So another day of reckoning for RDN on Monday?
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Yes after play 1/1.1 for couple of weeks - suddenly boom. I was watching on Wednesday, once 1.2 was cleared, it looked strong. Couple of more line wipes on the way, reached 1.6 and finished at 1.5 - big 50% gain for the day. Nearly everyone would have expected ASX query and we got one.
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To be frank, I was hoping the response was not for Lithium, Andover. I felt in current Lithium sector conditions, if the rise is happening, its around other drills. But it is Andover. Lithium sector has had a torrid 3 years. Last week I posted 2 year results on many Li stocks that I post. It was not a good reading. I have posted below for anyone interested. So the results may have to be good. I feel very good for decent gain. Reason being the sector is in bad shape. There are many more advanced Li stocks with lower market cap than RDN - so some hope/potential has been built into the market cap. Now the time has come to live up to it.
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Personally it was so tempting to buy on Wednesday. But I have seen these ups and downs at RDN at regular intervals, so thought will wait and see what it is about.
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So what could happen on Monday? I think all options are open. Every drill is individual by itself and has the potential to deliver. The land RDN holds was very dear at one time, in Li boom time. It may have decreased slightly now because of Li sector. Also one result has not been favourable. So second reason its value may have decreased. Dusko raised at 3s when results very due. In hindsight, many may think that he got an inkling of bad results so raised immediately. So sophs may not be happy. Other thing that goes against RDN is that there have been few suspicious rises and falls, jumps before results, etc. So credibility is not strong. But all can be forgotten and forgiven if the results deliver. Last few years, only AZS and WC8 have delivered on Aus land. In between 100s of dusters. Lets hope we get a good one. All the best.
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Here are the numbers for last 2 years across 90 Li stocks -
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EG) having met with Simon Lill, Steve Morris and Craig Nelmes who had assumed the task of trying to breathe life into the struggling #gold and exploration junior. We decided to raise $1.7m via an underwritten rights issue with the Company market cap of circa $4m in total! Our first job was to reduce any spending on the #exploration ground and to identify a new project or direction to take the Company forward. We looked at technology and biotech deals as a priority, trying to reduce our exposure to resources! Luckily for DEG, we were unsuccessful in our attempts to change direction and Andrew Beckwith was asked to conduct a review on the Wingina Well gold project and surrounding areas as we tried to work out what to do next. Andy was of the opinion that the tenements had enormous potential and we should, at the very least, keep some exploration going to test whether more #resources could be added. One of the highlights for me was flying to China and meeting with China Non-Ferrous Metals who owned the adjacent #Indee Gold project - this was eventually acquired by DEG and this became a significant part of their enormous land holding in WA. A few years later, the Company had a taste of success when the #pilbara region exploded with the conglomerate #goldrush and watermelon seed nuggets becoming a huge sensation. DEG were able to attract a serious capital injection from Kirkland Lake Gold (KL) now Agnico Eagle Mines Limited, and we were seriously off and running! From this time on, the board was enhanced with better technical experts than I, and they continued to raise capital to progress their assets forward. Real success came their way as a result of persistence and hard work, putting in the extra effort and the extra metres of drilling - especially when investors weren't interested in the story! As the tale goes, the discovery hole at #Hemi was historically drilled but the operators back then hadn't gone deep enough - an extra drill rod is all that was needed to uncover one of the greatest deposits in Australian #mining history now with over 11M oz of contained gold in resources! Today in the absence of a higher bid, Northern Star Resources Limited have entered into a scheme to buy the Company at a valuation of circa $5 BILLION AUD! A huge well done to my colleagues who played a part in this incredible story. I am sure there are countless of people who deserve the credit, but these are the ones who I saw first hand, putting in the work and never giving up!
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