ASX Today, page-43398

For some of the less experienced investors out there who are tearing out their hair at the current situation with LTR share price, I would like to share my experience with a stock I held long term based on my belief in its underlying value.

The stock is Red Hill Minerals (RHI) which had a major free carried stake in an iron ore joint venture in WA. I had bought stock and taken losses at times over many years since 2006, buying during weak times etc and ultimately held a bit over 77,000 shares. In early 2021 it was trading at around $0.25 per share from a high around 2007 of $4.60 or maybe even more.

Rumours started circulating around March/April 2021 that Mineral Resources might be putting together a deal to bring the long deferred iron ore project to fruition. While I sold a few on the way up, once the deal with MIN to sell RHI's interest for $400m was done in mid 2021, the RHI share price rocketed and the share price climbed to around $5.50 before the first special dividend and then recently to $7.90 before payment of another special dividend. I am mentioning this because investors need to have the courage of their convictions when assets are mis-priced by the market based on short term factors especially.

Look at what we have in terms of resource, plant, and management, and then consider why you have invested. If you see what I see in terms of the long term fundamentals of the lithium based electrification age, then you will understand this current situation is part of a cycle. We are already in production at what may well be the cusp of a new upswing in pricing when new projects and even brownfields expansions have been pulled back. Once sentiment turns, things can change dramatically and we all know that the levels of short sold shares will amplify the market swings. Short termism when investing does not make sense imo.

regards
DF