Euro Manganese Inc (ASX: EMN)

EMN was incorporated on November 24, 2014. The main business of the company is the proposed development of the Chvaletice Manganese Project, that involves the re-processing of the readily leachable manganese deposit, in which it has the 100% ownership interest, hosted in the tailings of the decommissioned mine in Czech Republic. The company's current market capitalization is ~$238.22 million, with the current price of $0.665 per share.

Fundamental Highlights- EMN recently announced that it has entered into the royalty termination agreements to purchase as well as extinguish an aggregate 1.2% net smelter royalty interest in the Chvaletice Manganese Project for an aggregate consideration of US$4.5 Mn (~CAD$5.45 million).

Separately, the company’s wholly-owned subsidiary, Mangan Chvaletice s.r.o. has bagged the extensions of its exclusive resource development rights related to EMN’s Chvaletice Manganese Project.

The cash increased significantly to ~CAD$33.1 million on 31^st March 2021. The cash has been held with the reputable financial institutions as well as is deployed in the highly liquid short-term investments having maturities of three months or less. The company has witnessed an increase in its loss during the three months ended 31^st March 2021 to CAD$2.470 million from CAD$1.930 million in the pcp.

Technical Analysis- The stock touched the lifetime lows in September 2020 of $0.060 and consolidated only to initiate the uptrend, printing the lifetime high of $0.965. Since then, the prices have corrected and moved in a range-bound manner. The Relative Strength Index shows the reading of 66.40, which is in the upper end of the range, indicating more upside remaining from current prices. The 21 Days Simple Moving Average is placed below the stock closing price at $0.57, favouring the uptrend from current levels. For the stock to continue the trend, the support of $0.44 should be respected. Any upside movement can encounter the resistance of $0.73, which can act as the hurdle for continuing the uptrend.

With mounting losses, acquiring rights to explore the various properties, and the range-bound stock prices, we suggest investors to “Avoid” the stock at the closing price of $0.665, up by 3.91%, as of 23^rd July 2021.

Daily Technical Chart – EMN

Source: REFINITIV

Boss Energy Ltd (ASX: BOE)

BOE has one of the few uranium projects ready to participate in early stages of the new uranium bull market. The company's current market capitalization is $341.74 million, with the current price of $0.150 per share.

Fundamental Highlights- The company recently has acquired a strategic inventory of 1.25 million pounds of uranium from the spot market.

The company reported that the Enhanced Feasibility Study (EFS) on its 100 per cent-owned Honeymoon Uranium Project in South Australia reinforced the financial as well as technical robustness of the project. It is now anticipated of achieving Honeymoon pre-tax NPV of US$309 million, an increase of 35% from last year’s feasibility study). The company’s unrestricted cash and cash equivalents at end of 31 March 2021 stood at A$18.06 million.

The company did not receive any cash receipts from customers in the quarter ended 31^st March 2021.

Technical Analysis- The stock showed a gradual uptrend since the middle of 2020 and printed the recent highs of $0.205 and corrected from there. The stock prices since then are in the downward trend, forming lower highs and lower lows. The relative strength index shows a reading of ~43.50, which is in the middle of the trading zone, depleting the one-sided trend bias from current levels. The 21 Days Simple Moving average is currently placed close to the stock prices, missing the trend confirmation from current levels. The support is placed at $0.125, and the resistance is at $0.195.

Due to the lack of cash receipts from the customers and the declining stock prices, we suggest investors to “Avoid” the stock at the closing price of $0.15, unchanged, as of 23^rd July 2021.

Daily Technical Chart – BOE

Source: REFINITIV

Nanollose Ltd (ASX: NC6)

NC6 is an Australian-based leading bio-materials company advancing innovation technologies relating to the production, processing as well as applications of microbial cellulose. The company utilises an eco-friendly fermentation process to create fibres that could replace the conventional plant-derived cellulose fibres. The company's current market capitalization is $13.08 million, with the current price of $0.082 per share.

Fundamental Highlights- Recently, the company has dispatched the first shipment of refined microbial cellulose to Birla Cellulose’s pilot facilities in India. Besides, NC6, in April 2021, has raised $2.85 million from oversubscribed placement to institutional and sophisticated investors and the funds will be utilised towards further advancing the development and commercialisation of its tree-free fibres. The company has cash and cash equivalents of A$0.594 million at the end of 31 March 2021.

It reported a loss after income tax of $0.441 million for the half year ended 31 December 2020 compared to the loss of $0.588 million in the half year ended 31 December 2019.  

Technical Analysis- The stock gave a breakout at the start of this year and rallied vertically, recording the recent highs of $0.23, followed by a correction. The relative strength index shows a reading of 35.81, which is moving towards the lower end of the zone, indicating the probability of further downside to the prices. The 21-day simple moving average is currently placed in close proximity of the stock prices, avoiding any trend bias from these levels. The support for the stock is at $0.078, and resistance is at $0.10.

Due to accumulate in the losses, dependency on the government grants, and declining stock prices moving in a narrow range, we suggest that investors to “Avoid” the stock at the closing price of $0.082, down by 6.82%, as of 23^rd July 2021.

Daily Technical Chart – NC6

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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