Golden Deeps Limited (ASX: GED)

GED is engaged in the development, and exploration of mineral deposits in Australia, Namibia, and Canada, with a focus on gold, silver, copper, vanadium, lead, zinc, and cobalt deposits. The company holds an 80% interest in the Abenab Vanadium Project, in the Otavi Mountain land, Namibia and Havilah Project, consisting of three granted tenement blocks located in the Lachlan Fold Belt New South Wales. The company was incorporated in 1991 and is based in West Perth, Australia. The market capitalization stood at $9.31 million at $0.011 per share.

Financial & Operational Update – on 30^th July 2021, the company announced its quarterly activities report for the period ending on 30^th June 2021, stating the results from the drilling activities across its Nosib Block in Namibia, identifying copper lead vanadium silver mineralisation there. Further, its other projects, such as the Khusib Springs and Abenab Vanadium project, also resulted in positive findings that encouraged further activities carrying in terms of drilling and exploration. On the financial front, the company did not receive any cash receipts from the customers in the past 12 months ending on 30^th June 2021. As a result, the cash balance was decreased for the period ending on 30^th June 2021 to $3.0 million from $3.17 million as of 31 March 2021.

Technical Analysis- The stock showed a gradual downtrend with few spikes and entering a narrow range with the missing volatility. The relative strength index is at 43.848, which is in the middle range of the zone, pointing to directionless price movement. The 21 days simple moving average is hovering close to the stock price and placed at $0.012, diluting the strong trend formation and continuation from current prices.  For the prices to prohibit from diving further, the support of $0.009 should be held firmly. Similarly, for the prices to regain the uptrend, a resistance of $0.014 needs to be taken off with strong volumes.   

Due to the lack of operating revenues, declining cash balances, and elevated stock prices, the investment at these levels doesn't comfort the investors. Hence, we give the stock the rating of ‘Avoid’ at the closing price of $0.011, down by 8.334%, as of 16^th August 2021.

Daily Technical Chart – GED

Source: REFINITIV

Sayona Mining Limited (ASX: SYA)

SYA is engaged in identifying, acquiring, evaluating, and exploring mineral assets in Australia and Canada, primarily for lithium and graphite. The company's flagship project is the Authier Lithium Project, located in Quebec, Canada. The company was incorporated in 2000 and is headquartered in Paddington, Australia. The market capitalization stood at $813.95 million at $0.145 per share.

Financial & Operational Updates – On 6^th August 2021, the company announced that it is taking a further course of action with its Western Australian exploration assets after the due diligence on the rising demand of lithium. The company agreeing to begin the contract with Altura Mining Limited, to spend $1.5 million on exploration within three years to earn a 51% interest. The company updated on 12^th July 21, that it has raised $50 million from the institutional and professional/ sophisticated investors along with a share purchase plan to fund the acquisition of North American Lithium and advance Abitibi lithium in Quebec, Canada for its further expansion. On the financial front, the company did not receive any cash receipts from the customers in the past 12 months ending on 30^th June 2021. The cash balance was increased for the period ending on 30^th June 2021 to $34.96 million from $9.88 million in Q3FY21.

Technical Analysis- The stock showed a strong upward movement and reached the lifetime high of $0.175 and corrected slightly from there. The relative strength index shows 84.466, which is in the overbought zone and can bring along the correlation in profit booking near the crucial levels. The 21 days simple moving average is placed at $0.097, indicating that more uptrend is possible from current levels. Since the prices are near the lifetime high, in the advent of serious correction, the prices can fall up to their support levels around $0.115 and should be respected to keep the trend intact. As the prices are at a lifetime high, plotting the resistance level on the charts is not viable.

Due to a lack of operating revenues, changing environmental regulations, and elevated stock prices, we give the rating of ‘Avoid’ to the stock at the closing price of $0.145, as of 16^th August 2021.

