SDL - Sundance Resources

mayk said:

It shows promise, a higher high and lower low ( I know it is too early to say but hey!) is been established. I will now wait for this uptrend to be varified over a period of time.

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Yes may be gaining some traction at last,

As you mentioned, I would definitely be waiting for this break to be confirmed before we can say this has reached its lower limit, but in light of the recent sp performance, todays action will give long-suffering investors some heart at least.

Obviously there are many, many people who are sitting on very significant losses here, and I feel if SDL continues to gain support the desire to sell will be too strong for some people to overcome. Other investors may have just relegated their share certificates to a box in the wardrobe and will just have accepted the pain, and by default will become long-term holders until happier times.

jman

Disclaimer: DNH

Hi Mayk, thanks for your commentary. Remarkable turn around from 2 weeks ago when you quoted "this stock has to be the dog of the year" and that you were getting out. Did you sell? Why have you supplied such an indepth analyse, please note your revenue is based on 60%fe plus at 750m when in fact the 60%fe dso grade was only at approx 230m which changes income significantly. Talking down the stock and now talking up the stock? Are you are broker? Zodiac

A few pages back, I posted a chart which showed a clear downtrend for SDL. Based on that information it made sense ( back then) to get out of this stock and re-enter later so that net number of my SDL stocks can increase.

Recently it has potentially broken its downward trend ( based on today's vol & price). I just stated that fact by pointing to the graph.


I was just trying to put a value to this stock and thus analyzed this stock, based on the information from the report. No I am not a broker or trader.


I was simply pointing to the fact that technically this stock was down for a couple of months and seem to be breaking that trend lately. Please note that uptrend is not full established ( It might be a false positive!).


Disclaimer: I hold SDL stock.

I noticed a revival in this stock too considering a reversal in GBG (the failed merger participant)..

maybe things are back on the cards again?

volume of 29 million shows particular interest

agro said:

I noticed a revival in this stock too considering a reversal in GBG (the failed merger participant)..

maybe things are back on the cards again?

volume of 29 million shows particular interest

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I think you would do much better in ausie Iron ore stocks AGRO "ROFLAO"



The trend has changed direction, but be wary of a pullback on such a quick rise.


SDL makes me wanna dance.

sidswingerhead said:

I think you would do much better in ausie Iron ore stocks AGRO "ROFLAO"



The trend has changed direction, but be wary of a pullback on such a quick rise.


SDL makes me wanna dance.

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true re - forums

China/India will always have a demand for the bulk commodity thats why they are fretting at the moment over the 71% increase by RIO/BHP!! if we are looking at 71% this year - what will it be in the future? thats another question!

come back in a couple years time and you will soon find out how undervalued most IOs are today

Not sure what is the driving source in SDL at present. I suspect it has to do with Concord Capital becoming a substantial holder on the 19/03. Also resource sector seems to have had a bit of a resurgence over the last couple of days.

What ever the cause, the breakout has occurred and I am happy with recent increases.

Yes, nice breakout and for most of us, about time!!

They should have the additional drilling rigs on the ground very soon and are meant to be negotiating with the local govt regarding terms etc. Could it be that SDL might have slowed down the flow of drilling info so that they can get a better negotiating position with the govt???? (ie not have to pay so much).

Whatever the reasons, it doesn't change the fact that the ore is still in the ground and it keeps getting more valuable. Am still in the red, but can see the green just over the next hill.....

In their response to the ASX speeding ticket they indicated two factors for the price rise. 1. Concord Capital taking a substantial holding and 2. The recent presentation they gave to Goldman Sachs in New York. Perhaps the second one is the bigger indicator. Are they yanks now buying?

