Genesis Minerals Limited (ASX: GMD)

GMD is a gold mining and development company. The company operates Ulysses Gold Project and Barimaia Gold Project.

Operational & Financial Highlights: GMD has updated its mineral resources estimate at its 100% owned Leonora gold project by 409koz to 2.0Moz. The mine has gold resources with a grade of 39.3Mt at 1.6g/t. With this update, GMD becomes a central player in the tier-1 district of Leonora. GMD to conduct extensional drilling at Ulysses mine in 2022.

For the past 20 years, no exploration activities have been conducted at Admiral, Orient Well and Puzzle. Hence Ulysses remains open along strike and at depth. It had resources unchanged at 838koz.

Effective from March 21, 2022, GMD has been added to the All Ordinaries index. On April 4, 2022, GMD announced it had appointed Morgan Ball as its Chief Commercial Officer. Besides, it also appointed Troy Irvin and Lee Stephens as Corporate Development Officer and General Manager Projects and Operations, respectively. As per the disclosure in the quarterly report, it had appointed Raleigh Finlayson as Managing Director effective from February 21, 2022.

GMD is an exploration-stage mining company with nil core revenues. It had realized nil cash receipts from customers as per the recent March 2022 quarter. GMD incurred negative operating cashflow of $4.34 million in Q3FY22. It had closed the period with a cash balance of $20.39 million as of March 31, 2022. In H1FY22, it had reported a net loss of $33.03 million as compared to a net loss of $8.71 million in the prior year.

Technical Analysis: On the daily chart, GMD stock price witnessed a breakout of the rising trendline support and prices are sustaining below the trendline. Moreover, the prices are trading below the trend-following indicators 21- period & 50-period SMA, which may act as a crucial resistance zone. Further, the momentum oscillator RSI (14-period) is trading at ~36.28 level, indicating negative momentum. A sustainable move above the rising trendline resistance level of AUD 1.53 will add more bullishness to the prices. A trend reversal in the underlying commodity will support a more bullish stance on the counter. An important support level for the stock is placed at AUD 1.20 while the key resistance level is placed at AUD 1.53.

Considering the nil core operating revenues, widening of losses in H1FY22, and current trading levels, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 1.450 per share, as of April 28, 2022, up ~2.11%.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

GMD Daily Technical Chart, Data Source: REFINITIV 

Lithium Plus Minerals Ltd (ASX: LPM)

LPM is a lithium-focused exploration company. It holds two exploration projects in the Bynoe area and three projects in the Arunta area of the Northern Territory. Its flagship Bynoe project is adjacent to Core Lithium’s Finniss mine development. LPM is a recent debutant to ASX listed on April 26, 2022.

Operational & Financial Highlights: Its Bynoe project returned [email protected]% LiO2 from 121m drilling, confirming high-grade spodumene-bearing pegmatite. LPM is targeting to complete drilling activities by Q4CY22. It is anticipated to complete the resource evaluation by Q1CY23. One of the top EV battery manufacturers, Suzhou CATH Energy Technologies, have invested in LPM’s IPO with a 9% equity interest.

The company raised $10 million through IPO. Funds will be utilized to develop its flagship Bynoe project. On December 12, 2021, Lithium Plus Pty. Ltd. became a substantial shareholder with 36 million shares representing voting rights of 37.11%.

In H1FY22, LPM posted a net loss of $123.97k and closed the period with a cash balance of $526.17k as of December 31, 2021.

Technical Analysis: Technical analysis is not possible as the company was listed in ASX on April 26, 2022.

Considering the lack of operating history, absence of technical analysis, and nil operating revenues, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.915 per share, as of April 28, 2022, up ~5.17%.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

LPM 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.

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