Amani Gold Limited – (ASX: ANL)

ANL is engaged in the business of acquisition and exploration of precious metals. The group also deals in the business of gold trading in Tanzania. It is targeting exploration at its flagship project, the Giro Gold Project that is situated in the Moto greenstone belt in the Democratic Republic of Congo. The company was incorporated and domiciled in Australia. The market capitalization stood at $18.58 million, at $0.001 per share.

Financial & Operational Highlights – On 27^th May 2021, the company updated that Mr. Antony Truelove and Mr. Nick Harding have resigned from the post of non-executive director and company secretary, respectively. Further, the board has appointed Mr. John Campbell Smyth and Mr. Peter Huljich as non-executive directors and Mr. James Bahen as the company secretary. Further, it has inducted Mr Conrad Karageorge as the chief operating officer of the company. On the financial front, during H1FY21 ended 31 December 2020, the company reported an increase in its consolidated loss after tax to $2.72 million from $2.32 million in H1FY20. The revenue from continuing operations reduced to $67,774 in H1FY21 from $0.41 million in H1FY20. In its cash flow report for the quarter ended 30 June 2021, released on 30 July 2021, the company’s cash and cash equivalents increased to $0.87 million from $0.32 million in the previous quarter.

Weekly Technical Chart – ANL

Source: REFINITIV

Note: The black color line in the chart depicts RSI (14-period), while the blue color histogram represents the volumes. The green and red color lines show 21-Period and 50-Period SMA respectively.

Technical Analysis – The stock prices are trapped in a long consolidating range between AU$0.001-AU$0.002. The relative strength index at ~51 on weekly chart, which is in the middle range of the zone, points for directionless movement. The support for the current trend is at AU$0.001 and the resistance is at AU$0.002. Breaking either side of the range will give a clear picture of the trend formation.

Considering its declining revenues along with rising net losses, and absence of receipts from customers, the 'Avoid' rating has been assigned on the stock at the closing price of $0.001, as of 17^th August 2021.

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.

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