Have chosen to 'by and large' sit of my hands during the significant decline in equities. Like many, I am tech heavy so wear the pain of so many on Strawman. Whilst accepting that I would see it out, as I have done many times before, the mind has been overdrive, thesis checking and weighing up threat versus opportunity given the evolving macro.
With Strawman, unless you converted your holdings to cash earlier enough (and well done to those that did), you cannot add cash to capitalise on rebound prospects. I went in search of a Company where I could trade for profit. To cut a long story short, in November last year, I started deploying the small change from any trades to Ionic Rare Earths, ASX listed (IXR). With passage of time, I really warmed to the story and some of the real economic advantages incl potential scale, favourable economics of clay deposits versus hard rock mining, the West's dependence on supply ex China and increasing reliance on rare earths in a decarbonised future. Worth having a look at the 12 month share price graph. A traders delight made easy with regular news flow on drilling and then lab results.
Having just re-entered via my largest stake thus far, anticipating a flurry of announcement in June, was reminded this morning of the danger of Country Risk.
Herewith the article first published on the 12th of May.
https://www.africa-newsroom.com/press/uganda-premier-stops-mining-firm-in-eastern-uganda?lang=en
I share this for those that may have a stake in Ionic Rare Earths. The Company have not disclosed anything via the ASX. They may have the situation under control.
The line that sent a shiver up my back, was ...PM Roninah Nabbanja said " Govt has come up with a policy to add value to all minerals in the Country so that we can have employment for our people".
The Govt hold a 7% stake right now. Tim has recently done a presentation on the global stage which articulates the prospects for Ionic Rare Earths. It identifies several initiatives aimed towards helping the local communities, local employment and support on education. That said, maybe adding value in Uganda means something different to what we would consider it to mean in Australia.
Loved the bit .. "education regarding the presence of the alien Company on the ground".
I exited today and will monitor going forward. Irrespective of what happens, reminded me of never ignoring Country Risk, particualrly where Africa is concerned.
Rob W
