By Is Cloudbreak Stock A Future Winner?
Cloudbreak Discovery PLC Research Investigation
$CDL.L is listed on the London Stock Exchange. Is Cloudbreak stock a future winner? Let’s investigate.
Cloudbreak Stock Ticker
CDL.L ($CDL.L)
Stock Name and Trading Platform
Cloudbreak Discovery Plc (CDL.L) – Traded on the London Stock Exchange (LSE).
The Stock Sector
Cloudbreak Discovery is a UK-based Project generator company operating in the extractives and natural resource sector (Mining & Metals industry).
The company was founded in 2007 and is focused on maintaining a low overhead of 4 employees working with third party contractors and partners.
Its activity is servicing the prospecting, exploration and development of base metals.
It also has strong interests in batteries and minerals used in renewable energy devices.
Their headquarters is in the UK, but they operate in many regions including Southern Europe, North America (Canada and the US), The great lakes area and they have recently established operations in Africa.
Recent Cloudbreak News
Cloudbreak gained traction when it raised GBP 1.5 million in a share placing for project initiatives. This is a positive move that will push it forward.
This move has illustrated the support and investor confidence in the company.
Last week, they announced the optioning of the Rizz project, a 5,415 acres of mineral titles 90km south of Atlin, British Columbia.
The signing of the deal was with a private company called BBCo.
This is a good opportunity for Cloudbreak and the area is estimated to be rich in silver, gold, Zinc and a host of other minerals.
This joint venture has enabled Cloudbreak to secure just shy of 10% of BBCO and C$75000 of exploration commitment over the next three years.
Cloudbreak went public last year and is still quite young in the equities market. They have had their fair share of ups and downs over the last year.
Hopefully this year (2022) will be a decisive one to determine how well they will fare later on.
In the recent past, Cloudbreak has been focused in forming strategic alliances to ensure they effectively operate and penetrate into more markets. They partnered with Alliance Mineral ($ANZ: CVE) based in Vancouver.
This will grant Cloudbreak an opportunity to advance copper projects in Southwest USA.
The two companies also signed an option agreement with Allied copper ($CPR: CVE), a Canadian company for the Stateline project in Colorado. The project consists of 40km of copper rich areas that remain unexplored.
These moves by Cloudbreak will keep them on the edge of their game and hold promising outcomes.
Current Position Of Cloudbreak Discovery
Cloudbreak started trading on the LSE as of June 2021 and was formerly known as Imperial X. Historically, they have been trading horizontally until last quarter of 2021 when upsides were occasionally witnessed.
This is due to the strategic moves it has been making in the market.
Cloudbreak are valued at approximately GPB38-40 million and this fluctuates with market turns. They are exploring multiple projects and have been proactive in their operation.
Cloudbreak believe that their choice of London as its base of operations is tactical as the Canadian markets are really crowded and they hope to maintain a calm head in UK. Their backyard of operations is predominantly North America.
Cloudbreak look to increase shareholder value by finding undervalued assets in the resource sector and together with its partners advance efforts to tap the markets.
Cloudbreak operate as royalty company and do not do the heavy lifting but rather pre-exploration activities for extraction companies looking for viable production areas.
Cloudbreak retain equity in exploration companies and receive dividend from future production revenues.
Cloudbreak advances projects through their partners balances sheets and technical teams to assure a low-cost high value creation model. They have an experienced management team with a successful track record in the natural resource sector.
It has diversified its metals interest across a variety of minerals.
Cloudbreak amazed the market last month as it was up almost 475% in a week. This was accredited to renewed investor curiosity on the stock.
The company performed averagely when it went public and the highs experienced last month are unprecedented. The Stock price moved from GBP 2 to nearly GBP 10.
In a statement by the CEO, Kyler Hardy, he says “There is currently a fundamental shift taking hold in the energy and metals sectors which will result in increased consumption of critical metals. Cloudbreak’s portfolio and strategy positions us at the Vanguard of this shift and enables our shareholders to benefit from the changing dynamics within the metals and mining industry.”
