Insights On Mining Stocks – ARC Minerals, Rockfire Resources And Kazera Global

ARC Minerals Ltd

ARC Minerals Ltd (ARCM) is located mainly in the African region and is engaged in the activities related to identification, acquisition, evaluation and development of natural resource projects. The company was formerly known as Ortac Resources.

Recent News
On 5th July 2019, the Arc Minerals Ltd announced the further interest acquisition in Zaco Limited. The company had acquired an additional 5 per cent interest in Zaco and held a total interest of 47.5 per cent. The company purchased further stake from Rémy Welschinger, for the consideration of 1,414,000 shares with no par value.

As announced by the company on 4th July 2019, a new target has been identified at Zamsort known as West Lunga (6 km in length), it houses anomalous copper (Cu) with peak values of 463ppm.

Financial Highlights – H1 Financial Year 2019 (£, thousand)

(Source: Company’s filings, LSE)

In the first half of the financial year 2019 ending 30th September 2018, the company’s administrative expense increased for the period, which increased the operating loss. The operating loss for H1 FY2019 period stood at £1,174 thousand versus an operating loss of £324 thousand in H1 FY2018. The loss before and after tax for H1 FY2019 stood at £1,174 thousand versus a loss of £304 thousand in H1 FY2018. The company’s reported basic and diluted loss per share stood at 0.23 pence in the first half of the financial year 2019 as against a loss per share of 0.22 pence in the first half of the financial year 2018. The company’s cash balance in the H1 FY2019 period stood at £484 thousand versus £97 thousand in H1 FY2018.

The company is in the development phase and had not generated any revenue and is dependent on its cash balances for its operations. The company’s operating expenses had increased, which resulted in low profitability margins for the period. The company operates in a challenging environment which requires continuous investment, sometimes at the cost of profitability, to stay ahead of its competitors. As the company is non-revenue generative, it may indulge itself into liquidity and credit risks.

Share price performance

Daily Chart as at July-08-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on July 08, 2019, at 10:03 AM GMT), shares of ARC Minerals Ltd (ARCM) were quoting at GBX 4.01 per share; up by 2.03 per cent against the yesterday’s closing price level. The company’s market capitalisation (outstanding) stood at £27.74 million.

In the last 52-weeks, shares of ARC Minerals Ltd have registered a high of GBX 5.77 (as on Jul 23, 2018) and a low of GBX 2.06 (as on May 30, 2019). At the current trading level, as quoted in the price chart, its shares are trading 30.50 per cent below the 52-week high price level and 94.66 per cent above the 52-week low price level.

The stock’s volume (before the market close, at the time of writing) stood at 4,591,744. Stock’s average traded volume for 5 days was 14,592,212.80; 30 days- 5,517,346.00 and 90 days – 3,798,559.00.

The average traded volume for 5 days was up by 164.48 per cent as compared to the 30 days average traded volume. The company’s stock beta was 2.42, reflecting much higher volatility as compared to the benchmark index.

The shares of the company (at the time of writing) were trading above the 30-days and 60-days SMA in a normal range, which shows a positive trend in the stock price movement and it could further move up from the current trading levels.

In the past 1 year, shares of ARC Minerals Ltd have delivered a negative price return of 6.43 per cent. However, on a year-to-date basis, the stock was up by approximately 48.30 per cent and surged by 52.62 per cent in the past three months.

Share’s RSI for the 30-days, 14-days and 9-days stood at 74.74, 85.66 and 90.08 respectively. Also, the stock’s 3-days RSI stood at 95.87. The volatility of the stock for 200 Days, 90 Days, 30 Days stood at 58.98, 61.98 and 77.45 respectively.

Rockfire Resources

Rockfire Resources PLC (ROCK-earlier was known as Papua Mining), is into exploration and mining of the gold and copper resources.

Recent News

Rockfire Resources plc discovered its maiden gold reserve of over 50,000 ounces in Queensland (Australia). This reserve includes two targets which remain open in all sides and are within easy transporting distance for operations point of view. These targets might include drilling within 30 km range from each other.

Financial Highlights for FY18 (£)

(Source: Company’s filings, LSE)

The loss for the year was expected by the management, however, they firmly believe that they will be able to secure more funding if required. The management also believes that the investor sentiment has also improved as far as exploration is concerned and the company will be able to sustain its ongoing exploration programmes. The company has not declared a dividend for FY18. The company’s basic loss per share stood at 0.01 pence for FY18.

