Braveheart Resources Inc. (TSXV: BHT) is a mining company primarily focused on two near-term copper production assets in Canada. Braveheart's main asset is the 100% owned Bull River Mine project near Cranbrook, British Columbia which has a Mineral Resource containing copper, gold, and silver.

Key Highlights:

• Improved debt ratios sequentially: During Q3FY22, the company improved its balance sheet by managing its debt ratios efficiently on a sequential basis when compared to Q2FY22. The same is represented in the graph below.

Source: Refinitiv, Analysis by Kalkine Group

• Exploration permit for Thierry Mine property: Recently the company announced that it received an Early exploration permit from the Ontario Ministry of Northern Development, Mines, Natural Resources, and Forestry ("MNDM") for its Thierry Mine Property ("Thierry") near Pickle Lake, Ontario. The preliminary investigations estimate 53,614,000 tonnes in the inferred classification at the K1-1 neath the surface open pit deposits which include 0.38% Cu (Copper), 0.10% Ni (Nickel), and 0.14 g/t Pd (Palladium). The presence of such reserves could boost the company's revenues post explorations, which is a key positive.

• Increase in operating and net losses: For Q3FY22, the group reported an increase in the operating loss of CAD 1.35 million as compared to the operating loss of CAD 1.17 million in Q3FY21. The net losses for the similar period (Q3FY22) also increased to CAD 1.32 million against the net loss of CAD 1.17 million in Q3FY21. The company is still in the exploration stage and did not generate any operating revenue, which is a major reason for the group to incur increasing losses.

Stock Recommendation:

The group recently acquired the exploration permits on the Thierry Mine Property, which is estimated to have 53,614,000 tonnes in the inferred classification at the K1-1 neath the surface open pit deposits which include 0.38% Cu (Copper), 0.10% Ni (Nickel), and 0.14 g/t Pd (Palladium). Also, the company has showcased an improvement in the debt management during Q3FY22 as compared to Q2FY22. Since there are no operating revenues, hence the company reported increased operating and net losses and the continuation of the same can distort the financial metrics of the company.

Therefore, based on the above rationale, we recommend a “Watch” rating for the stock of BHT at the last closing price of CAD 0.095 on May 26, 2022.

One-Year Technical Price Chart (as of May 26, 2022). Analysis by Kalkine Group

Note: The reference data has been partly sourced from REFINITV

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Technical Analysis Summary

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.