Pursuit Minerals Limited - (ASX: PUR)

PUR is based in West Leederville, Australia. The company is engaged in exploring and developing mineral properties in Australia, Sweden, Norway, Finland, and the United States, covering nickel, gold, silver, platinum, and vanadium deposits. The company's current market capitalization is $54.39 million, with the current price of $0.060 per share.

Fundamental Highlights- The company recently announced the drilling approval for its project at Phil's Hill. The property is explored to unearth the Nickel Copper deposits located in Western Australia. To overcome the operational costs and acquiring new properties and contracts, the company raised $8.25 million in March 2021. The company did not receive any cash receipts from customers for the full-year period ending June 2021. The cash and cash equivalents increased to $8.95 million as compared to $1.57 million posted as on 30^th June, 2020.

Technical Analysis- The stock followed the global cues and the local Index, inching upwards to the current level of $0.065. The prices are at the above end of the range where some selling pressure can emerge. The Relative Strength Index shows a reading of 48.97, which is heading north of the trading zone, signalling resistance in the near term. The 21 Days Simple Moving Average is placed at $0.065, close to the stock price, lacking the trend formation from current levels. The resistance is placed around $0.072 levels on the charts, which need to be struck off before any strong upward price trend formation.

The current bounce in the prices, lack of cash receipt from customers, and resistance levels approaching any time soon, we suggest investors to 'Exit’ the stock at the closing price of $0.065, as of 26^th July 2021, up by 7.43 % from the previous ‘Hold’ recommendation at $0.0605 price per share given on 22^nd July 2021.

Daily Technical Chart – PUR

Source: REFINITIV

OAR Resources Limited - (ASX: OAR)

OAR was incorporated in 1985 and is based in West Leederville, Australia. The company is engaged in exploring and developing mineral deposits in Peru, Australia, and Peru covering gold, iron, nickel, copper, and base metals. The company's current market capitalization is $27.50 million, with the current price of $0.014 per share.

Fundamental Highlights- The company recently announced the results from the brightness and XRF analysis of composite samples across its Gibraltar Halloysitte Kaolin Project, SA. ascertaining a large zone of granite basement rocks lying underneath. For conducting the various exploration and evaluation projects the company raised $2.3 million, and the funds will be deployed to acquire various properties and projects in future. The company did not received any cash receipts from customers for the past 3 quarters ending 31^st March 2021. The cash and cash equivalents decreased to $1.02 million as of 31^st March 2021 as compared to $1.57 million in the preceding quarter.

Technical Analysis -The stock inched higher, taking cues from the local Indices and heading at a very minor resistance level in the short term. The shift in the Relative Strength Index from the previous 48.90 to the current reading of 54.25, indicates the slight uptick in the trend, which can face hurdle as the readings are in the middle of the range only. The 21 Days Simple Moving Average is moving alongside the stock price and is currently placed at $0.015 which also, fails to show either side of the trend from the current price. The support is placed at $0.009 and the resistance on the chart is at $0.020.  

The recent uptick in prices is due to the surge in the local Indices led by the miners, current stock prices are approaching towards the next hurdle, we suggest investors to 'Exit’ the stock at the closing price of $0.015, as on 26^th July 2021, up by 7.14 % from the last recommendation as ‘Hold’ given on 22^nd July 2021 at the closing price of $0.014.

Daily Technical Chart – OAR

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 analysis has been achieved and subject to the factors discussed above alongside support levels provided.

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