Nova Minerals Limited

Nova Minerals Limited (ASX: NVA) is an Australian exploration company. The company is focused on gold exploration in the Tintina Gold Province in Alaska. Its flagship project, the Estelle Gold District, is being explored year-round and has a resource of 9.6Moz, of which 3Moz is in the Indicated category and 6.6Moz Inferred. Further, the company holds a diversified portfolio of interest in other minerals to hedge against fluctuations in the gold price.

Financial and Operational Update: The company recently updated that it has increased the total gold resource estimate by 54.9% to 9.6 million ounces (Moz) from 3.3Moz a year ago at its flagship Estelle Trend in Alaska’s prolific Tintina Gold Province. Besides, on 14 December 2021, the company mentioned that its majority-owned Snow Lake Resources Ltd had secured all the required permitting for the winter drilling campaign. On the financial front, NVA has delivered e a net loss after tax of $3.34 million in 2021 compared to a net loss after tax of $4.28 million in 2020. NVA holds cash of $6.05 million at the end of the 30 September 2021 Quarter.

Technical Analysis:

Weekly Price Chart

Note: The purple color line in the chart depicts RSI (14-period). The sky-blue and green color lines represent 50-Period SMA and 21-Period SMA respectively.

On the weekly chart, NVA prices are sustaining below the rising trend line support level and facing the resistance of the same. The momentum oscillator RSI (14-period) is trading at ~41.91 level, indicating negative momentum. Moreover, the prices are trading below the trend-following indicators 21-period and 50- period SMA, which may act as a resistance level for the stock. The crucial support level for the stock is placed at AUD 1.00, while the key resistance is at AUD 1.18.

Stock Recommendation

The company undertook a capital raising of AUD 12 million on 27 September 2021 and is currently well funded to sustain its progression of infill and expansion drilling, metallurgical test work, ongoing environmental test work and complete a scoping study at Estelle. Further, the Korbel Main deposit stays wide open with numerous other targets throughout the Korbel Valley Mineralized System and will be drilled in 2022.

Therefore, considering the facts above and the current trading levels, we give a “Watch” recommendation on the stock at the closing market price of A$1.075, down 2.715% as of 17^th January 2022.

NOTE: Nova Minerals 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 recommendation 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 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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