Mansoor’s Radar: Charger (ASX:CHR) charging on many fronts
For the equity market, June is a tough month by any stretch of the imagination. June gives market makers an end-of-year sale, backed by capital gains sell-down, and fund managers adjust and rationalise portfolios for the coming financial year. With all this in play, fundamentally strong stocks come out of the woodwork, close the day, the week, and the quarter of June in Red. Charger Metals, unfortunately, is one of those stocks.
However, Charger is doing everything by the book. The last 3 to 6 months have been action-packed on multiple fronts and have delivered both in the Field and at the Board.
Cashed up and capital discipline across multiple field program
Completions of 2 drill program at Medcalf Prospect Lake Johnston, with 41 RC holes completed
Completion of phase 1 drilling at Bynoe
Initiating phase 2 drilling program at Bynoe
Portfolio addition / simplification
Replacement of industry respected & veteran David Crook with talented Aidan Platel
Lithium Australia retaining its holding in the Lake Johnston Lithium
Initiating MRE work program at Lake Johnston at the back of recent drilling for year-end update
With all this, Charger’s share price has declined from its peak of 102 cents to 37 cents, which is lower than the last capital raise at 50 cents.
PRICE MOVEMENT FUNDAMENTALS:
Investors eagerly anticipate news on the final grades for Charger’s assay results for Lake Johnston, which covers 700 meters of strike. Additionally, around 2000 meters of assays for Bynoe and the completion of the 2nd phase of drilling next to the Core Lithium deposit have increased interest in the company.
PRICE MOVEMENT TECHNICALS:
Charger’s top 20 registers have almost held stable. I think June’s weakness is virtually baked in the price – with a small SOI, and the price should stabilise with some sustained positive sentiment-aiding prospects.
CHARGER FPO [CHR]
$0.077