Elevate Uranium Limited (ASX: EL8)

Formerly known as Marenica Energy Limited, EL8 was listed on ASX in 1985. It is an Australian company involved in mining, discovery, exploration and development of Uranium resources in Namibia and Australia. Its market capitalization stood at AUD 132.86 million as of 11^th February 2022.

2QFY22 Financial and Operational Updates:

• On 8^th February 2022, the company was proudly listed on OTCQX in the US. This will expand the pool of the U.S. investors and will make its availability easier on a real time basis.
• As per the quarterly report released on 31^st January 2022, the company raised ~AUD 11.5 million through institutional, sophisticated and professional investors in November 2021, to accelerate the exploration activities in Namibia and Australia.
• 558 holes covering 4,701 metres were drilled at the Koppies Project I & II, which confirmed continuity of shallow, calcrete hosted uranium mineralisation. The data from the program will be incorporated in its maiden Mineral Resource Estimates, which is estimated to be completed in the March quarter of 2022.
• The operating cash outflow stood at ~AUD 1.40 million in second quarter and cash at the end of 31^st December 2021 was recorded as ~AUD 16.37 million versus ~AUD 6.08 million at the end of 31^st September 2021.

FY21 Top and Bottom Line: As per the FY21 Annual Report, the exploration and evaluation expenses almost doubled from ~AUD 503k in FY20 to ~AUD 1.27 million in FY21. Consequently, the net losses increased for FY21 to ~AUD 2.60 million versus ~AUD 1.66 million in FY20.

Technical Analysis: On a daily chart, EL8’s stock prices are sustaining above the upward moving trendline and taking support of the same. Moreover, prices are trading above the trend-following indicator 50-period SMA, which may act as a support zone. The momentum oscillator RSI (14-period) is placed at ~49.82, reversing from the lower levels. Now the next important support level for the stock is at AUD 0.430, while resistance is at AUD 0.520 level.

With the new listing on OTCQX – U.S., quarterly updates and current price levels, investors with a high-risk appetite might consider a ‘Speculative Buy’ position. The stock was analysed as per the closing price of AUD 0.470, down by ~7.844%, as of 11^th February 2022. However, the risk levels are high depending on the future findings and their timely commissioning.

Daily Technical Chart – EL8

Source: REFINITIV

Middle Island Resources Limited (ASX: MDI)

MDI is involved in exploration, mining and development of Gold in Western Australia and Northern Territory regions. Its projects include Sandstone Gold Project and Barkly Copper-Gold Project. As of 11^th February 2022, the company’s market capitalisation stood at AUD 16.52 million.

Operational and 2QFY22 Updates:

• As per quarterly update on 31^st January 2022, the company started its detailed aerial magnetics and radiometrics survey at the Barkly Copper-Gold Project and the results from the Crosswinds Copper prospect’s discovery survey to be expected in early 2022.
• The Sandstone Gold Project assets (784,000oz Au) sale to Aurumin was announced on 16^th December 2021 for ~AUD 12 million. The fund will be used to fund aggressive exploration of Barkly Project.
• On 7^th January 2022, the Copulos Group became its substantial shareholder with a voting right of 5.74%.
• With the nil cash receipts from customers, MDI’s net cash outflow from operating activities were ~AUD 611k. The company closed its second quarter (2QFY22) ending on 30^th December 2021 with a cash balance of ~AUD 1.48 million versus ~AUD 2.21 million posted in last quarter.

FY21 Top and Bottom Line: As per the Annual Report, for the FY21 the company reported its sale of commodities as nil as compared to ~AUD 14.75k in FY20 coming from tribute production. The exploration expenses rose on Y-o-Y basis from ~AUD 2.35 million in FY20 to ~AUD 5.30 million in FY21. Thus, the company reported increase in net losses to ~AUD 6.82 million in FY21 versus ~AUD 3.17 million in FY20.

Technical Analysis: Hovering above the rising trendline, MDI’s prices recently gave a breakout above its ~AUD 1.45 levels. Taking support of the 50-period SMA, it has crossed both the trend-following indicators 21-Period SMA and 50-period SMA, indicating a possible uptrend. The momentum oscillator RSI (14-period) is also gaining momentum and trading at ~60.329, supporting the positive bias. An important support level for the stock is placed at AUD 0.135 while the key resistance level is placed at AUD 0.170.

By keeping the support and resistance on priority consideration, investors with a high-risk appetite might consider a ‘Speculative Buy’ position, with a hopeful results expectation from Crosswinds Copper prospect. The current levels and aggressive exploration at Barkly Project also support the positive stance and suggests a hopeful near term. The stock was analysed as per the closing price of AUD 0.150, up by ~11.11%, as of 11^th February 2022. However, the risk levels are high depending on the future findings and their saleability.

Weekly Technical Chart – MDI

Source: REFINITIV

Dundas Minerals Limited (ASX: DUN)

DUN is engaged in exploration, mining and development of nickel, gold, and copper in Western Australia. Its projects include Dundas Project and the Triton Project. Dundas Minerals Limited made thorough a successful oversubscribed IPO of ~AUD 6 million and consisted of issue of 30 million new shares at ~AUD 0.20 per share. As of 11^th February 2022, the company’s market capitalisation stood at AUD 11.73 million.

Latest News & Financials:

• On 10^th February 2022, exploration license 63/2116 was granted to DUN and expects to get the remaining licenses by mid-2022.
• High resolution airborne magnetic and radiometric survey was commenced by MAGSPEC Airborne Surveys Pty Ltd, at the Dundas Project.
• After the completion of the inaugural RC drilling program at the Kokoda Gold Prospect on 6^th February 2022, the assay results are expected to come in either later of the month or in March 2022.
• As per its 2QFY22 Quarterly Report released on 31^st January 2022, with the nil cash receipts from customers, DUN reported ~AUD 198k as its net cash outflow from operating activities. The company closed its second quarter (2QFY22) ending on 30^th December 2021 with a cash balance of ~AUD 5.17 million versus ~AUD 897k posted in last quarter.
• On 27^th January 2022, it updated infill gravity survey got commenced at North-East prospect.
• As per the Half-Yearly Report ending 31^st December 2021, the company reported its other income as ~AUD 3k and its net losses were ~AUD 462k versus ~AUD 377k for half year ending 30^th June 2021.

Technical Analysis: Though DUN is on a novice stage on ASX as it was listed on 10^th November 2021. On a daily chart, the stock prices have crossed both of its trend-following indicators 21-period SMA, intimating a possible rising trend in near future. The momentum oscillator RSI (14-period) is placed at ~51.486, has moved up from the lower levels, supporting positive a momentum. Now the next important support level for the stock is at AUD 0.170, while resistance is at AUD 0.220 level.

Along with attaining of new license, its quarterly updates and current price levels, investors with a high-risk appetite might consider a ‘Speculative Buy’ position, by keeping the support and resistance levels in mind. The stock was analysed as per the current market price of AUD 0.190, 02:50 PM (GMT+10), Sydney, Eastern Australia as of 11^th February 2022. However, the risk levels are high depending on the future licenses, expected assay results and their timely commissioning.

Daily Technical Chart – DUN

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.

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