Cyprium Metals Limited

CYM Details

Change in Registered Office: Cyprium Metals Limited (ASX: CYM) manages a portfolio of copper projects while operating in the regions of Paterson and Murchison in Western Australia. CYM notified, from 20 December 2021, the registered office of Automic Pty Limited will be relocated to Level 5, 191, St. Georges Terrace in Perth, Western Australia, 6,000.

Became a Substantial Shareholder: On 6 December 2021, Ilwella Pty Limited became a substantial shareholder in CYM with ~5.35% voting shares.

Key Takeaways from Q3FY21 (30 September 2021):

• The company is accelerating the development activities at the Nifty copper project for the resource definition and further drilling programs. CYM is undertaking a comprehensive mineral resource estimate of the Nifty deposit and has started open pit optimisation work for the Heap Leach restart study during Q1FY22.
• CYM is conducting the drilling program at the Maroochydore copper project to seek samples for metallurgical testing and geological study. The sulphide mineralisation is open for further drilling along strike and down-down dip.
• The diamond drilling at the third NWD2003 hole at the Nanadie Well deposit at the Murchison Project exhibited a strong intersection for gold and copper near the surface. It is open for further mineralisation in multiple directions.
• CYM held $40.04 million cash and cash equivalents as of 30 September 2021.

Total Assets & Total Liabilities Position, Highlights; (Analysis by Kalkine Group)

Key Risks: The company faces regulatory hurdles, exploration, and climate risk, raising of funds for exploration programs, and COVID-19 impact on labour availability and costs.

Outlook:

• CYM aims to complete the set milestones at the Nifty copper project with the completion of the metallurgy review, resource review, restart study, etc., and publish the results stage-wise upon completion.
• At the Maroochydore project, CYM is progressing on Phase I of the infill and extensional drilling to target the oxide resource. It plans to finish the exploration before the start of the wet season and test deeper holes.
• At the Nanadie Well copper-gold project, CYM will review the diamond drilling assay results and perform geological analysis and metallurgical testing of the core.

Stock Recommendation: The stock of CYM gave a negative return of ~28.88% in the past three months and a negative return of ~38.46% in the past six months. The stock is currently trading lower than the 52-weeks’ average price level band of $0.135 - $0.370. On a TTM basis, the stock of CYM is trading at a price to book value multiple of 0.8x lower than the industry (Metals & Mining) median of 2,4x, thus seems undervalued. Considering the low trading levels, increase in total assets, ongoing exploration for resource estimation at the Nifty project, strong Au-Cu (gold, copper) intersects identified at the Nanadie Well deposit, valuation on a TTM basis, and key associated business risks, we give a ‘Speculative Buy’ rating on the stock at the current market price of $0.150, as of 24 December 2021, 10:45 AM (GMT+10), Sydney, Eastern Australia.

CYM Daily Technical Chart, Data Source: REFINITIV

Brightstar Resources Limited

BTR Details

Results from the Cork Tree Well Project: Brightstar Resources Limited (ASX: BTR) is an explorer and producer of gold-based in the Laverton region of Western Australia. It has three major gold development projects of Alpha, Cork Tree Well, and Beta in hand. On 20 December 2021, BTR updated on the assay results returned from the drilling program conducted at the Cork Tree Well (CTW) project. BTR confirmed gold mineralisation from the assays of reverse circulation drilling of 69 holes.

• The average grade of several intersections seems to be better than the modelled resource head grade.
• BTR expects these assays will offer a stronger JORC compliant Resource & Reserve. The company expects that gold intersections run consistently across the strike length of the project.
• BTR also awaits the results of re-assays of the original nickel intersections to analyse the opportunity for discovering nickel prospects.

Key Takeaways of Q1FY22 (30 September 2021):

• BTR initiated the RC drill program at the CTW project during September 2021. It completed drilling of ~3,430 metres at ~24 holes and was ahead of its projected schedule. BTR re-assessed its current portfolio, including the King of Creation Project to ascertain the remaining resource and possibility of upgrades in the future.
• BTR applied for the co-financing under the Exploration Incentive Scheme (EIS) for a drilling program at E38/4433- Sailor Prince.
• During the quarter, BTR completed its transformative activities and reviewed several costs to cut down expenditure and focus on its exploration programs to implement the JORC Resource growth strategy.
• BTR held ~$272,000 cash and cash equivalents as of 30 September 2021.

Total Assets & Total Liabilities Position, Highlights; (Analysis by Kalkine Group)

Key Risks: The company faces environmental hazards due to mining, risk of ore estimation, raise of adequate funds for exploration activities. 

Outlook:

• BTR awaits the assay results of the remaining 20 holes at the Cork Tree Well project to further analyse and interpret the results. It expects to undertake further drilling on the project in 2022 including a strike to the north and extensions down-dip. The drilling is expected to aid in developing an updated MRE (mineral resource estimate) for the project.
• BTR plans to meet DMIRS (The Department of Mines, Industry Regulatory, & Safety to determine timelines and develop a plan for permitting requirements consistent with its short-term production plans for its CTW project.

Technical Commentary: After witnessing selling pressure from the higher levels. Currently, BTR stock prices are hovering near the horizontal trendline support level and sustaining above the same. The momentum oscillator RSI (14-period) is trading at ~44.13 level. An important support level for the stock is placed at AUD 0.039 while the key resistance level is placed at AUD 0.052.

Stock Recommendation: The stock of BTR gave a positive return of ~59.25% in the past three months and a positive return of ~43.33% in the past six months. The stock is currently trading lower than the 52-weeks’ average price level band of $0.024 - $0.079. Considering the low trading levels, technical levels mentioned below, ongoing exploration at the CTW project, and associated key business risks, we give a ‘Speculative Buy’ rating on the stock at the closing market price of $0.043, down by ~2.380%, as of 24 December 2021.

BTR Daily Technical Chart, Data Source: REFINITIV 

Disclosure: Cyprium Metals Limited (Company) is a client of Kalkine Media Pty Ltd (Kalkine Media), an affiliate of Kalkine. However, under no circumstances have Kalkine or its related entities been, directly or indirectly influenced in making any related insights concerning Company as contained in this report, and no form of compensation is or will be received by Kalkine, Kalkine Media or Kalkine’s other related entities for the publication of this report.

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.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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