Global Energy Ventures Limited (ASX: GEV)

GEV develops Compressed Natural Gas (CNG) by using CNG Optimum marine gas transport solution. Incorporated in 2004 GEV is an Australian company and holds a market capitalization of AUD 57.11 million as of 3^rd February 2022.

Operational Updates:

• Mr Greg Martin was appointed as an independent Non-Executive Director and new Chair on 1^st February 2022.
• On 18^th January 2022, Mr Per Roed was appointed as a Chief Technical Officer effective from 7^th February 2022, he will be responsible for the new European office to be opened by GEV in Norway.
• As per quarterly update on 31^st January 2022, GEV commenced the HyEnergy Hydrogen Export Study, executed the financial contract and delivered its first milestone related to the grant of ~AUD 0.3 million by WA Government’s Renewable Hydrogen Fund.
• An Approval in Principle (AIP) from American Bureau of Shipping (ABS) for its pilot hydrogen ship of ~430 tonne cargo capacity, where the completion is due in mid-2022.
• GEV completed a capital raise of ~AUD 10.5 million by placement and share purchase plan (SPP).

2QFY22 and Annual Financials: With the nil cash receipts, GEV’s net cash outflow from operating activities were ~AUD 1.00 million and closed its second quarter (2QFY22) with cash of ~AUD 14.62 million as of 30^th December 2021 versus ~AUD 5.80 million last quarter. As per the Annual Report, the company reported an increase of ~7% Y-o-Y in its net loss to ~AUD 3.08 million in FY21 versus loss of ~AUD 2.88 million in FY20.

Technical Analysis: On the weekly chart, GEV prices are trading above the falling trend line breakout level and taking the support of the same. Moreover, the prices are trading above the trend-following indicator 50-period SMA, which may act as a support level for the stock. Moreover, the momentum oscillator RSI (14-period) is trading at ~49.81 level, indicating positive momentum. An important support level for the stock, is placed at AUD 0.09 while the key resistance level is placed at AUD 0.11. 

With the recent appointment for its new European office, approval in its pilot compressed hydrogen shipment project and technical levels, GEV has a promising tenure looking forward. 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 closing price of AUD 0.100, down by ~4.762%, as of 3^rd February 2022. However, the risk levels are high depending on the developments in the Tiwi Green Hydrogen Export and HyEnergy Export projects.

Weekly Technical Chart – GEV

Source: REFINITIV

GIBB River Diamonds Limited (ASX: GIB)

GIB was listed in 2008 and is an Australian company involved in exploration and development of minerals, and it also has various alluvial mines and prospects. Its projects include Edjudina Gold Project, Ellendale Diamond Project, and Highland Plains rock phosphate project. As of 3^rd February 2022, its market capitalisation stood at AUD 13.95 million.

Operational Updates:

• As per quarterly update on 31^st January 2022, after the completion of its 6 aircore drilling program in November, the company updated its results at Edjudina Gold Project. It has identified two new +300 metre strike length targets for future drilling at the Ace of Hearts and Triumph prospects. Phase 6 also intersected numerous porphyry (acid intrusive rock) which raises the prospective for large-tonnage porphyry-style gold deposits.
• The rock phosphate prices increased significantly from ~USD 147.5/tonne to ~USD 176.70/tonne from September to December, related to its 100% owned Highland Plains Phosphate Project.

Financial Highlights:

• 2QFY22: It recorded its cash receipts as nil and closed the second quarter with a cash balance of ~AUD 1.56 million at the end of 30^th December 2021 versus ~AUD 2.32 million at the end of 30^th September 2021.
• FY21: For FY21, total revenues were reported as ~AUD 3.35 million versus ~AUD 0.23 million in FY20. The net losses after tax for FY20 of ~AUD 0.52 million were converted to net profit after tax of ~AUD 1.97 million in FY21.

Technical Analysis: On the weekly chart, GIB has been trading in a range of ~AUD 0.065 to ~AUD 0.100 for the past three months. Currently, the prices are trading above the trend-following indicators 50-period SMA; however, sustaining below the 21-period SMA and struggling to surpass the same, indicating the lack of direction. The momentum oscillator RSI (14-period) is hovering around the mid-point and is currently at ~46.053 levels. The immediate support level is at AUD 0.065 while the resistance level is at AUD 0.082.

