SDL - Sundance Resources

[bob99]

I find it quite amusing reading through all the posts on SDL. There is everything from blind optimism, to the strangest of conspiracies, to secret hand-shakes already being done and we (the shareholder is none the wiser), the pessimist in the corner saying "yeah right ... as if". There must be a lot of people who are hoping to pay off their mortgages, or buy that Ferrari they have always wanted with SDL shares as the history of this company is appalling - truly it's appalling, the number of times they have said something is forth coming by the end of ... and nothing happens because they have an excuse. If anything is coming then it won’t be in 10 days (and counting (down)) and it will not be all the wonderful news you think it is. The share base will be diluted to such a point that the rise will be worthless. So, good luck to you all who hope a miracle is coming on the 1st of July. I will add, I hope I am wrong, yet history – with this mob say’s otherwise.

I would add that a recent post suggested if something was coming it would already be out there - to which another suggested this would be insider knowledge. Well, given the past "leaks" from/about SDL the idea that anything coming would already be out there holds a little more than water. They "leak" like a sieve when it suits and the flow of information is tighter than a fishes ... when their back as to the wall, like now. So, given the only comments are the sorts of puff pieces that a few of you have put faith in, such as the rehash of the West Oz piece then I fear all will be at a loss.

P.S. Yes I own these shares, LOADS of them, yet brought in at 7 cents, so I have my mortgage paid off, no matter what happens.

 

[Lootius]

And the speculation continues...

A little positivity, patience and flexibility comes to mind.
If deadlines come and go no-doubt we'll be briefed as to why.
I hold SDL as part of a diversified portfolio and have faith in their ability to get this
company producing in one form or another.

And yes my mortgage is paid off, but i wouldn't mind another.

 

[Slopes]

P.S. Yes I own these shares, LOADS of them, yet brought in at 7 cents, so I have my mortgage paid off, no matter what happens.

Will your mortgage be still paid off if it drops to below 7 cents?

 

[aman]

Will your mortgage be still paid off if it drops to below 7 cents?

add some genuine wit next time.

can anyone explain what was with the SP hike a few months ago when it peaked? why the hell did this happen so steadily, and then dissipate?

 

[zzaaxxss3401]

add some genuine wit next time.

can anyone explain what was with the SP hike a few months ago when it peaked? why the hell did this happen so steadily, and then dissipate?

Are you referring to the price hike starting around November last year? There have been several inaccurate reports finding their way into the media - take a look at the following two "Response to ASX Price Query" statements:
http://www.sundanceresources.com.au...px/PDFs/1775-27526396/ResponsetoASXPriceQuery
http://www.sundanceresources.com.au/IRM/Company/ShowPage.aspx/PDFs/1799-54528325/ResponsetoASXQuery

 

[LRG]

Houston we have a problem.

No news from SDL board - very strange, the silence is deafening.

You would think they will have to either a) call a trading halt soon / tmw b) make an annon soon / tmw (enen just to say - we are nearly there just wait a couple of weeks??) or; c) do nothing & this is heading back to 7 cents!

Maybe we will make money now by shorting SDL - wish I had done that a 60 cents! (with the wisdom of hindsight).

Now 50+% retracement since the high in Jan 2011 of 66.5 - the board / Hanalong must be panicing or maybe they just don't care?

I am absolutely stumped by what is / not going on. The SP was down to 32.5 at 4 pm and somehow picked up 1 cent to close at 43.5 on the auction?

 

[LRG]

Houston we have a problem.

No news from SDL board - very strange, the silence is deafening.

You would think they will have to either a) call a trading halt soon / tmw b) make an annon soon / tmw (enen just to say - we are nearly there just wait a couple of weeks??) or; c) do nothing & this is heading back to 7 cents!

Maybe we will make money now by shorting SDL - wish I had done that a 60 cents! (with the wisdom of hindsight).

Now 50+% retracement since the high in Jan 2011 of 66.5 - the board / Hanalong must be panicing or maybe they just don't care?

I am absolutely stumped by what is / not going on. The SP was down to 32.5 at 4 pm and somehow picked up 1 cent to close at 43.5 on the auction?

Correction to close at 33.5 cents

 

[LRG]

from overseas news:
Nouvelles / Mbalam Iron project rekindled...
22/06/2011
Mbalam Iron project rekindled/ Second phase of anti-corruption campaign launched

Mbalam Iron project rekindled

Construction work for Mbalam Iron project in the East region will soon begin.

New officials of Sundance Resources limited and Cam Iron, two companies manning the project were received in audience by the Minister of Industries, Mines and Technological Development - Badel Ndanga Ndinga.

The executives of both companies say they are pursuing negotiations with government to effectively begin the project. In the process, they have pledged to assist Cameroon improve its infrastructural development through the construction of transport facilities including a railway network and a deep sea port.

