Valor Resources Limited (ASX: VAL)

Incorporated in 1996, VAL is engaged in acquisition and exploration of minerals like uranium. It conducts its operations in Peru and Canada. VAL operates project includes Picha Project, Corona Project and Hook Lake Uranium Project. Its market capitalization stood at AUD 56.97 million as of 5^th November 2021.

Financial & Operational Updates – On 4^th November 2021, high-grade of copper and silver mineralisation results were found from 137 surface samples at Picha Project. As per the Quarterly Report for Q1FY22 published on 29^th October 2021, its Canadian project Hook Lake Project is about to commence its drilling in December 2021. There were no receipts from customers for the past twelve months. Cash and cash equivalents reported as ~AUD 1.16 million as of 30^th September 2021 (1QFY22). versus ~AUD 0.56 million as of 30^th June 2021 (4QFY21). As per the 11^th of October 2021’s announcement, high-grade copper mineralisation of ~1 km, out of 144 samples were found at Maricate and Cobremani targets at Picha Project. As per its Annual Report, its other income was up and reported as ~AUD 0.29 million in FY21 versus ~AUD 0.25 in FY20. Its net losses decreased and reported as ~AUD 2.43 million in FY21 from ~AUD 3.09 million in FY20.

Technical Analysis: VAL stock prices are trading above the horizontal trend line support zone and taking support of the same on the weekly chart. Moreover, prices are trading above 21-period SMA and 50-period, indicating an uptrend. The momentum oscillator RSI (14-period) is trading at (~57.36 level), indicating bullish stance on the stock. An important support level for the stock, is placed at AUD 0.016 while the key resistance level is placed at AUD 0.023.

With the updates in its Picha project, the company is indicating prospective mineralisation. On the technical front, considering the current price 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 closing market price of AUD 0.018, down by ~5.264%, as of 5^th November 2021. However, the risk levels are extremely high in view of the expected prospective findings in its projects.

Weekly Technical Chart – VAL

Source: REFINITIV

Macquarie Group Limited (ASX: MQG)

MQG is a financial services company which was incorporated in 2006. It provides services like asset management, retail and business banking, wealth management, leasing and asset financing, market access, commodity trading, among others. Its market capitalization stood at AUD 76.04 billion as of 5^th November 2021.

Financial & Operational Updates – On 1^st November 2021, it completed a successful institutional placement of AUD 1.5 billion. It remained on a trading halt for 29^th October 2021. As per its Interim 1HFY22 Results released on 29^th October 2021, the Net Profit increased by ~107% Y-o-Y and reported as AUD 2,043 million and a ~41% Y-o-Y increase in Net Operating Profit was observed to AUD 7,804 million for 1HFY22 as compared to PcP. Even after its operating expenses increased by ~19%, the company’s annualised ROE increased to ~17.8% versus ~9.5% in the Pcp. Cash on hand increased by ~271% Y-o-Y at the end of 30^th September 1HFY22 was reported as ~AUD 32,221 million versus ~AUD 8,681 million at the end of 30^th September 1HFY21. It is about to pay AUD 2.72 per fully paid ordinary interim dividend (40% Franked) on 14^th December 2021.

Technical Analysis: On the weekly chart, MQG prices have seen an upward rally since March 2020 and currently trading in the upper band near the 52-week high at AUD 204.22. The momentum oscillator RSI (14-period) is trading in an overbought zone at ~83.070 level, which indicates the possibility of a downside correction. However, prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, which may act as support levels. The crucial support and resistance levels are AUD 175.395 and AUD 225.25, respectively.

Considering its prices trading at higher levels and RSI in an overbought zone, getting the scrip at this time might burn the investors’ pockets, therefore A ‘Watch’ stance is suggested. The stock was analysed as per the closing price of AUD 202.42 per share, up by ~0.237%, as of 5^th November 2021.

Weekly Technical Chart – MQG

Source: REFINITIV

Rivergold Limited (ASX: RGL)

RGL was incorporated in 2017, is involved in exploration and development, focussing on gold. Its Kurnalpi Project consist of around ten exploration licenses. Its market capitalization stood at AUD 8.88 million as of 5th November 2021.

Financial and Operational Updates: As per the announcement on 4^th November 2021, several anomalous results were confirmed after eight diamond hole drills, while the copper sample results are still awaited. As per the Annual Report released on 1^st November 2021, it had recorded net loss after tax of ~AUD 1.63 million for FY21 as against ~AUD 1.66 million in FY20. After considering nil cash receipts in 1QFY22, cash balance at the end of 30^th September 2021 was reported at ~AUD 0.27 million versus ~AUD 0.29 million at the end of 30^th June 2021. As per the quarterly activities updates released on 29^th October 2021, RGL won the ballot for Exploration License Application E28/3060 for consolidating its land holding at the Kurnalpi Project. The grant with Native Title Party related to E28/3060 Heritage Agreement is expected to be received in early 2022.

Technical Analysis: On the weekly chart, RGL prices are trading in the lower highs and lower lows formation, indicating a downtrend in the stock. The prices are trading below the trend-following indicators 21-period SMA and 50-period SMA, acting as resistance zone. However, the momentum oscillator RSI (14-period) is trading in an oversold zone at (~29.44 level), which indicates the possibility of rebound in the stock from the current levels. An important support level for the stock is placed at AUD 0.016, while the key resistance is at AUD 0.022.

A ‘Watch’ stance is suggested after considering the financial performance and the current price levels of the scrip. The stock was analysed as per the closing price of AUD 0.019 per share, down by ~13.637%, as of 5^th November 2021.

Weekly Technical Chart – RGL

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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