Regeneus Limited (ASX: RGS)

RGS is a clinical-stage regenerative medicine company, engaged in developing cell-based therapies for human and animal health markets, with a focus on osteoarthritis and musculoskeletal disorders, as well as oncology and dermatology diseases. The Company's products include Kvax, CryoShot, Progenza, Human Cancer Vaccine and Secretions Cream. The company was incorporated in 2007 and headquartered in Paddington, Australia. The market capitalization stood at $23.97 million at $0.080 per share.

Financial & Operational Highlights – The company announced its quarterly cash flows and business update on 29^th July 2021, stating it received $300k assistance from the Australian Department of Defence to develop Sygenus to combat casualty care with the first-in-human study on pain. For the trials of Phase 2 of Progenza Osteoarthritis in the US market, the company secured $4.5 million in a three-stage placement to meet the working capital requirement. On the financial front, the company did not receive any cash receipts from the customers for the past two quarters ending on 30^th June 2021. There were significant operating cash outflows in 4Q FY21 amounting to $0.86 million as compared to the cash inflows in 3Q FY21 of $0.94 million. The cash balance reported for the period ending on 30^th June 2021 stood at $3.79 million.

Technical Analysis- The stock showed a continuous downward trajectory, lowering the resistance level on every slight pullback. The relative strength index at 55.724, which is in the middle range of the zone, points for directionless movement, which can eventually lead to a breakout on either side. The 21 Day Simple Moving Average is currently hovering below the stock price at $0.076, indicating a strong bullish bias to the stock price taking it to the North. Keeping the volatility of the stock into consideration, the support is placed at $0.068 and the resistance is placed at $0.106.

Lack of operating revenues, increasing cash outflows, and declining stock prices, we give the stock the rating of ‘Avoid’ at the closing price of $0.080, up by ~1.27%, as of 6^th August 2021.

Daily Technical Chart – RGS

Source: REFINITIV

Magnetite Mines Limited (ASX: MGT)

MGT is , is a mineral exploration and development company, with the South Australian Mawson Iron Project, which contains the Razorback magnetite deposit. The company was incorporated in 2004 and headquartered in Wayville, Australia. The market capitalization stood at $119.50 million at $0.038 per share.

Financial & Operational Highlights – On 30^th July 2021, the company announced its quarterly activities report for the period ending on 30^th June 2021, stating it declared in total 473 million tonnes of maiden Ore Reserve for the Razorback Iron Ore Project. To study the pre-feasibility of the same project, the company raised $7 million via Institutional placement. On the financial front, the company did not receive any cash receipts from the customers for the past 12 months ending on 30^th June 2021. To carry out the projects and expansion, the cash balances were strengthened to $16.59 million in 4Q FY21 from $4.16 million in 3Q FY21.

Technical Analysis- The stock showed a strong uptrend and printed the recent high of $0.094, only to experience a sharp sell-off from those levels. Since then the stock is in a continuous downtrend, forming lower highs and lower lows. The relative strength index at 28.829, which is at the lower end of the range, showing more downside potential remaining with the stock prices from the current level. The 21 days simple moving average is hovering above the stock price at $0.044, indicating some more bearishness for the stock at current levels. For the prices to prohibit from diving into the bear territory, the support of $0.030 should be held firmly. Similarly, for the prices to regain the uptrend, a resistance of $0.048 needs to be taken off with strong volumes.

Lack of operating revenues and declining stock prices gives the level of un-comfort to the investors to get into the stock, hence we suggest investors to ‘Avoid’ the stock at the closing price of $0.038 per share, as of 6^th August 2021.

Daily Technical Chart – MGT

Source: REFINITIV

Classic Minerals Limited (ASX: CLZ)

CLZ is engaged in the exploration of minerals in Australia and its key projects include the Fraser Range project, Doherty's project and Cowarna Rocks project.  The company primarily explores gold and nickel. The company was incorporated in 2006 and headquartered in Landsdale, Australia. The market capitalization stood at $22.36 million at 0.001 per share.

Financial & Operational Highlights –   On 2^nd August 2021, the company announced its plans to raise $8.4 million and the funds will be utilised for the exploration and production activities at the Kat Gap project. the Assay results for the RC drilling were targeting towards the Kat Gap project aiming to identify high-grade gold mineralisation underneath.  On its Classic Fraser range project, the company entered into the Joint VentureAgreement with IGO Limited( ASX: IGO),  the positive developments were observed which encouraged further exploration activities. On the financial front, the company did not receive any cash receipts from the customers for the past 12 months ending on 30^th June 2021. There was an increase in operating cash outflows in 4Q FY21 to $2.93 million as compared to outflows of $2.23 million in the preceding quarter. The cash balance was increased for the period ending on 30^th June 2021 stood to $2.01 million from $0.25 million in 3Q FY21.

Technical Analysis- The stock is moving in a very narrow range of $0.0020 and $0.0010, hence there is not much analysis that can be made out of the limited price movement.

Lack of operating revenues accompanied and narrow range-bound stock prices, suggest the investors to say away from the stocks and hence we give ‘Avoid’ rating to stock at the closing price of $0.0010, as of 6^th August 2021.

Daily Technical Chart – CLZ

Source: REFINITIV

Castile Resources Limited - (ASX: CST)

CST is an Australia-based company engaged in the business of mineral exploration and development in the Northern Territory.  The company focuses on exploring copper-gold and associated other base metals. Its key projects include the Rover Project and Warumpi Project. The company was incorporated in 2007 and is based in Perth, Australia, having a market capitalization is $36.94 million, at the current price of $0.175 per share.

