SDL - Sundance Resources

adobee · 26 October 2007

Can someone please alert me when they think that SDL again becomes value or is hitting its bottom.. I am pleased to have sold just after merger announcement but am also pleased to stick my profits back in again..

serendip · 26 October 2007

The current plunge in the share price is showing little sign of abating. With around 3% of the shares in the company changing hands today (so far), it is clear that a significant number of holders view the failure of the merger as a serious setback. The change in the price relative to GBG is even worse, suggesting that any hypothetical future merger would be on much less advantageous terms, perhaps more like four SDL for one GBG.

This is not to suggest that such a revised arrangement is likely; rather, that there is an implicit market valuation being placed on the company (one which is much lower than we would like), which would probably be taken as a guide in any financing proposals for the project. We need to be prepared for some belt-tightening in the immediate future.

Regards, Serendip

--B-- · 26 October 2007

I notice SDL has released their quarterly activities report.

Can any of the experts here give their opinions on this?

Cheers.

Djayness · 26 October 2007

This is getting bad, the SP is going even lower than the initial pre-merger price, something that I obviously cannot understand. The flurry of announcements could not stop the SP from falling again and I personally have not had time to analyze the cash flow report, which I assume would not be great seeing as the only cash inflow is shareholder capital.

Before the merger things looked alot better, shareholder confidence needs to be boosted. I think what we need is some good drill results. How much longer are they going to keep us waiting?!

--B-- · 26 October 2007

corrent me if im wrong Djayness, but i thought the quarterly activities report released today contains drill results?

grubadoo · 26 October 2007

Activities report does includes drill results.Is there something else I am missing here. This is only the first page.

--B-- · 26 October 2007

The report on the commsec site has all the pages.

I tried to attach it to this post but apparently it exceeds the size limit!!

EZZA · 26 October 2007

looked oversold to me, i jumped in at 50.5cents.

looks like panic has set in, i'm thinking some panic sellers will try and find an entry point next week. Right now i'm relatively happy with this pickup.

mayk · 26 October 2007

I hope it finds support at .5 otherwise it will be a big loss for me. I was lucky I had some shares in GBG as well, so the total loss does not seem large enough, but still I have lost close to 40% on this share Well looks like it is a stock for my grandchildren then

But I am quite satisfied with the project and its potential. I think this is really a good fundamental stock. I do not have enough money to add more of this stock to my profile, but I will definately buy it at these levels when I will free up some cash elsewhere.

Djayness · 26 October 2007

--B-- said:
corrent me if im wrong Djayness, but i thought the quarterly activities report released today contains drill results?

Haha and correct me if im wrong, but i mentioned i hadnt had time to read it. Well i guess those drill results didnt do much for sundance, even though looking through them now, they seem quite good. 60% of FE concentration is considered good and thats what they have in most parts.

serendip · 26 October 2007

The results shown in the report are a woeful effort, considering the time it has taken. The number of holes drilled is very low, and, more puzzling, the results quoted do not go to any depth. Surely the orebody has been drilled to more than 40 metres, yet that is all the report seems to be talking about. "Supergene enrichment", which usually means that the near-surface zone has been increased in grade by material washed down from eroded rock above, gets some focus, but what we really want to know is: What is the grade from, say, 50 metres depth to 500 metres?

Quite frankly, these results are just an uninformative embarrassment.

roland · 26 October 2007

Sorry, but I just had to sell, I saved myself another $0.03 but really disappointed with taking a big hit on SDL. Sort of feel stupid for not bailing earlier. The post merger PR on this was woeful in my opinion and didn't give me any confidence to hold.

RP_Automotive · 27 October 2007

Maybee the drill results that came out yesturday we're just to 'soothe the blow' of the merger not going ahead - and the full results will come out over the next few days, weeks, months??

kransky · 27 October 2007

The ann says that more drilling results will come in the Dec quarter activities report... due in 3 months time.

2 new drill rigs to arrive in the Dec quarter also.

nikki · 27 October 2007

serendip said:
The results shown in the report are a woeful effort, considering the time it has taken. The number of holes drilled is very low, and, more puzzling, the results quoted do not go to any depth. Surely the orebody has been drilled to more than 40 metres, yet that is all the report seems to be talking about. "Supergene enrichment", which usually means that the near-surface zone has been increased in grade by material washed down from eroded rock above, gets some focus, but what we really want to know is: What is the grade from, say, 50 metres depth to 500 metres?

Quite frankly, these results are just an uninformative embarrassment.

i read their results as: we had difficulty drilling because of the contours of the land so we did the edges which should be the easiest but lower volumes of fe!!

look at these drill results from YML which has given them an estimate of 43 mt:
-25m @ 59.2% Fe in MRC040
-27m @ 58.8% Fe in MRC041
-29m @ 58.2% Fe in MRC053
• Additional drilling to the south-east of the North-West Sector has confirmed
mineralisation at “Rockhole Bore” with significant intercepts including:
-24m @ 54.8% Fe in MRC091
-12m @ 56.5% Fe in MRC098
-8m @ 55.8% Fe in MRC101

so, i am still bullish in the long term about the resource that is there but pretty pissed off in the short term about the terrible management of this merger.

in fact, i am thinking of dumping my stock as a protest but then i doubt that anyone might notice given the 72million that can through in one day

i might send the management some abusive emails and see if they will give me one of the many 1million+ options that they seem to be giving out to millions of people!!!

greggy · 27 October 2007

nikki said:
i read their results as: we had difficulty drilling because of the contours of the land so we did the edges which should be the easiest but lower volumes of fe!!

look at these drill results from YML which has given them an estimate of 43 mt:
-25m @ 59.2% Fe in MRC040
-27m @ 58.8% Fe in MRC041
-29m @ 58.2% Fe in MRC053
• Additional drilling to the south-east of the North-West Sector has confirmed
mineralisation at “Rockhole Bore” with significant intercepts including:
-24m @ 54.8% Fe in MRC091
-12m @ 56.5% Fe in MRC098
-8m @ 55.8% Fe in MRC101

so, i am still bullish in the long term about the resource that is there but pretty pissed off in the short term about the terrible management of this merger.

in fact, i am thinking of dumping my stock as a protest but then i doubt that anyone might notice given the 72million that can through in one day

i might send the management some abusive emails and see if they will give me one of the many 1million+ options that they seem to be giving out to millions of people!!!

May be its just a case of profit taking going on. SDL was a hot stock and many traders jumped on for the ride. This has been the case with many iron ore stocks. IMO until SDL starts making a profit (this is still fairly far away) it should still be considered a speculative stock. This also applies to many other iron ore explorers, most of which have been performing strongly of late. But as we've seen with other resource sectors, sentiment can quickly change. Uranium is a pretty good example. While many fortunes have been made, sentiment quickly turned extremely bearish in this sector. Many traders are now sitting on losses.
DYOR

adobee · 29 October 2007

We'll I am back in SDL this morning, I feel that the confirmation of no $15mill break cost will inspire some confidence here, and that it has been a bit oversold with the worry of this risk..

Risky Trader · 29 October 2007

DOes anyone out there still have the confidence that SDL will bounce back to .70 by end of the year?

Cheers

insidetrader · 29 October 2007

Depends on what the BFS says...it's due out in december apparently...good news could send this one back to 70c or even beyond...

Nibbo · 29 October 2007

I have stock with a broker and wanted to sell on Friday. I was told to hold on as the good news is coming. This obviously is the brokers point of view but he would have been happy as my holding is a good size. I am in for the medium term

SDL - Sundance Resources

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