Cloudbreak Stock Price Chart
Cloudbreak closed at 8.50p down by -0.90p (-9.67%) on Friday of the 4th of March. It has currently rebounced and is trading at 8.84p, up 4% and has seen a day high of 9.33p as of March 7th 2022.
The volume of shares is at 17.28 million and the day range was GBX 8.0-10.0 over the past weeks. It has seen a 52-week-lows of GBR 1.42 and 52-week-highs of GBR 13.50.
The share price is somewhat justified considering the many operations CDL has been undertaking and the strategic alliances drawing investors. The recent funding it has received has also been a positive attribute to its performance.
CDL.L is strongly bullish as its performance is tied to success in the commodities markets (precious and industrial metals) which is looking pretty well.
A declining share price would be no surprise as well consider the current situation in the world today.
The Russian-Ukraine, raising of interest rates by the ECB in UK and the federal reserve in America could will likely lead to falling prices not just in the futures markets but the equities market at large.
Although most of the share price of Cloudbreak has accumulated in the past year, arguably at top the of a market bubble, they are more than able to sustain growth in the future.
The commodities and futures markets are greatly undervalued due to manipulation by the bullion banks.
Cloudbreak has a strong potential to see an upsurge in the future after even after an economic meltdown occurs due to demand of commodities.
Cloudbreak Sentiment
The market was sceptical of Cloudbreak initially but seems to have realized its potential. The massive flocking of investors is a good sign for Cloudbreak.
As it is still new to the markets, no proper review can be made by analysts due to limited data. Most recommendations will be a buy and hold as they approach the take-off phase in their development.
If the markets remain stable, CDL will likely surge but even if it falls, relative value will be maintained and fully realized in the not-so-distant future.
Cloudbreak Profits
Cloudbreak is still unprofitable, owing to the fact that it is only a year old. Companies in the mining and metals space typically take a long period before achieving gains.
This will especially apply to Cloudbreak as they rely on mineral exploration and drilling companies for it to be profitable.
At the moment they do not have any revenue, EPS, cash on hand or profit margin.
Cloudbreak’s net income was -902.06K up by 15.97% over the past year and operating income stood at -872.42K, down by 53.96% over the past year.
Future of Cloudbreak
What lies ahead for Cloudbreak is unknown. It is miles away from financial utopia. A good number of investors believe in its success but its not the darling stock of the market.
Based on reserved index, Cloudbreak believes that peak oil and gas has been achieved and production will decline in the coming years.
It therefore believes that the golden opportunity lies in green energy technology. The reserve life index for precious and industrial metals is unknown and this provides leeway for exploration.
Precious metals are critical requirement in driving the green energy transition. Cloudbreak could rise if its operations are successful.
Its global positioning is key in hedging the risk of empty mines. It will take time for solid hypergrowth to be witnessed. With the current wonky markets, volatility is unavoidable for the stock.
Based on moving average, CDL is a strong buy as recommended by analysts. Based on oscillators, its is a on a neutral scale with a 50/50 buy or sell.
Though Cloudbreak is a player in the extractives industry, it more specifically acts as an intermediate. On side this is plus because potential risk is deferred to the balance sheet of their operating partners.
With only ‘helicopter money’ sustaining Cloudbreak at the moment, some believe that the bull is going up the stairs and the bear will definitely come crashing out of the window with a thud.
Is Cloudbreak Stock A Future Winner?
Taking a position for or against Cloudbreak is a dilemma. The outcomes of performance could go either way.
In the short term there is too much uncertainty that threaten Cloudbreak’s existence. It has not scaled to significant levels where it can take a market hit.
If Cloudbreak survives through an economic crisis, it is sure to succeed in the long run. Shorting could be a futile attempt as shown due to rising prospects.
The next two years will be critical to the assessment of Cloudbreak’s growth. Due to financial vulnerability Cloudbreak is a buy, but not a strong buy.
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