Greatland Gold PLC

Greatland Gold PLC (LON: GGP) is listed as an FTSE AIM 100 index listed entity involved in the exploration and development of minerals, including gold and copper.

Rationale for Valuation – Watch at GBX 14.24

• Weak Fundamentals: GGP has been losing money and has failed to generate any revenue thus far. Moreover, its net losses even worsened in FY21.
• Havieron Growth Drilling Update: On 10 March 2022, GGP reported that the higher-grade copper mineralization was identified in the core of the Northern Breccia. Moreover, six drills are currently operational post-Christmas lockdown.
• Ukraine Tension: The mounting concern over the Russian invasion in Ukraine can continue to weigh on the equity market.
• Technical Indicator: GGP’s stock price is hovering between the middle and upper Bollinger band while the RSI of ~50.51 approaching towards the overbought zone.

One Year Share Price Chart

(Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Please note 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.

Based on the absence of revenue, aggravated losses, high leverage, Ukraine crises, macroeconomic risk, and bearish technical indicators, we have given a “WATCH” recommendation on Greatland Gold PLC at the current market price of GBX 14.24 (as of 16 March 2022 as at 08:46 AM GMT).

Investors 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. 

Katoro Gold PLC

Katoro Gold PLC (LON: KAT) is an FTSE AIM All-Share listed entity, which is engaged in the exploration and development of gold and nickel.

Rationale for Valuation – Watch at GBX 0.72

• Weak Financials: The Company generates no revenue owing to record losses and had total assets of £0.65 million as of 30 June 2021, down from £1.89 million as of 30 June 2020.
• Turned to Losses: The Company recorded a loss of £0.77 million in H1 FY21 compared to a profit of £0.36 million in H1 FY20, due to high exploration costs.
• Exploration Risk: KAT’s mining operations are exposed to risks including rock falls, flooding, dam wall failure, and other incidents that could impact future output and production.
• Small Market Capitalization: It's a penny stock with a small market capitalization that's vulnerable to market volatility. Furthermore, the Company has a history of operating losses, and as a result, it can face liquidity problems.
• Ukraine Tension: The mounting concern over the Russian invasion in Ukraine can continue to weigh on the equity market.
• Technical Indicator: KAT’s stock price is hovering near the middle Bollinger band, while an RSI of ~50.18 is approaching the overbought zone.

Latest Update:

• New Venture with Lake Victoria: On 7 March 2022, KAT announced that it had entered into a Joint Venture Agreement with Lake Victoria Gold ('LVG') to develop the Company's Imweru Gold Project. LVG will own up to 80% of the Project, and KAT will hold the remaining 20% as a carrying interest.

One Year Share Price Chart

(Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Please note 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.

Based on the Company's weak financials, exploration risk, penny nature, Ukraine crises, and bearish technical indicators, we have given a “WATCH” recommendation on Katoro Gold PLC at the current market price of GBX 0.72 (as of 16 March 2022 as at 08:02 AM GMT).

Investors 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. 

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 on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Note 3: Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and 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 prices.

Disclaimer

References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.

This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.

The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.

Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.

Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.