SDL - Sundance Resources

[sidswingerhead]

You are watching the BOT's. Automated algorithmic trades going through. They have been working SDL for months now.

 

[sidswingerhead]

After initially breaking below the lower trading channel in February (throw under) SDL rebounded and retested the lower trading at .30, only to retreat again.

Today there was a positive move back toward the trendline for another retest. If momentum is strong (and I think it is) the .30 level should be broken again soon.

The buy side is over double the sell side atm.

412 buyers for 23,844,175 units ......... 251 sellers for 10,328,487 units

"Prove me wrong"

 

[prawn_86]

Sid,

Are those buy and sells on your chart actually what trades you made? Or just what is thrown up by your charts/system?

Just out of curiosity. No obligation to answer

 

[sidswingerhead]

This is a very simple moving average crossover system that utilises (2) weighted moving averages to alert the person to a directional change in the trend. Simply put when the faster moving average crosses above or below a slower moving average, this indicates a sentiment change in the trend.

The 1st alert is a "Short term" Buy signal when the 9 day weighted moving average crosses above the 21 day weighted moving average.

Conversly "Short term" Sell signal when the 9 day weighted moving average crosses below the 21 day weighted moving average.

The 2nd alert is an "Intermediate term" Bullish brossover signal when the 9 day weighted moving average crosses above the 50 day weighted moving average.

Conversly "Short term" Bearish crossover signal when the 9 day weighted moving average crosses below the 50 day weighted moving average.

 

[sidswingerhead]

SDL showed sign of weakness yesterday after a strong rally from .17c, breaking below the ascending trendline..

Possible short term pull back as buyers and sellers ponder on the trends direction from here.

Is this the end of the 1st wave?

 

[sidswingerhead]

Great announcement from SDL today...


16th April 2008 ASX/MEDIA RELEASE EXPLORATION UPDATE – MBALAM IRON ORE PROJECT

SUNDANCE CONFIRMS POTENTIAL OF MBARGA DEPOSIT TO HOST +1 BILLION TONNES OF DSO/ITABIRITE IRON ORE

International iron ore company Sundance Resources Limited (ASX: SDL – “Sundance”) is pleased to report that drilling has confirmed the potential of its 90%-owned Mbalam Iron Ore Project in Cameroon, West Africa to host an iron ore resource in excess of 1 billion tonnes.

Drilling at the Mbarga Deposit has defined two styles of hematite mineralisation – supergene Direct Shipping Ore (“DSO”) from surface underlain by massive itabirite hematite mineralisation to significant depth.

Latest geological modelling (non JORC-Code compliant) of the Mbarga Deposit has outlined the potential for 1.0 – 1.2 billion tonnes itabirite-style mineralisation at an average grade of approximately 39% Fe. This is based on all assay data received from the areas drilled to date including laboratory assays and data obtained using site hand-held XRF instrumentation. This site XRF data is progressively being verified by laboratory assay work.

The itabirite material comprises banded hematite-quartz with very low phosphorous (~0.03%) and alumina (~1.5%) contents. As previously reported, very preliminary testwork on a small number of selected samples of the Mbarga itabirite material has indicated that the itabirite may be beneficiated to produce a +65% Fe concentrate utilising conventional beneficiation plant similar to that used for upgrading of itabirite iron ores in Brazil. A bulk sample of drill core is currently being air freighted to Perth for more comprehensive beneficiation testing.

The geological modelling has also updated the potential Direct Shipping Ore (DSO) tonnage from the Mbarga Deposit. Latest estimates range from 100 to 140 million tonnes hematite at an average grade of approximately 60% Fe, 0.09% P and 3.4% Al2O3.

Drilling of both the DSO and itabirite ore horizons is continuing on the Mbarga Deposit utilising five of the six drill rigs operating on site. Surface and structural mapping gives reasonable confidence that definition of the itabirite tonnage will increase significantly with additional drilling. The Company will progressively step-out drilling over coming months to test the potential of other prospects on Exploration Permit 92 with these latest results resulting in the Company’s objectives for the Mbalam Iron Ore Project being reviewed with definition of an overall Exploration Target of 2.0-2.5 billion tonnes of itabirite-style mineralisation.

