Sunstone Metals Ltd

Section1: Company Overview and Fundamental Insights

1.1 Company Overview:

Sunstone Metals Ltd (ASX: STM) is involved into exploration and development of gold and copper and have assets in Ecuador. Covering segments like Australia, Ecuador and Finland, the main projects include Bramaderos Gold-Copper Project and El Palmar Copper-Gold Project.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders collectively form ~17.36% of the total shareholdings. Valbonne II Sicav holds the maximum number of shares with ~4.89% shareholding, followed by Potezna Gromadka, Ltd. with ~2.20%, as depicted in the chart below:

1.4 Key Metrics:

The company has long trend of Nil debt-to-equity ratio since 2017 till FY22, making it debt free. Highlighted below the trend of total assets and cash & short-term investments.

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

Summarized below are the key drivers for growth:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary:

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 neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 18, 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 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 unfavourable movement in the stock prices.

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