SDL - Sundance Resources

[Sean K]

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 !

I may buy it if there was decent analysis been provided here to convince me.

'Come back in 2012' doesn't quite cut it Lucky_Country. I don't think I'll buy just yet on that analysis. LOL

As I said though, looks undervalued on a current JORC to MC. But maybe for a reason at the moment. Capex is the major problem. There's a lot of work to be done to convince the banks and investors to fork out $3b ++ (probably much more due to current inflation etc) to get it up and running.

Obviously FMG were able to do it, so it's on the cards. Different company of course with higher quality assets, and different country. Needs a big Asian backer I feel to get it moving.

 

[jonojpsg]

There are some other projects in surrounding areas that some Chinese companies are developing aren't there - with the potential to share the $3b+ capital cost around. Obviously the biggest part of the $3b is going to be the rail and port, which could be multi-user if there were other interested parties???

Just a thought.

 

[Lucky_Country]

LONDON (AFP) ”” Anglo-Australian mining group Rio Tinto said Monday that it had agreed a near doubling of the price of its iron ore sales to Chinese steel maker Baosteel.

Prices are to increase by 80-97 percent depending on the category of iron ore, which is a vital raw material used to make steel.

"Rio Tinto Iron Ore subsidiary Hamersley Iron has today reached agreement with China's Baosteel on the price for Hamersley iron ore deliveries for the contract year commencing 1 April 2008," said a statement issued by Rio Tinto.

A spokesman for Rio Tinto said the deal was "very significant," as iron ore is one of the three main drivers of Rio Tinto's earnings, along with copper and aluminium.

"The increase is higher than the 71 percent and 65 percent settlements announced by Brazilian mining giant Vale earlier in the year, reflecting both the strength of the market and an indication of the proximity of Rio Tinto's iron ore to its customers," the spokesman added.

Under this agreement, Rio will sell Pilbara Blend Fines/Yandicoogina Fines to Baosteel for 144.66 US cents per dry metric tonne unit.

Pilbara Blend Lump will cost 201.69 US cents per dry metric tonne unit

 

[hangseng]

You don't have to look too hard to find information on Sundance Resources.

I particularly like this excerpt: "...first shipment to external markets of iron ore exploited in Cameroon will take place in 2011,” Bogne said in an interview with API. “The project is well on course, there are no hitches.”"


http://africanpress.wordpress.com/2008/02/22/cameroon-to-start-exporting-iron-ore-in-2011/
By Tansa Musa
YAOUNDE. The Cameroon Iron Ore Company (CamIron), controlled by Australia’s Sundance Resources, will export iron ore from its $2.46 billion Mbalam iron ore project by 2011, its general manager said on Thursday.

Roger Bogne said feasibility studies and environmental assessments will be submitted before the end of February, and the company should reach a memorandum of understanding (MOU) with the government by March, paving the way for Cameroon to issue an exploitation permit.

“We plan to start constructing project infrastructure by the beginning of next year and I can assure you that the first shipment to external markets of iron ore exploited in Cameroon will take place in 2011,” Bogne said in an interview with API. “The project is well on course, there are no hitches.”

Officials at Cameroon’s Ministry of Mines, Industries and Technological Development said, in anticipation of next month’s signing, that Cameroon had set up a task force to draft the memorandum of understanding which spells out the terms of iron exploitation.

CamIron was founded in 2005 to develop an area of 875 square km at Mbalam, 300 km from Yaounde in southeastern Cameroon. In 2006, Australian iron ore miner Sundance Resources Limited acquired 90 percent of its shares.

The iron ore deposits were discovered between 1976 and 1984 by the United Nations Development Fund (UNDF) and the Canadian International Development Agency (CIDA). Cameroon’s Ministry of Mines, Industries and Technological Development estimates CamIron’s exploration area contains iron deposits of between 800 million and 1 billion tonnes, including 218 million tonnes of high grade ore.

Sundance said an October 2006 study indicated the area had the potential to be developed into a very large, low-cost producer of high grade ore.

“The government of Cameroon attaches great importance to this project … given its capacity to produce 35 million tonnes of iron ore a year over a period of 20 years,” Mines, Industries and Technological Development Minister Badel Ndinga Ndanga said last week, urging CamIron to press ahead quickly.

The Mbalam project involves the development of a mine, crushing and screening plant, and stockpiling facilities. A 470-km long railway line will be constructed to link Mbalam to the Atlantic coast at Logbabe, where a deep-sea export terminal will be developed to handle large ocean-going vessels.

This infrastructure is also expected to open the way into remote southeastern Cameroon for other investors and boost tourism in a region rich in wildlife, particularly western lowland gorillas.