The latest geological modelling represents a significant step forward for the Company, confirming the potential for the Mbarga Deposit to support an integrated 35 Mtpa DSO/itabirite operation. This target is subject to completion of infill drilling to confirm a JORC-Code compliant resource and positive results from ongoing beneficiation testwork. At this stage, this remains a production target with any potential or assumed ore quantity and grade being conceptual in nature with insufficient results received from exploration completed to date to estimate a Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore, it is uncertain if exploration will result in the determination of a Mineral Resource sufficient to meet this assumed production target.

Sundance’s CEO Don Lewis said: “Our exploration efforts at Mbalam are starting to show significant results. We have outlined potential for a +1 billion tonne DSO/itabirite iron ore resource on the Mbarga Deposit within six months of the Company reporting its first drilling results.”

“The project could be similar in scale to some of the large iron ore projects in the Minas Gerais area of Brazil, which includes the Minas-Rio project being developed by MMX Mineraceo e Metallicos. That project has a target production capacity of 26.5 million tonnes hematite concentrate per annum, commencing in 2010, based on upgrading itabirite ore (~40% Fe) through conventional grinding and reverse flotation beneficiation plant.”

“We believe that the itabirite projects in Brazil represent a useful benchmark for development of the emerging potential of the Mbalam Project. Significant DSO mineralisation in addition to a potentially world scale itabirite resource provides significant development flexibility and would allow low cost production in the early years of operation. The nature of the Mbarga Deposit, with mineralisation from surface, should allow very efficient mining, with low stripping ratios for both DSO and itabirite ore,” Mr Lewis added.

Grant of New Exploration Permit in Cameroon
The Company is also pleased to announce that it has secured a significant new Exploration Permit located immediately adjacent to Exploration Permit No. 92 (“EP92”) in support of the Mbalam Iron Ore Project. This more than doubles the existing landholding held by Camiron SA, the Company’s 90% owned subsidiary, in Cameroon.

The new permit covers an area of approximately 1,000km² in south-east Cameroon. The permit area lies immediately east of the defined mineralization on EP92 and contains a number of topographic features similar to those identified in the existing exploration permit. The Company’s geological team believes that the new permit area may be prospective for hematite mineralization similar to that defined in EP92. The new permit represents a significant addition to Sundance’s exploration portfolio in Cameroon, consolidating its strategic position in this emerging iron ore province.

The Company will incorporate the new permit area into an expanded regional exploration program designed to deliver future drilling targets alongside its current focus of activity at Mbalam. The Company believes that this represents an opportunity to add significant value to the Company 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

 

[fmz]

Indeed, great news, and the market reacted. Looking forward to further announcements.

 

[Piggy Bank]

It has been a long time since I have made a comment about SDL....waiting patiently...good to see some significant positive news. The market should react much more positively once the resource is upgraded with the further drilling planned for the imminent future. It will be an important milestone once the resource estimate is JORC Compliant. I will be looking forward to this day!

 

[YOUNG_TRADER]

Was just reading SDL's ann today,

Those are some impressive estimates,

Latest geological modelling (non JORC-Code compliant) of the Mbarga Deposit has outlined the potential for 1.0 – 1.2 billion tonnes itabirite-style mineralisation at an average grade of approximately 39% Fe. This is based on all assay data received from the areas drilled to date

The geological modelling has also updated the potential Direct Shipping Ore (DSO) tonnage from the Mbarga Deposit. Latest estimates range from 100 to 140 million tonnes hematite at an average grade of approximately 60% Fe, 0.09% P and 3.4% Al2O3.

Exploration Target of 2.0-2.5 billion tonnes of itabirite-style mineralisation.

So they are currently targeting 1Bt's-1.2Bt's of Mag @ 39% Fe
+ 100 -140Mt's@60%Fe DSO Heamatite
and have an end target of 2-2.5Billion Tonnes of Mag

Those are some very large numbers

 

[kransky]

Here is another big number.. 1.8Bn.. thats the number of shares on issue.. makes BRM look way undervalued imo

:

 

[gfresh]

While they may have definitely have the in-ground resources, long way to go for SDL to be mining.. $US3.3bn of capex to get their operations running.. establishing railways, ports, etc in a foreign country. Going to require some big investment. Hopefully they can get the Chinese to the party, or going to be difficult.

