SDL - Sundance Resources

[CarbonSteel]

SDL going great guns. What an excellent stock. I told you bag holders to get out two weeks ago when it was 11 cents.

It will continue to go down as the project will never go ahead. If so, it would be at least 10 years time but i doubt that as the ore is located in the worst possible place. You can have 10 billion tonnes of ore but if you cant get it, its worth about the 400k they originally paid for it.

FMG up over 30% in the last 2 weeks.
BRM up over 14% but SDL down 20%. Does that not tell you something?

I would buy around 5 cents and buy a few instead a McDonalds burger.

Have fun.

:iamwithst Are you for real man? Are you even on this planet?

I guess the risk you run when you make comments designed to direct people to buy shares in a company in which you hold shares, is that it is possible to lose credibilty. You become to sane, intelligent people, The Little Big Man, a veritable legend in your own lunchtime. Please post more, you are the most amusing plaything! Oh we'll have fun alright! With your posts!
Try posting sober, see if it makes a difference.:cowboy:

 

[jonojpsg]

I would have thought finding 50% of costs so far would be relatively straightforward - look at annual report last year and year before then quarterlies this year and add them up.

From what I can see, looks like about $55m all up on exploration and evaluation from July 2007 till now. Don't know if that's what the gov't pays 50% of, but if so would give SDL another $30m or so. That would definitely tide them over until they get a major JV or offtake organised IMO

 

[The Muffin Man]

I would have thought finding 50% of costs so far would be relatively straightforward - look at annual report last year and year before then quarterlies this year and add them up.

From what I can see, looks like about $55m all up on exploration and evaluation from July 2007 till now. Don't know if that's what the gov't pays 50% of, but if so would give SDL another $30m or so. That would definitely tide them over until they get a major JV or offtake organised IMO

If you look at the June 2008 Financial Report, you can see under the Non Current Assets section of the Balance Sheet the line item 'Exploration and Evaluation Assets' with a balance of around $64.37m.

From what I can gather, Sundance is capitalising their exploration and evaluation costs into this asset account. If you follow down to the corresponding note (note 14), it breaks up this $64.37m balance into the Mbalam Iron Ore Project and the Congo Iron Ore Project. Mbalam currently holds $64.27m of that balance.

Now, you need to add on exploration and evaluation costs for the last two quarters, but remembering that there has been further exploration of the Congo site in this period also.

The September quarter showed exploration and evaluation of $12.36m, let's say that $9m of that was spent on Mbalam to be on the conservative side.

The December quarter showed exploration and evaluation of $9.9m, let's say $6m of that was spent on Mbalam to be on the conservative side.

So we have the initial $64.27m held in the asset account that has been capitalised, and $15m from the first half of operations so far this year, which totals $79.27m. This is just a rough estimate and includes no other expenses that have not been capitalised during the time Mbalam has been developed.

It depends on how the company has accounted for items like consulting fees for instance. Consulting fees appear in the June 2008 Financial Report in the Income Statement. If these consulting fees were to do with Mbalam should they also be added to the end sale figure to the Cameroon Government? That's what I mean by there being some grey areas where only the company and Cameroon Government will know the real figure.

Feel free to pick this apart but I'm pretty confident that the Exploration and Evaluation Non Current Asset will be a very good starting point in figuring out how much has been spent developing the Mbalam site, then you need to add on this years current expenses.

 

[CarbonSteel]

If you look at the June 2008 Financial Report, you can see under the Non Current Assets section of the Balance Sheet the line item 'Exploration and Evaluation Assets' with a balance of around $64.37m.

From what I can gather, Sundance is capitalising their exploration and evaluation costs into this asset account. If you follow down to the corresponding note (note 14), it breaks up this $64.37m balance into the Mbalam Iron Ore Project and the Congo Iron Ore Project. Mbalam currently holds $64.27m of that balance.

Now, you need to add on exploration and evaluation costs for the last two quarters, but remembering that there has been further exploration of the Congo site in this period also.

The September quarter showed exploration and evaluation of $12.36m, let's say that $9m of that was spent on Mbalam to be on the conservative side.

The December quarter showed exploration and evaluation of $9.9m, let's say $6m of that was spent on Mbalam to be on the conservative side.

So we have the initial $64.27m held in the asset account that has been capitalised, and $15m from the first half of operations so far this year, which totals $79.27m. This is just a rough estimate and includes no other expenses that have not been capitalised during the time Mbalam has been developed.

It depends on how the company has accounted for items like consulting fees for instance. Consulting fees appear in the June 2008 Financial Report in the Income Statement. If these consulting fees were to do with Mbalam should they also be added to the end sale figure to the Cameroon Government? That's what I mean by there being some grey areas where only the company and Cameroon Government will know the real figure.

Feel free to pick this apart but I'm pretty confident that the Exploration and Evaluation Non Current Asset will be a very good starting point in figuring out how much has been spent developing the Mbalam site, then you need to add on this years current expenses.

