Mincor Resources NL (ASX: MCR)

MCR is involved in the production of high-grade nickel sulphide at the Kambalda, Western Australia. It has projects like Tottenham Copper-Gold Project and Widgiemooltha Gold Project (WGP). Incorporated in 1996, it holds a market capitalization of ~$716.83 million as of 21^st December 2021.

Financial & Operational Updates – As per the announcement dated 15^th December 2021, MCR achieved a major milestone where its first ore was encountered at the ~36m before at the (Durkin North) Northern Kambalda. As per its Quarterly Updates released for 1QFY22, MCR reported its cash receipts of ~AUD 30k where the cash used in operating activities was recorded as ~AUD 6.07 million. It closed its accounts with a cash balance of ~AUD 102.05 million at the end of 30^th September 2021 versus ~AUD 58.92 million at the end of 30^th June 2021. The company raised ~AUD 60.0 million through placement and ~AUD 6.3 million share purchase plan, along with an approval was received related to new revolving credit facility of ~AUD 30.0 million. Four massive nickel sulphide intersections of 8.1m @ 4.2% nickel were found at the Golden Mile, where the highlight was ULG-21-030. As per its Annual Report, it reported total net losses for the FY21 as ~AUD 13.43 million versus ~AUD 14.28 million in FY20.

Technical Analysis: MCR’s prices have made its new 52-week high levels at AUD 1.545 and prices are now facing resistance of the upward sloping trendline. On the weekly chart, the momentum oscillator RSI (14-period) is placed at ~67.094 level and moving towards the overbought territory that indicates some selling pressure might occur from the resistance levels. The important support level for the stock is placed at ~AUD 1.415, while the key resistance level is placed at ~AUD 1.68.

The company’s is currently trading at a very higher price levels with material losses, therefore 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 AUD 1.525 per share, up by ~3.040%, as of 21^st December 2021.

Weekly Technical Chart – MCR

Source: REFINITIV

Northern Minerals Limited (ASX: NTU)

Incorporated in 2006, NTU is involved in mineral exploration and development, mainly rare earth element. Its projects are Browns Range Project, John Galt Project and Boulder Ridge. It holds a market capitalization of ~AUD 243.04 million as of 21^st December 2021.

Financial & Operational Updates – As per the announcement dated 20^th December 2021, its Automic Perth office relocated to Level 5, 191 St Georges Terrace, Perth. On 14^th December 2021, Mr Adam Handley was appointed as a Non-Executive Director. As announced on 13^th December 2021, the company received a refund of ~AUD 4.3 million as against rebate from R&D Tax offset claim for the year ending 30^th June 2021, from Australian Tax Office (ATO). As per its Quarterly Updates released for 1QFY22, it completed an exploration drilling of 8,700 metres at Browns Range. NTU exported a total of 39 tonnes of heavy rare earth carbonate in 1QFY22 to thyssenkrupp Materials Trading GmbH. Its cash receipts were reported as ~AUD 971k, while closed its accounts with a cash balance of ~AUD 14.32 million at the end of 30^th September 2021 versus ~AUD 19.89 million at the end of 30^th June 2021. As per its Annual Report, it reported total net losses for the FY21 as ~AUD 8.53 million versus ~AUD 54.33 million in FY20.

Technical Analysis: On the weekly chart, NTU prices are sustaining below the rising trend line support and facing the resistance of the same. Moreover, the prices are trading below the trend-following indicator 21-period SMA, which may act as a resistance level for the stock. Further, the momentum oscillator RSI (14-period) is trading at (~48.48 level), indicating negative momentum in the stock. An important support level for the stock is placed at ~AUD 0.042, while the key resistance level is placed at ~AUD 0.052.

Considering the company’s current price levels with low momentum and its net losses for the FY21, 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 AUD 0.047 per share, down by ~6.001%, as of 21^st December 2021.

Weekly Technical Chart – NTU

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 Yellow colour line represents the Trendline.

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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