SDL - Sundance Resources

[kingbrown]

You guys would have to be happy with todays performance
After uming and arring for so long on this stock
had to jump in today

She closed up with a rocket under it at around .47
Up 22 odd percent

is .50 knocking ??

 

[Lucky_Country]

Could easily reach its all time highs within days imo.
Close to 100 million traded today you need 94 million for just 5% so any of the big boys will have to keep the volume turning over if they want a decent stake in the company.

 

[lioness]

Buying on this is out of control, something big is coming. Surely we would see some change of substantial's coming in soon.

Are we looking at the next FMG?

 

[Lucky_Country]

Absolutely something big is happening !
Substantial shareholders notice cannot be far off.
Im looking for some serious good news I feel the resource may be a massive one of DSO as the have only just started drilling and already have 290 million tonnes.
Plus the new exploration licence untouched drilling wise.

 

[lioness]

Absolutely something big is happening !
Substantial shareholders notice cannot be far off.
Im looking for some serious good news I feel the resource may be a massive one of DSO as the have only just started drilling and already have 290 million tonnes.
Plus the new exploration licence untouched drilling wise.

Yes, must be a massive upgrade to resource definition coming.

Could this be the next FMG we have all been looking for?

I think it has got abig chance of that really when looking at the size and scale. Stay on the horse for now.

 

[tezz]

The stock was holding well at 51.5 untill the profit takers came in,
Regarding their deposit, I thought in the last ann. that all up was about 2 bll. tons of hematite and itabirite,
If anything has leaked out of Africa it might be they have interested contractors for the rail and port,
Or SDL could be a take over target,
Looking at todays trades there were alot of XT on the transactions, anyone know what this is?

 

[ThingyMajiggy]

People profit taking now? Was holding at the 49-50 for a fair while, dropped back, is there an announcement coming up for these guys anytime soon?

 

[hoppielimp]

tezz,

Regarding what is a XT, this has been on a few threads, however suggest you go to the following link, which will give you a better understanding.

http://www.asx.com.au/investor/education/basics/crossings.htm

 

[tezz]

Thanks thats quite a read,
Looks like the June selling has started early, hope SDL holds off with ann. until July, Friday probably another sell off

 

[YOUNG_TRADER]

I have to admit I am completely blown away by SDL's performance, not only did it get to 50c+ which was like 75% above where I THOUGHT fair value was it has held and now seems to be building a base around 38c-40c

Makes me scratch my head at the valuation difference between SDL and DMM

But also makes me sit up and take note that there maybe more than meets the eye with the SDL team

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

 

[Lucky_Country]

SDL is like any other project it has its challanges but the goodies will be sweet !
Im going to enjoy the ride hope you all join us.

 

[spottygoose]

Thanks to TweetyPie for below:

Source: www.railwaygazette.com

Miners in the market
17 Jun 2008

AFRICA: As two European companies start work on short-term contracts to rescue the existing railway networks in the Democractic Republic of Congo, word reaches us of ambitious plans to build more than 3 000 km of new railway in that country, together with further spending on roads, hospitals and hydro-electric power projects.

Although few details have been released, the investment package outlined by Infrastructure Minister Pierre Lumbi on May 9 forms part of a US$9bn agreement between DRC and China, which will give the Chinese access to more than 10 million tonnes of copper and 600 000 tonnes of cobalt in mineral-rich Katanga province over 30 years. The idea is to form a joint venture owned 32% by DRC's state-owned mining company Gecamines and 68% by Chinese firms including China Railway Engineering Corp and Sinohydro. The Chinese would build the transport corridors needed to move the minerals to the Atlantic coast and other routes connecting the north and south of the country, which Lumbi said would provide 'the foundation on which the growth of our economy is going to be built'.

In Cameroon, meanwhile, Australian mining group Sundance Resources has a concession to develop iron ore reserves at Mbalam, near the border with Congo Brazzaville. These are expected to generate around 35 million tonnes of haematite each year for export to Europe, India and China. The company told investors last month that it had identified a preferred route for the 490 km standard-gauge railway which would link the mine to a proposed port at Lolabi, around 140 km south of Douala. Sundance hopes to start construction by mid-2009, with the first ore to be shipped in mid-2012.

The continuing search for minerals could see the revival of railway operations in Sierra Leone, which abandoned its national network in the 1970s. African Minerals Ltd confirmed on May 7 that it had signed a memorandum of understanding with the government to build and operate a 150 km railway between its iron ore project at Tonkolili and the deep-water port of Pepel near Freetown.

This route would incorporate the 66 km line built in 1933 to carry ore from the Sierra Leone Development Co mines at Marampa, but consultants have been appointed to look at converting the near-derelict 1 067 mm gauge line to standard gauge. Africa Minerals believes the Tonkolili reserves could generate up to 25 million tonnes a year.

