Tempus Resources Limited

TMR Details

 1HFY22 (Ended 31 December 2021) Results: Tempus Resources Limited (ASX: TMR) is engaged in gold exploration projects including the Zamora project and the Blackdome-Elizabeth projects. It operates projects in Canada, Australia, and Ecuador.

• Elizabeth Gold Project Update: Under Phase I of the exploration program at the project, TMR finished drilling ~39 holes for 9,826 metres from a period of June to 31 December 2021 and received all assays. It reported deep bonanza grade intersections from the drill holes targeted at the SW (south-west) Vein and Blue Vein at the project.
• Valle Del Tigre Project, Ecuador: In January 2022, TMR has decided to initiate the Phase 2 exploration program at the project and plans to include an MMI (Mobile Metals Ion) geochemistry sampling program over ~12.5 square km.
• Funds’ Raised: In August 2021, TMR raised $2.30 million via a private placement of ~10.99 million non-flowthrough shares at ~$0.21 per non-flow-through share. It also raised ~$3.96 million (gross proceeds) via the issuance of ~14.0 million flowthrough shares at ~$0.2835 per flow-through share.
• The company reported a net loss of $964,641 during the six months ended on 31 December 2021.

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

Key Risks: TMR is in the early stages of exploration work across its projects. It needs to ensure low-cost funds for seamless exploration, skilled labour supply, and expedited regulatory approval from authorities.

Outlook: TMR focuses on further delineating and expanding the South-West Vein during the Phase 1 exploration program at the Elizabeth project. It is yet to undertake exploration on other target veins such as No 9 Vein, Main Vein, and West Vein at the project and expects significant discovery potential for more new vein discoveries.

Stock Recommendation: The stock of TMR gave a negative return of ~29.99% in the past three months and a negative return of ~58.82% in the past six months. The stock is currently trading at par to its 52-weeks’ low level of $0.105. Considering the current trading levels, technical levels stated below, low debt-to-equity levels, the recent capital raise, rise in bonanza grade results at the Elizabeth gold project, and plans to explore new veins, and associated key business risks, we give a ‘Speculative Buy’ rating on the stock at the current market price of $0.105, as of 16 February 2022, 12:12 PM (GMT+10), Sydney, Eastern Australia.

Technical Note: On a daily, TMR stock prices are sustaining above the horizontal trendline and taking support of the same. The momentum oscillator RSI (14-period) is trading near an oversold territory at ~38.86 level, which might indicate the possibility of a rebound from the lower levels. However, prices are trading below the trend-following indicator 21-period SMA, which may act as a resistance zone. The important support level for the stock is placed at AUD 0.090 while the key resistance level is placed at AUD 0.130.

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.

Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.

Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.

You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.

Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website unless those persons comply with certain safeguards, procedures, and disclosures.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.