Elevate Uranium Limited (ASX: EL8)

EL8 was listed on ASX in 1985 and was earlier known as Marenica Energy Limited. It is an Australian company engaged in mining, discovery, exploration and development of Uranium resources covering Namibia and Australia. Its market capitalization stood at AUD 168.03 million as of 11^th March 2022.

1HFY22 Financial and Operational Updates:

• As per the half-yearly report released on 11^th March 2022, the company reported AUD 1,973 as its total revenue and net losses as AUD 2.99 million.
• The operating cash outflow stood at ~AUD 2.16 million in half-yearly and cash at the end of 31^st December 2021 was recorded as ~AUD 16.38 million versus ~AUD 6.60 million at the end of 30^th June 2021.

Technical Analysis: EL8 prices have rallied significantly in the past three weeks. However, prices are now taking resistance of the upward sloping trend line that further indicates profit booking might occur at key resistance levels. RSI (14-period) is hovering around its overbought region at ~66.32 on a weekly chart that indicates some downward correction might occur in the coming period. Immediate support levels are AUD 0.610 and AUD 0.565 while immediate resistance levels are AUD 0.700 and AUD 0.785.

After considering its given ~400% return in the past year and ~44% in past one month to shareholders, its losses in half-yearly results and current trading price levels, it is prudent to book profit and consider “Sell” recommendation at the current price of AUD 0.670, 11:00 AM (GMT+10), Sydney, as of 11^th March 2022.

Daily Technical Chart – EL8

Source: REFINITIV

Geopacific Resources Limited (ASX: GPR)

GPR was listed on ASX in 2020 and it is an Australian company involved in gold-copper development with a portfolio of assets in the Asia-Pacific region including Papua, New Guinea, and Cambodia.Its market capitalization stood at AUD 109.04 million based on last traded price on December 14, 2021.

2QFY22 Financial and Other Updates:

• As per 4^th March 2022, GPR was removed from the “All Ordinaries” Index, effective from 21^st March 2022.
• As per 3^rd February 2022 quarter report, over 50% of construction work got completed at the Woodlark Gold Project.
• With the nil cash receipts from customers and ~AUD 7.55 million as operating cash outflow, the company reported a cash balance at the end of 31^st December 2021 as AUD 67.47 million versus AUD 238.91 million on pcp.

Technical Analysis: On 11 November 2021, the Company announced a decision to defer all non-essential activities at the Woodlark Gold Project until Q1/Q2 CY2022 to enable a full review of the project’s schedule and cost estimate. The stock remains suspended with effect from December 15, 2021, until the completion and announcement of the outcome of the review and assessment of strategic options for the Woodlark Gold Project are reached. Therefore, commenting on technical levels is not valid.

After considering the company’s suspension activities for its Woodlark Gold Project and suspension on ASX till the undeclared time frame, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.210 per share, as of 14^th December 2021

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.

Daily Technical Chart – GPR

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 reflects the Trendline, which shows whether the direction of the scrip is upwards or downwards.

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.

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.