CandleFocus

Did this Senator profit from mining stock buy before major acquisition?

Author: Content Editor
US Senator Tom Carper from Delaware disclosed the purchase of $1,001 to $15,000 in Arcadium Lithium (ALTM) shares on March 21. ALTM is a mid-cap mining stock that had not been previously traded by any US politician. Despite being down 18.5% year-to-date, the announcement on October 9 that Rio Tinto would acquire the company in a $6.7 billion all-cash deal caused the stock prices to rise by 30% on the same day. Carper acquired shares at $4.63 and the current trading price is $5.55, resulting in returns of 19.87%. Carper's position as chair of the Committee on Environment and Public Works and other subcommittees gives him insider information on lithium mining and public policy, making his trade potentially controversial. Rio Tinto's acquisition of ALTM will make it the third-largest lithium mining company. However, Rio Tinto's poor record in human rights and sustainability presents ongoing PR risks.

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