There are several important reasons for liking Denarius Metals Corp. (DMET:CBOE; DNRSF:OTCMKTS) here. It is a rare earth metals company with four projects in relatively safe jurisdictions: three in Spain and one in Columbia, with two of the projects due to go into production within the next 12 months.
In addition, its stock has just taken a big hit due to a major financing, and to a lesser extent, part of its decline may have been due to general market weakness, of course.
The smackdown of the past two weeks or so has knocked the price down from CA$0.84 to the current CA$0.47, which makes it attractive to us, especially as it has brought the price down to an important support level within a large bullish pattern, as we will proceed to see at a time when the broad stock market is heavily oversold near-term.
On the 1-year chart we can see how the retreat of the past couple of weeks has brought it down from the top of a large trading to the support at its lower boundary and given that "the heat should come off it" tomorrow with completion of the major financing, this looks like a good point to scoop it up.
It is on the 5-year log chart that we can see why Denarious Metals looks so attractive at the current price, for on this chart, we can see that it is in the very late stages of a giant Cup & Handle base pattern that has built out at a low level over the past two-and-a-half years whose bullish implications are given added weight by the overall strength of the two volume indicators shown at the bottom of the chart.
It would thus appear that the sharp dip of the past couple of weeks, triggered by the capital markets machinations of a big financing that has been scaled back and amended with an offer price at CA$0.50 (about the current price), has presented us with a good opportunity to pick up the stock at a very favorable juncture before it traverses back up to the upper boundary of the base pattern prior to breaking out of it.
Denarius Metals is therefore rated an Immediate Strong Buy.
Denarius Metals' website.
Denarius Metals Corp. (DMET:CBOE; DNRSF:OTCMKTS) closed for trading at CA$0.55, US$0.42 on March 17, 2025.
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The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.