Daily Technical Chart – SYA

Source: REFINITIV

Jadar Resources Limited (ASX: JDR)

JDR is an Australian-based company engaged in exploring of lithium and other mineral properties in the Republic of Serbia and Austria. The company holds 100% interest in 4 exploration licenses in Serbia, and 80% interest in 8 projects in Austria. The company was incorporated in 1985 and is based in Subiaco, Australia. The market capitalization stood at $22.07 million at $0.032 per share

Financial & Operational Highlights –   On 9^th August 21, the company announced it had secured the largest producing Tin projects in the Northern Territory with the acquisition of Mt Wells & Maranboy Projects portfolio comprising of few names as Mt Wells- Tin and Copper, Emerald Hill – Tin, McKinlay- Gold, etc. The acquisition will add its capacity as per its historic production of 99,000t of the ore for 1,000t of tin, 1,01% Sn recovered grade. The total consideration paid for the acquisition in cash was $6.5 million and the rest for 20 million options. On 29^th July 21, the company released its Quarterly activities report with results on its various projects as the Tierra Blanca Silver-Zine-Lead project, Yanamina (Paron) Gold project and Khartoum Tin- Silver project, showing encouraging progress and different levels of exploration activities. On the financial front, the company did not receive any cash receipts from the customers in the past 12 months ending on 30^th June 2021. The cash balance for the period ending on 30^th June 2021 stood at $1.68 million, unchanged from the preceding quarter.

Technical Analysis- The stock showed a gradual downtrend and printed the recent low of $0.021 recovered slightly from there.  The relative strength index is at 73.640, which is heading towards the upper end of the zone, indicating some more strength left with the stock to drive it upwards, provided some correction can be witnessed from those levels as the RSI enters the overbought zone.  The 21 days simple moving average is hovering below the stock price at $0.026, which implies the further upside movement of the stock from current levels. For the prices to prohibit from diving into the bear territory, the support of $0.026 should be held firmly. The resistance of the stock is placed at $0.039.

Due to a lack of operating revenues, exploration risks and environmental regulations, and declining stock prices, we give the stock the rating of ‘Avoid’ at the closing price of $0.032, up by ~3.22%, as of 16^th August 2021

Daily Technical Chart – JDR

Source: REFINITIV

Comet Ridge Limited - (ASX: COI)

Together with its subsidiaries, COI engages in the exploration and appraisal of coal seam gas and sandstone reserves in Eastern Australia. The company holds 100% interest in the ATP 743, ATP 744, and ATP 1015 projects located in the Galilee Basin and other areas across Queensland: and Gunnedah Basin, New South Wales.  The company was incorporated in 2003 and is based in Brisbane, Australia, having a market capitalization is $75.57 million, at the current price of $0.094 per share.

Financial & Operational Highlights – on 3^rd August 21, the company announced to acquire a 30% stake in the Australia Pacific LNG Pty Ltd in the Mahalo Gas Project, further, to take the remaining 70% on its completion, against $20m in costs. For this, the company raised $10 million of the loan facility, to be paid in two tranches. On 30^th July 21, the company released its Quarterly activities report, with Mahalo Joint Venture is progressing in a positive direction. On the financial front, the company did not receive any cash receipts from the customers in the past 12 months ending on 30^th June 2021. The cash balance was decreased for the period ending on 30^th June 2021 to $3.40 million from $4.24 million in Q3FY21.

Technical Analysis- The stock was in a downtrend for the past few months and entered into the declining volatile trading band. The relative strength index is at 59.733, which is in the middle range of the band, implying no clear trend formation on either side from current levels. The 21 days simple moving average is placed below the stock price at $0.089, indicating a slightly more uptrend remaining from the current price levels. The support for the current trend is at $0.080 and the resistance is at $0.115. Breaking either side of the range will give a clear picture of the trend formation. 

Due nil cash receipts from customers, increase debt levels to fund acquisition, and elevated stock prices, we give the rating of ‘Avoid’ to the stock at the closing price of $0.094, down by 1.053% as of 16^th August 2021.

Daily Technical Chart – COI

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 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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