I actually came across CAD first when I first got started noticing lithium brine stocks on the ASX. I even traded them a bit and made 0.05c margin on each share.
However, I ultimately sided with RLC at the top end of last year. Yes, both are highly speculative and risky but I will outline just a few reasons why I think reedy lagoon is a better bet and why I ended up with a good bunch of shares here.
1. Better projects. RLC projects - even our worst one - has lower resistivity than CAD's best. Is the most important reason for me. When I was reviewing CAD's MT surveys at Lida and Scottys South, I was pretty surprised to understand that CAD hadn't commissioned their own surveys - having bought a pre-prepared one for the whole area. That is definitely a red flag and tells me either they weren't taking the project seriously or lacked expertise. So when RLC did their own surveys and now drilling the first dissolved mineral exploration hole, I became just that bit more confident in the company's future.
2. Share structure. The >6bil shares really didn't make sense to me. It appeared like it was kept afloat at 0.003/0.004 just to keep raising capital. Surely a consolidation was the way to go? A red flag. No such problems here I am pleased to say. We also have a much much tighter share registry. ~55% held by top 20 with ~25% held by management.
3. Management. Probably my biggest resentment towards CAD is how management has run the company. First, it was lithium, then it was gold, next nickel. Unless you're BHP or RIO, microcaps simply don't have the resources to be spread so thin across projects. No such problems here. We have a magnetite project and a uranium prospect but these are literally benched right now with full attention on lithium brine. It also isn't a good look when CAD's announcement was quite rampy at times without the followup actions. Management here is conservative to the max and never overpromises. Is a money where your mouth is kind of crew but just a heads up - don't expect spin anns here.
So CAD actually taught me a few things about picking spec stocks and what red flags to look for. RLC has passed my cad test lol.
All opinion.
p.s That 5ook ask at 5c has come down to 4.9c. Looking like the end of consolidation phase?
RLC Price at posting:
4.8¢ Sentiment: Buy Disclosure: Held
(20min delay)
