Talga Resources Ltd

Presentation at the AMA European Battery Metals Event: Talga Resources Ltd (ASX: TLG) has recently presented its business prospects at the AMA European Battery Metals Event and highlighted about its outlook. As per the presentation, the company is developing Li-ion battery materials alongside its graphene to meet global customer demand with respect to energy, power, life, safety and cost. In UK (Cambridge), the R&D is taking place. The company has planned future processing and refining for Sweden.
 
TLG’s Li-ion Battery Materials (Source: Company Reports)

The company also threw light on North Sweden advantages like low cost and low CO2 sustainable power, quality existing infrastructure, close to emerging European battery factories and quality long term operating and investment jurisdiction.
Response to ASX Query: The company stated that the responses are based on the assumption that the word “information” refers to disclosure in announcement with respect to new conductive anomalies at Kiskama Project in Sweden and a new conductor to the east of Kiskama Project. The company responded “Yes” to the question that whether or not Talga consider the Information to be information that reasonable person would expect to have material effect on price or value of its securities. The company stated that they wrapped up surface geophysical surveys at the Kiskama Project during September and October 2018.

What to Expect From TLG: With respect to commercial and product development, the company is expanding commercial capability with appointment of technical sales manager and commercial staff in Europe. The company also plans to develop options for the sale of Talnode^TM products commencing in 2019 using currently mined ore stocks.

Stock Recommendation: On the daily chart of TLG, Exponential Moving Average or EMA has been used and default values were used for the purposes. After observation, it was noticed that the stock price has crossed the EMA and moved upwards after the crossover which reflects bullishness. However, the company’s stock is quite volatile as, in the previous six months, the stock delivered the return of 9.28% and, in the past three months, it posted 29.27% return. Also, the company’s P/B ratio stood at 8.4x which is higher than the industry median (Metals and Mining) of 1.5x which reflects that the stock is slightly overvalued.Based on foregoing and volatility in the stock, we have a watch stance on the stock at the current market price of $0.575 per share and we advise to investors that they should wait for the more growth catalysts to drive movement in the stock price.
 

CropLogic Limited

CropLogic Signs Lease for Trial Farm: CropLogic Limited (ASX: CLI) had made an announcement that its wholly owned Oregonian subsidiary named LogcialCropping LLC had signed a lease for 150 acres for the trial farm in Deschutes County, Oregon, USA. CropLogic had sourced and agreed terms with land owner. The property would be leased for a period of three years and has an option to sub-lease in years two and three. Also, the company had made an announcement that it had lodged an industrial hemp grower application with the Oregon Department of Agriculture. It stated that if application is successful, the licence would enable CropLogic to cultivate industrial hemp this season at its trial farm in Deschutes County, Oregon, USA. Earlier, the company had stated that they have garnered $2.6 million via placement of 173,333,333 fully paid ordinary shares involving an issue price of $0.015 per share. The proceeds would be used for expanding regionally into Australia and the USA’s Pacific North West. Some of the funds would also be deployed towards the investigation of developing target crops including research into Oregon’s hemp market and for the general working capital.


Net cash used in operating activities (Source: Company Reports)

In the quarter ended December 2018, the company’s net cash used in operating activities stood at A$1.22 million.  

Stock Recommendation: On the daily chart of CLI, Exponential Moving Average or EMA has been used and default values were used for the purposes. After careful observation, it was noted that the company’s stock price has crossed the EMA and had moved in the upward direction after the crossover which reflects bullishness. Also, we expect that the company’s recent capital raising activity might support it in strengthening the liquidity position which might help it in meeting short-term commitments. However, the company’s stock is quite volatile as, in the past 6 months, the stock posted the return of -50% while, in the previous three months, it delivered -7.14% return.

Based on the foregoing, we have a wait and watch stance on the company’s stock at the current price of A$0.013 per share and further we advise market players to look out for more growth drivers.  
 

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