SDL - Sundance Resources

[golfmos123]

Peakey,

A few very nondescript days. Stock doesn't know which way to go. Teases by going up a little and closes back down again. At least no sign of a breakout below which is encouraging. Just looks suspiciously like a holding pattern which requires news of some description to prompt a move. Volumes holding but nothing out of the ordinary. So far so good, but still waiting before I re-enter.

 

[Peakey]

Yep, agree with you there Golf.

Like yourself, I thought we were gonna crack the .53 barrier....

Providing .465 holds, I think we'll be ok. I reckon, those that bought in over the last week or so (with a short-term view), would be using .465 as their stop loss. So IF .465 fails, then it could slip pretty quickly back down to the .40ish levels.

Also if you take a look at the 13day moving average, it's currently sitting on .47. The share price briefly dipped below this average (intraday) between 27th-29th June, before rallying late in trade on the 29th. Just something to keep in mind.

Bit of a Mexican standoff between buyers and sellers atm.

Cheers
Peakey

 

[MR.]

I posted on this thread on the 19th of June that SDL has the potential to go to $6-.
I have sold my holding in SDL.

Why ? (I would like others to tell me if I was still the holder)

1) The price has 3x in 2 months. 1.2 billion shares turned over in that time. For my liking the turnover is not enough considering many of the same shares would have turned over many times. Concerned that 1.6 - 1.8 billion shares are out there.

2) The directors of SDL have exercised about 40,000,000 options over three recent dates which did not need to be exercised yet. I see only one reason why. That is to sell soon.

3) Has a BUYER manipulated this stock on purpose or not?
That is a major question!
A recent purchase by the BUYER reassured my purchase at the time of my average of $0.45. But if you take an average of this BUYER’s purchases over all their holdings their average price per share is approx $0.18 in SDL. (a long way from my average of $0.45) In fact if they sold their holding (if it was possible to sell all of them at about $0.50) From the BUYER’s outlay of approx 25 million they can make nearly 50 million profit now in just a few months. I researched two other companies which has involvement with this BUYER. I found a very similar pattern with one of the two stocks and this stock has increased in price like SDL in recent months. Both SDL and this other company had/has good potential and low market caps. However the BUYER has not appeared to have sold down either position to their credit. But they can at anytime and make perhaps only 100%. 25 million profit in just a few months leaving the share price a bit damaged.

4) We are assuming that there is at least 700mt. What happens if 700 million tonnes is not found? If it is found SDL can get to $6- per share if everything goes well. There could be some massive highs and lows on the way though.

I purchased at $0.45 average. This buy figure I am not happy with under these circumstances. “Peakey” posted a chart (Charts I don’t usually pay too much attention to) when I was about to buy at $0.25. (perhaps a bear market he said) Then in a blink of an eye the share went to $0.50. I considered buying at $0.16 then at $0.25 and then I found myself owning at $0.45.

I’m out because I purchased too late. Good luck guys.

 

[gfresh]

Announcement today.. selling off their copper assets in South America... A good sign they have confidence they will be able to move forward wholy with their Cameroon project?? and divest themselves of non-core assets?

Agree?? Disagree?? Nothing to note?

 

[jwrt]

Definitely agree. Things are looking interesting.
I see quite a future in Cameroon and Sundance will definitely play a big role.

So far we have a a rail line and a deep sea port being built by the U.S firm Hydromine (of which Peter Briger Jnr. is President of and also President of Fortress Investments), China giving $100m in aid to Cameroon and some low-interest loans, plus Sundance seemingly making this their exclusive project.

 

[Bushman]

Yep I agree too. Good time to ditch a non-core project and focus on a potential company maker.

100% focus is needed on Cameroon as it needs aggressive drill program to kick off a BFS/capital raising asking for up to 2.5b USD in Capex to earn EBIT of $800 USD per year. Huge numbers based on historical UN estimates at the moment. ** EBIT is from the memory banks but the numbesr are all quoted from reports on the SDL website.

All starts with the drill results.

Any ideas who's on the short list for a JV party for Sundance? Be interesting to see who takes the punt...

 

[jwrt]

Yep I agree too. Good time to ditch a non-core project and focus on a potential company maker.

100% focus is needed on Cameroon as it needs aggressive drill program to kick off a BFS/capital raising asking for up to 2.5b USD in Capex to earn EBIT of $800 USD per year. Huge numbers based on historical UN estimates at the moment. ** EBIT is from the memory banks but the numbesr are all quoted from reports on the SDL website.

All starts with the drill results.

Any ideas who's on the short list for a JV party for Sundance? Be interesting to see who takes the punt...

This capital raising has had a pretty hefty chunk taken out of it now that plans for the port and rail haven been announced and are fully funded by Hydromine (so far anyway!).

 

[Out Too Soon]

Hope they,ve done the right thing putting all their eggs in the Cameroon basket, then again their efforts aren't split between different sides of the world now, the directors are certainly lining their pockets.

 

[AussiePaul72]

G'day all......yes i hope it is a good sign that they are concentrating on Cameroon. I got in on this one at 0.23 and so have done well to date . It would be a shame to lose it now. Hopefully more good news to come!

 

[dubiousinfo]

SDL paid around $1.8 mil for the Mantes Grandes Copper Project in 2005 calling it an exceptional opportunity, now selling for $500k.
So did they pay too much, or are they giving it away cheap?

