SDL - Sundance Resources
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Sleeper, we are all aware of the difference between hematite and magnetite, and the difference in iron content of the Karara and Mbalam ore bodies means that they are of approximately equal size. One does not "dwarf" the other, to use Djayness's term. The points of apparent concern expressed by GBG holders were primarily the sovereign risk factors inherent in a project located in West Africa, the large distance from the coast, and the high capex associated with the project (about three times the cost of Karara).
As I suggested yesterday, the resulting shareholder pressure appears to have been the deciding factor in terminating the merger proposal.
Time for both companies to move on.
Cheers, Serendip
As I suggested yesterday, the resulting shareholder pressure appears to have been the deciding factor in terminating the merger proposal.
Time for both companies to move on.
Cheers, Serendip
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Serendip is right... Time to move on....
The good thing is that there are plenty of intetest to buy SDL at the market... I suppose bargain hunter out in force to purchase good future stock...
Mind you there is still the drilling results due for SDL.... Lets hope that one actually a good news...
The good thing is that there are plenty of intetest to buy SDL at the market... I suppose bargain hunter out in force to purchase good future stock...
Mind you there is still the drilling results due for SDL.... Lets hope that one actually a good news...
Yes, I admit I was incorrect as the reserves show that GBG is clearly bigger. Moving on though, when the shareprice dived 25%, almost had a heart attack. I wonder if SDL will continue its growth trend that we saw pre-merger.
A release of some very positive drilling results would go a long way in terms of SP atm. Are you guys going to hold?
I personally have no choice, I am not ready to cut my losses and sell, this goes onto my long list of "future" prospects.
A release of some very positive drilling results would go a long way in terms of SP atm. Are you guys going to hold?
I personally have no choice, I am not ready to cut my losses and sell, this goes onto my long list of "future" prospects.
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Same.. can't afford to cut loss now... beside ... fundamentally it's still a good stock... It may not be the size of Fortescue but.. it should have enough to hold it's own balls .... still have high hope it will get close to $1 by the end of the year, IF the drilling results is encouraging....
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I suppose its not all bad....just wish I had some spare money to buy some cheap...just going to take longer than we thought....who needs GBG their holders did nothing but bag SDL....I am in for the long haul.
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Good to know the general support still there... I guess all SDL need now is a positive drilling results and some rich asian .. to invest some serious Money to speed up mines development.......
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My question is whether this "mutual" agreement to not procede with the merger has triggered the $15 million break free set out in the MIA? Will GBG be entitled to this cash from SDL and therefore bleed from us much needed capital? Will await an annoucement...
I am also a SDL holder but I think we need to be more realistic here???
Do you think SDL can be back up again to mid .70 by itself without the merger ??? Looking back to the chart, its highest was about .55 then shot up when merger rumour around???
I am still holding it but my concern is in the next couple of days, there will be ann. about big boys cease to be substantial holder??? then it will drop back to below .50????
crossing my figures for the luck???
sorry if my post did any damage to you /????
cheers
Do you think SDL can be back up again to mid .70 by itself without the merger ??? Looking back to the chart, its highest was about .55 then shot up when merger rumour around???
I am still holding it but my concern is in the next couple of days, there will be ann. about big boys cease to be substantial holder??? then it will drop back to below .50????
crossing my figures for the luck???
sorry if my post did any damage to you /????
cheers
So how did JP know that it should sell up? I mean what did JP know that we didnt, they litterally got out last minute and all of us sat about and got screwed. Looks a bit fishy if you ask me. There weren't any absolute signs that the merger was not going to go through, i mean the CEO was the head of both companies. I wonder if the CEO was selling up his stock on the 24th.
with SP dropping for both sdl and gbg we all assumed it was results resulted. I assumed JP was one of the unsatisfied shareholders who decided to bail - who cares, they lost anyway.
i think as bad as today looked, it established good support for sdl. its candle is actually bullish and we will hopefully see a move upwards to about 0.67-0.69 and will resist 0.7 without results, etc. important to remember that the stock consolidated for a while between 0.7-0.8 which means that it is going to resist retesting 0.6 unless more people get fearful of holding onto the stock - cannot figure out how many sdl shares traded at that price range.
it established support at 0.59-0.6 with serious downward pressure on its sp.
the buying at the end of the day was very strong with high volumes. the only downside is that with a price range in the 0.6 and very high liquidity it is much more likely to be a day-traders stock. hopefully with the next quarters report due out any day the sp might develop some momentum and cross 0.7.
both the fast and slow stochastic on the stock is giving me buy signals but unfortunately i have no cash left!!!!
sdl's costs of producing and shipping it resource are excellent. this means that overall it will have more money to play with. since sdl has hematite it is less expensive to ship and is of higher purity - for instance, ADY incurs a lot of additional costs reprocessing its magnetite to get extra purity from it before it is shipped, etc. etc. etc.
