Thanks Kiwi.
I think the decision to sell is personal, as, among many things, it depends on your risk tolerance, time-frame, liquidity, opportunity cost, etc, etc. In other words, what is rational for me to sell, might be irrational for others.
Given the rise in resource stocks, HCH carries a high opportunity cost to hold. However, timing the market is difficult. The things I like about HCH include a big resource for what is a strategically important and diminishing resource with potential future high growth. The size of the resource reduces the risk, as it makes it more likely to go to mine (same with AVZ). I also like that someone was willing to stump up $25M. I think it might continue to go sideways for a long time, as the high-volume and (relative) low-grade story isn't sexy enough for many ASX investors. That will change once the resource is drilled and the NPV revised. So its patience for the moment. But I agree, it is tempting to leave and risk coming back later. But I dont think I will.
ASN has a big NPV to mkt cap, with the PEA indicating a multibillion dollar NPV, noting the ASX hauled them over the coals on that announcement, and they had to reissue the PEA a week or so later. IMHO, it'll start de-risking once results come back on lithium's battery grade quality. Problem with the company is their seemingly scattered focus, and of course, as with all miners, securing funding and offtakes. The share price is improving, which should also reduce funding risk. If they achieve half what they claim, they should easily be a $1B mkt cap, making them a ten-plus bagger, even at current SP. However, that's a bit "IF".
I firmly believe EVs are the future, particularly with Biden in power. If true, big lithium deposits will become strategic resources. AVZ carries a high country risk, and a lower NPV to mkt cap ratio compared to other resources. However, the resource can be potentially doubled, with other tenements. Manono is already a monster. The resource is too big to ignore in an electric future. Also, it appears lithium price is close to bottoming out. All good reasons to continue investing in AVZ, if you can tolerate high-risk. I think AVZ is reasonably fair value at present. But I have a target of 50c over the next 12 months. That's without taking into account the likely rise in lithium and tin prices.
ADN is a rarity. The MD (James Marsh) is brilliant, with deep technical knowledge, and vision. They appear to have a monopoly on high quality halloysite, are investing in IP to leverage the product, its low capex and opex, and they are on the cusp on mining. If they can establish a market for halloysite as a cement additive, then they may well reach $1 on that alone. When I bought ADN around 5c, it had been a lot cheaper before. But, I try not to look where a stock has been, but where it will be. Same applies to the current price.
LRS for me is more a long shot gamble. So I didn't buy much, and bought the options, to increase my leverage.
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