SDL - Sundance Resources

[The Muffin Man]

bob99, you should have applied for a job on the board, apparently it's quite easy. SDL started to get into trouble in June last year when the plane went down. When the plane went down, the cornerstone investor went down with it. The Chinese saw the opportunity and took over the holding from Talbot's Estate, which was looking to monetise all of it's investments. It seems Hanlong was the only company with the foresight to take the stake from Talbot's Estate. You can bet your bottom dollar the board was looking for suitors that were not Chinese. You could sense the frustration in speeches made by GJ & Co the last few months, where they talk of only the Chinese having long term investment horizons. It's got very little to do with the board and a lot to do with the uncontrollable circumstances the company has found itself in.

 

[LRG]

Yes i have got to admit things are very suspect with the sdl board.

The deal is always coming in a few weeks, months end of qtr, end oy year etc.

Except when we get to each of these milestones, NOTHING and then we get another timeline "advanced discussion" quote etc.

With the wisdom of hindsight i wish i just got out after the big run up into the 60's in early january

Sundance is doing my head in at the momment, bleeding profits like ther is no tmw.

Was expecting at least one buck, now wondering if 50c is even safe!

See what happens next week

 

[Jewels]

Hey fellow SDL'ers,
Thought you may be interested in a breakfast meeting that I attended at the WA club this morning.
The meeting was arranged by Morgans, and was meant to be addressed by Giulio Cassello, unfortunately (or to be honest fortunately I guess) Guilio was unable to attend as he is currently in Cameroon/Congo (I'll get to what he is doing there later), however Paul DeNardi (General Manager of Finance) stepped up to the plate and gave a professional and informative presentation (Doubt you'll read this but enjoyed it, well done, thank you Paul).
So I think we've all seen there main presentation and for long term followers of SDL most of what I'm about to say will be old news.

• SDL way under valued compared to its piers
• Enviromental approval granted for mine, rail and port.
• Railway line is capable of moving 100mtpa without any modification
• Port facilities will need to be upgraded to handle 100mtpa
• if you are wondering 100mtpa is what Guilio has been quoted as being produced by "the region"

[/LIST]
Obviously Paul wasn't able to really comment on negotiations re takeover or off take agreements (don't you hate that!) but I got the impression that there is no way in the world (Even given Global Armageddon) that Hanlong will get there mitts on Sundance for 50 cents a share.
I posted earlier on this site a question re the additional 15% of Sundance that the Cameroon government is able to buy for 50% of the total costs to the date of the completion of the DFS (more knowledgeable posters please correct me if I'm wrong). Something that nobody on any of the blogs that I read seems to have questioned. Well I asked Paul DeNardi what the go was. His reply was that that is what Giulio is doing in Cameroon at the moment, assisting in the negotiations for the purchase of the additional 15% by the Cameroon government, and assisting with negotiations for the Mbalam convention. (yes they are still negotiating the Mbalam convention). Would love to know what 50% of all the costs to the date of the DFS is worth, I'm guessing about $80 million. (all of a sudden we are starting to sound "cashed up" with enough money to keep drilling right through GFC II).
What a segway. My next question was re the next resource/reserve up grade. Basically I stated that the offer from Hanlong was considered very much a low ball offer and when could we expect another reserve/resource up grade to really blow the offer out of the water? Once again, Mr DeNardi wasn't able to say that the next upgrade will be coming out mid September, but what he could say was that since they released the last upgrade that they have been drilling flat out, and whilst he didn't say anything directly relating to the next upgrade you could tell that he was very happy that somebody had asked the question. Remember folks we are open at depth at Nabeeba and Mbalam, and that we have only drilled a very small (less than 4%) of our prospective tenements. So going on that I'm thinking the next resource up grade can't be that far away, and that we will get a really good idea from several thousand meters of core.
I'm sure there is plenty more that I've neglected to communicate, but basically I came away thinking that I need to increase my holding, that SDL will by virtue of its' first mover advantage will not be the next FMG, but the next RIO.
Think about it people, do you really think with a billion dollar a year income that we will really pay off debt in 3 years, or do you think that Sundance may use its rail and port facilities, and spare cash flow to gain control over other deposits in in the Cameroon, Congo area?
Anyway the only other thing that I wanted to say is that after last June 19, Adam Rankin Willson stepped in at very short notice as a member of the board.
I am lead to believe that Adam is not in good health at the moment. so to Adam, his wife and family, thank you so much for all the work you've done for SDL, I know I appreciate it and I am sure all the other shareholders do also, my thoughts and prayers are with you.
Ciao Team J.