Lot of other iron ore projects coming onstream before then by other major iron ore producers worldwide, BHP, RIO, and FMG should all be well ramped up by 2012.. a few of the small players locally here may get up there as well contributing a few more million tonnes. By the time SDL get going may be a saturated market, paying off a large amount of debt

 

[YOUNG_TRADER]

Here is another big number.. 1.8Bn.. thats the number of shares on issue.. makes BRM look way undervalued imo

:

Oh wow, yep certainly right 1.8Billion Shares @ 26c = $500m crazy!!!!!!!!!!!

I thought that they did some share consolidation back from when they were a 2c stock????????


Anyway I don't hold any, wouldn't even think of buying as this is not my sort of share, but had never bothered to look at the size of the project before, lots of Mag, but why bother with Mag in Africa, we have plenty in Aus, just ask good old Clive Palmer to give you some

 

[grace]

Oh wow, yep certainly right 1.8Billion Shares @ 26c = $500m crazy!!!!!!!!!!!

I thought that they did some share consolidation back from when they were a 2c stock????????


Anyway I don't hold any, wouldn't even think of buying as this is not my sort of share, but had never bothered to look at the size of the project before, lots of Mag, but why bother with Mag in Africa, we have plenty in Aus, just ask good old Clive Palmer to give you some

GIR also have a +1 billion tonne target on their Earaheedy deposit (much closer to infrastructure). Their MC is nothing compared to this with +$70 million cash, other deposits all over the place of iron ore and other projects (non iron ore). I just can't see why Sundance attracts such a premium MC when they are in Africa and with no real infrastructure? I'm probably going to get hunted down for this comment so I'd better start running!

 

[tezz]

With further drilling the resoursce will probably end up 2 or more bill. tons,I don't think there would be many more Iron ore deposits this big to discover,
anyway they are close to the steel mills in Europe.
There is no magnatite in this deposit, its all hematite, Itabirite is a banded hematite Quartz laying underneath the main hematite, some of these ironstone quartzes in other area's have contained gold, usually low grade but you never know.

 

[Miner]

I am looking for the Talbout enthusiastics. Of late we do not see them to post anything about that the Holy Cow and great man's charitable acts on investment .
Here u go another piece of his excellent deed reported from ABC Website today.

Former Macarthur CEO in discussions over $670m share salePosted 3 hours 36 minutes ago

Macarthur Coal chairman Keith de Lacy has confirmed he has held discussions with mining magnate Ken Talbot about selling his stake in the company.

Talbot, who is facing 35 charges of corruption relating to a $300,000 loan he allegedly made to a former state government minister, has resigned as CEO of Macarthur Coal.

Disclaimer : I do have a small parcel of SDL and waiting for my money to be returned when it breaks even. I do not own McCarthur Coal

 

[spottygoose]

Miner, that is very old news. That loan thing has been in the press for well over a year. You obviously don't think much of Talbot but this is old news and not really relevant to SDL right now.

 

[Miner]

Miner, that is very old news. That loan thing has been in the press for well over a year. You obviously don't think much of Talbot but this is old news and not really relevant to SDL right now.

Dear Spottygoose

Yes, the old section was about his $300 M . I actually published in this forum long back as well.

New section was McCarthur Coal issue, people's hope that SDL will be revived with his investment (!) and the new reporting by ABC .

It is really immaterial what I think of Talbot or his work. What matters that my money is in his hands and so was my young son's hard earned investment.

SDL is working on a very slow process and there is no light at the end of tunnel

Thanks for your quick response any way.

 

[YOUNG_TRADER]

Hi guys,

Its always been on my mind whether SDL was overvalued, undervalued or fairly priced.

