Section 1: Global Market Round-Up and Upcoming Events

Latest Commodity Prices

Global Commodity Market Wrap-up
Segment Commodity Features Exchange Contract Month Weekly % Change (Week Ending 26 May,2023 Current Week's Direction
Precious Metals Gold Comex Jun-23 -1.88%
Silver Comex Jun-23 -2.91%
Base Metals Copper LME Jun-23 -1.33%
Lead LME Jun-23 -0.72%
Zinc LME Jun-23 -5.70%
Energy Light Sweet Crude Oil NYMEX Jul-23 1.37%
Natural Gas NYMEX Jul-23 -10.71%
Agriculture Commodities Soybean CBOT Jul-23 3.28%
Corn CBOT Jul-23 8.93%
US Sugar No.11 ICE Jul-23 -1.59%

Note: Data as on May 31, 2023; Created By: Kalkine Group

Stock Indices

Name Last Weekly Chg. Chg. %
NASDAQ 13,100.98 402.89 3.17%
S&P 500 4,221.02 69.74 1.68%
ASX 200 7,145.10 9.70 -0.14%
ASX ALL Ordinaries 7,331.20 3.30 -0.04%


After a subdued start, Wall Street indices rebounded towards the end of the week as signs of slowing wage pressure raised hopes that Federal Reserve will pause hiking interest rates. Investors cheered a vote in Congress to suspend the U.S. debt ceiling. Meanwhile, domestic equity indices cut losses to end almost flat on a weekly basis, led by global and domestic cues.

Upcoming Major Global Economic Events

Major Global Upcoming Events For the Week (31 May - 05 June 2023)
Date Time Region Event Frequency
31/5/2023 9:00 AM US JOLTS Job Openings Monthly
1/06/2023 7:30 AM US Unemployment Claims Weekly
1/06/2023 9:00 AM US ISM Manufacturing PMI Monthly
2/06/2023 7:30 AM US Non-Farm Employment Change Monthly
2/06/2023 7:30 AM US Unemployment Rate Monthly
05/06/2023 9:00 AM US ISM Services PMI Monthly
05/06/2023 9:00 AM US Factory Orders m/m Monthly

Note: Timings are as per (GMT-5) Chicago IL, USA

Section 2: One Materials Stock Progressing on Organic Growth

Company Details

Coronado Global Resources Inc. (ASX: CRN)

  • GICS Industry: Metals & Mining
  • GICS Industry Name: Steel

Company Overview: Coronado Global Resources Inc. is a metallurgical coal producer. Although the company is based in Australia, it also operates in the United States.

1QFY23 Financial Metrics (for the period ending 31 March 2023)
Figures in USD' mn, Unless Specified 1QFY23 1QFY22 Change Key Drivers
Total Revenues 765.7 947.1 -19.2% Lower production due to maintenance activities and sales volume, along with a decline in met coal price, weighed on revenue
Statutory Net Profit 107.9 269.9 -60.0% Lower revenues and fixed costs impacted bottom line
Recent Business Highlights
Dates Description
1-June-2023 The company informed that Sir Michael Lawrence Davis ceased to be a director in the company with effect from 25 May 2023 and he had nil shares in the company.
25-May-2023 2023 AGM Results: The company informed that all the resolutions proposed for the 2023 AGM, held on 25 May 2023, were passed based on shareholders' voting
Key Risks and Challenges
CRN's business is highly dependent on the steel industry, a major risk for the company. It also faces environmental and operational risks.

Source: Company Filings; Analysis by Kalkine Group

Stock Recommendation and Technical Analysis

Fundamental Relative Valuation Based on Price/Earning Value Per Share

Coronado Global Resources Inc. CRN
Earning Per Share (FY December'23E USD)** 0.270
Price/EPS Multiple (NTM) (Peer Medium) approx 3.71x
% Premium / (Discount)* (FY1) 1.0%
Implied Price/EPS Multiple 3.75x
Target Share Price (AUD)^ 1.539
Current Market Price (in AUD) (2 June 2023) 1.315
Recommendation BUY

Data Source : REFINITIV, Analysis: 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.
**FY December'23E refers to the broker consensus estimate figures for the fiscal year ending December 2023 as extracted from REFINITIV.
^1USD=~1.52 AUD

CRN's Technical Summary

Current Market Price Support 1 Support 2* Resistance 1 Resistance 2
AUD 1.315 AUD 1.184 AUD 1.131 AUD 1.493 AUD 1.570

Data Source : ASX, Analysis: Kalkine Group
*Support 2 can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks time frame depending on the stock price movements from the date of recommendation on the stock.