Claris Achu

 

[LRG]

More news reports from Africa:

http://www.cameroon-tribune.cm/inde...-a-la-fin-de-lannee&catid=2:economie&Itemid=3

June 22, 2011 National - Economy (Today EST)
A delegation of Sundance Resources Ltd is in Cameroon to meet with authorities and provide an update on the progress of the project.
"George Jones, chairman of the board of Sundance Resources Ltd and the accompanying delegation are in Cameroon to reassure the government that the proposed Iron Cam is about to change phase. It moves from theory to practice. " So said yesterday, Roger Bogner, Chief Executive Officer of Cam Iron, the company under Cameroonian law responsible for the operation of iron Mbalam. According to him, the whole organization of the project is in place. It is waiting for the conclusion of the mining agreement and signing of agreements with strategic partners to begin construction on the site.
The financing of transport infrastructure, including the construction of the railway to enable the delivery of mines operating site to the coast of Cameroon has so far delayed the signing of the mining agreement. According to the Minister of Industry, Mines and Technological Development, Badel Ndanga Ndinga a formula has been found that could fix the government and project proponents. Cam Iron has just completed the feasibility study. It shows that "the development prospects for residents, businesses and countries are very interesting."
The impact of the operation of the iron will of Mbalam corporate taxes, royalties, wages, tariff revenues, the purchase of local goods and services through outsourcing, etc..
The project is estimated at 484 million tonnes of rich iron and 2.32 billion tonnes of iron enrichment. The project cost is estimated at 2,000 billion CFA francs. Financing operations are part of the agreements being negotiated with the strategic partner. Roger Bogner said that the Chinese experience could be sought because China is the biggest consumer of iron in the world. For this reason also that Asia is a major outlet for iron Mbalam.
Ultimately, it is envisaged the creation of a processing plant at Kribi, so that the premises may have the raw material at hand.

 

[LRG]

More news from march on chinese investment in sdl:

Sichuan O'Hanlon of iron ore in Africa to spend 1.2 billion to swallow the "giant"
UpdateTime:2011-3-22 9:14:00 | Reading(94)

In recent years, overseas Chinese and has repeatedly received mine Lung Group, M & A funds total about 32 billion yuan.
**With this acquisition, Chinese dragon has a large African iron ore company sdl a 19% stake, making it the largest single shareholder.The project is expected to reach 100 million post-production scale of -2 million tons, when O'Hanlon will also be among the ranks of the world's five largest iron ore producer
O'Hanlon received mine overseas territory of the Group have added an important weight.March 21, Chinese Dragon Group disclosed to the author, O'Hanlon mining investment about 2 billion Australian dollars (equivalent to 1.2 billion yuan or so), the acquisition of major iron ore companies in Africa sundanceresourcesltd (referred to as sdl) 16% of the shares.sdl project is one of the few undeveloped world one of the large iron ore is expected ten billion tons of iron ore resources, will strengthen the Group's iron ore Hanlong right to speak.
**Acquisition: is expected to reach ten billion tons of iron ore resources
According to O'Hanlon Group, the relevant parties, O'Hanlon sdl company mining the 16% acquisition of the shares, plus 3% of the shares previously owned, sdl now has a 19% stake in the company's largest single shareholder.
**sdl is a large Australian Stock Exchange-listed iron ore exploration company, worth about 1.4 billion Australian dollars, major projects in Cameroon and Congo-Brazzaville at the junction of Africa "iron triangle" of iron ore core region, the current proven resource volume of 2.8 billion tons, including 62% of direct shipping grade hematite 420 million tons and some high-quality magnetite exploration area has only a very small area of �​exploration licenses all a
Points, with the further expansion of exploration work is expected to total amount of resources is expected to reach ten billion tons or more.
|Nextpage|
Goal: iron ore is expected to among the world's top five business
It is understood, sdl has completed the project pre-feasibility study report, a formal feasibility study report is expected to be completed at the end of March 2011.According to sdl development plan, the company plans to build a 480 km of railway and a 30-ton deep-water port, the total investment about 45 billion U.S.dollars, early in 2015 the project reached production, annual production capacity of one to reach 5000 tons, annual profit estimated to reach 30 billion U.S.dollars.Surrounding the project through the integration, the project is expected to reach 100 million later -2 million tons of production scale, when the company will also be among the ranks of the world's five largest iron ore producer.
**"Select a world-class iron ore exploration company as our primary investment objectives, foreign investment has always been our main tasks of team work, a successful investment is expected to O'Hanlon Mining sdl into
Power sharing a world-class iron ore business in the development process in the growth of valuable experience and wealth."Hanlon, Managing Director, Dr.Xiao Hui Mining sdl future development of confidence in the future.
**Meaning: to provide a new iron ore supply channels
The success of sdl investment group following the Australia Han Long Molybdenum Molybdenum Company and American General in the iron ore companies to invest in the field after another major investment in the implementation of actions, the development of iron ore on Chinese Dragon Group investment plan with milestone significance.
**Hon Ambrose Lung Group Chairman of the Board, said the growing Chinese demand for iron ore, iron ore in China's total imports in 2010 reached 6.5 million tons."In this relationship, and supply imbalance in the pricing mechanism is not fully market-oriented period, O'Hanlon sdl successful investment company, for the provision of new supply of iron ore in China has strategic importance." Ambrose said, Chinese Dragon Group With this acquisition, China and the world able to bring more high-quality iron ore resources.

