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SDL - Sundance Resources

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Hmmmm its almost as if SDL thought what the DMM already have a JORC out and we've been working alot longer than them, we better hurry lol


JORC 190Mt's@60%Fe = 114Mt's DSO Haematite

Value I'd say $5/t = $570m = 28.5c SDL, (trading pretty close to fair value)

Note even though some would argue a heavy discounting of $5/t EV given SDL is in Africa and the Cap Ex is huge (ie $3.5Billion+) I have chosen $5/t as SDL has a very very large Magnetite target "Exploration Target of 2.0-2.5 billion tonnes of Itabirite mineralisation" = 2Bt's-2.5Bt's@35%-45%Fe
 
Interesting moves on this in the last 2 days.... sellers in the 23-26 range where it hovered for a while seem to have been cleared out. Now at the 30 cent level, which has not been seen for a while. Volume seems to be moving a little quicker in the last day or so. News pending? we all know this thing leaks like a sieve.... would not suprise me in the least. Thoughts?
 
HA what a suprise, like bloody clockwork isnt it?
SDL announcement 190 million tonne Jorc compliant..... blah blah blah
Can see these things coming a mile away with this company, bit of a disgrace IMO
 
Well I don't think it is new news. It is just a wash up for the real news comming soon. Read the post of young trader.

It is just a tactic of avoiding a speeding ticket...
 
Yes - no new news at all. Just the expression of old news into an easier to understand way.

There were some nice little hints in there .....

"releasing regular resource updates over the next 6 months"

"will report initial JORC inferred resource for itabirite at Mbarga in next quarter"

"we expect to see significant growth in value for the company as we progressively report JORC compliant resources through 2008"

Would be very nice to see the SP not slip too much after the gloss of today. Massive volume today too - 126M still with 25 min to go.......
 
YOUNG_TRADER said:
Hmmmm its almost as if SDL thought what the DMM already have a JORC out and we've been working alot longer than them, we better hurry lol


JORC 190Mt's@60%Fe = 114Mt's DSO Haematite

Value I'd say $5/t = $570m = 28.5c SDL, (trading pretty close to fair value)
Click to expand...

Not sure quite why you have taken down the 190Mt's by the 60%Fe content YT? Usually IO is valued at a per tonne value for whatever quantity of DSO they have, not the actual tonnage of iron itself.
In which case, they should be

190Mt's x $5/tonne = $950m = 47.5c SDL which might indicate why the SP is seeing some movement.
 
Some serious publicity for SDL in the media I would imagine after today.
Cant imagine many letting their shares go too cheaply after today and will be more closely held imo.
 
YOUNG_TRADER said:
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 ;)
Click to expand...

Out of interest -
Whats the reference to Clive Palmer ? has he made some statements in regards to Mag ? LRF owns a chunk of sdl.. ? i am just trying to connect the dots..
 
I was looking to invest I think this stock represents good long term value - but the politics of Cameroon gave me cold feet. My internet searches revealled that there has been a lot of controversy regarding the last three elections. International observers all reported serious concerns regarding the legitimacy of the vote. President Biya is aiming to change the constitution so that he could have another six year term in office (shades of Zimbabwe???). The opposition said that they will use "whatever means possible" to change this state of affairs. There have also been "food riots" recently with dozens of deaths and 1600 arrested. They surely need the investment dollar. Has anyone got any other information that could reassure me?
Thanks

DYOR

I do not currently hold SDL shares.
 
Anywhere in africa is risky especially for the long term. Ghana is a pretty safe place. I lived there for 11 years on and off. There's a few companies with interests there. That was a lot of shares changing hands yesterday. I wonder what will happen today. For all those buyers there were sellers taking profits....I might take a look when it pulls back a bit.....
 
qeegbill said:
I was looking to invest I think this stock represents good long term value - but the politics of Cameroon gave me cold feet. My internet searches revealled that there has been a lot of controversy regarding the last three elections. International observers all reported serious concerns regarding the legitimacy of the vote. President Biya is aiming to change the constitution so that he could have another six year term in office (shades of Zimbabwe???). The opposition said that they will use "whatever means possible" to change this state of affairs. There have also been "food riots" recently with dozens of deaths and 1600 arrested. They surely need the investment dollar. Has anyone got any other information that could reassure me?
Thanks

DYOR

I do not currently hold SDL shares.
Click to expand...