 

[zomfgwtfbbq]

interesting outlook. 100mtpa output... really.... given their resource???

 

[Jewels]

interesting outlook. 100mtpa output... really.... given their resource???

Hi Zomfgwtfbbq, I don't think you read my post properly. If you follow SDL at all you would be aware that Giulio was talking 100mtpa for "The Region". I'm so sorry as I thought that I had made that clear. Obviously not.
Also I neglected to post yesterday that Mr DeNardi said that SDL were still negotiating with potential off take partners as if there were no take over offer on the table.
So Basically at the corporate level at the moment our board are:

• Negotiating the Mbalam Convention.
• Negotiating the Cameroonian governments 15% purchase
• Negotiating off take agreements with various parties
• And trying to convince Hanlong to come to the party with a serious offer.

Can't help but think they must be flat out like a lizard drinking at the moment.
Also shareholders, SDL have a new animation that explains the whole process from digging the DSO out of the ground all the way through to loading it onto the China Max ships. If you get the chance try to get to see it as it's very good. Don't know if it's available on their website or not. If it isn't it should be.
One more thing that came out of yesterday, is that the cost of building the iron ore port will be considerably cheaper than building the same structure here in WA. The reason being that because it's on the equator, it has a far more "inert" weather conditions, so doesn't need the big rock breakwaters required here.
Ciao J.

 

[LRG]

thanks Jewels great insight.

I am hanging back loading up at this stage, IMO and from also viewing HC tosssers chat, I think mid september we will hear womething.

Between then and now I think there may be a pull back towards 40ish with Europe and US still uncertain for the next couple of weeks at least.

I think, as long as I load up with a few more by 1st week in September, hopefully I wont miss the good news like resource upgrade or finance, govt uptake etc as you have gleemed. Excellent news you have provided - much appreciated in this current vaccuum of real info on our dear Sundance Kid. Dec. I am Holding since 2007.

 

[zomfgwtfbbq]

Hi Zomfgwtfbbq, I don't think you read my post properly. If you follow SDL at all you would be aware that Giulio was talking 100mtpa for "The Region". I'm so sorry as I thought that I had made that clear. Obviously not.
Also I neglected to post yesterday that Mr DeNardi said that SDL were still negotiating with potential off take partners as if there were no take over offer on the table.
So Basically at the corporate level at the moment our board are:

• Negotiating the Mbalam Convention.
• Negotiating the Cameroonian governments 15% purchase
• Negotiating off take agreements with various parties
• And trying to convince Hanlong to come to the party with a serious offer.

Can't help but think they must be flat out like a lizard drinking at the moment.
Also shareholders, SDL have a new animation that explains the whole process from digging the DSO out of the ground all the way through to loading it onto the China Max ships. If you get the chance try to get to see it as it's very good. Don't know if it's available on their website or not. If it isn't it should be.
One more thing that came out of yesterday, is that the cost of building the iron ore port will be considerably cheaper than building the same structure here in WA. The reason being that because it's on the equator, it has a far more "inert" weather conditions, so doesn't need the big rock breakwaters required here.
Ciao J.

I read you fine, but really.... am quite skeptical about it. I believe they will mine. However not at a 100 Mtpa rate. I will say I have a better than average insight into iron ore projects and have looked at this particular one before.

I have stock in SDL and I do want to acquire more, but not at the current prices at the moment. I think it's a fairly good company but even around a 100 Mtpa.. with the time frames I have in my head and with regards to the market dynamics by the time they get a 100 Mtpa rate.. well I don't think it's all that rosy as painted by Jones.

