Tempus Resources Ltd

TMR Details

Change in Director’s Interest: Tempus Resources Limited (ASX: TMR) is involved in mineral exploration and has gold projects located within Canada & Ecuador. As per a recent announcement, the company’s director Alexander Molyneux has undergone a change of interest in the company and has acquired 400,000 unlisted options.

Performance Update for Quarter Ended September 2021: 

• It reported other income of $140 during the period and reported an uptick in employee benefits expense to $153,706 during the quarter.
• The loss during the quarter widened to $615,357, compared to a loss of $295,075 in the pcp. The loss has been amplified by an increase in other expenses and depreciation costs.
• However, the company reported an increase in cash & equivalent to $4.34 million as of 30 September 2021, from a level of $1.01 million as of 30 June 2021.
  

Trend in Cash Position (Source: Analysis by Kalkine Group) 

Key Risks: The company’s line of operations makes it prone to regulatory risks which might have an impact on its business & exploration activities. The Group also needs access to adequate funding in order to carry out its operations seamlessly.

Outlook: During the 2021 September quarter, the company completed the placement of $6.28 million. The proceeds are expected to be utilised in completing the ongoing 12,000 metre drilling program at Elizabeth, and also for its Ecuador projects.

Technical Insights: On the daily chart, TMR stock prices are hovering near the horizontal trendline support level and sustaining above the same. The momentum oscillator RSI (14-period) is trading an oversold zone at (~32.52 level), which indicates the possibility of rebound in the stock from the current levels. An important support level for the stock is placed at AUD 0.0970 while the key resistance level is placed at AUD 0.140.

Stock Recommendation: The stock of TMR gave a negative return of ~31.42% in the past six months. The stock is currently trading below its 52-weeks’ average levels of $0.105-$0.310. Considering the current trading levels, strong balance sheet, successful fund raising, project developments and the key risks associated with the business, we give a ‘Speculative Buy’ rating on the stock at the current market price of $0.110, down by ~8.334% as of 10 December 2021.  

TMR Daily Technical Chart, Data Source: REFINITIV 

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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