 

[Kiwi Nap]

I'm pretty sure SDL'S only assest is CAM Iron in SA. They only paid 250k for this, and in shares I think. Infrastructure costs for CAM are high and its probable it will never get off the ground. In fact, considering this is their only real asset, and SDL'S market cap, its a bit of a joke that SDL are a listed company and how their market cap is justified..

Apart from the aforementioned, SDL are sparse on announcements except for Appendix 3B'S in which they issue themselves/directors bulk shares regularily, and have a heap on issue.

Fundamentally, SDL seem a bit of a Donkey.


As far as a tradeable stock, they are sometimes. On no news whatsover they basically go from negligable volume to 20mil plus. A few big traders are onto this one (check their substantial holders announcements), and if you are in at the right time you can ride a bit of the momentum.

Freeballing - If you are only "pretty sure" then perhaps you should not respond to people with such ill informed replies. For one, I suggest you research Talbot - major share holder with a fantastic track record and perhaps study SDL more thoroughly. As a long term hold SDL have billion + tonnes of good grade IO and the finance structured to build the rail and port infrastructure along with MOU with the Cameroon Govt. SDL - IMO is a very positive long term prospect.

 

[Piggy Bank]

Freeballing - If you are only "pretty sure" then perhaps you should not respond to people with such ill informed and idiotic replies. For one, I suggest you research Talbot - major share holder with a fantastic track record and perhaps study SDL more thoroughly. As a long term hold SDL have billion + tonnes of good grade IO and the finance structured to build the rail and port infrastructure along with MOU with the Cameroon Govt. SDL - IMO is a very positive long term prospect. You are an idiot, check you facts before you make an ass of yourself next time.

Hello Kiwi Nap,

Welcome to the SDL forum. I see this is your first post.

I am a bit confused about your apparent attack on "Freeballing". As far as I can see their post about SDL that you have quoted was posted on "27th-September-2006, 12:57 AM" which was when this thread was first started. SDL was a very different company back in those days. Nearly two years have passed since then...

A polite apology may be in order.

 

[pennystock]

Hi Everyone,

I see that SDL has been viewed as the next FMG maybe! I have been looking back at historical charts on FMG and the likes of PDN which also had an exceptional rise in past years but one thing I have noticed from my research is FMG and PDN only traded in the 10's of thousands to say a million plus where SDL is trading 10's of millions well up to 100 million surely the amount of shares on offer would reduce the likely hood of a share price anywhere near the likes of FMG. Am I right or can anyone please explain different.

Thanks in advance... :0)

 

[Lucky_Country]

If someone wants a 5% stake in a company its 5% regardless of the ammount of shares on issue.
FMG now has 2.4 billion shares so if SDL reaches $10 I will be happy.

 

[pennystock]

If someone wants a 5% stake in a company its 5% regardless of the ammount of shares on issue.
FMG now has 2.4 billion shares so if SDL reaches $10 I will be happy.

Hi Lucky_Country

So what your saying is as long as everything goes to plan SDL could be worth 10-11 dollars in the next 4 years? I think I read somewhere SDL had 2 billion on offer at the mo. I know price predictions are off limits here but this is your assumtion or thoughts.

 

[Lucky_Country]

I cant see any reason why SDL market cap cant rival that of FMGs at the momment if market conditions for IO stay in demand.
SDL has alot of work to do to get there obviously but Im backing them to give it a good go in the timeframe they have stated.
The Chinese will be pushing for more diverse supply across the world so they have the backing and will be given a helping hand imo.

 

[Sean K]

I cant see any reason why SDL market cap cant rival that of FMGs at the momment if market conditions for IO stay in demand.

SDL have the same tonnage (or potential), and grades, and infrastructure, and offtake agreements, etc etc as FMG?

OK.

I do note it is probably undervalued on Mbalam alone at $2.50 tn DSO. Average is about $10 isn't it? Must be location...

Any idea on the Capex to get it up and running? 490km to port....eeeek

They really should consolidate the shares one day....


edit: I see initial estimated capex is about $3.27b. Operation don't start till 2012.

No Asian interest yet? Surprising.

 

[Lucky_Country]

SDL have the same tonnage (or potential), and grades, and infrastructure, and offtake agreements, etc etc as FMG?

OK.

I do note it is probably undervalued on Mbalam alone at $2.50 tn DSO. Average is about $10 isn't it? Must be location...

Any idea on the Capex to get it up and running? 490km to port....eeeek

They really should consolidate the shares one day....


edit: I see initial estimated capex is about $3.27b. Operation don't start till 2012.

No Asian interest yet? Surprising.

Come back in 2012 and we will see how things are shaping up LOL !
SDL is in the early stages of development with all the good news to come.
Construction to start next year so alot of news flow between now and then if not a believer just dont buy easy as that !