at ~63.988, indicates a short-term correction. However, the price has just managed to cross 21-period SMA and 50-period SMA that can support an upward direction in the stock but with a heavy resistance at AUD 0.420. If the stock can sustain the above-mentioned resistance level and gives a breakout, the next resistance can be placed at AUD 0.450.

After considering the company’s updates on its Abujar Gold Project and crucial support and resistance levels, investing in this stock should be taken with the calculated approach. Hence a ‘Watch’ stance is suggested unless it gives a break-out from its resistance levels. The stock was analyzed as per the closing market price of $0.365 per share, up by ~1.388%, as of 28^th September 2021.

Daily Technical Chart – TIE

Source: REFINITIV

European Lithium Limited (ASX: EUR)

EUR is a lithium exploration and development company having a focus on its wholly owned project, Wolfsberg Lithium Project. The company was incorporated in 2010 and its market capitalization as of 28^th September 2021 stood at $115.09 million and the share price stood at $0.105 per share.

Financial & Operational Updates – As per the Annual Report released on 16^th September 2021, revenue from other income was reported as ~$0.03 million in FY21 versus ~$0.20 million in FY20. EUR posted a Total Comprehensive Loss of ~$4.59 million, as compared to loss of ~$3.05 million in FY20. Cash at the end of FY21 was reported as ~$5.42 million as of 30^th June 2021 versus ~$0.30 million in PcP. As per the announcement on 16^th August 2021, Phase 2 drilling program totalling 20 holes at 7925m of core infill campaign at Wolfsberg was completed while core logging is underway after the cutting, sampling, labelling and dispatching to the laboratory in Ireland. The objective behind the infill program is to increase the JORC reserves significantly, for the DFS and to add on for the future drilling programs.

Technical Analysis: EUR price witnessed a robust rally to a high price of AUD 0.112 tested on 28^th September 2021. Currently, prices are hovering near the horizontal trendline resistance at AUD 0.136 and prices are sustaining below the trend line resistance level. Moreover, the momentum oscillator RSI (14-period) is trading near the overbought zone at (~63.029 level) indicating the possibility of a downside correction from the higher levels. However, the prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, which may act as a crucial support level for the prices.

After considering the company’s drilling updates 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 price of $0.1050 per share, down by ~4.546% as of 28^th September 2021.

Daily Technical Chart – EUR

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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