Alpha HPA Limited (ASX: A4N)

A4N was incorporated in 2003, which is involved in exploration and development of specialty metals and technology. It segments include HPA First Project, and minerals exploration and evaluation. Its market capitalization stood at AUD 408.54 million as of 24^th December 2021.

Financial and Operational Updates: On 15^th December 2021, Alpha released an update related to HPA first project at Gladstone, whose commercial production of High purity Aluminium Precursors is scheduled for August 2022. As per its quarterly report on 28^th October 2021, it signed a binding agreement with Orica for supply of reagents and for sale of its by-products for its Gladstone Project. On the other hand, A4N signed a divestment deal at its Collerina Project in NSW with Helix Resources. It received sale orders for 25kg of AI-nitrate precursors and 100kg of LED phosphors.

Its sales receipts for 1QFY22 were ~AUD 4k and closed the quarter with a cash balance of ~AUD 46.39 million at the end of 30^th September 2021 versus ~AUD 50.34 million at the end of 30^th June 2021. As per its Annual Report, it reported ~AUD 0.96 million as other income and a total loss of ~AUD 16.31 million for FY21.

Technical Analysis: A4N's prices are consolidating above a downward sloping trend line breakout level, indicating the possibility of an upside direction. On the weekly chart, the leading indicator RSI (14-period) is trading in positive territory at 53.70 levels which supports a positive bias. The trend-following indicators 21-period SMA and 50-period SMA are sustaining below the CMP and support an upward trend. Now an immediate support level for the stock appears at AUD 0.47 while the resistance is at AUD 0.62.

With a view of anticipated commercial production in FY22 and its technical analysis, the investors with a high-risk appetite might consider a ‘Speculative Buy’ position, incorporating the support and resistance as one of the tools while analysing the investment opportunity. The stock was analysed as per the current price of AUD 0.535, as of 24^th December 2021, 02:00 PM (GMT+10), Sydney, Eastern Australia. However, the risk levels are extremely high in view of the future findings and its saleability.

Weekly Daily Technical Chart – A4N

Source: REFINITIV

Falcon Metals Limited (ASX: FAL)

FAL is focused on the development and exploration of gold projects which includes Viking Project, Pyramid Hill Project, and the Mount Jackson Project. The company was formed after it is demerged from Chalice Mining Limited. FAL holds a market capitalization of AUD 66.37 million as of 24^th December 2021.

Operational Updates – FAL holds opportunity to explore high-grade gold province under cover, which produced 60 million ounces of gold since 1850’s via outcropping South Bindigo Zone, at an average grade level of circa 15g/Au. The Karri prospect holds shallow gold intersections of above ~4km of strike with up to 32.1g/t Au. Ironbark holds shallow gold intersections of with up to 9.4g/t Au. FAL is focused on its drilling program to infill AC and or diamond drilling at Ironbark, Karri, Banksia and Wandoo prospects.

Technical Analysis: FAL started trading on ASX on 22^nd December 2021. Due to its novice listing, the technical analysis and levels are not valid.

Due to non-availability of company’s financials and lack of technical data, investing in this stock at such uncertain levels should be taken with calculated approach, hence a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.375 per share, as of 24^th December 2021.

Daily Technical Chart – FAL

Source: REFINITIV

Southern Hemisphere Mining Limited (ASX: SUH)

SUH is an Australia-based gold-copper exploration company. SUH is involved in mineral exploration in South America, Chile, Western Australia, and Pilbara. The company’s key projects include Llahuin Copper Gold Project, Los Pumas Manganese EV Battery Project, and Colma2 Copper Gold Project. SUH holds a market capitalization of AUD 9.53 million as of 24^th December 2021.

Operational Updates – As announced on 1^st December 2021, SUH completed its first hole of the key drilling program at Llahuin Gold/Copper/Moly Project. The drilling is managed to add 149mt at 0.41% CuEq current resource. For the September 2021 quarter ended, a total of 19 holes were drilled with a combination of diamond and RC drilling with a program length of 2,793 metres. The original 800m program was initiated post an initial discovery of 34 metres at 1.38g/t Au from 24 metres. It had nil receipts from customers and posted operating cash outflows of $0.677 million in Q1FY22. As of 30 September 2021, SUH held a cash reserve of $0.826 million.

Technical Analysis: SUH prices broke the upward sloping trend line by downside on 3rd October 2021 and the prices are sustaining below the breakout level from past 12 weeks. Prices are also sustaining below its 21 and 50 period SMA on a weekly chart that also indicates that the prices are trading in a weak territory. RSI (14-period) is hovering at ~41 level on a weekly chart that indicates the prices are trading in a bearish momentum. Immediate support levels are AUD 0.036 while immediate resistance levels are AUD 0.0500.

Considering the company’s nil revenues, negative operating cash flows, current price levels with indecisiveness, investing in this stock at such uncertain levels should be taken with calculated approach, hence a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.039 per share, as of 24^th December 2021.

Weekly Technical Chart – SUH

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 represents the Trendline.

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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