How this man sextupled his cash on lithium in less than 2 years

Dan O'Neill made a lot of money from his shares in Altura Mining Limited (ASX:AJM). This is what he did.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In mid-December 2015 Altura Mining Limited (ASX: AJM) director Dan O'Neill bought 100,000 shares in his company for what would later turn out to be a bargain price of 0.041 cents.

When Mr O'Neill sold those 100,000 shares earlier this month for 0.281 cents he had sextupled his $4,100 investment, transforming it into $28,100. But those weren't the only shares Mr O'Neill sold, offloading 800,000 more to bring his October sell off to a total of 900,000 shares.

And, although Mr O'Neill was the only Altura director to offload shares this month, he wasn't the only one to have the foresight to snap up a significant portion of Altura stock on December 11, 2015.

Directors Allan Buckler and BT Kuan both grabbed 100,000 shares while Paul Mantell picked up 500,000.

And it seems Managing Director James Brown would be feeling even better than the others about his purchase. He decided to scoop up 1,000,000 shares, turning his $41,000 into $275,000, based on Thursday's close price of 0.275 cents.

Did O'Neill get out at the right time?

The short answer is: Yes.

As mentioned, the Altura share price closed on Thursday at 0.275 cents, slightly down from when Mr O'Neil sold on October 9.

The Orocobre Limited (ASX: ORE) share price has performed similarly over that period. Its share price dropped from $5.01 to $5.00.

And, another lithium company, Galaxy Resources Limited (ASX: GXY) has seen its share price move from $3.02 to close on Thursday at $3.84.

Mr O'Neil would have done well if he swapped his Altura shares for Galaxy stock.

But, if things go to plan, it seems the others may be wise to hold their Altura shares.

Altura Managing Director Mr James Brown announced on Thursday that the company's flagship project at Pilgangoora, in Western Australia's north, is proceeding well.

"With construction around 50% complete in duration, we remain confident of achieving our target of first concentrate sales in the June Quarter next year," Mr Brown said.

"The progress is especially pleasing for our shareholders following our very successful recent $26 million equity raising that will fund progress on our Stage 2 expansion study."

Still, it seems Mr O'Neill took the safest option by crystallising his gains.

He could do even better if he invests his winnings here…

Motley Fool contributor Steve Holland has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »