Piedmont Lithium Inc. (ASX: PLL)

PLL is based in Belmont, North Carolina, USA and was incorporated in 1983. The company is engaged in the exploration and development of lithium-based resource projects in the US.

Fundamental Highlights- The company recently raised US $122.5 million (AUD 159.1 million) from the public offering of 1.75 million of its American Depositary Shares and the proceeds are to be utilised to fund the lithium projects in the pipeline. The company failed to receive receipts from the customers for the previous quarter ending on 31^st March 2021 and the cash outflows were $4.77 million for the same period. The company witnessed an increase in the cash balance to $0.16 million in 3Q FY21 from $0.07 million in 2Q FY21.

Technical Analysis- The stock witnessed a vertical rally from Sept 2020 and printed the lifetime high of $1.14 on March 21. From then, the prices corrected slightly and still moving in the range with the resistance of $1.145. The Relative Strength Index is pointing at 45.73 which is in the middle range of the zone, lacking significant direction towards either side of the trend. The 12 Day Moving Average is currently placed above the closing of the stock prices, indicating some more downtrend to the stock. The prices are in the middle of the trading range, with the support of $0.80 and the resistance of $1.145. For the stock to give a breakout on either side of the trend, strong volumes should be visible to sustain the momentum.

With the lack of cash inflows from customers, lower cash balances, high currency risks along with the near lifetime high stock price, we give the stock a rating of ‘Expensive’ at current levels of $0.91, down by 4.211% as of 8^th July 2021. 

Daily Technical Chart - PLL

Source: REFINITIV

SAYONA Mining Limited- (ASX: SYA)

SYA was incorporated in 2000 and based in Paddington, Australia. The company is engaged in the acquisitions, evaluation, and exploration of mineral assets in Canada and Australia and majorly involved in the two minerals: graphite and lithium.

Fundamental Highlights- The securities of the company were placed in a trading halt on 8 July 2021 because of the pending release of an announcement regarding a capital raising. Recently, the company obtained the approval for the NAL Acquisition for the expansion of the projects in Canada and before that raised AUD 21.9 million through the right issue. The group failed to record any cash receipts from the customers during past three consecutive quarters ending on 31^st March 2021 and posted the net cash outflows of -$3.51 million for the 3QFY21. The company strengthened its cash positioning to $9.88 million for 3QFY21 as compared to the $4.58 million in 2Q FY21, a record increase of 115% on a Quarter-on- Quarter basis.

Technical Analysis- The stock witnessed a breakout in prices in Jan21, and since then the prices moved in an upwards trajectory. The 14-Day Relative Strength Index currently showing a reading of 76.76 which is at the upper end of the zone, pointing to the strength in the current trend. The support levels are placed at $0.073 to keep the current trend intact. For the prices to move to the north, strong trading volumes should be viewed as a catalyst that can take the stock to the fresh lifetime highs of $0.11. To add further bullishness, the 12 Days Moving average is closing below the stock prices off late, indicating strength in the near term.

The company did not receive any cash receipts from customers in the past three quarters, and with the prices hovering near a lifetime high, we give the stock a rating of ‘Expensive’ at current levels of $0.097, as of 8^th July 2021.

Daily Technical Chart - SYA

Source: REFINITIV

Weebit Nano Ltd (ASX: WBT)

WBT is engaged in operating a data memory technology business to develop and commercialise its Resistive Random-Access-Memory (ReRAM) silicon oxide technology. The focus of ReRAM technology is to replace flash memory and is viewed as flash replacement. The company's ReRAM technology is also used in data centres, banking, and stock exchange transactions, as well as cloud computing.

Fundamental Highlights - WBT has not generated operational income so far. The company is investing significantly in R&D expenses due to which it has incurred a net loss of $9.36mn as on 31 December 2020 against $3.29 million as of 31 December 2019. The cash balance has been improved to $18.85 million as on 31 December 2020 against $4.11 million as on 30 June 2020. In addition, the non-current liabilities have been declined to $23.37k as on 31 December 2020 against $24.44k as on 30 June 2020.

Technical Analysis- The stock witnessed a sharp correction since the beginning of 2021, forming lower highs and lower lows. The relative strength index is currently printed at 49.49 which is in the middle of the range, depicting the prices to revolve in a range-bound in the near term. The 12 Days Moving average further closed almost at the closing of the stock price, which is lacking the trend confirmation in the near term. The support levels are placed at $1.55, and the resistance is at $2.10, which needs to be breached on either side to see a strong trend formation.