Stock Recommendation
52-week High : AUD 2.29 52-week Low : AUD 1.292

Considering CRN's lower cost of production, coal price outlook for 2023, and progress on organic capital projects, the stock might trade at a slight premium to its peers median' valuation. For valuation, a few peers like Whitehaven Coal Ltd (ASX:WHC), New Hope Corporation Ltd (ASX:NHC), Champion Iron Ltd (ASX:CIA), and others have been considered. Considering the company's production, mining cost and sales outlook, upside indicated by valuation, current trading levels, and key risks associated with the business, a 'Buy' recommendation has been given on the stock at the current market price of AUD 1.315, as of 2 June 2023 at 10:35 AM (GMT+10),Sydney, Eastern Australia.


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

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 2 June 2023. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Section 3: Broker Views on Hot Stock and Upcoming Earnings

3.1 Morgans rates MIN as Add

Morgans notes that MIN share price is relatively sensitive to a sell-off in the resources sector as the company is in the mid of an investment phase. Slower-than-expected Chinese growth recovery is impacting the resources sector, the broker mentioned. The broker sees short-term risks to its FY23 estimate, hence reduced its target price on the stock to AUD 93 from AUD 103 while maintaining the Add rating. The broker also factored in lower prices for lithium carbonate and lithium hydroxide. Although MIN's gearing may appear high, yet the broker doesn't believe the company will resort to a capital raise.

  • Last Price

    AUD $ 69.50 2-Jun 2023
  • Change

    1.239 OPEN AU$ 69.300
  • Change %

    1.82% HIGH AU$ 70.30
  • Volume

    1.211mn LOW AU$ 68.87

Consensus Target

  • AU$ 82.75
  • 19.00%
  • Upside

Last dividend paid: AU$ 1.20 in March 2023


3.2 Corporate Actions This Week and Next Week

Key Results
Company Name Ticker Event Date Event Type Market Capitalization (AUD mn) Last Financial Year End Date Upcoming Reporting Period Estimates Currency Revenue Estimate (Mn)* Net Income Estimate (Mn)*
Mesoblast Ltd MSB.AX 26-May-23 Q3 FY23 Results 833.72 6/30/2022 6/30/2023 USD 8.82 (89.31)
Straker Translations Ltd STG.AX 30-May-23 FY23 Results 50.34 3/31/2023 3/31/2024 NZD 65.15 (0.88)
Task Group Holdings Ltd TSK.AX 30-May-23 FY23 Results 182.64 3/31/2023 3/31/2024 NZD 79.19 (2.60)
ReadCloud Ltd RCL.AX 31-May-23 H1 FY23 Results 7.11 9/30/2022 6/30/2023 AUD - -
Thorn Group Ltd TGA.AX 31-May-23 FY23 Results 39.55 3/31/2023 3/31/2024 AUD - -
Champion Iron Ltd CIA.AX 31-May-23 FY23 Results 2,937.66 3/31/2023 3/31/2024 CAD 1,891.34 431.38
Cipherpoint Ltd CPT.AX 31-May-23 FY23 Results 8.03 3/31/2022 3/31/2023 AUD - -
Ora Gold Ltd OAU.AX 8-Jun-23 H1 FY23 Results 11.68 9/30/2022 9/30/2022 AUD - -

Source: REFINITIV, TradingView Data as of 2 June 2023.

*The broker estimates for upcoming fiscal year is a statistical average of all broker estimates, which is determined to be on the majority accounting basis.