the new additions to its board and management team will give it more expertise.
talbot as biggest shareholder is unlikely to sell or buy - he already has the max he can have without officially being classed as a take-over buyer. he bought the extra after his visit to cameroon and was obviously impressed with the project. however, i noticed that sdl has had a number of new major shareholders in the past few months and i suspect it might have added some more today with such high volumes being traded!!!
sdl will not incur a $15 million break fee b/c the terms of their agreement allows for a mutual break and someone on another chat-room i was in made a phone call to the company who apparently confirmed this.
so overall, i am a long term holder and have no plans to sell and will happily sit through this and lots of other volatile movements in its sale price.
i am sure that there are lots of other good iron ore or other mining stories out there and i am in no way suggesting that this is a terrific stock but i think it will continue to outperform the market over the years to come - with lots of vitality in its SP.
i think as bad as today looked, it established good support for sdl. its candle is actually bullish and we will hopefully see a move upwards to about 0.67-0.69 and will resist 0.7 without results, etc. important to remember that the stock consolidated for a while between 0.7-0.8 which means that it is going to resist retesting 0.6 unless more people get fearful of holding onto the stock - cannot figure out how many sdl shares traded at that price range.
it established support at 0.59-0.6 with serious downward pressure on its sp.
the buying at the end of the day was very strong with high volumes. the only downside is that with a price range in the 0.6 and very high liquidity it is much more likely to be a day-traders stock. hopefully with the next quarters report due out any day the sp might develop some momentum and cross 0.7.
both the fast and slow stochastic on the stock is giving me buy signals but unfortunately i have no cash left!!!!
sdl's costs of producing and shipping it resource are excellent. this means that overall it will have more money to play with. since sdl has hematite it is less expensive to ship and is of higher purity - for instance, ADY incurs a lot of additional costs reprocessing its magnetite to get extra purity from it before it is shipped, etc. etc. etc.
the new additions to its board and management team will give it more expertise.
talbot as biggest shareholder is unlikely to sell or buy - he already has the max he can have without officially being classed as a take-over buyer. he bought the extra after his visit to cameroon and was obviously impressed with the project. however, i noticed that sdl has had a number of new major shareholders in the past few months and i suspect it might have added some more today with such high volumes being traded!!!
sdl will not incur a $15 million break fee b/c the terms of their agreement allows for a mutual break and someone on another chat-room i was in made a phone call to the company who apparently confirmed this.
so overall, i am a long term holder and have no plans to sell and will happily sit through this and lots of other volatile movements in its sale price.
i am sure that there are lots of other good iron ore or other mining stories out there and i am in no way suggesting that this is a terrific stock but i think it will continue to outperform the market over the years to come - with lots of vitality in its SP.
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with SP dropping for both sdl and gbg we all assumed it was results resulted. I assumed JP was one of the unsatisfied shareholders who decided to bail - who cares, they lost anyway.
i think as bad as today looked, it established good support for sdl. its candle is actually bullish and we will hopefully see a move upwards to about 0.67-0.69 and will resist 0.7 without results, etc. important to remember that the stock consolidated for a while between 0.7-0.8 which means that it is going to resist retesting 0.6 unless more people get fearful of holding onto the stock - cannot figure out how many sdl shares traded at that price range.
it established support at 0.59-0.6 with serious downward pressure on its sp.
the buying at the end of the day was very strong with high volumes. the only downside is that with a price range in the 0.6 and very high liquidity it is much more likely to be a day-traders stock. hopefully with the next quarters report due out any day the sp might develop some momentum and cross 0.7.
both the fast and slow stochastic on the stock is giving me buy signals but unfortunately i have no cash left!!!!
sdl's costs of producing and shipping it resource are excellent. this means that overall it will have more money to play with. since sdl has hematite it is less expensive to ship and is of higher purity - for instance, ADY incurs a lot of additional costs reprocessing its magnetite to get extra purity from it before it is shipped, etc. etc. etc.
the new additions to its board and management team will give it more expertise.
talbot as biggest shareholder is unlikely to sell or buy - he already has the max he can have without officially being classed as a take-over buyer. he bought the extra after his visit to cameroon and was obviously impressed with the project. however, i noticed that sdl has had a number of new major shareholders in the past few months and i suspect it might have added some more today with such high volumes being traded!!!
sdl will not incur a $15 million break fee b/c the terms of their agreement allows for a mutual break and someone on another chat-room i was in made a phone call to the company who apparently confirmed this.
so overall, i am a long term holder and have no plans to sell and will happily sit through this and lots of other volatile movements in its sale price.
i am sure that there are lots of other good iron ore or other mining stories out there and i am in no way suggesting that this is a terrific stock but i think it will continue to outperform the market over the years to come - with lots of vitality in its SP.