Thank you Mr Muffin Man for your objectivity. I believe you have answered my question in the most pragmatic way.
Let us now hope that Lewis and Co are thinking the same way!
It must be obvious, and I make no apology, that I am kinda new at this and did not have the experience to find information upon which I could rely in this forum, so your input has been most helpful!

 

[Singapore_Sling]

Thank you Mr Muffin Man for your objectivity. I believe you have answered my question in the most pragmatic way.
Let us now hope that Lewis and Co are thinking the same way!
It must be obvious, and I make no apology, that I am kinda new at this and did not have the experience to find information upon which I could rely in this forum, so your input has been most helpful!

Same here! Great job, Muffin Man and Co., highly appreciated!! :iagree:
Now, let's hope and....wait!?!

 

[MS+Tradesim]

I notice snopandsnap claims to be an investment banker...yet, s/he has a grand total of 5 posts, all in the SDL thread, and all downramping. Not exactly credibility enhancing input.

On topic, I vaguely remember in some SDL anns. about the project possibly qualifying for either World Bank or IMF financing due to its impact on the Cameroon economy. Perhaps someone who follows more closely remembers when/where that can be found. Would be interesting to see if something plays out on that front.

 

[quinn123]

hey,
just came accross some interesting articles.

China commodity imports to recover - Martyn Davies
If China turns on the taps for economic growth in the country commodity demand and investment in Africa will continue.
http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=78330&sn=Detail

Everybody looking for a deal at Indaba
Mining experts networking in the halls of the Cape Town Indaba says mid-tier companies are looking for acquisitions as there are great bargains to be had.
http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=78246&sn=Detail

Miners don't need banks
In the past few months, mining companies have raised USD 30bn, directly from keen investors keen to lock in great value.
http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=78436&sn=Detail

Cheers

 

[CarbonSteel]

I notice snopandsnap claims to be an investment banker...yet, s/he has a grand total of 5 posts, all in the SDL thread, and all downramping. Not exactly credibility enhancing input.

On topic, I vaguely remember in some SDL anns. about the project possibly qualifying for either World Bank or IMF financing due to its impact on the Cameroon economy. Perhaps someone who follows more closely remembers when/where that can be found. Would be interesting to see if something plays out on that front.

Apparently, Rio Tinto isn't taking advice from snopandsnap either...even after his outburst about African projects never getting off the ground!

http://www.reuters.com/article/euDealsNews/idUSTRE51C5GY20090213

 

[The Muffin Man]

Same here! Great job, Muffin Man and Co., highly appreciated!! :iagree:
Now, let's hope and....wait!?!

No problems, that's just how I believe they might come to the figure.

You have hit the nail on the head with the hope and wait thought I think. With current economic conditions as they are, securing strategic partners / offtake agreements may take longer than what has been the case for mining projects in recent past. Hopefully the Cameroon Government comes to the party shortly and takes up the extra 15% of CamIron on offer so that SDL can secure their cash position for a longer period of time.

I'm not sure about the World Bank question, but also remember reading that the project may qualify for funding from those kinds of organisations. I'm not sure how that side of things works though.

 

[CarbonSteel]

...R K Sharma, director general of Federation of Indian Mineral Industries...

I dont know if this organisation is credible, but their opinion is nice to hear!

http://www.business-standard.com/in...-set-to-doubledemanddragon-land/01/05/349121/

 

[CarbonSteel]

SDL going great guns. What an excellent stock. I told you bag holders to get out two weeks ago when it was 11 cents.

It will continue to go down as the project will never go ahead. If so, it would be at least 10 years time but i doubt that as the ore is located in the worst possible place. You can have 10 billion tonnes of ore but if you cant get it, its worth about the 400k they originally paid for it.

FMG up over 30% in the last 2 weeks.
BRM up over 14% but SDL down 20%. Does that not tell you something?

I would buy around 5 cents and buy a few instead a McDonalds burger.

Have fun.

Interestingly, from 17/08/04 till 26/04/07, Brockman traded in a very narrow range of $0.16 - $0.23. i.e over a period of 2yrs & 8mths. Then ... WHOOMPHA!...traded at above $2 from April till July '08, and is now languishing around the early $1 mark, making a big noise about the ability to produce 2Mt/pa. If SDL can't do better than that, I'll be looking for partners for a suicide pact! :microwave

 

[big sal]

One thing certain with SDL is its potential tonnage is huge with a long mine life if/when it gets up and running. They are moving things forward in a positive way and the 12 confidentiality agreements signed tells us there are a number of interested parties. Reckon soemone would love to get involved in this one given the potential upside.

The Cameroon government seem supportive of the whole project, and it would be a huge step forward for the nation.

I bought in at .10c happy to go along for the ride and see what transpires, but as I see it there is way more potential upside than downside, it’s only 12 odd months ago the share price hit about $1 (admittedly during the now not so recent iron ore boom), it won’t hit that again in the next 6 months but stranger things have happened.

