Richland Resources (RLD:AIM) 4.75p

Loss to date: 20%

Original entry price: Buy at 5.65p, 21 May 2015

One of the worst things you can do as a listed company is tell investors you are going to do something on a specific date, and then not be able to hit that target. Richland Resources (RLD:AIM) has seen its share price punished after telling the market on 22 June that maiden sapphire sales would no longer be held at a Hong Kong Jewellery sale that month. The event has been rescheduled to the third quarter of the year.

It blamed production hiccups, since rectified, for not enabling the company to have adequate volumes of sapphires to hold an auction. The share price decline triggered our 20% stop loss at 4.52p, so our trade on Richland comes to an end.

Frustratingly, the shares have since started to recover in value. On 6 July the miner said nine potential sight holders attended an education and product display session by Richland at the Hong Kong Jewellery Show; two parties are going to visit its Capricorn mine for more information.

We remain bullish and believe the current 4.75p trading price presents an excellent entry point for investors wanting exposure to a decent mining recovery story. (DC)