Boss Energy Limited (ASX: BOE)

BOE was incorporated in 2005, it is involved in exploration and feasibility studies on Honeymoon Uranium Project in South Australia. Honeymoon is a pure-play uranium mine situated in South Australia. BOE aims to place the Honeymoon Project as Australia’s next Uranium producer with a capacity of up to 3.3 million lbs per annum. Its market capitalization is at AUD 558.17 million as of 11^th October 2021, and trading at the stock price of AUD 0.2325 per share.

Financial & Operational Updates – As announced on 6^th October 2021, BOE received three requests from three counties for nuclear energy. The company is advancing Final Investment Decision for its Honeymoon project following the completion of enhanced feasibility study in June 2021. It had booked profit of AUD 21.83 million from increase in spot prices of uranium. As per the release on 29^th September 2021, Sachem Cove Special Opportunities Fund, L.P. ceases to be a substantial shareholder in BOE. As per the release of Annual Report on 29^th September 2021, BOE reported revenue from interest for the FY21 as ~AUD 0.10 million versus ~AUD 0.24 in the FY20. The company converted its total comprehensive loss for FY20 of ~AUD 5.08 million to a total comprehensive profit of ~AUD 0.86 million in FY21. Cash at the end of FY21 was reported as ~AUD 20.87 million as of 30^th June 2021 versus ~AUD 3.82 million in PcP. After completing a capital raise of AUD 60.00 million, it acquired strategic inventory of 1.25 million pound of uranium.

Technical Analysis: After correcting from the 52- week high of AUD 0.36 touched on September 2021, BOE stock prices are now approaching towards the horizontal trend line support zone on the daily chart. Moreover, the price is trading above its 50-period simple moving average, which may act as a crucial support zone at lower end in short term. The momentum oscillator RSI (14-period) is trading at ~46.80 level indicates positive trend for the stock prices. An important support level for the stock is placed at AUD 0.21, while the key resistance level is placed at AUD 0.30.

FY21 has been a substantial transforming year for BOE, as it converted its total comprehensive losses into profits, with the advancement of Final Investment Decision phase at its Honeymoon Project. On the technical front, keeping the support and resistance level as crucial points, investors with a high-risk appetite might consider a ‘Speculative Buy’ position. The stock was analysed as per the current price of AUD 0.2325, 11:51 AM (GMT+10), Sydney, Eastern Australia. However, the risk levels are high subject to the future pace of developments in its project and fluctuations in commodity prices.

Daily Technical Chart – BOE

Source: REFINITIV

Paladin Energy Limited (ASX: PDN)

PDN was incorporated in 1993, and is involved in mining, exploration and evaluation activities of uranium. It also develops and operates the Langer Heinrich Mine in Namibia, along with exploration and evaluation activities in Australia and Canada. Its market capitalization is at AUD 1.87 billion as of 11^th October 2021, and trading at the stock price of AUD 0.695 per share.

Financial & Operational Updates – As per the release on 3^rd September 2021, PDN was added in the list of S&P/ASX 300 effective prior to the trading on 20^th September 2021. In the recent filings, the company ceased to be a substantial shareholder in Lotus Resources Limited. As per the release of Annual Report on 27^th August 2021, PDN reported net revenue for the FY21 as USD 2.98 million versus nil in the FY20. The company reported a decrease in total comprehensive loss reaching ~USD 47.08 million in FY21 versus loss of ~USD 91.47 million reported last year. Cash expenditure for FY21 stood at ~USD 10.2 million (excluding one-off equity raise costs of ~USD 7.6 million and payments associated with the redemption of the USD 115 million Senior Notes). The company was holding ~USD 30.66 Mn of cash and cash equivalents as at 30^th June 2021, with no corporate debt.

Technical Analysis: On the daily chart, PDN stock prices are trading above the horizontal trendline support zone and taking the support of the same. The price is trading above its 50-period SMA, which may act as a crucial support zone at lower end in short term. The momentum oscillator RSI (14-period) is trading at ~43.57 level indicates positive trend for the stock prices. The Important support level for the stock is placed at AUD 0.60, while the key resistance level is placed at AUD 0.79.

During FY21, the company reported a 100% up in revenue from uranium oxide, a decrease in total comprehensive loss and has an outlook of increase in cash expenditure in order to invest in future growth options. On the technical front, considering RSI & 21 SMA levels, investors with a high-risk appetite might consider a ‘Speculative Buy’ position, incorporating the support and resistance as one of the tools while analysing the investment opportunity. The stock was analysed as per the current price of AUD 0.695 per share, as of 11^th October 2021, 11:51 AM (GMT+10), Sydney, Eastern Australia. However, the risk levels are high in view of the disruptions in commodity prices.

Daily Technical Chart – PDN

Source: REFINITIV

Ioneer Limited (ASX: INR)

INR, an Australian company is a lithium-boron supplier and has major projects as (Rhyolite Ridge) in Nevada, United States. It was incorporated in 2001, holding a market capitalization of AUD 1.12 billion as of 11^th October 2021, at the stock price of AUD 0.590 per share.

Financial & Operational Updates – As announced on 16^th September 2021, the company issued ~145.86 million shares to fund its working capital requirements. On the same day, INR announced a 50% of joint venture with Sibanye Stillwater Limited, with an aim to invest a sum of USD 490 million in order to advance INR’s flagship Rhyolite Ridge Lithium-Boron Project. As per the Annual Report released on 15^th September 2021, company is yet to commercialize its production, and reported total comprehensive loss as ~AUD 18.36 million in FY21 versus ~AUD 5.61 million reported last year. Cash at the end of FY21 was reported as ~AUD 83.07 million as of 30^th June 2021 versus ~AUD 38.26 million in PcP. Released on 7^th September and 24^th August 2021, it has awarded DuPont Clean Technologies a license for engineering and supply of proprietary equipment for its planned sulphuric acid plant (capacity of 3,500 tonnes per day) and Veolia Water Technologies Inc. for the design of the equipment package related to evaporation, crystallisation and dewatering equipment at its Rhyolite Ridge Lithium-Boron Project, Nevada.

Technical Analysis: On the daily chart, INR's prices are sustaining above 50-period SMA for the past couple of sessions which acts as an important support level for the stock. However, the 21-period SMA sustaining above the CMP and acting as a resistance level. The momentum indicator RSI (14-period) is hovering around the mid-point and currently trading at ~62.047 levels. Immediate support and resistance levels are placed at AUD 0.54 and AUD 0.65, respectively.

Considering its huge increase in losses in FY21, INR has a long way to reach the commercialisation phase of its production. The risk attached with the scrip seems to be on a higher side therefore, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.590 per share, as of 11^th October 2021.

Daily Technical Chart – INR

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.

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