SI6 Metals Limited

SI6 Details

Business Update: SI6 Metals Limited (ASX: SI6) specialises in exploring and developing mineral resources and engaged in the field exploration programs at its Maibele Project explores for nickel, copper, cobalt, silver, etc. The market capitalisation of the company as of 28 May 2021 stood at $15.32 million. As per the recent announcement, the company's Director Mr. Patrick Holywell has acquired an additional 495,000 fully paid ordinary shares and 750,000 S16OD shares from the securities market.

H1FY21 Financial Result: During the period, the company has reported revenue of $ 10,716 in H1FY21. The company has recorded a net loss of $1.1 million in H1FY21, compared to $0.4 million in H1FY20. The company has recorded nil debt and additionally, the cash position stood at $5.62 million as of 31 March 2021.

H1 FY21 Cashflow Statement (Source: Company Reports)

Outlook: The company was successful in applying for co-drilling program wherein the government offers a 50% refund as an incentive under Exploration Incentive Scheme (EIS) program. The company has anticipated optimum drilling and exploration activity at Korong and Waihi in the June quarter.

Key Risks: Resource identification is influenced by drilling capabilities and feasibility studies. The COVID-19 outbreak has adversely affected the financial position, liquidity and operations of the company.

Stock Recommendation: As per the recent announcement, the company has appointed Mr. Modisana Botsile as Strategic Advisor in a move to push its exploration plans in Botswana. The stock of SI6 is trading below its average 52-weeks' levels of $0.003-$0.046. The stock of SI6 gave a positive return of ~175% in the past one year and a negative return of ~15.38% in the past one month. Considering the exploration plans at Botswana, benefits of co-drilling from the government, current trading levels, valuation, and key risks associated with the business, we recommend a 'Speculative Buy' rating on the stock at the current market price of $0.011, as on 28 May 2021.

SI6 Daily Technical Chart, Data Source: REFINITIV

Great Boulder Resources Limited

GBR Details

Business update: Great Boulder Resources Limited (ASX: GBR) is a mineral exploration company, engaged in exploration, discovery and delineation of nickel, copper, cobalt and gold resources within the Eastern Goldfields region of Western Australia. The company market capitalisation of the company as of 28 May 2021 stood at $42.28 million. As per the recent announcement, the company is raising funds through issuance of 69,216,443 ordinary shares in the securities market.

Q3FY21 Financial Performance: During the period, the company has spent $740,000 for exploration expenditure comprised of all the drilling activities. The cash position of the company stood at $3.18 million as of 31 March 2021.

Q3FY21 Cashflow Statement (Source: Company Reports)

Outlook: The company is looking forward to perform geochemistry sample test at its Hillsborough prospect, besides Auger sampling and detectORE tests to generate and refine the Whiteheads prospect pipeline.

Key Risk: The company had historical losses and delay in drilling and exploration plans may weaken its financial position. Its line of business exposes to environmental risk and regulatory/compliance risk that could impact the deliverables.  

Stock Recommendation: As per a recent announcement, the company commenced a strategic collaboration project with CSIRO, co-funded by the Federal Government's Innovation Connections program. GBR stock has rallied ~354% from a low of AUD 0.036 made on 22 April 2021 to a recent high of AUD 0.150 tested on 05 May 2021. The prices are now getting resistance of the downward sloping trendline on a weekly chart. The momentum indicator RSI (14-period) is trading in an overbought zone (~76 levels), indicating a possibility of downside correction from the current level. An important support level for the stock is placed at AUD 0.089, while the key resistance level is placed at AUD 0.15. Considering the current trading levels, valuation, historical losses, and key risks associated with the business, we suggest investors to book profits and give a ‘Sell’ rating on the stock at the closing price of $0.130, up by ~8.333% as on May 28, 2021.

GBR Daily Technical Chart, Data 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 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 analysis has been achieved and subject to the factors discussed above alongside support levels provided.

Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.

Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.

You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.

Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine do not hold interests in any of the securities or other financial products covered on the Kalkine website.