 

[Piggy Bank]

More news from march on chinese investment in sdl:

Sichuan O'Hanlon of iron ore in Africa to spend 1.2 billion to swallow the "giant"
UpdateTime:2011-3-22 9:14:00 | Reading(94)

Isn't this news over three months old?

 

[aman]

yep. not exactly up-to-the-minute hey LRG.

luckily the date was the first thing i read, and not the beefy article.

 

[The Muffin Man]

Houston we have a problem.

No news from SDL board - very strange, the silence is deafening.

You would think they will have to either a) call a trading halt soon / tmw b) make an annon soon / tmw (enen just to say - we are nearly there just wait a couple of weeks??) or; c) do nothing & this is heading back to 7 cents!

Maybe we will make money now by shorting SDL - wish I had done that a 60 cents! (with the wisdom of hindsight).

Now 50+% retracement since the high in Jan 2011 of 66.5 - the board / Hanalong must be panicing or maybe they just don't care?

I am absolutely stumped by what is / not going on. The SP was down to 32.5 at 4 pm and somehow picked up 1 cent to close at 43.5 on the auction?

You are aware of what is happening in World markets, and more close to home, the ASX yes? In wouldn't underestimate the effects of a jittery investment community on speculative stocks.

 

[bob99]

First things first, I think SDL is well beyond being a speculative stock. A speculative stock is one which is hoped, or those who hold it have an over optimistic view of it returning "above average gains", although I think this could be argued for some of you with your "hopes" for SDL. Further, it is a stock which is typically appreciating in value without any foundation or analysis to support it. SDL would be contra to this with a proven resource.

All that said, who wants to offer odd's on the July 1st (or June 30th) excuses for no announcement?

1. Because of the "tragic" events of earlier this year the program of negotiations has been set back a few months. Personally, the death of board members has been played too much now.
2. Global financial markets are in a state of flux and hence it will take some more time to finalise negotiations - read in: the market must rebound before anyone gives us money.
3. I dont know of any floods in Cameroon so that cant be used - dam!
4. I dont know of any internal strife in Cameroon so that cant be used - dam!

Any other excuses?

5. Maybe the Chinese no longer want any iron ore, they are going 100% Green from 1st of July. How would that be for a statement?

Its all to quiet, with the leaky ship SDL news would already be out, and there isnt any, and I am sorry to those who are posting the 4 and 6 month old illiterate news stories, that’s not news.

Once again, call it the pessimist in, and I hope I am proved wrong, yet this company - those who apparently run/manage it, are starting to look too much like a long term failure.

 

[Crom]

Hi Bob,

You jumped the gun by 30 mins mate.

I hear the frustrations re this stock and also the tremendous hype that gets floated around. I do hold but as a long term play in my super fund. Certainly not a stock to be held against a loan.

If partners and infrastructure work are settled/commenced as per todays announcement before the end of the year, then hopefully interest will be reflected again in the share price.

Additionally, I think SDL has been hit hard by tax loss selling, as many people jumped in based on hype at higher prices. Other forums (HC in particular), have had non stop ramping on this stock no doubt influencing many to invest/jump in before they get left behind. Anyway, my view is that July should see some SP increase, and momentum will gather on further announcements and definitely on infrastructure commencements.

It is good to see though the committment of the two Govt's involved.

A huge project and therefore a long term investment.

All the best

CROM

 

[bob99]

Hi Bob,

You jumped the gun by 30 mins mate.

I hear the frustrations re this stock and also the tremendous hype that gets floated around. I do hold but as a long term play in my super fund. Certainly not a stock to be held against a loan.

If partners and infrastructure work are settled/commenced as per todays announcement before the end of the year, then hopefully interest will be reflected again in the share price.

...

CROM

I was just about to go and do some work, read your post and went and read the announcement. Unfortunately there is nothing in there about end of June announcement for a partner. Your comment about an announcement by the end of year is an odd one. I don’t know if you mean end of the FY (as in 2 days) or end of the year (Dec 31st 2011). I know they mention construction at the end of the yr, yet thats not what all the hopeful's out there have been waiting for.

SDL have said it will all be in place come June 30th 2011, well that’s been the line since they last changed it.