The Mbalam area is part of an iron ore province in the Archean Congo Craton that spans three countries, including Cameroon, the Congo Republic and Gabon. The iron deposits of Gabon are best known and are centred on the deposits at Belinga. Previous evaluation in Gabon by Kumba Resources Ltd of South Africa in the Batoula/Boka Boka region, 140 km south of Mbalam and 50 km east of Belinga, indicated a resource of 850 million tonnes of 60% Fe.

According to Sundance, the resources within Cameroon are typical supergene hematite enrichments of the Archean banded iron formation protore which has been recrystallised to ferruginous quartzite or itabirite. They occur in a similar geological setting to large iron ore deposits mined in the past in Liberia, in neighbouring Gabon, and currently being evaluated in Guinea.

Work undertaken in the Mbalam area indicated hematite mineralisation extending over two kilometres along strike at widths of up to 600m but more commonly at 400m.
Published by Korir, API africanpress@getmail.no

 

[Lucky_Country]

Great article a big plus for SDL maybe its true potential is starting to be realised.
Hangseng are you in the Sundancer club ?

 

[hangseng]

Great article a big plus for SDL maybe its true potential is starting to be realised.
Hangseng are you in the Sundancer club ?

Not sure about that, but I am a holder of SDL, a stock I happen to believe will be developing a lot quicker than a lot of people think.

I had an opportunity to buy FMG some time ago sub 40c and decided not to. We all make mistakes don't we

I won't be making the same mistake twice.

 

[Lucky_Country]

Yep I remember the sub 40c FMG days ahh gotta love that hindsight.
SDL has the same characteristics as FMG but with the difference of people believing the commodities story.
BHPB today did a presentation with expansions scheduled until 2015 so al bodes well for the stronger for longer cycle.

 

[stockt12]

Not sure about that, but I am a holder of SDL, a stock I happen to believe will be developing a lot quicker than a lot of people think.

I had an opportunity to buy FMG some time ago sub 40c and decided not to. We all make mistakes don't we

I won't be making the same mistake twice.

I am looking to come onboard with SDL because of the same reason. My heart still pains considering how many times I was told to BUY FMG.

Unfortunately life/family illness et all were a priority and now I am searching far and wide for another fortescue so that I can provide for those around me. May sound a little silly, but it's one of my primary goals.

 

[prawn_86]

I think everyone is searching for the next FMG.

Dont be disappointed if you dont find it though...

 

[stockt12]

so true mate..

I'll never be disappointed, it'll just be a massive bonus and/or a squaring of the ledger if one does take off.

 

[Miner]

I am looking to come onboard with SDL because of the same reason. My heart still pains considering how many times I was told to BUY FMG.

Unfortunately life/family illness et all were a priority and now I am searching far and wide for another fortescue so that I can provide for those around me. May sound a little silly, but it's one of my primary goals.

Mate

Do not want to disappoint you as I also bought SDL at 40 cents and did not sell at 80 cents then part sold at 43 cents recently

SDL is not FMG, similarly DMM is not FMG either - let us have no illusion

Lot of factors: ore body, place of mining, leadership, depth of excavation, organisation culture, percentage of FE with other gangue materials, opportunities, sea borne path, market environment, and finally LUCK. Andrew Forest was not lucky or stars did not click for murin murin anaconda but he showered with every thing right for him at FMG


Probably it would be worthwhile to grab the opportunity but will not hope for anohter FMG. Remember what Kerry Packer said about Alan Bond when the later bought Channel Nine at high price and sold at throw away price to Packer back. KP said there is only Alan Bond . So there is only one Andrew Forest (I am not a publicist for Andrew and do not hold FMG any more either)

I still hold some SDL though

 

[stockt12]

So true...

but rather than miss out on an opportunity, this time I will cover each and every base than I can so I give a little more to those around me.

Time to keep searching/researching.

 

[Goldmann]

will export iron ore from its $2.46 billion Mbalam iron ore project by 2011, yayyayaya 100 characherts

there is way better plays for gain than SDL... ahhh... Fort was in the pilbara...this mob africa. no comparison... iron ore done its dash. look at CSG or mineral sands or coal... iron ore done for a bit .. and if you are going to do ore. pick a smaller option. GBG, murch. SDL... i think alot of people got sold on the next FMG (yep even me).

 

[LRG]

goldmann, if not SDL and there are better plays - what are they then?

I thought with the Mngmt team Talbot etc this was a v good long term prospect. Mabe not a twiggy but maybe a 50% twiggy in 2011/12?

NSL is a good play at the moment - has been 2c to 10c - but a real specie. it does not have the market cap, smarts or $'s invested in feasibility that SDL has.

 

[Miner]

goldmann, if not SDL and there are better plays - what are they then?

I thought with the Mngmt team Talbot etc this was a v good long term prospect. Mabe not a twiggy but maybe a 50% twiggy in 2011/12?