 

[Jewels]

I'm So sorry I'm obviously not explaining"the region" properly. So let me put it this way;
SDL will move 35 million tonnes pa initially, with the ability to carry another 65 million tonnes pa from other iron ore mines that are very near by. Eventually it will be 50mtpa for SDL and 50mtpa from other mines in "The Region". SDL will therefore recieve a "royalty" for shipping up to 65mtpa. So that's what I mean by the region. Like the Pilbra.
1 billion dollars free cash flow, near by high grade deposits, a more mature company, with cash flow, up against more junior companies with deposits and no infrastructure......
I don't know but it sounds a lot like the Pilbtra in the 1960's to me.
My prediction is that fy 2014/15 will be a M&A ORGY!!!!
Ciao guys

 

[Lootius]

Indeed, the 100Mtpa predicted by SDL for the region may be the capacity with which the rail and port facilities can handle. At least one other company i'm aware of with ore deposits south of Mbalam in Congo has alluded to watching with interest the developments with SDL. I speculate that they may wish to negotiate for access to the rail corridor and port in some form.
The asset value and development of many other projects in the region in the near term hinge on SDL's ability to secure funding to build the rail and port facilities.

I don't currently hold SDL.

 

[Jewels]

I'm such a Noddy I left out perhaps the most pertinent comment of the breakfast meeting.
Mr DeNardi said that in recent weeks they had noticed a big increase in the number of shares being purchased by Hedge Funds on the share register. Paul then went on to say that these hedge funds typically brought in when they believed that there was going to be "further upside" in the takeover process.
I really got the impression that there is a lot happening behind the scenes at the moment. Right now though, I think we may get some drilling results before we get any further "corporate type" announcements.
Okay people, I think that is about all of worth that I can add to the thread at the moment, have a wonderful weekend.
Looking forward to the "Dollar Party" at the Burswood!
Ciao Jewels

 

[zomfgwtfbbq]

I am optimistic about SDL but let's just err on side of caution yea? I mean really at this point I personally think its fantastic to buy in. I've queued up orders for it. BUT given the economic climate and financing and stuff, the project given what it is... just hold your horses. That's all I'm saying. Look twice and then jump ok guys?

 

[bob99]

Ok, I have held back long enough reading this "information" from Jewel.

So, I have 2 questions.

The first is to Jewel: do you have a position that you should declare here? That is you have knowledge or a position within SDL that you should make very clear? I say this as your posts are very close to ... and this is my second question.

To the administrators of ASF are you not watching this hyperbole very closely for being in a very serious breach of "insider knowledge".

Personally I think what you have written Jewel is utter nonsense and like many before you posting irrelevant and unsustained opinions - no matter how you dress it is up - will not help the growing ground swell of negative opinion about this company and its appalling board.

I will add, I have tried to find any 'official' or even 'unofficial' comment or attributes to your apparent conversations with SDL board members/employees and there is nothing.

Maybe you might care to point everyone in the direction to where any of this is "recorded". Ohhh, and please don’t point us to a pamphlet or some micky mouse newspaper report from Vladivostok or the like.

As I have mentioned your claims almost come very close to insider knowledge, so the public record should support what you say, or you do have insider knowledge or someone is telling lies.

 

[Jewels]