Financial & Operational Highlights – on 6^th August 2021, the company announced the result of Assay from the Castile’s Rover 1 Iron Oxide Copper Gold (IOCG)  and discovered the High-Grade Copper mineralization, encourages the company for carrying out other exploration and developing activities. On the financial front, the company did not receive any cash receipts from the customers for the past 12 months ending on 30^th June 2021. The operating cash outflows were increased considerably in 4Q FY21 reaching $0.23 million as compared to the outflows of $64k in 3Q FY21. The cash balance declined to $11.22 million for the period ending 30^th June 2021 from $13.30 million for the quarter ending 31^st March 2021.

Technical Analysis- The stock showed an uptrend and printed the recent highs of $0.47 and corrected from there forming lower highs and lower lows, to find stability at support levels. The relative strength index at 35.35, which is at the lower end of the range, showing more downside potential remaining with the stock prices from the current level. The 21 days simple moving average is hovering above the stock price at $0.195, indicating some more bearishness for the stock at current levels. The support for the current trend is at $0.14 and the resistance is at $0.215. Breaking either side of the range will give a clear picture of the trend formation.

Lack of operating revenues, declining cash balance, rising operating cash outflows, and stock prices heading towards the south make the stock less attractive from an investment perspective. Hence, we suggest investors to 'Avoid’ the stock at the closing price of $0.175 per share, down by ~5.41%, as of 6^th August 2021.

Daily Technical Chart – CST

Source: REFINITIV

GIBB River Diamonds Limited (ASX: GIB)

GIB is a multi-commodity resources company, involved in phosphate exploration, and also explores gold, manganese, iron and uranium.  The Company holds key interests in various projects, such as Blina Diamond Project (Blina), located in Ellendale, Western Australia; Highland Plains Phosphate Project, located in Northern Territory; Laverton Gold Project, located in Laverton, Western Australia. The company was incorporated in 2018 and is based in West Perth, Australia, having a current market capitalization of $12.05 million at the current $0.057 per share price.

Financial & Operational Highlights- On 29^th July 2021, the company announced its Quarterly report for the period ending on 30^th June 2021, stating the positive results from its Phase 4 drilling at Edjudina Gold Project for gold mineralisation in that area.  On the financial front, the company did not receive any cash receipts from the customers for the past 12 months ending on 30^th June 21. The operating cash outflows were increased in 4Q FY21 to $0.38 million as compared to the cash outflows in 3Q FY21 of $0.13. The cash balance declined to $2.32 million for the period ending 30^th June 21 from $3.03 million for the quarter ending 31^st March 2021.

Technical Analysis- The stock showed a continuous downtrend, with few spikes in between giving the stock a strong resistance at declining levels. The relative strength index at 43.468, which is in the middle range of the zone, points for directionless movement, which can eventually lead to a breakout on either side. The 21 Day Simple Moving Average is currently hovering close to the stock price at $0.058, indicating no clear trend formation or continuation from current levels. The support is placed at $0.046 which can bring further buying interest among the investors, and the resistance is placed at $0.080, bringing the sellers to the front step.

Lack of operating revenues, declining cash balance, widening operating cash outflows, and stock prices heading towards the south make the stock less attractive from an investment perspective. Hence, we suggest investors to 'Avoid’ the stock at the closing price of $0.057 per share, as of 6^th August 2021.

Daily Technical Chart – GIB

Source: REFINITIV

Mount Ridley Mines Limited (ASX: MRD)

MRD is an Australia-based exploration company focusing primarily on projects in the Fraser Range region, Western Australia, containing precious metal deposits, such as nickel, copper, cobalt, silver, and gold.  The Company’s projects include the Mount Ridley project and the Weld Range West Iron project. The company was incorporated in 2014 and is based in Nedlands, Australia, with a current market capitalization of $22.56 million at $0.004 per share price.

Financial & Operational Highlights - On 2^nd August July 21, the company announced the updates of its Mount Ridley Project, unearth an extensive rare earth element. The drilling results for its 100% owned Weld Range Iron Project, in the mid-west of Western Australia, were positive enough, with the discovery of Channel Iron Deposits around that surface. On the financial front, the company did not receive any cash receipts for the past year ending on 30^th June 2021. The cash outflows from operations increased to $0.88 million in 4Q FY21 as compared to the outflow of $0.27 million in 3Q FY21 ending on 31^st March 2021. Further, the cash balance for the 4Q FY21 was reported at $1.45 million.

Technical Analysis- The stock is moving upwards with limited price history and that too in a narrow range. The relative strength index at 50.784, which is in the middle range of the zone, points for directionless movement, which can eventually lead to a breakout on either side. The 21 Day Simple Moving Average is currently hovering below the stock price at $0.0036, indicating more bullishness o the stock from current levels. The support is placed at $0.003 which can bring further buying interest among the investors. Similarly, for the prices to regain the uptrend, a resistance of $0.0055  needs to be taken off with strong volumes.

Lack of operating revenues, declining cash balance, and range bound stock prices, makes the stock less attractive from an investment perspective. Hence, we suggest investors to 'Avoid’ the stock at the closing price of $0.0040 per share, down by ~11.11%, as of 6^th August 2021.

Daily Technical Chart – MRD

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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