NSL is a good play at the moment - has been 2c to 10c - but a real specie. it does not have the market cap, smarts or $'s invested in feasibility that SDL has.

Hi LRG sorry to bump in and goldman please excuse me for gate crashing

I believe AQA and AUROX are two good players as I heard from my geo friend in one of the two largest miners

Both of them are better than many small and med iron players and have sound management

Just my

 

[adluroil]

Hi All SDL Lovers Shouldnt there be some announcement soon . A possible further upgrade
Must be waiting for the new financial year . I own SDL and i believe it will move from 40 Cents
a lot faster than FMG Did considering the price of IO today and the closeness of markets .
Also operating costs of the mine are going to be a lot cheaper we are told.
My opinion only i am not a financial adviser

 

[Miner]

Hi All SDL Lovers Shouldnt there be some announcement soon . A possible further upgrade
Must be waiting for the new financial year . I own SDL and i believe it will move from 40 Cents
a lot faster than FMG Did considering the price of IO today and the closeness of markets .
Also operating costs of the mine are going to be a lot cheaper we are told.
My opinion only i am not a financial adviser

HI Adluroil

No comments on your great wishes and let them be true

But without any technical data to back it up, I would not compare SDL with FMG. I have recently explained why SDL is not and can not be FMG

Good luck and be brave

 

[Lucky_Country]

SDL and FMG have obvious comparisons but FMG is earning and will be right through the IO boom where as SDL will have 4 years less high income from the boom.
SDL has great potential and resouces may suprise on the upside and be good quality ore.

 

[hangseng]

SDL and FMG have obvious comparisons but FMG is earning and will be right through the IO boom where as SDL will have 4 years less high income from the boom.
SDL has great potential and resouces may suprise on the upside and be good quality ore.

"...good quality ore"

An understatement Lucky_Country.

This is a statement from a geologist associate of mine who specialises in Fe working in West Africa:
"The most economically important hematite deposits are found within Archean and Proterozoic banded iron formations, BIF (Itabirite)." You don't have to look far to quantify his statement.

Banded Iron Formations, which are locally known as "Itabrites" are recognised in ore of iron as the most valuable of Fe. The hematite and magnetite concentrations in BIF are much sought after by mining companies worldwide and SDL has a resource in Cameroon made up of BIF and it is expanding this to potentially a DSO resource which could easily be equal to, if not much larger than FMG' deposits. Also SDL isn't reliant on the ongoing argument over additional shared rail access, that is simply a given for SDL.

Mbalam is a significant Fe deposit and extends to the South East of Cameroon into the DRC region. Sundance has reported on this many times. Also note the consistency of reporting of the term "Itabrite" and "BIF" by Sundance in regard to the extension area being drilled/defined at the moment.

Make no mistake Sundance will be a significant Fe company. The analogy with FMG is not as far fetched as some indicate. Also remember FMG had to fund the complete railway required to ship to port. The Mbalam rail will be constructed as a major part of the deepwater port development which has the Chinese pawing all over Cameroon. This is not a sole cost to SDL as it was with FMG nor does SDL management have to do a Twiggy and run to the world for financing, it is a major strategic infrastructure development within Cameroon.

Some use the throw away line that SDL is in Africa, so what. Cameroon will be a major iron ore exporter and SDL has the complete support of the Cameroon govt via CamIron. As I posted from the cited article previously:
"The government of Cameroon attaches great importance to this project … given its capacity to produce 35 million tonnes of iron ore a year over a period of 20 years,” Mines, Industries and Technological Development Minister Badel Ndinga Ndanga said last week, urging CamIron to press ahead quickly."


An analogy with CVRD deposits has also been used:

"The permit area held by Sundance has greater similarities to the Archaean iron ore deposits held by CVRD in Brazil. The ore at Mbalam has been broadly described as an itabirite, following the terminology of the Brazilian deposits. The itabirite is a Banded Iron Formation deposit with high grade hematite enrichment.

Our permit area forms part of a larger iron ore province within the Archaean
Congo Craton which spans south east Cameroon, into Congo and Gabon. The
region is growing in stature as a major iron ore province."

source: http://www.corporatefile.com.au/documents/OB/Project Growth Potential 16.05.2007.pdf

SDL potentially another FMG? IMO most definately a possibility, and it is already indicated as moving ahead a lot quicker than FMG did. 2011 is not that far away and SDL has already indicated BFS completion in 2008.

SDL is a very exciting Fe prospect indeed and cannot be easily understated.

 

[adluroil]

Hangseng: I agree with you 100% Also there is greater probablility that IO prices will be higher in 2011 than they are now.
The Capex was done before these new huge IO price increases
100% increases . I am sure the Capex is not going to increase by 100%.
All calculations are being done on worst price scenarios and it is still under valued. And they are adding to the resource.? You dont have to be very
good at maths to come to some conclusion here.