Miramar Resources Limited (ASX: M2R)

M2R operates as an exploration company with projects in the Eastern Goldfields, the Murchison, and Gascoyne regions. The company’s under-explored Gascoyne project holds prospective for gold, copper, and nickel-copper-platinum elements.

Operational Highlights: The aircore drilling campaign at its 80% owned Gidji JV project reflects significant results from three holds with an intersection of [email protected]/t Au. This underscores a huge potential for the Gidji JV project. Its Glandore project outlined high-grade upto 4m@44g/t Au. Its Whaleshark project showed large IOCG targets. Further, the company found multiple Ni-Cu-PGE targets in the Bangemail region. On April 5, 2022, M2R informed that its 100% owned Lang Well Project in the Murchison region of WA holds multiple pegmatite occurrences indicating the potential for rare earth minerals (including lithium).

H1FY22 Financial Update: In H1FY22, M2R posted a net loss of $546.28k as compared to a net loss of $573.23k in the prior year. The reduction in losses was attributed to other income of $22.65k and deterioration in other expenses reaching $95.33k. It had closed the period with a cash balance of $2.96 million as of December 31, 2021.

Technical Analysis: M2R price broke the downward sloping trend line by upside and the prices are sustaining above the breakout level from past two weeks. Also, the prices are trading above its 21-period SMA on a daily chart that further provides strength to the stock. RSI (14-period) is hovering at ~51.68 on a daily chart that indicates the stock is trading in a bullish momentum. Immediate support levels are AUD 0.155 and AUD 0.126, and immediate resistance levels are AUD 0.220 and AUD 0.260.

Considering the positive aircore drilling results at its Gidji JV project, the potential for rare earth minerals at its Lang Well Project, narrowed losses in H1FY22, decent cash balance, current trading, and key associated business risks, we recommend a ‘Speculative Buy’ rating on the stock at the closing market price of $0.180 as on 19 April 2022, down by ~2.70% Investors with a high-risk appetite may consider entering the stock given the downside risks such as nil revenue-generating assets, approval delays, and widening of losses, etc. Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

M2R Daily Technical Chart, Data Source: REFINITIV 

Infinity Mining Limited (ASX: IMI)

IMI is an exploration company with assets in rare earth minerals. The company’s Pilbara Projects holds gold, copper, zinc, and lithium exploration tenements. IMI holds a market capitalization of $20.13 million as of April 19, 2022.

Operational Highlights: On March 25, 2022, IMI received the first gold assay results from its 12-hold RC drilling program at its Great Northern Gold prospect located in Leonora, WA. It had found multiple gold intersections over 1g/t Au and up to a maximum of 10.95 g/t Au. Its director, Harley Groot, acquired ~150k shares on April 5, 2022. On March 9, 2022, IMI withdraws certain facts that it was announced on February 1, 2022, related to exploration results by Great Southern Mining, Barcome Limited, and Haoma Mining. On February 14, 2022, IMI completed an aircore drilling campaign at its Barlow’s Gully Goldfield wherein it had drilled about 194 holes, taking a total of 679 meters.

Quarterly Cash Flow: Upon listing on December 22, 2021, IMI raised over $10 million. It had incurred ~$200k towards exploration & development. With nil cash receipts from customers, it had posted operating cash outflows of $933k for the quarter ending December 31, 2021. It had closed the period with a cash balance of $9.13 million.

Technical Analysis: IMI price broke the downward sloping trend line by upside and the prices are sustaining above the breakout level from past two weeks. Also, the prices are trading above its 21-period SMA on a daily chart that further provides strength to the stock. RSI (14-period) is hovering at ~53.12 on a daily chart that indicates the stock is trading in a positive momentum. Immediate support levels are AUD 0.160 and AUD 0.150, and immediate resistance levels are AUD 0.220 and AUD 0.260.

Considering the developments at its Great Northern Gold prospect, completion of aircore drilling campaign at its Barlow’s Gully Goldfield, the significance of its Hillside Gold project for copper and gold mineralization, current trading, and key associated business risks, we recommend a ‘Speculative Buy’ rating on the stock at the closing market price of $0.180 as on 19 April 2022, down by ~2.70% Investors with a high-risk appetite may consider entering the stock given the downside risks such as recently listed and limited operating history, risk of project delays due to labour shortage, and dearth in funding, etc. Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

IMI Daily Technical Chart, Data 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 analysis has been achieved and is subject to the factors discussed above alongside support levels provided.

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.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.

Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.

You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.

Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website unless those persons comply with certain safeguards, procedures, and disclosures.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.