28th March 2008 ASX/MEDIA RELEASE EXPLORATION UPDATE – MBALAM IRON ORE PROJECT Further to its announcement of 29th January 2008, international iron ore company Sundance Resources Limited (ASX: SDL – “Sundance”) is pleased to provide an update on exploration activities at its 90%-owned Mbalam Iron Ore Project in Cameroon, West Africa. Drilling capacity at the Mbalam Project has been substantially increased with six rigs now on site. Five of these rigs are currently operating with the final rig expected to be commissioned this weekend. The new drilling capacity includes the two new Thor Reverse Circulation (RC) drilling rigs manufactured in South Africa and two RC rigs and a diamond drilling rig supplied by international drilling contractor Ausdrill. In total, Sundance has four RC rigs and two diamond rigs on site. This will significantly enhance drilling productivity and enable the Company to accelerate its assessment of both Direct Shipping Ore (DSO) and itabirite hematite mineralization at Mbalam. Sundance has an extensive exploration program planned for 2008 with a total exploration budget of approximately $35 million which is fully funded from the company’s existing cash reserves of $62 million. Two RC rigs and two diamond rigs are currently testing the extent and depth of the resource potential on the Mbarga prospect. One RC rig is currently testing the Mbarga South prospect, which was identified during surface mapping and preliminary drilling in the December quarter. It is intended to shortly dispatch two of the RC rigs to start drilling the Metzimevin prospect in the June quarter. Sundance CEO Mr Don Lewis said: “We are pleased with the initial performance of the new rigs and are already seeing the benefits of increased drilling rates. The new RC rigs are drilling to depths of up to 300m and the diamond rigs will continue to drill holes to 300-500m depth” “We continue to be encouraged by the progress of exploration at Mbalam and expect to progressively announce tonnage ranges for both DSO and itabirite hematite mineralisation. We will target delivery of a JORC-code compliant resource as we define the extent of the initial prospects being drilled.” ENDS
Released by:
On behalf of:
Nicholas Read Telephone: (+61-8) 9388-1474 / +61-419 929 046
Don Lewis, Managing Director / Michael Weir, Investor Relations Manager (+61-8) 9220-2300 /+61-417 996 005
Read Corporate
Web: www.sundanceresources.com.au

An inside day yesterday "potential reversal pattern".

Given that there was a red market overall, coupled with a Friday, I expect there was considerable profit taking going on after the initial break out.
My thoughts are that SDL will test support at this level for a day or 2 and may even retest the .20 level, before making another run to the .30c - .33c level.

.33c being the first 23.6% Fibonacci retracement level.

For those unfamiliar with Fibonacci levels.

Fibonacci retracements are displayed by first drawing a trendline between two extreme points (i.e., a significant trough and peak). The default levels are: 0.0%, 23.6%, 38.2%, 50.0%, 61.8%, 100%, 161.8%, 261.8%, and 423.6%.

After a significant move (either up or down), prices will often rebound and retrace a significant portion (if not all) of the original move. As the price retraces, support and resistance levels will often occur at or near the Fibonacci retracement levels.

The SP has also broken above the 9, 21 and 50 day (lime green) WMA. Another test area would see the SP come back and re-test the 50 day WMA.


Your TA analysis/view on SDL would be appreciated

Sundance Confident of Funding $3.3 Billion African Ore Project

By Jesse Riseborough

March 28 (Bloomberg) -- Sundance Resources Ltd., seeking to build a $3.3 billion iron ore project in Cameroon, is confident of securing finance as rising corporate borrowing costs make it harder for some companies to find lenders.

``We are seeing, whilst obviously we are in a tight credit market at the moment, for quality bulk commodity projects, money is still there,'' Don Lewis, chief executive officer of Perth- based Sundance, said today. ``We will look at our funding options during the course of this year.''

Rising borrowing costs and reduced bank lending driven by the global credit crunch may delay development of new mining projects, Goldman Sachs JBWere Pty said in a report this month. Barrick Gold Corp., the world's largest gold producer, said March 7 it may wait as long as nine months to sell bonds and refinance debt.

``During the course of 2008 we would be expecting to progress discussions with strategic groups with respect to off-take and financing,'' Lewis said by phone from Perth today. ``We are getting lots of industry approaches'' for sales agreements from the Mbalam project in the West African nation, he said.

Sundance, backed by Ken Talbot, Australia's 34th richest man, and Lehman Brothers Holdings Inc., had its biggest two-day gain in nine months yesterday, rising 43 percent over the period. It fell 3.5 cents, or 13 percent, to 23 cents at the 4:10 p.m. Sydney time close on the Australian Stock Exchange, the second-biggest decline on the benchmark index. It has a market value of A$430 million ($397 million).