 

[golfmos123]

Agree with MR's analysis - there does appear to be something going on. My position is relatively large (for me!) averaged at 24c. So have made good money to date. But - and it's a but - if the next results can define deposits over 700Mt, then we are talking big league. TO me the real issue is are they going to try to develop it themselves, or are they going to attract a large predator? Either way, the SP has to rise IMHO. I am happily sitting while the SP sits in the 47-53 range and believe it must go up, the $64M questions are of course, when and by how much??

Need patience - SP holding in a decent range, no sign of breakouts yet. Looking at increasing holdings but probably won't do so until either vol's increase or SP starts to move breaking out to the north. Have said that all before here so it's not new.

Have a couple of other contacts who also own SDL and they are far more bullish than I. For what it's worth (close to zero), one is staking a large fortune on it rising strongly over 6 months (dollar-ish) and going much further over the following 12mths (few dollars-ish).

Peakey - any other thoughts to add????

 

[Peakey]

Peakey - any other thoughts to add????

Nah, you pretty much summed it up....

Trading between .47 - .53. Trading outside of this range will determine which way we go (for the short term anyway imho). My finger is on the exit button if it closes below this range, equally my finger is on the buy button if it closes above this range.

Peakey

 

[the barry]

Regardless of what the chart states, I am riding this one out till the resource is confirmed in december. Hopefully we will get some information along the way which will keep the share price moving up, but I think this could trade as low as the 40 cent mark on a market correctio and as high as the 55 cent mark till then. Furthermore, whatever talbot's average price per share is, he is still increasing his holding at these price levels.He is a shrewd business man with a knack of taking large stacks in companies which end up doing very well.

 

[gfresh]

The funny thing is, absolutely nothing has changed

All I can speculate at the moment people buying in at high 40's, hoping for an announcement "any day now", and then panicking out as things head southward for a little bit. So is everything else last couple of days, so nothing to worry about if you ask me with this stock in particular.

 

[Lachlan6]

I entered (SDL) at 50c and see no real reasons for worrying yet. In fact the chart is displaying a bullish signal at the moment in my opinion. The activity from early June to today is actually the formations of a bullish flag continuation pattern and I am now waiting a break either side of this for confirmation of my next move (i.e scaling in, or exiting completely). Today's close was off the lows and is close to the support line so we may have a bounce soon.

One negative is the divergence in the MACD with price, but again this is only an indicator and I will wait for confirmation first in price activity.

 

[Piggy Bank]

Hi Guys! SDL closed today at 0.42 whereas this time last week the stock closed at 0.48. I think those who bought last week are hoping for a positive annoucement soon! Buyer support currently appears to be in the low 40's. Any thoughts on what will happen if the share price drops below 40 cents?

 

[Fab]

Hi Guys! SDL closed today at 0.42 whereas this time last week the stock closed at 0.48. I think those who bought last week are hoping for a positive annoucement soon! Buyer support currently appears to be in the low 40's. Any thoughts on what will happen if the share price drops below 40 cents?

Looks like some profit taking to me. If you bought at 7cents few months ago this is a good profit to take. I read that Iron ore price are due to be negotiated soon and should be review upward as well as some drilling results should come soon so this should push the share price up soon. The question is when?

Can anyone tell me when the half year result season starts as I understand it has started in the US but not here

 

[tezz]

all I know is that most stocks will be releasing there 4th quarter activities reports at the end of this month, yearly income statements are usually at the end of the year or early next year,
Lot of profit taking on SDL today, alot of traders are negative about this stock because of the huge task of building a railway and wharf, the cost about 2 billion I think it was, with the help from Governments and a 20% rise forcasts for iron ore I'm positive, plus it will open up that remote area and could be a huge asset with a billion or more tons of hematite 60% fe it will be an important mine, they do have alot of share holders in Europe including a superannuation company in London.

 

[Nasdaq]

This was in the Cameroon Tribune on the 11th July.

This revisit of the mining sector in the country and its importance in jump-starting the economy is very much informed by the visit last week of Mr George Jones, the chairman of Sundance Resources Limited, a strategic partner to the Cameroonian company, CAM-IRON SA which is starting a giant iron ore project around Mbalam, Ngoila Sub Division, East Province. The project will take a whopping CFA 1,250 Billion (about USD 2.5 Billion). In an economy in dire need of jobs for numerous unemployed youths, the 3,000 construction job openings come as welcome relief. At the end of the construction phase, permanent jobs will stay at around 1,000. Quite a reasonable figure too!

Apart from fiscal and other benefits the economy is expected to draw, several social amenities are accompanying the project. Already, a motorable road now links Ngoila with the project site. CAM-IRON will construct a 450- kilometre railway line between Mbalam and Kribi and a port in Kribi among other things. These are serious commitments, coming, as it were, from an Australian partner. As the Minister of Mines has aptly indicated, the opening of the Mbalam mine is a clear illustration that the mining sector could be an important booster in the development of Cameroon.

Perhaps some good driil results might help.

 

[jwrt]

http://yaounde.usembassy.gov/ambassador_remarks_american_chamber_of_commerce.html

The U.S Ambassador to Cameroons speech on the future of business in Cameroon.

"The U.S. firm Hydromine signed the first BOT agreement in Cameroon’s history for the construction of a rail line and deep sea port. Hydromine’s planned projects in Cameroon exceed the value of the Chad-Cameroon pipeline.

Their vision is ambitious: a new rail line from Edea to Grand Batanga, where Cameroon will finally have the deep-water port that it needs to remain competitive and dominant in the sub-region.

This future deep-water port will attract other investments, including the development of a major iron ore mining operation in the East province."

Hydromine has links to Fortress Investments.