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.
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.
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!
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.
Same here! Great job, Muffin Man and Co., highly appreciated!! :iagree:
Now, let's hope and....wait!?!
...R K Sharma, director general of Federation of Indian Mineral Industries...
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.
Not sure about snoopandsnap (the investment banker) with his position on SDL
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
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