Hey Bob 99,
I don't usually post unless I have something of worth to say, but after such a vitriolic attack, I feel a right of reply is in order.
Firstly I do have a position to declare, I am a long term shareholder in SDL who has been involved with the stock for several years, and I hold a relatively large parcel of stock.
Secondly you may think what I say is absolute nonsense, who cares what you think?
The fact is that I attended a presentation given by the company, for stockbrokers and select clients, I then thought I would share the information that I gleaned to other shareholders who were not privileged enough to attend. Now the fact that 60 odd stockbrokers, analysts, merchant bankers and shareholders all thought that the presentation was professional and informative, suggests to me that just perhaps it's not "absolute nonsense" as you so eloquently labeled my post.
When it comes to an opinion on SDL, I will listen to Paul DeNardi until the cows come home, dunno, just reckon he may know a little about what he's talking about.
Now the "appalling board" comment: Gee where do I start with that one...without being insulting I will agree to disagree with you. If you want to Dis the board, can I suggest you invest in CTP instead. I'm not sure how long you've been a shareholder, but from memory June 19th last year something occurred that would have sunk just about any other junior explorer in the world, but because of THIS BOARD we have seen the share price increase over 400% since then. Gee what sought of an investor complains about a board that delivers a 400% share price increase in a year?
Now You've obviously spent hours and hours trying to find official of even unofficial confirmation of what I've said; fair enough I commend your diligence it is very important that you do your own research, So I'm happy to help with your research if you ring RBS Morgans on (08) 6462 1999 and ask for either a broker, financial planner or analyst that attended the Sundance breakfast, I am sure that they will be able to confirm exactly what I have posted. Failing that why not go straight to the "horse" so to speak and give Mr DeNardi a call. I'm sure you have Sundance's number programmed into you mobile already.
Now I'm not sure you understand what insider trading is.
From my old SIA days I seem to think that insider trading occurs when somebody has information that is not available to the public, that a reasonable person would realize that this information is price sensitive, and then either the said person trades in that particular security, or induces somebody else to trade in that security. Don't think I've advised others to buy or sell, and whilst I would dearly love to add another couple of million shares to my holding have not done so yet, so, if I were you I'd think carefully before asking moderators to step in when in fact you are the one making libelous statements.
The insinuation that I am lying is simply insulting, However Bob 99 I'll give you a chance to apologize after you've rung Morgans and Sundance and confirmed my last post. Make sure you do Bob 99, don't chicken out, be a man make a couple of phone calls, do your own research and admit when you are wrong.
I am more than happy to stop posting when I attend presentations by the company if you would prefer.
So anyway Bob 99, when was the last time you actually posted on SDL anything new or informative? Just wondering?
You have a sensational day Bob 99, and mate make the phone calls, be a man, and post once you've made the calls!
Ciao All J

 

[Slopes]

Hey Bob 99,
I don't usually post unless I have something of worth to say, but after such a vitriolic attack, I feel a right of reply is in order.
Firstly I do have a position to declare, I am a long term shareholder in SDL who has been involved with the stock for several years, and I hold a relatively large parcel of stock.
Secondly you may think what I say is absolute nonsense, who cares what you think?
The fact is that I attended a presentation given by the company, for stockbrokers and select clients, I then thought I would share the information that I gleaned to other shareholders who were not privileged enough to attend. Now the fact that 60 odd stockbrokers, analysts, merchant bankers and shareholders all thought that the presentation was professional and informative, suggests to me that just perhaps it's not "absolute nonsense" as you so eloquently labeled my post.
When it comes to an opinion on SDL, I will listen to Paul DeNardi until the cows come home, dunno, just reckon he may know a little about what he's talking about.
Now the "appalling board" comment: Gee where do I start with that one...without being insulting I will agree to disagree with you. If you want to Dis the board, can I suggest you invest in CTP instead. I'm not sure how long you've been a shareholder, but from memory June 19th last year something occurred that would have sunk just about any other junior explorer in the world, but because of THIS BOARD we have seen the share price increase over 400% since then. Gee what sought of an investor complains about a board that delivers a 400% share price increase in a year?
Now You've obviously spent hours and hours trying to find official of even unofficial confirmation of what I've said; fair enough I commend your diligence it is very important that you do your own research, So I'm happy to help with your research if you ring RBS Morgans on (08) 6462 1999 and ask for either a broker, financial planner or analyst that attended the Sundance breakfast, I am sure that they will be able to confirm exactly what I have posted. Failing that why not go straight to the "horse" so to speak and give Mr DeNardi a call. I'm sure you have Sundance's number programmed into you mobile already.
Now I'm not sure you understand what insider trading is.
From my old SIA days I seem to think that insider trading occurs when somebody has information that is not available to the public, that a reasonable person would realize that this information is price sensitive, and then either the said person trades in that particular security, or induces somebody else to trade in that security. Don't think I've advised others to buy or sell, and whilst I would dearly love to add another couple of million shares to my holding have not done so yet, so, if I were you I'd think carefully before asking moderators to step in when in fact you are the one making libelous statements.
The insinuation that I am lying is simply insulting, However Bob 99 I'll give you a chance to apologize after you've rung Morgans and Sundance and confirmed my last post. Make sure you do Bob 99, don't chicken out, be a man make a couple of phone calls, do your own research and admit when you are wrong.
I am more than happy to stop posting when I attend presentations by the company if you would prefer.
So anyway Bob 99, when was the last time you actually posted on SDL anything new or informative? Just wondering?
You have a sensational day Bob 99, and mate make the phone calls, be a man, and post once you've made the calls!
Ciao All J

cop that!

