Yojee Limited

YOJ Details

Share Purchase Plan of $2 million:  Yojee Limited (ASX: YOJ) is engaged in the development of sharing-economy based Logistics technology. On 13 January 2020, the company offered its shareholders to participate in the Share Purchase Plan to raise $2 million. The above funds raised will be combined with the recently completed $3.5 million share placement and will be allocated to pursue opportunities through its enterprise grade technology and facilitate ongoing growth and partner network outreach.

Q1FY20 Cash Flow Highlights for the Period ended 30 September 2019: YOJ announced its quarterly cash flow results, wherein the company reported net cash used in operating activities at $1.294 million. The company reported a cash balance of $2.131 million at the end of the quarter.


Q1FY20 Net Cash used in Operating Activities (Source: Company Reports)

Operating Highlights for the Period ended30 September 2019: YOJ reported contracted revenue from existing agreements at $1,200,000, which is expected to be recognized over the next 24 months. The quarter was marked by signing of 14 new commercial customer SaaS agreements, which includes Giga Maritime Group, a national bulk leader in Malaysia moving over 250,000 vehicles annually. YOJ continues to deliver on its omni-channel agreement with the global retailer, Landmark and enhancing its market penetration with a number of global brands in an advanced stage of negotiations. During the quarter, the company reported cash receipts of $156,000, representing a decrease from the previous quarter, due to timing issues pushing payments into December quarter.

Stock Recommendation:The stock of YOJ is quoting at $0.050 with a market capitalization of ~$47.81 million. The stock is quoting at the lower band of its 52-week trading range of $0.049 to $$0.140. The stock has generated negative returns of 35% and 42.22% in the last three months and six-months, respectively. The business reported execution of the objectives of increased key customer numbers, on-time and high-quality delivery to the global top 10 logistics client Geodis, and rapid deployments to customers like Giga Maritime Group. Considering the current trading levels, stock price movements, recent share placement and business prospects, we recommend a ‘Speculative Buy’ rating on the stock at the current market price $0.050, down 3.846% as on 13 January 2020.

 
YOJ Daily Technical Chart (Source: Thomson Reuters)
 
 
 

Challenger Exploration Limited

CEL Details

CEL Executes $6.5 million Share Placement:Challenger Exploration Limited (ASX: CEL) is engaged in the exploration of Gold and Copper. On 13 January 2020, the company reported the issuance of 65 million shares for a consideration of 10 cents per share in order to raise $6.5 million, before costs. The funds will be used on the drilling program for the Hualilan Gold project over the next six months, followed by an extensive program of re-assaying the historical Colorado V drill core, follow up geophysics, drilling at the El Guayabo Gold/Copper Project, etc.

Q1FY20 Operational Highlights for the Period ended 30 September 2019: CEL reported its quarterly results, wherein the company reported that the underground stockpile sampling program of 70 bulk samples delivered an average grade of 15.0g/t gold, 75.5g/t silver and 6.8% zinc from the Hualilan Gold Project.The business also reported commencement of the drilling program of 2,000 metre, which will be conducted in two tranches, with the first results expected to come in Q2FY20. The quarter also witnessed the identification of two large exploration targets below the limit of historic drilling within the El Guayabo Gold/Copper Project.

Cash Flow Highlights for Q1FY20: CEL reported net cash used in operating activities at $1.112 million and net cash used in financing activities at $0.414 million.The business reported a cash balance of $3.518 million as at 30 September 2019.


Q1FY20 Cash Flow (Source: Company Reports)

Guidance:For Q2FY20, the company expects an estimated cash outflow of $1.543 million, which includes exploration and evaluation expenditure of $0.690 million, staff costs of $0.230 million, administration and corporate costs of $0.155 million, and repayment of loan facility at $0.468 million.

Stock Recommendation:The stock of CEL is quoting at $0.150 with a market capitalization of $54.07 million. The stock has generated stellar returns of 194.87% and 173.81% in the last three months and six-months, respectively. At the current market price, the stock is trading at the upper end of its 52-week trading range of $0.027 and $0.150. CEL is on the track to re-start drilling at the Hualilan Gold Project in Argentina in the current quarter, which involves additional drilling rigs. Considering the aforesaid facts and current trading levels, we are of the view that most of the positives are factored in at the current levels and will wait for further catalysts to drive the growth. Hence, we have a watch stance on the stock at the current market price of $0.150, up 30.435% on account of share placement worth $6.5 million as on 13 January 2020.

 
CEL Daily Technical Chart (Source: Thomson Reuters)

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