I do not hold any but thought I'd run some numbers on it

Interesting read the SDL presentation,

2billion shares fully diluted @ 25c = $500m mkt cap (ironically the same as former merger partner GBG)

Cash = $60m VERY WELL FUNDED

Top 20 hold 55%

Project = Mbalam
1,100 Mt - 1,200 Mt @ 39% Fe Target/Historical Resource
100 Mt - 140 Mt @ 60% Fe Target/Historical Resource

They're aiming for production of 35.0 Mtpa

Very low waste to ore ratio = very positive as they have to move alot less dirt

However here is the big negative for me CAP EX = $3.3Billion


Now if/once SDL get a JORC up the following EV's would apply, $10/t would apply to the Haematite and $1/t to the Mag

EV
1,100 Mt - 1,200 Mt @ 39% Fe @ $1/t = $430m - $470m
100 Mt - 140 Mt @ 60% Fe = $600m - $840m

So I get an EV of $1Billion - $1.3Billion BUT THIS IS ONLY ONCE THEY GET A JORC

So clearly if they did get all the historical resources JORC'd (very likely imo) it would appear cheap on an EV basis however the CAP EX is a huge deterrent,

Given that the current mkt cap is about half the prospective EV I probably don't see enough value in SDL especially given the CAP EX however it doesn't look expensive either

I'd probably say fair value atm although high risk

These are just my silly views guys DYOR

 

[grubadoo]

Found this for interest sakes.

DMOR(Doing my own research)


China among interested investors for Cameroon port
Reuters, Saturday May 10 2008
By Tansa Musa
YAOUNDE, May 10 (Reuters) - Companies from China, Canada and Europe have expressed interest in investing in the building of a $655 million multi-purpose deep seaport in south Cameroon that will serve major mineral export projects, the government said.
The plan for the port to be located at Grand Batanga, 10 km (6 miles) south of Kribi, was presented to potential investors at a two-day meeting that ended Friday in the capital Yaounde.
The projected port facility, whose depth will allow the entry of much larger ships than those currently served by Cameroon's main port of Douala, would consist of four terminals -- for containers, oil products, iron ore and aluminium.
Cameroon's Economy, Planning and Regional Development Minister Louis Paul Motaze told Reuters late on Friday that a Chinese company, China Harbour Engineering Co. (CHEC), had shown interest in taking on the entire project.
Other companies from Canada, Europe and Africa were interested in buying stakes in the port project, whose initial cost was estimated at 282 billion CFA francs ($655 million).
"We have been very encouraged by this enthusiastic response and from the way things are progressing I am now very certain construction work on the first phase will start in 2010 and the first traffic will flow through the port by 2013," Motaze said.
He added the interested investors were insisting on build, operate and transfer (BOT) arrangements for the project. They had requested more information and follow-up meetings would be held before it was decided who the final partners would be.
"We are very willing, ready and determined to invest in this project which I believe will be very beneficial to the people and the economy of Cameroon and the entire Central African sub-region," Edward Xu, a spokesman of China Harbour Engineering Co at the conference, told Reuters.
Douala, which handles 95 percent of the import and export traffic of Cameroon and neighbouring landlocked Central African Republic and Chad, is restricted in the size of the ships it can handle because of its location on the sediment-filled River Wouri estuary. Its position demands constant dredging.
The proposed new deep seaport near Kribi would be able to take much larger vessels and would be linked by road and rail to major iron ore, cobalt, nickel and bauxite mining projects under development in Cameroon's interior, Motaze said.
This included a proposed 490 km (300 mile) railway line between the projected port and the Mbalam iron ore project of The Cameroon Iron Ore Company (CamIron), controlled by Australia's Sundance Resources.
CamIron general manager Roger Bogne told Reuters his company was very keen to invest in the development of the new seaport, at least in the iron ore terminal, so as to have an export outlet for the ore it planned to deliver from Mbalam by 2011.
When completed, the projected port was also expected to serve as a major shipment point for tropical hard wood from south-eastern Cameroon, northern Gabon and Republic of Congo. (For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com/) (Editing by Pascal Fletcher, David Christian-Edwards)



http://www.guardian.co.uk/business/feedarticle/7510429

 

[adamim1]

Good Announcement today

http://www.aspectfinancial.com.au/d...lc2lnbmFsL2Vycm9ycGFnZXMvcGRmZGVsYXllZC5qc3A=