 

[kash]

Please Jewels. Keep posting. Awesome reporting that normally only inst. receive.
Thanks

 

[Johnny Utah]

me three....keep up the news Jewels! always great to have someone "inside" the investor presentations and then sharing with the rest of us long-term holders that aren't fortunate enough to be on the west coast!

 

[bob99]

lol ... cop what?

I am sure we could all sit around and compare the size of our parcels, however...

I am so glad you are all so happy to believe anything you read. However Jewels, there is an important aspect of all that you wrote which is missing, and that is there is NOTHING to back up anything you have said.

Its that’s simple. I shouldn’t have to call anyone anywhere at any time. There has not been a single change to a single "brokers" call on SDL, nor any information of any sort based on anything you have written. Whether or not what you say is true.

So, for there to be any validity to anything you have said you need to back it up.

As to the insider trading you have passed on information which no one else anywhere seems to be aware of, this forth coming massive upgrade of resources, which if correct could, should and may change the tables on the current diminishing and allusive offer for the company.

I would have to add, you have provided not a bit of evidence of how SDL, a company with some 2 odd billion T of hematite compares a touch on FMG let alone Rio Tinto.

FMG as far as I am aware has over 11 billion tonnes?

RIO as far as I am aware has over 40 billion tonnes, yet that’s a hard one as they have many interests in many mines and dont own 100% of all of them. And not to forget interests in Aluminium, Copper, Diamonds, and god knows what else.

To put that in perspective for you…

BHP value: $120 odd billion and many interests
RIO value: $40 odd billion and many interests
FMG value: $16 odd billion and prime focus ore
SDL value: $1 odd billion and hasn’t done anything yet

Lastly, anything new on SDL I have posted? Nothing, not a bit. Why? Because I'm not here to provide information on which there is no evidence. I don’t claim to be invited to little chats and talks. However, what I have done is asked a number of very clear questions of SDL, as many appear to have done lately, as to what they are doing? See Jewel the problem with all the blind followers of SDL is that none of them want to ask a single question of this company and get an answer – whether good or bad. All you will find, if you care to look back, is posts like yours that no one else is aware of, or news clippings from far flung chip wrappers on what SDL is doing. That’s not news!

So, if you want to give the board, your mates, a call on behalf of myself and others and ask those questions then please do so. In the meantime, you could at least provide the clear evidence to back up your claims. Its not much to ask.

Ohhh, and I will add, I am sure my parcel is bigger than yours. I'm just not one to try and show it off. And I have no desire to run this company down - the board yes, the company no, as I want to make squillions out of this little puppy.

 

[LRG]

All of us who hold large parcels (as retail investors) i.e. 1 - 3 mill for 4 plus years obviously want the sp to head north a long way and as quickly as possible to make a squillion or 2.

Bob, jewels is providing info he/she gleened from attending a presentation that you did not attend. Why would she go to all the trouble to make it up.

She/he is like us all enthusiastic about sundance and rightfully so, must like me, you have a lot riding on its success rather than failure.

Suggestions were given if you want to verify the presentationetc etc - you cant be bothered so leave it there.

At the end of the day bob, you, me jewels or any other retailers holding less than 5% has absolutely ZERO control of the final outcome of sundance.

So go back in your hole, calm yourself and stop making ridiculous demands and acusations of posters on this thread. Its has been ahard and frustrating ride for the last 4 years with this stock.

 

[kash]

Right now though, I think we may get some drilling results before we get any further "corporate type" announcements.- jewels

Hi Bob. There is some confirmation that jewels was not just telling stories. Careful not to trash anybody. That meeting conveyed the positive feeling the company have about their resource. Today's announcement shows their good feelings are well founded.

 

[zomfgwtfbbq]

I would have to add, you have provided not a bit of evidence of how SDL, a company with some 2 odd billion T of Itabirites compares a touch on FMG let alone Rio Tinto.

FMG as far as I am aware has over 11 billion tonnes? (magnetite)

There's a huge difference between the mineral composition. Just edited it for accuracy. Do not mean to step on anyones toes.