AU
CA
NZ
UK
US
IND
Kalkine has a fully transformed New Avatar.
De Grey Mining Limited
1Ratios such as P/E, EPS, ADY are on Trailing Twelve-Month basis, which are subject to change based on certain factors such as company performance, and stock price changes.
2ROE has been taken for the Half-Year Ending December 2021.
DEG Details
Company Overview: De Grey Mining Limited (ASX: DEG) is a gold explorer and project development company known for its Mallina Gold Project (MGP) located in Western Australia.
Business Update:
Mallina Project Resource Update (Source: Analysis by Kalkine Group)
Key Risks: The company is exposed to operational and development risk, Covid-19 risk, funding, and capital management risk, and commodity price risk.
Outlook: The trade-off study has confirmed that Hemi mineralization will have a good recovery and is amenable to HPGR and Pox processing technologies. This process route will lead to 20% lower energy consumption, 93% to 95% gold recovery depending on feed grade, 25% lower lime consumption, and 25% lower CO2 emissions.
Technical Commentary: On the daily chart, DEG stock prices are trading above the horizontal trend line support level and taking the support of the trendline. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~31.845 level, indicating the possibility of rebound in the price. However, the prices are trading below the trend-following indicator 21-period SMA, which may act as a resistance level. An important support level for the stock, is placed at AUD 0.800 while the key resistance level is placed at AUD 1.020.
Stock Recommendation: The stock of DEG trading at par to its 52-week low level of $0.880, offering a decent opportunity for accumulation. The stock went down by ~26.97% in the past three months. Considering the resource growth, increase mineral grade, technical factors mentioned above, current trading levels, and key risks associated with the business, we recommend a ‘Speculative Buy’ rating on the stock at the closing market price of $0.880, down ~10.204%, as of 20th June 2022.
Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
DEG Daily Technical Chart, Data Source: REFINITIV
Pantoro Limited
1Ratios such as P/E, EPS, ADY are on Trailing Twelve-Month basis, which are subject to change based on certain factors such as company performance, and stock price changes.
2ROE has been taken for the Half-Year Ending December 2021.
PNR Details
Company Overview: Pantoro Limited (ASX: PNR) is a gold producing company that operates projects like Norseman Gold and Halls Creek.
Business Update:
Operational Summary (Source: Analysis by Kalkine Group)
Key Risks: The company is exposed to a few risks like an environmental issue concerning climate change, market risk due to volatility in the gold price, and Covid-19 uncertainty impacting production.
Outlook: The company provides an update on the Platinum-group element (PGE) mineralization potential in the Norseman region. PNR implemented a clear strategy to develop gold assets, following the acquisition of the Norseman project in 2019, with construction due for completion in Q3 FY22.
Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)
Source: Analysis by Kalkine Group
*% Premium/(Discount) is based on our assessment of the company’s NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
Stock Recommendation: The stock of PNR is trading near its 52-week low of $0.180, offering a decent opportunity for accumulation. The stock went down by ~29.09% in the past month. The stock has been valued using a P/E multiple-based illustrative relative valuation method and arrived at a target price of low double-digit upside (in % terms). The company might trade at a slight premium to its peers, considering the expected increase in production and identification of PGE mineralization. For this valuation, a few peers like Resolute Mining Ltd (ASX: RSG), Regis Resources Ltd (ASX: RRL), Gold Road Resources Ltd (ASX: GOR), and others have been considered. Considering the expected growth prospect for FY22, expected increase in production, current trading levels, upside indicated in valuations, and key risks associated with the business, we recommend a ‘Speculative Buy’ rating on the stock at the closing market price of $0.195, down ~7.142% as of 20th June 2022.
Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
PNR Daily Technical Chart, Data 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.
Technical Indicators Defined: -
Support: A level where-in the stock prices tend to find support if they are falling, and a 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 price
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.
Please wait processing your request...