Core Lithium Limited

 
Wide Intersections of Spodumene Pegmatite found at Carlton:Core Lithium Limited (ASX: CXO) is engaged in the exploration of lithium and base metals deposits in Northern Territory and South Australia. The market capitalisation of the company stood at $30.03 million as on 29th November 2019. Recently, the company updated that one of its Directors, Malcolm MCCOMAS, acquired 5,000,000 options, on account of the issue of director remuneration options as approved by shareholders at the 2019 AGM. Another Director Heath Hellewell, also acquired 5,000,000 options on account of the same reason.
 
Changes in Equity Securities: CXO recently announced the issuance of 100,000 fully paid ordinary shares in the company for nil consideration.These shares will be issued upon exercise of unquoted performance rights by an employee upon vesting of rights, where performance conditions have been met. In addition, the company also announced the issue of 13,000,000 unquoted performance rights to the Managing Directoras remuneration under the Company’s Performance Share Plan.
 
Drilling Results at Carlton: In another recent announcement, the company reported that it has identified wide intersections of spodumene pegmatite from all complete RC drill holes at Carlton. This came in as a result of the recent Mineral Resource growth drilling program at Finniss.
 
Key Highlights of September Quarter: During the period, the company received approval from the Foreign Investment Review Board (FIRB) for Lithium Royalty Corporation’s (LRC) $8.12 million investment for a royalty of 2.5% over the future production from the Finniss project. In September, the company stated that high-grade spodumene mineralisation intersected in multiple drill holes was in-line with anticipation. The company increased the worldwide Mineral Resources of the Finniss Project to 9.63MT. Net operating cash outflow for the period stood at $2,176,000. Cash and cash equivalents at the end of the period were reported at $7,146,000.
 

Estimated Cash Outflows (Source: Company Reports)
 
Outlook:The company expects cash outflows of $2,890,000 for the coming quarter.
 
Stock Recommendation: As per the ASX, the stock is trading close to its 52-week low of $0.033 and has corrected 5.56% in the last 5 days. In FY19, the company had a current ratio of 5.17x, which is higher than the industry median of 1.75X. The company recently released an announcement regarding new wide spodumene pegmatite drill intersections at Carlton, which is expected to contribute significantly to increase mine life at the Finniss Lithium Project. Hence, considering the financial position, outlook and current trading levels, we recommend a “Speculative Buy” rating on the stock at the current market price of $0.037 per share, down by 2.632% as on 29th November 2019.
 

LiveHire Limited

 
Solid Start to FY20:LiveHire Limited (ASX: LVH) is a talent management technology company and has two key business segments including, business intelligence and data services.LVH recently announced that Cognitus Consulting LLC became the first worldwide Systems Integrator to receive SAP certification to market the partner qualified Intelligent Enterprise Package, i.e., Gallop Intelligent Enterprise package. This consists of the best of breed partner cloud solutions from SAP, AWS, Azure, Amazon Alexa, and LiveHire technologies.
 
Quarterly Highlights:Thecompany recently released its quarterly results for the period ended 30 September 2019, unveiling an increase of 65% in Annualised Recurring Revenue(ARR) to $2.7 million, on a y-o-y basis. Growth in ARR was primarily attributed to the addition of 10 new customers during the quarter. The company had a total of 86 customers during the quarter, up 46% on prior corresponding year. Cash receipts during the quarter came in at $1 million, representing a growth of 61% on prior quarter. Cash balance at the end of the quarter was reported at$30.3 million.
 

Performance Metrics (Source: Company Reports)
 
Outlook:The company aims to achieveorganic growth, both domestically and internationally. Moreover, the company is aiming at continuous penetration into the US market via channel partners.It expects to broaden its portfolio of channel partners in the US and Australia. It is striving to further accelerate client wins in Australia through direct sales and is focused on reducing the time required in converting signed partnerships to revenue. 
 
Stock Recommendation:The stock of the company generated a negative return of 23.53% over a period of three months. In FY19, the business reported a reasonable amount of debt with a debt-to-equity ratio of 0.03x. The company depicted a strong financial position to support future growth. During the year, the company raised $15 million via placement of shares to sophisticated and institutional investors and had a strong cash position of $34.0 million as at 30 June 2019. As on 29 November 2019, the company has a market capitalization of $77.2 million.As per the results of the September quarter, the business has reported a good start to FY20 and has solid foundations in place to drive future growth. Considering the above factors, we recommend a “Speculative Buy” rating on the stock at the current market price of $0.245, down by 5.769% on 29th November 2019.

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