Section 4: Technical Insights on Commodity of the Week

Negative Price Reaction Across Commodities, One Commodity in a Negative Zone - Coffee C

Coffee C July Futures (ICE: KCN3)
Price Action and Technical Indicator Analysis:

Coffee C July Futures' prices are trading below the rising trendline support zone and facing resistance from the trendline on the upside, indicating the possibility of a downward movement hereon. The leading indicator RSI (14-period) is showing a reading of ~47.49, indicating negative price momentum. Moreover, the prices are trading below the 21-period and 50-period SMAs, which may act as a resistance level.

Now the next crucial support levels appear to be at USc 174.36 and USc 170.0, and prices may test these levels in the coming sessions (1-2 weeks). 

Coffee C July Futures (ICE: KCN3) is looking technically well-placed for a ‘Sell’ rating. Technical summary of ‘Sell’ recommendation is as follows:

Coffee C's (KCN3) Technical Analysis Summary
Rating Exchange Contract Month Entry Level # Target 1* Target 2* Stop Loss
Sell ICE July Features USc 183.05 USc 174.36 USc 170.00 USc 190.00

Source: Kalkine Group; Data as on June 02, 2023 Chicago, IL, USA 01:35 AM (GMT -5)
*Target Price can vary by +/- 0.50%

Futures Contract Specifications
Commodity Futures Exchange Contract Month Expiry Date Lot Size Tick Size
Coffee C ICE Jul-23 18-Jul-23 37,500 Pounds 5/100 cent per lb

Source: ICE Group

Risk Reward Ratio
Based on the technical analysis, the risks are defined as per risk-reward ratio (~0.80:1.00), however, returns are generated within 1-2 weeks’ time frame.

Section 5: Technical Analysis Driven Stock Pick

Pilbara Minerals Limited

Pilbara Minerals Limited (ASX: PLS) is a pure-play lithium company based in Australia. The company is primarily engaged in the exploration, development, and mining of minerals in Australia. Its fully owned Pilgangoora hard-rock lithium operation is located nearly 120kms away from Port Hedland in Western Australia’s Pilbara region.

Pilbara Minerals Limited (ASX: PLS) Technical Summary
Price(AUD) Support 1 (AUD) Support 2* (AUD) Resistance 1# (AUD) Resistance 2# (AUD) RSI Daily(14-Period) SMA 21-Period
4.460 4.000 3.700 5.000 5.400 ~50.60 4.650

Data Source: REFINITIV, Analysis: Kalkine Group

* Support 2 can be considered as an indicative stop-loss, and if prices move below that level on closing basis, individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks' time frame depending on the stock price movements form the date of recommendation on the stocks.
#Resistance Levels can vary by +/- 1.5%

PLS’ Technical Analysis:

On the daily chart, PLS prices are sustaining above the horizontal trendline breakout level and taking support from the same. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~50.60 level. Further, the prices are trading above the trend-following indicator 50- period SMA, which may act as support zone. An important support level for the stock is placed at AUD 4.00 while the key resistance level is placed at AUD 5.00.

Considering the company’s current prices are sustaining above the rising trendline and momentum oscillator analysis; therefore, a “Buy” recommendation is given on the stock. The stock was analysed as per the current price of AUD 4.46 (as of June 02, 2023, at 10:06 AM GMT+10).

Risk Reward Ratio
Based on the technical analysis, the risks are defined as per risk-reward ratio (~0.85:1.00), however, returns are generated within 4-6 weeks’ time frame.


Related Risks: This may be looked at by Individuals with sufficient risk appetite looking for returns within short investment duration. Investment recommendations provided in this report are solely based on technical parameters, and fundamental performance of the commodities has not been considered in the decision-making process. Other factors which could impact the commodity prices include market risks, regulatory risks, interest rates risk, currency risks, and social and political instability risks etc.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: Individuals can consider exiting from the commodity and or stock if the Target Price mentioned as per the Technical Analysis has been achieved and subject to the factors discussed above.

Note 3: How to Read the Charts?

The Green colour line reflects the 21-period moving average while the red line indicates the 50- period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black 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.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Note 4: Trading decisions require a thorough analysis by individuals. Technical reports in general chart out metrics that may be assessed by individuals before any commodity evaluation. The above are illustrative analytical factors used for evaluating the commodity; other parameters can be looked at along with additional risks per se.

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 unfavorable movement in the stock prices.


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. and associated pages are published by Kalkine.

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