XTR Share Price Forecast: Is Xtract Resources a Good Buy?

The XTR share price has been in a tight range in the past few days as investors watch the performance of gold and copper. The price is trading is 6p, which is about 35% below the highest level in December 2020. It has a market cap of more than 50 million pounds, making it a relatively small AIM-listed company. 

Xtract Resources is a small-cap company that acquires brownfield resources intending to generate shareholder returns. It has fields in Australia, Mozambique, and Zambia. The company’s share price has been in the spotlight recently as investors focused on the ongoing crisis in Ukraine and its impact on commodity prices. Most of its key products have all seen their prices rise sharply. 

XTR published its six-month earnings in September last year. It made £0.16 million in revenue, down from £0.61 million in the same period a year earlier. As a result, its total loss jumped to more than £2.204m as administration expenses rose. As a result, the firm had about £8.08 million in cash and over £21.45 million in net assets. 

Some of its top updates were the results of its phase-one drilling and induced polarization of its fields in Australia. It also completed the drilling and analysis of the Eureka project in Zambia and reconnaissance drilling at the Kalengwa project.

So, is Xtract a good investment? It is too early to tell whether Xtract will succeed in its exploration projects, considering it is in its early stages. Also, as a penny stock, there are risks to the overall volatility of the stock.

XTR share price forecast

The XTR stock price went parabolic in the first quarter of 2021. At the time, it managed to move below a low of 1.06p to a high of 9.15p. In the past few months, the stock has formed an ascending channel pattern shown in purple. The current price is between this channel and is slightly above the 50-day EMA. 

Therefore, the outlook for the stock at the current level is neutral, meaning that the stock could break out in either direction. The key support and resistance level will be at 5p and 7p.