I have never joined a blog or contributed to one before. However, visiting HotCopper on a regular basis I started to read some of the posts and, for the most part, a lot of the posts are informative and educational.
I have RDN in my share portfolio (just over 1 million) and I believe it to be a worthwhile investment. However, I don’t (and never have) thought that RDN was a rapid money-maker. Anyway, from a tax perspective, even if it did gain rapidly and I sold less than 12 x months after purchasing the shares, I would lose out on the 50% tax discount that is only available after owning any shares for a period longer than 12 x months.
While it isn’t always good for morale to see the shares you own go down in value, I am not terribly concerned about RDN’s recent price drop. RDN hasn’t even drilled yet! And, the up and down fluctuations in the share price over recent weeks/months is part of what it means to take a financial risk to own shares.
When RDN do start drilling there will, no doubt, be people paying very close attention to the results - both here in Australia and overseas. Will someone make a takeover offer? Who knows?
Regardless, the world still needs lithium - and good quality lithium. Poor quality lithium isn’t good for much. The low spodgumene price at the moment is just like any other resource - oil, gold, iron ore etc. it will go up and down like the temperature.
RDN’s lithium tenements are (geographically) in good spots, so, provided the drill results come back good (whenever that may be), someone, somewhere will likely want what RDN has. Whether that will come about through RDN signing up to a joint venture (for the lithium rights) or an outright takeover, only time will tell.
I don’t have an opinion in regards to what RDN can reach in terms of its share price, so I am not going to speculate on that point. As they say in the classics - something is only worth what somebody else is willing to pay for it. If the RDN price does increase significantly, the hardest thing for some investors will be when to sell (if that is what they want to do).
I have invested in RDN after doing my own research and qualifying and quantifying what I have read to arrive at my decision. So, if I sink, I sink. But, if the planets align and RDN find enough of the good stuff, I might just crack a smile!
Anyway, best of luck to all of the other RDN shareholders out there!
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