Share price performance

Daily Chart as at July-08-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on July 08, 2019, at 10:40 AM GMT), shares of Rockfire Resources plc (ROCK) were quoting at GBX 0.625 per share; down by 3.84 per cent against the yesterday’s closing price level. The company’s market capitalisation (outstanding) stood at £2.85 million.

In the last 52-weeks, shares of Rockfire Resources plc have registered a high of GBX 2.30 (as on Jul 12, 2018) and a low of GBX 0.575 (as on Jun 11, 2019). At the current trading level, as quoted in the price chart, its shares were trading 72.82 per cent below the 52-week high price level and 8.69 per cent above the 52-week low price level.

The stock’s volume (before the market close, at the time of writing) stood at 791,087. Stock’s average traded volume for 5 days was 6,505,154.20; 30 days- 2,684,604.63 and 90 days – 2,823,120.64.

The average traded volume for 5 days was up by 142.31 per cent as compared to the 30 days average traded volume. The company’s stock beta was 0.12, reflecting much lower volatility as compared to the benchmark index.

The shares of the company (at the time of writing) were trading below the 30-days and 60-days SMA, which shows a negative trend in the stock price movement and could further move down from the current trading levels.

In the past 1 year, shares of Rockfire Resources plc have delivered a negative price return of 67.50 per cent. Also, on a year-to-date basis, the stock was down by approximately 31.58 per cent and plunged by 10.34 per cent in the past three months. Share’s RSI for the 30-days, 14-days and 9-days stood at 45.65, 46.66 and 45.87 respectively. Also, the stock’s 3-days RSI stood at 35.66. The volatility of the stock for 200 Days, 90 Days, 30 Days stood at 79.38, 67.82 and 61.98 respectively.

Kazera Global PLC (KZG)

Kazera Global PLC (formerly the Kennedy Ventures plc) make investments primarily in the resources and energy sectors which may be in the form of quoted or unquoted market instruments, direct interests and JVs. The company is into tantalite production, other minerals such as lithium, mica and feldspars. The company also operates in chemical processing and outsourcing materials such as concentrates and slags.

Recent News

The company made an announcement over the Homestead and Purple Haze deposits regarding its maiden JORC (2012) compliant Mineral Resource pre-drill estimates. These deposits are estimated around 324.6 thousand tonnes with further potential upside. The total deposits are estimated to be around 125,500 tonnes.

Financial Highlights for H1 FY19 (£, thousand)

(Source: Company’s filings, LSE)

The Company’s loss before tax stood at £794,000 for H1 FY19 and the cash balances stood at £534,000 at the end of the Period. The company has not declared any dividend (interim) for H1 FY19. The company’s total current assets stood at £0.6 million for H1 FY19. The company’s overall net assets stood at £3.5 million for H1 FY19. The company’s basic loss per share stood at 0.3 pence in H1 FY19.

Share price performance

Daily Chart as at July-08-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on July 08, 2019, at 01:09 PM GMT), shares of Kazera Global PLC (KZG) were quoting at GBX 1.847 per share; up by 1.48 per cent against the yesterday’s closing price level. The company’s market capitalisation (outstanding) stood at £5.24 million.

In the last 52-weeks, shares of Kazera Global PLC have registered a high of GBX 3.10 (as on Sep 07, 2018) and a low of GBX 1.36 (as on Aug 16, 2018). At the current trading level, as quoted in the price chart, its shares are trading 40.41 per cent below the 52-week high price level and 35.80 per cent above the 52-week low price level.

The stock’s volume (before the market close, at the time of writing) stood at 1,503,703. Stock’s average traded volume for 5 days was 2,146,849.00; 30 days- 567,958.30and 90 days – 911,546.40.

The average traded volume for 5 days was up by 277.99 per cent as compared to the 30 days average traded volume.

The shares of the company (at the time of writing) were trading above the 30-days and 60-days SMA, which shows a positive trend in the stock price movement and could further move up from the current trading levels.

In the past 1 year, shares of Kazera Global PLC have delivered a positive price return of 17.42 per cent. Also, on a year-to-date basis, the stock was down by approximately 1.62 per cent and surged by 4 per cent in the past three months.

Share’s RSI for the 30-days, 14-days and 9-days stood at 53.51, 65.13 and 73.51 respectively. Also, the stock’s 3-days RSI stood at 94.39. The volatility of the stock for 200 Days, 90 Days, 30 Days stood at 59.16, 38.88and 37.55 respectively.

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