CarbonSteel, i'll take SDL at $1-2 anyday!

Not sure about snoopandsnap (the investment banker) with his position on SDL with little justification, only guessing here but probably trying to push the price down to get in at a better $ than the current level at around .09c?

 

[bassmanpete]

Not sure about snoopandsnap (the investment banker) with his position on SDL

After what's happened in the last 15 months or so, would you trust what ANY investment banker has to say?

 

[Agent 86]

There is now a new breed of participant in the financial community - they are called investment w*nkers.

 

[light]

Good morning, fellow SDL holders!

Not sure if this is still a news to everyone, but I have just found an article saying that SDL is planning to announce a strategic partner within the next three months.

http://www.metalbulletin.com/Articl...unce-Mbalam-partner-in-next-three-months.html

As the article is for subscribers only, I could not get much further details.

Does anyone know anything more about this?

 

[risdon]

Yeah old news. Here is the article, came out last week.Intersting that Don says there not concerned about the current economic conditions.Gives me confidense in believing they have a few offers on the table and are negotiating the best terms.

***MINING INDABA 2009: Sundance to announce Mbalam partner in next three months

12 February 2009 13:55

Australia-listed iron ore explorer Sundance Resources, with operations in Cameroon, plans to announce a strategic partner within the next three months to help develop its $3 billion Mbalam project in the southeast of the country.

Mbalam, with an inferred resource of 2.4 billion tonnes of ore of itabirite and DSO quality hematite ore, has the potential to support production at 35-50 million tpy of high quality ore for 20 years, which would make it one of the biggest iron ore projects in Africa.

“We’re not concerned about the current economic conditions. We will endeavour to get the best terms, but we want to progress with the project,” ceo Don Lewis said at the Mining Indaba in Cape Town. Finance for the project is only expected to be finalised towards year-end, according to Sundance’s timeline.

Sundance had cash reserves of A$19 million ($12.3 million) at the end of December, and said its exploration and development expenditure has been significantly reduced following the completion of drilling activities on site.

Lewis said numerous companies have expressed an interest in becoming involved, and the ideal partner would be able to offer offtake agreements and construction capabilities. The ideal situation would be an equal joint venture which includes Sundance, with operating experience in the country, Lewis said.

The Mbalam deposit is located 485 kilometres inland, and will require a railway line or slurry pipeline and deepwater port to be developed.

“Major infrastructure requirements are not uncommon in the iron ore industry. Any of the new major iron ore projects are looking at infrastructure on this scale,” Lewis said.

Mbalam is being developed by CamIron SA. Sundance owns 90% of CamIron, with the remainder being held by Cameroonian investors. The Australian junior also controls an extensive area in the Republic of Congo immediately south of Mbalam

 

[light]

Thanks risdon

Let's hope they can select a good partner and together push this stock to where it should be

 

[big sal]

Sounds encouraging! Provided they have at least two genuinely interested parties they will retain some real bargaining power in the process.

 

[Miner]

Good posting Risdon

I wish they should get a good non chinese partner. If the partner is a CHinese company then they may elect to moth ball SDL by creating demand for other CHinese owned IO operations to serve the interests of Chinese steel maker.

They will have no interest to help Cameroon and around countries through the ore mined from SDL

Just a word of caution to SDL owners

I Hold SDL

 

[CarbonSteel]

Good posting Risdon

I wish they should get a good non chinese partner. If the partner is a CHinese company then they may elect to moth ball SDL by creating demand for other CHinese owned IO operations to serve the interests of Chinese steel maker.

They will have no interest to help Cameroon and around countries through the ore mined from SDL

Just a word of caution to SDL owners

I Hold SDL

I understand your point of view Miner.

However, as the Chinese are currently trying to negotiate prices downwards, and Rio has unconcernedly (is that a word) walked away from negotiations, it appears that mine owners have the upper hand. (Perhaps a parallel example - Would we tell the Saudis that we don't want to buy any oil from them ever again?) So, I guess my point is that the Chinese best interest would actually be to operate and mine the hell out of Mbalam and use this readily available supply as their bargaining chip with Rio, BHP and Vale.

It seems that the Chinese are not averse to playing games to try to advance their case for the purposes of negotiation. The Indians were quoted early last week as saying they expected large increases in IO prices because the Chinese were so active. Next thing they report is that Chinese buyers have disappeared. Can't be found/contacted anywhere. They even looked under the beds! Also, the BDI rocketed up over the last 4 weeks or so, and when analysts pointed to this as a reason to expect increases in IO shipments (and therefore prices), hello, the BDI retreated for 3 or 4 days. Even the shipping companies were perplexed by this about face. However, it has increased again over the last 4 days. The BDI has increased from approx. 860 points on 19/01/09 to approx. 2100 points on 20/02/09 (240%!!! - I have been graphing it.). Someone intends to ship a lot of drybulk! (and the domestic Chinese wheat supply is being touted as healthy - so it's not wheat!)