I would suggest reading Young Traders posts on DMM thread which refer to SDL value before making a purchase..
 
adobee said:
Out of interest -
Whats the reference to Clive Palmer ? has he made some statements in regards to Mag ? LRF owns a chunk of sdl.. ? i am just trying to connect the dots..
Click to expand...

My bad i was refering to clive doner not clive palmer.. however i have just read clive palmer has a new resources company in the works
 
You only have to look a little further back up this page to see the value of SDL should be around 47c, purely based on their DSO JORC. When you include the potentially billion+ tonnes of itabirite as well, I think there is scope for moves back to previous all time highs, especially as we move closer to 09.
 
YOUNG_TRADER said:
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 ;)
Click to expand...

you are leading people astray, there is no magnetite in SDL's deposit, itabirite is a banded form of hematite and quartz, Go to SDL's website and read the reports.
 
adobee said:
I would suggest reading Young Traders posts on DMM thread which refer to SDL value before making a purchase..
Click to expand...

Thanks I'll check it out.

The other worry with SDL is the 500 km of railway, the development of port facilities, and now apparently a benefication plant. Still the average wage in Cameroon is around US$1000 pa. - so if the CAPEX can be found the OPEX should be smaller than in Australia.

Good luck to all SDL holders.;)

DYOR

I am not a holder of SDL
 
Font Size: Decrease Increase Print Page: Print Kevin Andrusiak | May 29, 2008
SOMETIMES, and it doesn't happen very often when it comes to iron ore, it pays to have the right help.

At the moment, Sundance Resources is flying, but it took the market more than a week to cotton on to the good news about its Mbalam project in Cameroon.

Don't call it a mosquito-infested swamp, it's a 190 million tonne, direct-ship project that could make a lot of people, including investors, very rich.

Sundance revealed the maiden resource for the project on May 19 and the market barely batted an eye.

That was bizarre, to say the least, given that it mentioned direct ship, hematite and iron ore all in the same sentence.

If you want to see what the mere mention of the phrase “iron ore” can do to a share price, have a look at Black Fire Energy.

But back to Sundance. Just yesterday, company managing director Don Lewis had what is called an “open briefing”. These are heavily prepared interviews, but they usually do provide good, sanitised detail about what is going on in a company.

Lewis said the board believed Sundance was “significantly undervalued” and that “significant growth” was expected. He also said the resource was attracting “significant supply interest” from major iron ore customers.

Don't get us wrong, there's probably no one in the world who has written the word “significant” more often than Daily Assay.

And aside from that, 190 million tonnes of hematite ore - with moderate grades of silica and alumina and low levels of phosphorous - are not to be sniffed at. The world needs it and Sundance has got it.

What Lewis didn't say is just how much it will cost Sundance, but expect the final capital cost to be upwards of $US3.5 billion ($3.64 billion). Lewis did say that operating cashflow from 35 million tonnes of annual production would be $US1 billion a year.

On the day of the briefing, Sundance shares shot up a whopping 37 per cent, while the market went in the opposite direction. About 9 per cent of the company's capital was traded, while the guys at Concord Capital were probably found crying into their beer, lamenting the fact they had sold out in early April.

That is, assuming they weren't piling back in on May 28.

Actually, about 30 per cent of the company's share register has turned over in the last week, according to chairman George Jones.

Jones put the run-up in Sundance shares on May 28 down to the fact that the market had a better understanding of the company’s potential, through the open briefing, and that Sundance was attracting a lot of attention overseas.

His other interest, Gindalbie Metals, isn't doing too badly either, doubling its market capitalisation in May.

In fact, Sundance shares are still a long way from the recent highs of last September/October.

But Daily Assay would forgive you if you had a nagging feeling that something bigger was going on at Sundance. And no, Jones isn't proposing again that Gindalbie and Sundance become one.

Maybe it’s the Chinese - they are in the region and spending up big on iron ore projects.

Lewis did mention the “significant” supply interest from iron ore customers in Asia and Europe.

Sometimes you do have to highlight the positive.

andrusiakk@theaustralian.com.au
Story Tools
 
X888 said:
Does anyone have the full article ?

Thanks

...........................................................
Click to expand...

Hmm
It appears the article is to be bought from the site. :confused:
There seems to be gone are the days when there was a free newsarticle available from web
 

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