Piedmont Lithium Inc. (ASX: PLL)

PLL initially having headquarters in Australia, now holds its HQ in Belmont, North Carolina, US and is mainly involved in developing battery-grade lithium-hydroxide and other chemicals used in electric vehicles and battery storage markets in the US. Its market capitalization is at AUD 1.26 billion as of 25^th October 2021, and trading at the stock price of AUD 0.80 per share.

Financial & Operational Updates –On 22^nd October 2021, it increased its mineral resources to 44.2Mt @1.08% Li₂O with ~64% MRE classified, after the completion of Phase 5 drilling at Carolina Lithium Project. Along with the existing legal suit filed in July 2021, the company is facing another alleged suit filed by the shareholders on 20^th October 2021 (as per wcnc.com), stating the allegations of company’s statements as misleading. On 15^th October 2021, Mr. Krishna McVey joined PLL as a Vice President of Human Resources.

As per the release of Annual Report (Form 10-K) on 27^th August 2021, PLL reported a Net loss reaching ~USD 19.99 million in FY21 versus loss of ~USD 5.87 million reported last year. The company was holding ~USD 142.65 million of cash and cash equivalents as of 30^th June 2021 versus ~USD 18.85 million in PcP.

PLL along with Sayona Mining (ASX:SYA) acquired Northern American Lithium (NAL) on 30^th August 2021, where SYA is further eying to boost its Abitibi Lithium Hub, as per the announcement on 13^th September 2021. In May 2021, it changed its primary listing from ASX to NASDAQ and shifted their corporate headquarters to Belmont, NC, USA.

Technical Analysis: PLL’s prices have been consolidating in a range between AUD 0.65 to AUD 0.93 since June 2021, on the weekly chart. Moreover, the prices are trading below the trend-following indicator 21-period SMA, which may act as a crucial resistance level for the stock in near term. The momentum oscillator RSI (14-period) is trading at ~51.358 level indicating an indecisive motion of stock prices. The Important support level for the stock is placed at AUD 0.705, while the key resistance level is placed at AUD 0.855.

Considering the current trading levels and risks associated, we suggest a ‘Watch’ stance on the stock. The stock was analysed as per the closing price of AUD 0.80 per share, up by ~0.628%, as of 25^th October 2021.

Weekly Technical Chart – PLL

Source: REFINITIV

Arizona Lithium Limited (ASX: AZL)

Formerly known as Hawkstone Mining Limited was incorporated in 1969. It is a mineral exploration and development company dealing in Gold, Copper and Lithium. The projects are Big Sandy Lithium Project, Lone Pine Gold Project, Western Desert Gold / Copper Project, and Lordsburg Lithium Project, located in USA. Its market capitalization stood at AUD 137.62 million as of 25^th October 2021, at the stock price of AUD 0.093 per share.

Financial and Operational Updates: On 22^nd October 2021, AZL answered the ASX Volume Query by mentioning its 100% owned Big Sandy Project reported 880 parts per million (ppm) Li cut-off out of indicated and inferred resources of 32.5 million tonnes (MT). It was also mentioned that AZL resumed back to its Lithium focused explorer status after a spin-out of its Copper-Gold assets to Diablo Resources Limited.

On 11^th October 2021, it appointed Mr. Matthew Blumberg as an Executive Director. On 7^th October 2021, the company officially changed to its current name ‘Arizona Lithium Limited (ASX:AZL)’ from Hawkstone Mining Limited (ASX:HWK), effective immediately. As per FY21 Annual Report , AZL’s revenue from continuing operations increased to ~AUD 26.70k as against ~AUD 15.38k in FY20. Net Losses after Income Tax was reported as ~AUD 3.45 million versus ~AUD 3.49 million in FY20. Cash at the end was reported as ~AUD 4.95 million as of 30^th June 2021 versus ~AUD 0.23 million in PcP.

Technical Analysis: AZL's prices rallied sharply in the recent past and made a new 52-week high of AUD 0.100 on 25th October 2021. On the daily chart, the prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, supporting a positive bias. However, the momentum oscillator RSI (14-period) is moved to an overbought zone and trading at ~91.131 levels, indicating the possibility of a downside correction in the coming sessions. An important support level for the stock is placed at AUD 0.082, while the key resistance level is placed at AUD 0.100.

Considering its latest financial performance, its current high trading levels,  technical indicator analysis as well as the risk attached in investing in the scrip, we suggest a ‘Watch’ stance on the stock. The stock was analysed as per the closing price of AUD 0.093 per share, up by ~16.249%, as of 25^th October 2021.

Daily Technical Chart – AZL

Source: REFINITIV

The Sustainable Nutrition Group Limited (ASX: TSN)

Old Name: Australian Primary Hemp Limited (ASX: APH)

Incorporated in 1995, TSN is a vertically integrated Australian Company, dealing across seed selection, farming, processing, packaging, sale, and distribution of hemp to wholesale, retail, and white label customers under the name TSN and Mt Elephant. Its market capitalization stood at AUD 28.16 million as of 25^th October 2021, at the stock price of AUD 0.265 per share.

Financial and Operational Updates: As per the announcement on 21st October 2021, Australian Primary Hemp Limited (ASX: APH) was supposed to be traded on ASX by the name “The Sustainable Nutrition Group Limited (ASX: TSN)” from 25th October 2021. As per the announcement on 4^th October 2021, a total of 3,67,07,075 shares were supposed to be released from both its Voluntary Escrow account and ASX Escrow on 18^th October 2021. On 1^st October 2021, the company appointed Mr. Thomas (Tom) Siebel as an Independent Non-Executive Director. As per and the Annual Report for FY21 on 31^st August 2021, the revenue from continuing operations reported an increase of ~63% as ~AUD 1.88 million for FY21 as against ~AUD 1.15 million in FY20, mainly due to bulk sale of wholesale and retail business. Its Net Losses after Income Tax for  FY20 of ~AUD 5.91 million decreased by ~25.72% to ~AUD 4.39 million in FY21. Cash at the end was reported as ~AUD 4.10 million as of 30^th June 2021 versus ~AUD 2.34 million in PcP. It was mentioned that all the expenditure incurred in FY21 was for expansion equipment, inventory build-up, working capital and product development.

Technical Analysis: TSN (then ASX:APH) prices started to fall from the beginning of May 2021 and for the past one and half month trading in the range of AUD 0.260 to AUD 0.330. On the weekly chart, prices are trading below the trend-following indicators 21-period SMA and 50-period SMA, indicating a downside direction. The leading indicator RSI (14-period) is trading around an oversold zone at ~33.102 levels. The crucial support and resistance levels are AUD 0.23 and AUD 0.31, respectively.

Considering its Technical Analysis, subdued fundamentals,  and its current RSI levels trading towards an oversold zone a ‘Watch’ stance is suggested,. The stock was analysed as per the closing price of AUD 0.265 per share, down by ~8.621%, as of 25^th October 2021.

Weekly Technical Chart – TSN

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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