Key Insights About 2 Resource Stocks – TXP & VAST

  • Jun 19, 2019 BST
  • Team Kalkine
Key Insights About 2 Resource Stocks – TXP & VAST

Touchstone Exploration Inc

Touchstone Exploration Inc (TXP) is a Canada based oil and gas company operating internationally. The company is presently active in the Republic of Trinidad and Tobago. The company is the largest producer of onshore oil in the region of Trinidad. The company is having a widely experienced management team. The company in Trinidad holds exploration and development rights in approximately 90,000 gross acres of land. The company also holds 8,700 acres of onshore crude oil producing properties and 55,000 acres of undeveloped land.

Trading Update - Q1 FY2019

In the Q1 FY2019, the company’s average crude oil production was 2,121 bbls/d (barrels per day). The production increased by 37 per cent against Q1 of FY2018 and 15 per cent against Q4 2018.

The company’s petroleum sales increased by 34 per cent to $11,015,000 as compared to the first quarter of 2018.

The operating netback per barrel for Q1 FY2019 increased by 11 per cent to $29.35 versus $26.52 in the first quarter of the financial year 2018.

The company’s funds flow from operations stood at $2,430,000 in Q1 FY2019 against $2,062,000 in the first quarter of 2018.

The company reported a net loss of $185,000 in the first quarter of the financial year 2019 against net earnings of $130,000 in the first quarter of the financial year 2018. The decline in earnings was due to an increase in additional petroleum tax expense of $1,256,000 in the Q1 FY2019.

The company’s net debt for the first quarter of the financial year 2019 stood at $10,016,000.

Touchstone Exploration Inc Share Price Performance

Daily Chart as at June-19-19, before the market closed (Source: Thomson Reuters)

At the time of writing (as on June 19, 2019, at 3:30 PM GMT), shares of Touchstone Exploration Inc were quoting at GBX 15.50/share and down by 2.36 per cent against the yesterday's closing price level. The company’s outstanding market capitalisation stood at around £25.83 million.

In the last 52-wks, shares of Touchstone Exploration Inc have registered a high of GBX 22.50 (as on Oct 12, 2018) and a low of GBX 10.28 (as on Dec 21, 2018). At the current trading level, as quoted in the price chart, its shares were trading 31.11 per cent below the 52wk high price level and 50.77 per cent above the 52wk low price level.

Today's volume in the stock (before the market close, at the time of writing) stood at 117,880. However, the 5-day average daily volume traded in the stock was at 182,101.40, which was 36.24 per cent below the 30-day average daily volume of 285,593.47 traded on the London Stock Exchange.

From the SMA standpoint, at the time of writing, its shares were trading marginally below the 30-days SMA and shares were trading above 60-days SMA and 200-days SMA, which indicates a positive trend in the stock price and carrying the potential to move up from the current trading levels.

In the past 1 year, shares of the Touchstone Exploration Inc have delivered a positive price return of 7.63 per cent. However, on a year-to-date basis, the stock was up by approximately 24.51 per cent and 30.66 per cent in the past three months.

Share's RSI for the 30-days, 14-days and 9-days were hovering at a normal range and stood at 51.72, 46.83 and 44.45 respectively. However, 3-days RSI of the stock stood at 22.37.

Vast Resources Plc

Vast Resources Plc (VAST) is a resource development and mining company. The company is mainly focussed on the fast pace development of brownfield projects. The company is resuming production at previously producing mines in the geographic region of Romania and Zimbabwe. The Manaila-Polymetallic Mine in Romania is presently owned and operated by Vast Resources Plc and has interests in several projects in Zimbabwe.

Recent News

On 17th June 2019, Vast Resources Plc informed that its senior management had meetings with the ZCDC (Zimbabwe Consolidated Diamond Company Ltd) and the local community leaders in Harare. ZCDC being the parastatal body holds some special political authority. In the meeting, the company closed an agreement to mine on the Heritage Concession.

On 28th May 2019, Vast Resources Plc announced that the company was engaged in the preparation of Scoping Studies, Preliminary Economic Assessments and Preliminary Feasibility Studies in association with SRK Consulting (UK) Ltd.

Financial Results and Review – H1 Financial Year 2019 ($, thousand)

(Source: Interim Report, Company Website)

In the first half of the Financial year 2019, Vast Resources Plc’s reported revenue was $21,942 thousand in the H1 of the financial year 2019 ending September 2018 against $14,882 thousand for the previous year of the same period. There was an increase of 47 per cent mainly because of an increase in revenue from Group’s 2 mines which are operational in Zimbabwe and Romania.

The gross profit for the H1 FY2019 stood at $5,511 thousand as compared to $3,067 thousand in H1 FY2018.

The loss from operations for H1 FY2019 stood at $1,306 thousand as compared to a profit of $558 thousand in H1 FY2018. There was a significant decrease in operating income due to an increase of 31 per cent surge in the administrative overhead expenses.

The Loss for the year stood at $2,131 thousand in H1 FY2019 against a loss of $12,636 thousand in H1 FY2018.

The basic and diluted loss per share stood at $0.09 in H1 FY2019 as compared to a loss of $0.30 in H1 FY2018.

Vast Resources Plc Share Price Performance

Daily Chart as at June-19-19, before the market closed (Source: Thomson Reuters)

At the time of writing (as on June 19, 2019, at 3:39 PM GMT), shares of Vast Resources Plc were quoting at GBX 0.12/share and remained same against the yesterday's closing price level. The company’s outstanding market capitalisation stood at around £10.45 million.

In the last 52-wks, shares of Vast Resources Plc have registered a high of GBX 0.69 (as on Oct 10, 2018) and a low of GBX 0.11 (as on Jun 13, 2019). At the current trading level, as quoted in the price chart, its shares were trading 82.61 per cent below the 52wk high price level and 9.09 per cent above the 52wk low price level.

Today's volume in the stock (before the market close, at the time of writing) stood at 79,689,358. However, the 5-day average daily volume traded in the stock was at 152,109,407.80, which was 68.22 per cent above the 30-day average daily volume of 90,425,357.20 traded on the London Stock Exchange.

From the SMA standpoint, at the time of writing, its shares were trading below the 30-days, 60-days SMA and 200-days SMA, which indicates a negative trend in the stock price and carrying the potential to move below from the current trading levels.

In the past 1 year, shares of the Vast Resources Plc have delivered a negative price return of 74.74 per cent. However, on a year-to-date basis, the stock was down by approximately 58.62 per cent and declined by 25 per cent in the past three months.

Share's RSI for the 30-days, 14-days and 9-days were hovering at a normal range and stood at 39.21, 40.22 and 43.37 respectively. However, 3-days RSI of the stock stood at 59.66.

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