Chalice Gold Mines

Active June Quarter: Chalice Gold Mines (ASX: CHN) is a small-cap company with the current market capitalization of circa $40.85 Mn as of September 03, 2018. The company has its operations in the acquisition, exploration, and development of mineral properties across Australia. The Company possesses around 10 exploration licenses (ELAs) and more than 10 prospecting licenses (PLAs) in the Western Australian goldfields. Recently, Chalice gold stated that Tim Goyder who was appointed as an Executive Chairman in March 2018, has entered an amended Executive Services Agreement with the company with an effective date of August 01, 2018. Under the amended agreement, the components such as total fixed remuneration, Variable remuneration, and termination have been changed.

In the third quarter, the company would drill three Australian projects apart from large-scale field program ongoing in Canada. Chalice has identified four prospective gold-in-soil anomalies at the Pyramid Hill Gold project in the Bendigo region of Victoria. The company has had an active quarter reporting two prospective Vanadium and nickel exploration projects at the Flinders River (Queensland) and Julimar (WA). Both the projects are set to increase the exposure of Chalice in the fast-growing commodity sectors. At June 30, 2018, the company had Cash and cash equivalents of AUD$35.73 million. The strong cash position of the company would enable it to take ahead the exploration activities across the portfolio at scale.

Financials: Chalice has posted revenue of $391,582 in the 1H FY18, an increase of around 49% from the previous corresponding period revenue of $198,106. Higher revenues could not, however, translate into positive bottom line number with net loss increasing to $6,642,488 than the previous loss of $1,892,115. Increase in the loss was mainly due to the increase in exploration and evaluation expenditure of $5,932,785 Mn during the same period. We expect that the company is set to realize the gains from the exploration and evaluation activities in the quarters to come.


Revenue Growth (Source: Thomson Reuters)

Stock Performance: The stock has dropped -13.89% on the Year-to-Date basis. However, it has respected the crucial support level of $0.13 and rebounded from that level on decent volumes. The stock is worth keeping a watch since it has moved above its resistance level of $0.154 and might continue the positive movement. It has moved above its 21 DEMA (21-period Double Exponential Moving Averages) further supporting the upward movement. Given the mix of the scenario, we have a wait and watch view on this stock that trades at the current price of $0.155 as on September 03, 2018.
 
 

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.