The company has no operating income, high R&D expenses and the prices hovering near lifetime high, we give the stock a rating of ‘Expensive’. It is prudent to avoid the stock at current levels of $1.785, up by 0.874% as on 8^th July 2021.

Daily Technical Chart - WBT

Source: REFINITIV

Kingston Resources Limited (ASX: KSN)

KSN is engaged in gold and lithium exploration in Western Australia. The company operates projects including Greenbushes Project, Bynoe/Wyngate Projects, Livingstone Gold Project and copper projects. The current market capitalisation of the company stands at $58.16 million as on 8 July 2021.

Fundamental Highlights - The company has reported an increase in other revenue to $0.10 million in 1HFY21 against $0.09 million in 1HFY20. In addition, the company has incurred an additional loss in 1HFY21 to $1.07 million against $0.99 million in 1HFY20. The cash balance has been improved significantly with a decline in total liabilities as on 31 December 2020. On the operational front, the company has acquired 100% of 3.6Moz Misima Gold Project during 3QFY21.

Technical Analysis- The prices corrected lately and are trading in a range of $0.24 - $0.185 as of now. The relative strength index is showing a reading of 48.99, which is in the middle of the range, lacking the one-sided trend formation in the near term. For the prices to hold the ground, support of $0.185 should be respected and on the higher end, the resistance will act as a supply zone around $0.24 levels. Further, the 12 Days Moving Average is in line with the closing price of the stock, lacking clarity on the trend in the near term.

The company did not generate any operating income, mounting losses, and the narrow range-bound price movement, we suggest investors to ‘avoid’ the stock at current levels of $0.215, up by 4.878% as on 8^th July 2021.

Daily Technical Chart - KSN

Source: REFINITIV

Battery Minerals Limited (ASX: BAT)

BAT is engaged in mining development and mineral exploration in Mozambique. The company is focused on Montepuez and Balama projects to produce high-quality graphite.

Fundamental Highlights - BAT has posted a significant increase in its other income to $0.117 million in FY20 against $0.015 million in FY19. The company has incurred a loss of $6.54 million in FY20. The cash balance has been improved significantly to $7.30 million as on 31 December 2020 against $4.11 million as on 31 December 2019. In addition, BAT has nil long-term debt on its balance sheet with a decline in current liabilities to $0.35 million as on 31 December 2020 against $0.37 million as on 31 December 2019.

Technical Analysis- The stock formed the continuous lower highs and lower lows and reached near the support zone of $0.016 levels. The 12 Day Moving Average further closed at the intraday lows of the stock at $0.018, which is not convincing towards the indication of any major trend formation. The relative strength index is at 54.36 which is also in the middle of the range. For the prices to move towards the North, the resistance of $0.022 should be taken off with strong volumes that will be a supportive signal for the uptrend in the near term.

The company did not generate any operating income, negative ROE, and the narrow range-bound price movement, we suggest investors to ‘avoid’ the stock at current levels of $0.019, up by 5.55% as on 8^th July 2021.

Daily Technical Chart - BAT

Source: REFINITIV

Oilex Ltd (ASX: OEX)

OEX is engaged in the exploration of petroleum resources in prolific basins. The company operates geographically through India, Australia, Joint Petroleum Development Area (JPDA) and Indonesia segments.

Fundamental Highlights – OEX has registered other income to $0.44 million in 1HFY21 against ‘nil’ in 1HFY20. The company has posted a profit of $0.41 million in 1HFY21 against a loss of $2.02 million in 1HFY20, due to controlled operating expenses. The cash balance has been declined to $0.10 million as on 31 December 2020 against $0.17 million as on 30 June 2020. In addition, total liabilities have been declined to $7.29 million as on 31 December 2020 against $8.10 million as on 30 June 2020.

Technical Analysis- The stock formed the recent high in April 2021 of $0.014 and immediately witnessed sharp correction and currently moving in a very narrow range of $0.006 - $0.003. The 12 Day Moving Average is also moving very closely with the prices, failing to indicate any trend formation or continuation. The relative strength index is 53.78, which is again in the middle of the range. For the stock to move in any direction, the support of $0.003 or the resistance $0.006, either of the level should be taken off from the chart with heavy volumes. 

The company is incurring losses and looking at the narrow range-bound price movement, we suggest investors to ‘avoid’ the stock at current levels of $0.004, up by 12.5% as on 8^th July 2021.

Daily Technical Chart - OEX

Source: REFINITIV

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decision should be made depending on the investors’ appetite on 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 uptrend may take a pause due to profit booking or selling interest. 

The Green colour line reflects the 21-period moving average. DMA 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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