Broke Down

The stock has more than halved since talks for a A$1.6 billion all-share takeover by Australian rival Gindalbie Metals Ltd. broke down in October. The mine, rail and port project is scheduled to start shipment of 35 million tons of iron ore annually from 2011.

Surging U.S. home loan defaults have pushed up borrowing costs, threatening the global economy and causing about $188 billion in asset write downs and credit losses at the world's largest financial institutions.

Defaults tied to subprime mortgages have soared since July, roiling credit markets and causing debt spreads to wide on investor concerns that companies wouldn't be able to repay debt.

Sundance had secured six drilling rigs to undertake a A$35 million exploration program this year as it seeks to uncover an iron ore resource of 1 billion tons, the company said today in a separate statement. It's receiving interest for future sales from Asia, Europe and the Middle East, Lewis said.

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To contact the reporter on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net

Last Updated: March 28, 2008 02:48 EDT

http://www.bloomberg.com/apps/news?pid=20601116&sid=a7a2B3QHsE_0&refer=africa

Great news they are sounding very confident on the resource defanition and of financing.
Sounds like theres plenty of intrest in the company.

Lucky_Country said:

Great news they are sounding very confident on the resource defanition and of financing.
Sounds like theres plenty of intrest in the company.

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not only that but BBY have them at 1.20s end of 2008 and valuation of 3.56 by the year 2012 don't know whether to trust a brokering firm though

http://www.sundanceresources.com.au/media/13251/exploration update march 2008.pdf


my only main concern in sovereign risk to do with Africa other than that its strategically located to Europe..

but hey who knows could be the next fortescue ? talbot got MCC (coal) up and running well

see what the JORC delivers

I fully expect the project to get finance and the project to go ahead.
The challange then will be contain costs and complete on timeframe as with any project it has too be said.
SDL once project is completed will then become a takeover target and as for the sp well FMG now has 2.4 billion shares on issue at $6.50 - $8 depending on the market and read Charlie Aitken say they could reach $15.
SDL 1.8 billion on issue so theres definately upside as the project becomes nearer too production.
Joe Lewis the CEO seems a very motivated and dependable individual.

Interesting that the recent price activity has coincided with a visit by the Australian High Commissioner of Cameroon / Nigeria with the Cameroon Minister of Mines on the 27th March to discuss " investment opportunities in the mining sector specifally the Mbalm iron ore project to be executed by the Australian Company "Sundance Resources". It would seem that the MOU is not far away. This together with the statements made to the press by Roger Bogne's ( GM of CamIron ) that confidently reported that the project will proceed ( he must be under different market disclosure obligations than our poor Directors in Perth ) SDL has gone onto many watchlists. Also of note is the activity with CFE ( $400,000 cashed up company, CFE's Chairman - Ian Burston was the MD of Porter Mines under the chairmanship of our George Jones ). What will they be doing with all this money? This deal is due by end of April.

Zodiac

SDL tested support around the .23 - .25 area for a couple of days and has now started a strong run on excellent volume.

Huge delta in the buy sell spread with the Bulls gaining ascendancy

453 buyers for 28,780,054 units ....... 59 sellers for 7,560,759 units


Blue sky ahead is a pleasure indeed.

SDL chart is looking much better. Strong buying today with 38,407,186 shares changing hands and a 14% increase in SP from yesterdays close. An overall increase of 67% from the low on the 18th March.

Positive attributes to this chart are a short term 9/21WMA crossover buy signal was triggered on the 27th March and an Intermediate term buy signal 9/50WMA was triggered on the 31st March.

Not too bad, with lots more upside potential (IMO)

With such a flat downwood spiral for the last few weeks - this has been an amazing turnaround in the last few days.

Is it blue sky from here or a dead cat bounce?

Hi,
I'm just wondering whether anyone could explain to me SDL's course of trades today. There were:-
98 repetitive trades of 1892 shares
14 repetitive trades of 3730 shares
25 repetitive trades of 1851 shares
I'm sure this must be the work of a broker or someone who doesn't have to pay brokerage fees. Just wondering what they are trying to gain from repetitive buys/sells. Or if we can tell are they trying to make the price go up/down or stabilise.
Thanks.