Aeris Resources Limited

Section1: Company Overview and Fundamental Insights

1.1 Company Overview:

Aeris Resources Limited (ASX: AIS) is a mid-tier mining company, mainly focussing on the production and sale of copper, gold and silver and the exploration of copper and gold.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

 1.3 Top 10 Shareholders:

The top 10 shareholders collectively form ~8.01% of the total shareholdings. Washington H Soul Pattinson and Company Ltd holds the maximum number of shares with ~4.33% shareholding, followed by Tudor Court Ltd. with ~1.41%, as depicted in the chart below: 

1.4 Key Metrics:

The company has a negative cash conversion cycle of 4.9 days in 1HFY22 vs. Industry Median of +33.3 days. Below outline the trend of net margin and debt-to-equity ratio.

Section 2:  Business Updates and Financial Highlights

2.1 Recent Developments: The below picture shows the recent updates:

2.2 Key Takeaways from Recent Results:

Section 3:  Key Risks and Outlook

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues 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 July 22, 2022. 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.

Technical Indicators Defined: -

Support: A level at which 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 at which 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: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

Disclaimer

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