Company Overview: Azure Minerals Limited (ASX: AZS) explores nickel, cobalt, gold, and copper deposits. Its flagship project is the Andover project, covering 108 square kilometres located in the West Pilbara region of Western Australia. Spartan Resources Limited (ASX: SPR) engages in the exploration, evaluation, and development of gold projects, whose flagship project is the Dalgaranga, covering an area of 500 square kilometres located to the north-west of Mt Magnet in Western Australia. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on these stocks.

Recent Updates:

During FY23 (for the period ended June 30, 2023), the company reported a gain after income tax from discontinued operations of AUD 7.97mn compared to a loss of AUD 1.74mn reported in the year-ago period. At the end of FY23, the company had completed 33 diamond holes for 11,395m and 34 RC holes for 6,363m in Targeted Area. During the year, AZS implemented exploration and drilling activities, which bolstered its balance sheet. The company announced its plan to make a major cornerstone investment of up to AUD 20mn to acquire a 19.99% interest in Azure14.

 Outlook: The company is looking at market opportunities to diversify across geographies and commodities and re-starting exploration and mining activities in Western Australia with Andover and Turner River as their key Projects.

AZS’s Technical Analysis:

On the daily chart, AZS's stock price broke above its most recent peak by a break-away gap, signalling a positive trend. Nonetheless, the RSI (14-period) is trading in the overbought zone, suggesting that the price may soon experience a minor correction. Prices are trading above its nearest peak, which may potentially function as a support level for the stock; in contrast, the stock’s nearest round level might act as a sentimental resistance level. Crucial support for the stock is positioned at AUD 3.15, while key resistance is placed at AUD 4.00.

Daily Technical Chart – AZS

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest, taking into consideration the risk-reward scenario.

Considering the stock’s current price levels breaking the nearest peak, and momentum oscillator analysis, a “Watch” recommendation is given on the stock. The stock was analysed as per the closing price of AUD 3.50 per share as on 27 October 2023, up by 0.29%. Azure Minerals Limited (ASX: AZS) was last covered in a report dated ’08 September 2023’.

Recent Updates:

On 23 October 2023, SPR announced visible gold intercept at 576.00m down-hole within a 10m wide mineralised zone in the deepest Never Never intercept to date in drill-hole DGRC1305-DT. Subsequently, assays are expected within the next 14 days. In addition, SPR’s Board has approved an increase of 7,000m and two additional rigs to the previously planned 25,000m 4-rig program, which should bring total number of active rigs to six, comprising a mix of four diamond rigs and two RC rigs with a new total planned metreage of 32,000m.

Financially, FY23 was a challenging year for the Company as its Gold sales revenue plunged to AU$57.0 million from AU$ 183.7 million in FY22, reflecting the impact of reduced gold production. The suspension of mining and processing operations at Dalgaranga led to a reduction in cost of sales. At the time of releasing annual report towards end of September 2023, the Group had no contractual sale commitments for Gold. At the end of FY23, the Group held cash and cash equivalents of AU$34.6 million in comparison to AU$30.9 million as of 30 June 2022.

SPR’s Technical Analysis:

Although SPR's stock price has been rising in the short term, the relative strength indicator is forming a top divergence, suggesting that the price may soon experience a minor correction, which could lead to a period of sideways trading. Additionally, the RSI (14-period) is trading near the midpoint, providing further evidence to support the previous analysis. Prices are trading above both the 50-period and 50-day SMA, which may potentially function as a dynamic support level for the stock; in contrast, the stock’s most recent high might act as a resistance level. Important support for the stock is positioned at AUD 0.360, while key resistance is placed at AUD 0.445.

Daily Technical Chart – SPR

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest, taking into consideration the risk-reward scenario.

Considering the stock’s current price levels forming a top divergence, and momentum oscillator analysis, a “Watch” recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.410 per share as on 27 October 2023, up by 2.50%.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: Investment decision should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report.

Note 3: Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

The reference date for all price data, currency, technical indicators, support, and resistance levels is October 27, 2023. The reference data in this report has been partly sourced from REFINITIV.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 21-period, prices are currently in a bullish trend (Vice – Versa).

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

The Orange/ Yellow colour line represents the Trendline.

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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