Considering its current trading levels and indecisive attitude, investing in this stock at such price levels makes situation dicey and should be taken with a prudent strategy, hence a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.074 per share, up by ~12.121%, as of 3^rd February 2022.

Weekly Technical Chart – GIB

Source: REFINITIV

Argosy Minerals Limited (ASX: AGY)

Listed in 1997, AGY is an Australian company focusing on development of its flagship project Rincon Lithium Project (JV with Pablo Alurralde) and exploration of Tonopah Lithium Project. As of 3^rd February 2022, its market capitalisation stood at AUD 482.81 million.

Operational Updates:

• On 1^st February 2022, the company announced a ~56% of work completed at the flagship project at Rincon Lithium for developing +99.5% battery quality lithium carbonate ~2000tpa capacity project, rest is expected to be completed by mid-2022.
• As per its 2QFY22 Quarterly Report released on 31^st January 2022, it updated commencement of exploration plans at Tonopah Lithium project to test lithium brine targets.
• Lithium carbonate prices were up by ~432% during 2021 and have soared ~56% in 2022.

4QFY21 Financials Top and Bottom Line: In its second quarterly update the company recorded its cash receipts from customers as nil and closed the 4QFY21 with a cash balance of ~AUD 23.09 million at the end of 30^th December 2021 versus ~AUD 22.79 million at the end of 30^th September 2021. The net losses after tax of 1HFY20 at ~AUD 1.39 million were converted into net profits after tax of ~AUD 86.15k million in FY21.

Technical Analysis: AGY prices witnessed significant rally after the stock broke the rising channel pattern by downside in the month of November 2021. Prices have recently made its 52-week high at ~AUD 0.455 and reached to its rising channel pattern resistance level. Now, the prices are getting resistance of the downward sloping trend line. However, the prices are trading above the trend-following indicators 21- period and 50 - period SMA, which may act as a support level for the stock. The momentum oscillator RSI (14-period) trading at ~62.205 level is also moving downwards, indicating loss in momentum. The support level for the stock is placed at AUD 0.280 and AUD 0.255 while the key resistance levels are placed at AUD 0.365 and AUD 0.425. 

The stock is due for its probable consolidation which makes investing at such high price levels a little risky and should be taken with a cautious approach, hence a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.345 per share, down by ~8.000%, as of 3^rd February 2022.

Weekly Technical Chart – AGY

Source: REFINITIV

Renascor Resources Limited (ASX: RNU)

RNU operates into development, exploration and evaluation of economically viable deposits which contains graphite, copper, gold and other minerals. It has projects mainly in South Australia which includes Siviour Battery Anode Materials Project, Carnding Gold Project, Marree Project, Olary Project and Eastern Eyre Project. The company’s market capitalization stood at AUD 549.22 million as of 3^rd February 2022.

Operations Updates:

• On 2^nd February 2022, its loan facility of ~AUD 185 million for its Siviour Graphite Project was conditionally approved by Export Finance Australia (EFA).
• As per its 2QFY22 Quarterly Report released on 31^st January 2022, commercial-scale testing resulted in ~65% more spherical graphite yields from the milling process at Siviour Graphite Project versus ~50% yield adopted in Battery Anode Material Study.
• The market for PSG Purified Spherical Graphite reported an increase of ~40% in prices in 12 months which is allowing the company to utilise the high yield mentioned above, produce more PSG and improve profit margins.
• With a decrease in operating cash outflow from ~AUD 0.56 million in 1QFY22 to ~AUD 0.27 million in 2QFY22, it recorded its cash receipts as ~AUD 50k for the quarter. The accounts were closed with a cash balance of ~AUD 15.40 million at the end of 30^th December 2021 in contrast to ~AUD 16.10 million at the end of 30^th September 2021.

Technical Analysis: RNU’s prices are reversing from higher levels after making a new 52-week high of AUD 0.31 on 2nd February 2022. On the weekly chart, prices are trading above the trend-following indicators 50-period SMA and 21-period SMA and may act as the support levels for the stock. The momentum oscillator RSI (14-period) is currently trading at ~77.559 levels and forming a negative divergence with the price action, indicating the possibility of downward movement in the near term. The support level for the stock is placed at AUD 0.245, while the resistance level is at AUD 0.295.

Its current high trading levels and negative divergence formed by RSI indicator makes a ‘Expensive’ recommendation at closing current market price of AUD 0.270 per share, down by ~6.897%, as of 3^rd February 2022.

Weekly Technical Chart – RNU

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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