Hi nikki, I am in agreement. In fact I tried to pick up some more today, but just missed the boat on my target. I think the GBG forum put a bit of a damper on everything to do with SDL. I'm holding - still a good story with SDL
I think the GBG forum put a bit of a damper on everything to do with SDL. I'm holding - still a good story with SDL
absolutely - the african factor with sdl was always costed into the sp of the stock. gbg stock holders would not have been comfortable with that aspect of the stock.
also, the volume of sdl stocks on offer is also always costed into its price. gbg stockholders would also not have been comfortable with that.
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Its the opposite buddy, in fact mines such as whaleback actually blend a bit into the mix cause there hematite has such a high iron content, not to mention post crushing beneficiation even scabs up the scraps from the top end open pit mines that we have at Nameless and Whaleback here in WA.
From memory decent hematite is in the top end of the 60 percent range for Fe content, Magnetite is in the 40's. The vast majority of asian smelters can process raw lump hematite, magnetite depending on FE and impurity content needs value adding for efficient/economic smelting.
Although not sure, until now I think we have just raped our hematite deposits through out west oz post the Jap boom, magnetite deposits have never been considered and put bluntly half of the north west is full of the crap
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Seems SDL has a market cap of $1.14Bn based on the Mbalam Iron Ore Project in Cameroon which is based on exploration done by the UNDF in the 70's and 80's which consisted of surface samples and trenching.
To this day they don't have a single drilling result.
Do i have this right?
Dont get me wrong i think there is great potential for this company to do very well based on direct shipping 35Mt of iron per year (assuming its there) but isnt it a little early for them to be worth 1.14Bn based on trenching and surface samples?
????
To this day they don't have a single drilling result.
Do i have this right?
Dont get me wrong i think there is great potential for this company to do very well based on direct shipping 35Mt of iron per year (assuming its there) but isnt it a little early for them to be worth 1.14Bn based on trenching and surface samples?
????
Things are now starting to add up.
1. Anyone who reads these boards knows that Gindalbie shareholders have been up in arms and noisy about their dislike of it. Their profile is very different to SDL holders - and that is ok.
2. While GJ can see and smell FE everywhere (he must have had a case to put it to the Gindalbie Board), the independent valuer may not be able to quantify to the point of calling it a 2:1 share deal. Makes sense. So on that basis, you would call it off early rather than later as both shareholders have been unhappy.
3. No $15 million penalty is payable - confirmed by Gindalbie, market needs to be informed of this now GJ!
4. Appears from other inmates discussions with Sundance management, that integrity of Mbalam is not in question - it is just too early for this sort of deal to be struck. Bad move but at least being salvaged.
5. It is still early in the drill program - 2 months to go, so that wouldn't help the valuer.
I am now thinking that we are reading too much into this being a negative implication for Mbalam project. I also expect the Quaterley to be a steady as she goes report.
Maybe this is more about the washout from trying to tie two companies different objective driven shareholders and cash flow/risk profiles together.
But to put it in the table, in the first place, you would think that the merits of each company's prospects are very good.
History Lesson. Stopped out of Oxiana at .78 despite a friend telling me not to worry as the "plenty copper in them hills" will not go away.
60 cents is supprt - not a breakdown from a tech point of view.
1. Anyone who reads these boards knows that Gindalbie shareholders have been up in arms and noisy about their dislike of it. Their profile is very different to SDL holders - and that is ok.
2. While GJ can see and smell FE everywhere (he must have had a case to put it to the Gindalbie Board), the independent valuer may not be able to quantify to the point of calling it a 2:1 share deal. Makes sense. So on that basis, you would call it off early rather than later as both shareholders have been unhappy.
3. No $15 million penalty is payable - confirmed by Gindalbie, market needs to be informed of this now GJ!
4. Appears from other inmates discussions with Sundance management, that integrity of Mbalam is not in question - it is just too early for this sort of deal to be struck. Bad move but at least being salvaged.
5. It is still early in the drill program - 2 months to go, so that wouldn't help the valuer.
I am now thinking that we are reading too much into this being a negative implication for Mbalam project. I also expect the Quaterley to be a steady as she goes report.
Maybe this is more about the washout from trying to tie two companies different objective driven shareholders and cash flow/risk profiles together.
But to put it in the table, in the first place, you would think that the merits of each company's prospects are very good.
History Lesson. Stopped out of Oxiana at .78 despite a friend telling me not to worry as the "plenty copper in them hills" will not go away.
60 cents is supprt - not a breakdown from a tech point of view.
do your own research. go onto their web page and download their presentations. you will see a number of holes were dug, researched and sampled by the UNDP.
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Err no. Hematite is preferred as it is a much higher grade (55 to 60% FE), can be shipped direct to market without processing etc.
Magnetite needs to be processed and concentrated before it is shipped. Hence you need high volumes for economies of scale.
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