Boab Metals Limited (ASX: BML)

Formerly known as Pacifico Minerals Limited, BML was incorporated in 2003. It deals in exploration and development of base and precious metals covering Australia and Columbia segments. It projects include Sorby Hills Lead-Silver-Zinc and Henan Yuguang Gold & Lead Co. Ltd. Its market capitalization stood at AUD 57.56 million as of 26^th October 2021.

Financial & Operational Updates – As per the investor briefing published on 26^th October 2021, the company reported cash in hand as ~AUD 10.1 million as on 30^th September 2021, to fund its prospective Definitive Feasibility Study (DFS) for its Sorby Hills project. On 7^th October 2021, representatives from Federal Government’s Northern Australia Infrastructure Facility (NAIF) visited Sorby Hills Lead-Silver-Zinc Project for its assessment of II Phase of Debt Finance workstream. On 28^th September 2021, 59 diamond drill holes (5,284m) along with 16 new holes (1,600m) got completed and resulted in extensions in mineralisation envelope at B Deposit and the Beta Deposits.

As per the Annual Report 2021, its revenue from continuing operations increased and reported as ~AUD 0.51 million in FY21 versus ~AUD 0.29 million in last year. Its Net loss for the FY21 reached ~AUD 5.31 million versus loss of ~AUD 3.13 million reported last year. The company’s cash and cash equivalents status increased substantially, from ~AUD 2.90 million as of 30^th June 2020 versus ~AUD 12.89 million as of 30^th June 2021.

Technical Analysis: On a daily chart, BML stock price is trading above the horizontal trend line support level at AUD 0.345 and continuously taking support of the same. The prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, which may act as a support zone at lower end. The momentum oscillator RSI (14-period) is trading at ~51.595 level, indicating positive momentum. An important support level for the stock is placed at AUD 0.345, while the key resistance level is placed at AUD 0.410.

Having Sorby Hills (54-million-ounce silver resource) as among the largest undeveloped Silver Resources in Australia and its current trading levels suggest a ‘Speculative Buy’ stance for the investors with a high-risk appetite, keeping the support and resistance levels as crucial points. The stock was analysed as per the current market price of AUD 0.37 per share, 11:48 PM (GMT+10), Sydney, Eastern Australia, as of 26th October 2021. However, the risk levels are high considering net losses and uncertain results from ongoing drilling activities.

Daily Technical Chart – BML

Source: REFINITIV

FYI Resources Limited (ASX: FYI)

FYI is a resources company, focused in developing innovative and vertically integrated high quality and high-purity alumina which are used in high-growth tech applications. Its main segments include exploration and evaluation of High purity alumina (HPA) in Australia and potash in Asia. Its market capitalization stood at AUD 144.51 million as of 26^th October 2021.

Financial and Operational Updates: On 19^th October 2021, the company announced that there will be a delay of up to three weeks in the commencement of the extended pilot plant production campaign. The delay was due to identification of a potential safety issue by the metallurgical operations team with the gas regulators during pre-commissioning for the pilot plant production trial.  As per the Full Year Statutory Accounts released on 24^th September 2021, the company recorded net loss after tax of ~AUD 3.43 million for FY21 as against ~AUD 2.10 million in FY20. As a result, loss per share increased to -1.20 cps as compared to -0.98 cps in FY20.

Cash at the end of FY21 was reported at ~AUD 9.06 million versus ~AUD 0.10 Pcp. On 8th September 2021, it signed a non-binding MOU with EcoGraf Limited to develop enhanced High Purity Alumina (HPA)-doped carbon coatings for Lithium-ion battery market.

Technical Analysis: FYI's price fell sharply in the recent past and has broken a crucial support level of AUD 0.390 on the downside. On the daily chart, the stock price is currently trading below the trend-following indicators 21-period SMA and 50-period SMA, indicating a negative bias. The momentum oscillator RSI (14-period) has entered an oversold zone and is currently trading at ~29.953 levels, supporting downside direction. Now an important resistance level for the stock is placed at AUD 0.340 while support is at AUD 0.300.

Considering its latest financial performance, its current RSI levels and the risk attached in investing in the scrip we suggest a ‘Watch’ stance. The stock was analysed as per the closing price of AUD 0.375 per share, down by ~5.064%, as of 26^th October 2021.

Daily Technical Chart – FYI

Source: REFINITIV

NOTE: FYI Resources Limited (Company) is a client of Kalkine Media Pty Ltd (Kalkine Media), an affiliate of Kalkine. However, under no circumstances have Kalkine or its related entities been, directly or indirectly influenced in making any recommendation concerning Company as contained in this report, and no form of compensation is or will be received by Kalkine, Kalkine Media or Kalkine’s other related entities for the publication of this report.

EMU NL (ASX: EMU)

Incorporated in 2007, EMU deals in mineral exploration and development, mainly focussing on Gold. Some of its projects are Gnows Nest, Viper, Sunfire, Graceland and 8 Mile Dam. Its market capitalization stood at AUD 13.99 million as of 26^th October 2021.

Financial and Operational Updates: As per the announcement on 25^th October 2021, stage 2 of reverse circulation programme (6,831m) at the Badja Project got completed and discovered high-grade intersections of Gold at Gnows Nest and Monte Cristo prospects, along with extension in Watertank Hill prospect. On 20^th October 2021, it completed its consolidation of lands of Gnows Nest and Monte Cristo landholdings, placed near Yalgoo WA. An acquisition of Sunfire Project – a flagship project for nickel, copper, and platinum group element (PGE) - was completed on 15^th October 2021.

As per the Annual Report for FY21 on 1^st October 2021, the revenue was reported as ~AUD 0.05 million for FY21 as against ~AUD 0.30 million in FY20. Its Net Losses after Income Tax increased to ~AUD 5.89 million in FY21 from ~AUD 3.74 million in FY20. Cash at the end was reported as ~AUD 1.75 million as of 30^th June 2021 versus ~AUD 1.66 million in PcP.

Technical Analysis: On a weekly chart EMU stock price is sustaining above the rising trend line support level at AUD 0.022 and continuously taking support of the same. The prices are trading below the trend-following indicator 50-period SMA, which may act as a resistance zone. The leading indicator RSI (14-period) is trading in a mid-range at ~43.160 levels indicating a directionless movement for the stock. The crucial support and resistance levels are AUD 0.022 and AUD 0.031, respectively.

EMU’s subdued fundamentals and its current indecisive RSI levels suggests a ‘Watch’ stance. The stock was analysed as per the closing price of AUD 0.027 per share, down by ~10.000%, as of 26^th October 2021.

Weekly Technical Chart – EMU

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 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.

Note: Boab Metals Limited (Company) is a client of Kalkine Media Pty Ltd (Kalkine Media), an affiliate of Kalkine. However, under no circumstances have Kalkine or its related entities been, directly or indirectly influenced in making any related insights concerning Company as contained in this report, and no form of compensation is or will be received by Kalkine, Kalkine Media or Kalkine’s other related entities for the publication of this report.

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