I read the announcement and there is nothing new in there. Its shortlisted some "preferred potential partners".

Questions first?

1. What the hell is a "preferred" partner? I have worked in many industries for a long time and being at the front of many international agreements and there is no such thing as a "preferred" partner, well when it comes to shortlisting. You either shortlist, or you don’t!
2. Interesting use of the word "potential".

Funny how these "Mining Conventions" still seem to have not been finalised, as was suggested in their last presentation.

The so called discussions with prospective strategic partners over the past few months is nothing new. It’s always been said. In fact the last 5 “strategic partner announcements” have said the same and this is going back 12 months.

The "Governments" have always apparently been keen to get this moving. So nothing new.

The second last paragraph is interesting: "Sundance is very pleased with the progress that has been achieved in recent months and looks forward to successfully concluding arrangements for the introduction of a strategic partner to the Project. The Company will advise the Market as soon as something sufficiently binding or capable of announcement is available."

What progress? Nothing is new, nothing has been announced, recent months have seen nothing different announced, and they have always - as I would expect - looked forward to successfully concluding arrangements. They would be fool’s (well bigger fool’s) if they didn’t.

So what is this update all about? This is a no news piece of news.

My problem with SDL is that they were supposed to announce a partner - within the next 2 days (including today). They have not, and this piece of fluff just means, in my view, we are months away from any announcement that might have a real baring on the future of this company.

Possibly SDL want a quick dash in the SP in the last few days of the FY, yet this won’t wash with people who have a critical eye on this stock.

Shame really, I so wanted my face rubbed in my pessimism of my previous 2 posts. Ohhh, I would add, should something be coming – there would have been be a trading halt, not this no news piece of news.

P.S. I am still holding out hope to be proved wrong.

 

[aman]

+ 1 bob99,
Super pointless article, purely regurgitation. yet it still saw a jump in the SP by a few percent..
Who knows what to make of the June deadline, especially now with such an unbinding article coming a day before. says to me nothing will happen for a while (other than an extended "deadline"), and this article is designed to inspire a few more among SDL's wavering supporters to keep the faith..

 

[Lootius]

Agreed, no new information in today's announcement.

That's ok, i'm a patient person. With the jittery world economy and the Australian market reaction recently, i still see good long term potential regardless of what others choose to think and plan to hold at least till production. Even if they miss this deadline for negotiations it still doesn't bother me, provided they don't fall behind too much without genuine cause.

 

[The Muffin Man]

I wonder how closely some follow the stock. GC said in an interview probably 3-4 weeks ago that a 5th possible partner had joined discussions regarding Mbalam, and that while this possible partner was still completing it's due diligence there would be no startegic partner announcement. Common sense really, anyone following the stock wasn't holding their breath due to the information imparted in that recent interview. bob99, what happens when you are on the point, leading in whatever it is you do, and another player walks into the room and expresses interest in your project? Do you simply ask them to leave the room because you don't want whiny forum users becoming upset that a target date has been missed?

Crom's reference to the end of the year is regarding the time in which the FID will be made and construction starting.

 

[bob99]

I wonder how closely some follow the stock. GC said in an interview probably 3-4 weeks ago that a 5th possible partner had joined discussions regarding Mbalam, and that while this possible partner was still completing it's due diligence there would be no startegic partner announcement. Common sense really, anyone following the stock wasn't holding their breath due to the information imparted in that recent interview. bob99, what happens when you are on the point, leading in whatever it is you do, and another player walks into the room and expresses interest in your project? Do you simply ask them to leave the room because you don't want whiny forum users becoming upset that a target date has been missed?

Crom's reference to the end of the year is regarding the time in which the FID will be made and construction starting.

I know what you mean Muffin, it’s a real dam nuisance when pesky forum users voice their unhappiness at the constant lying, deceit, mismanagement and misleading statements by company executives. It’s a REAL dam nuisance, when those forum users won’t just allow the sycophantic regurgitation of old news to pass as new news and actually demand a little better governance from those who run the companies they invest in.

Bloody hell, those dam pesky forum users.

As for your other question, the answer is a simple yes. You have a process you follow it and then you close that process, you don’t allow a free-for-all, otherwise what is the process for, and more so where is the accountability. Ohhh, by the way, where was the announcement to the market on this fairly important change?

There is a difference with those pesky forum users who whinge, and that is they rely on the legal, get it: legal, release's by companies to inform investors and the wider community as to what is being done, not trawling the internet to find obscure interviews with members of staff and then repeating this as though its news. I'm afraid it’s not.

SDL, in my view could be a good company, it could be an even bigger company, yet with those who are currently sailing her towards the ice-berg I fear I already know the outcome. They made a movie about a similar plot line, and we all know what happened.

Just accountability, a little 'proper' governance, and above all "real" news on occasions would be a good start.