Mandrake Resources Limited (ASX: MAN)

Listed on ASX in 1987, MAN is an Australian company involved in mining, exploration, and development of gold, nickel, copper, and PGE opportunities. Its major projects comprise of Jimperding Project and Berinka Project. Its market capitalization stood at AUD 23.61 million as of 22^nd February 2022.

2QFY22 Financial and Operational Updates:

• As per 24^th January 2022 announcement, the company appointed Mr Roger Fitzhardinge as an Independent Non-Executive Director of MAN.
• As per the quarterly report released on 19^th January 2022, the company is fully funded with ~AUD 16.4 million cash and re-commenced its drilling at Newleyine PGE-nickel- copper prospect and the drilling will test the last three discrete late-time EM bedrock anomalies. The assay results are anticipated to come in late February/March 2022.
• With the nil cash receipts from customers, the cash outflow from operating activities were reported as ~AUD 127k and closed the quarter with the cash at the end of 31^st December 2021 was recorded as ~AUD 16.44 million versus ~AUD 16.46 million at the end of 31^st September 2021.

Technical Analysis: On the weekly chart, MAN’s prices are sustaining below a horizontal trend line at ~AUD 0.053 level where 21-period SMA also rest, acting as a resistance level for the stock. Prices are also sustaining below another trend-following indicator 50-period SMA with no upside reversal indications. The momentum oscillator RSI (14-period) is also trading at lower levels at ~37.287. An important support level for the stock is placed at AUD 0.040, while the key resistance level is at AUD 0.052.

Considering the stock’s trading with bleak reversal signs yet, investment in MAN at such uncertain situations should be taken prudently and after keeping the support and resistance levels in mind, hence a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.046 per share, down by ~6.123%, as of 22^nd February 2022.

Weekly Technical Chart – MAN

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 Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 50-period, then it shows prices are currently trading in a bullish trend, (Vice – Versa).

The Yellow colour line reflects the Trendline, which shows whether the direction of the scrip is upwards or downwards.

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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