Tribune Resources Limited

TBR Details

This report is an updated version of the report published on 12 May 2022 at 3:06 PM GMT.

Quarterly Highlights: Tribune Resources Limited (ASX: TBR) is involved in the exploration, development, and production activities at its East Kundana Joint Venture (EKJV) tenements. During the quarter ended March 2022 (Q3FY22), Rand and Tribune processed 84,733 tonnes of ore at 3.68 g/t from the EKJV operations. In addition, 9,407 ounces of gold production was witnessed during the quarter.

• The company recorded significant high-grade intercepts from drilling at the EKJV project, which includes results from the Mary fault of 3.3 m @ 7.7 g/t, 4.1m @ 4.4 g/t, and 0.5 m @ 17.1 g/t gold.
• TBR closed the quarter with cash and cash equivalents of $3.073 million.

Cash Balance (Source: Analysis by Kalkine Group)

Key Risks: The company’s business could be impacted by adverse movement in the prices of commodities in which it deals. In addition, the business is exposed to risks arising from the change in the climate.

Outlook: Looking forward, the company would undertake step-out drilling to the East to test for a down- dip and lateral extensions to the Balite Vein system.

Stock Recommendation: The stock of TBR is trading near its 52-week low level of $4.060, offering a decent opportunity for accumulation. The stock has been corrected by ~14.49% in the past month. On a TTM basis, TBR has a Price/Book Value multiple of 0.9x against the industry median (Basic Materials) of 2.1x. Thus, it looks like the stock is undervalued at the current trading levels. Considering the valuation on a TTM basis, decent performance in Q3FY22, further drilling plans, current trading levels and key risks associated with the business, we recommend a ‘Speculative Buy’ rating on the stock at the current market price of $4.100 as of 12 May 2022. 10:35 AM (GMT+10), Sydney, Eastern Australia.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

TBR Daily Technical Chart, Data Source: REFINITIV  

Wisr Limited

WZR Details

Q3FY22 Highlights: Wisr Limited (ASX: WZR) provides personal loans and retail investment products. During Q3FY22, Wisr delivered its second positive operating cash flow of ~$1.36 million, backed by two funding facilities in operation, strong loan book growth and accelerating revenue. In addition, the company had surpassed $1 billion in loan originations during the quarter.

Financial Summary (Source: Analysis by Kalkine Group)

Key Risks: WZR operates in a very competitive environment; hence rising market share of peers could impact its business growth. In addition, the company’s financial performance could be impacted by the failure of counterparties in fulfilling their obligations.

Outlook: The company seems to be well-positioned in an evolving interest rate environment. Looking forward, WZR has multiple levers to preserve an attractive Net Interest Margin (NIM), including increasing interest rates on new loans and increasing gross yield based on its credit risk appetite.

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

Source: Analysis by Kalkine Group

*% Premium/(Discount) is based on our assessment of the company’s NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.

Stock Recommendation: The stock of WZR is trading near its 52-week low level of $0.087, offering a decent opportunity for accumulation. The stock has been corrected by ~33.33% in the past month. The stock has been valued using an EV/Sales multiple-based illustrative relative valuation and arrived at a target price of low double-digit upside (in % terms). The company can trade at a slight discount to its peers, considering the COVID-19 uncertainties and losses in business, etc. For the purpose of valuation, peers such as Harmoney Corp Ltd (ASX: HMY), Moneyme Ltd (ASX: MME), Plenti Group Ltd (ASX: PLT), and others have been considered. Considering the expected upside in valuation, rising operating revenue, growing loan origination, decent outlook, current trading levels and key risks associated with the business, we recommend a ‘Speculative Buy’ rating on the stock at the current market price of $0.097 as on 12 May 2022, 10:35 AM (GMT+10), Sydney, Eastern Australia.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

WZR 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.

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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