Australia Stock Alert


Morning Alert: African Energy Resources accelerates slide, now down 10.0% in 2 days July 27, 2017 11:00:00 AEST


African Energy Resources Limited (ASX:AFR) is down 0.90c (or 10.0%) over the past two trading days. After falling 3.3% on Wednesday, the stock fell 6.9% on Thursday to trade at 8.10c vs. the All Ordinaries Index that is up 1.0% in the same period.

SECTION 1: The past week

Current indications of bearish signals that support the trend in the unusual trading

1.1 At a glance

Weekly: African Energy Resources in its biggest weekly loss in 3 weeks July 26, 2017 16:00 AEST

African Energy Resources Limited (ASX:AFR), Australia's 46th largest Energy company by market cap, has dropped 0.50c (or 5.4%) in the past week to close at 8.70c. In the past week the shares have dropped 5.4%, the biggest weekly fall since July 12, 2017. Compared with the All Ordinaries Index which rose 52.7 points (or 0.9%) in the week, this represented a relative price change of -6.2%. The volume was 0.3 times average trading per week of 1.6 million shares. In the past week the market cap has declined $A3 million.

1.2 5-day Recap

African Energy Resources underperformed the All Ordinaries index in 4 out of 5 days.

DayHeadlineClose price [AUD]Price change %Relative change %Comment
WednesdayAfrican Energy Resources in its biggest weekly loss in 3 weeks0.09-3.3-4.3Steepest Fall
TuesdayAfrican Energy Resources decreases 1.1%0.09-1.1-1.8
FridayAfrican Energy Resources drops 2.2%0.09-2.2-1.6


DayHeadlineClose price [AUD]Price change %Relative change %Comment
MondayTwo-bagger African Energy Resources increases 1.1% Rise
ThursdayAfrican Energy Resources consolidates after 2 days of consecutive rises0.090-0.5

SECTION 2: Technical indicators


The price plummeted 12.0% in the last week and sank 4.7% in the last month.


The stock is at a discount of 26.4% to the 12-month high of 11.0c on 31 May, 2017. It is also at a premium of 161.3% to the 12-month low of 3.10c on 20 Dec, 2016.


The stock has outperformed 97% of the Australian market over the past 6 months.

In the last three months the stock has hit a new 52-week high nine times, pointing to a significant uptrend.

The present value of AUD1,000 invested one year ago is $A1,653 [vs $A1,039 for the All Ordinaries Index], for a capital gain of $A653. The total return to shareholders for 1 year is 65.3%.

SECTION 3: Ranking

DescriptionValueRank In Market
MCap $US million39.2In 3rd Quartile
52-week Range (in c)3.1-11.0
1-month Range (in c)7.4-9.2
Today's Volatility %7.4In Bottom Quartile

SECTION 4: Earnings

Annual Report: African Energy Resources reports Loss of $US1.7m

African Energy Resources (ASX:AFR) reported loss for the year-ended 30 June 2016 of $US1.7m.

Major changes compared with previous year:

Favourable Changes:

- Total non-current assets to Total Assets up from 70% to 79%

- Long-term investments to Total Assets up from 41% to 44%

- Other non-current assets to Total Assets up from 29% to 34%

Unfavourable Changes:

- Loss of $US1.7m

- EBIT Margin of -1,395.5%

- Operating Cash Flow is negative

- Current ratio down 43% from 36.3 to 20.6

- Working capital to total assets down from 29.5% to 20.2%

- Total current assets to Total Assets down from 30% to 21%

- Cash to Total Assets down from 29% to 20%

SECTION 5: Recent News of African Energy Resources

June 20: African Energy Resources: Key Milestone for Chirundu Sale Transaction

On 7 March 2017, the Company advised that it had executed a binding agreement to sell its Zambian uranium mineral interests to GoviEx Uranium Inc. (TSX- V: GXU, "GoviEx") for 3.0M GoviEx shares and 1.6M common share purchase warrants (the "Transaction").

Source: Australian Securities Exchange

African Energy Resources Limited (AU:AFR; ASX:AFR; AX:AFR)

ISIN: AU000000AFR6

PermID: 4295858496