SDL - Sundance Resources

[big sal]

http://www.bloomberg.com/apps/news?pid=20601081&sid=aQvo9XB4pspY&refer=australia

Cause for concern?
Might explain why the BDI is storming south again.

Those with projects on the go and with great potential, such as SDL, one would think, won’t be too concerned about what article’s like this one say about iron ore prices in the short term.

If contracts are signed in the coming months then that will determine where the SDL share price goes, not what the IO price will/may be doing in the next year or two.

SDL has a very large resource and could become a big supplier in the future, something SDL holders should not lose sight off.

 

[jman2007]

Those with projects on the go and with great potential, such as SDL, one would think, won’t be too concerned about what article’s like this one say about iron ore prices in the short term.

If contracts are signed in the coming months then that will determine where the SDL share price goes, not what the IO price will/may be doing in the next year or two.

SDL has a very large resource and could become a big supplier in the future, something SDL holders should not lose sight off.

Exactly sal,

One thing which has become apparent is that many base metal and IO developments during the last 3-4 years have not been able to time their project start-up with the peak in the commodity cycles. Of the one's that did make it, many came into depressed market condiotions and struggled financially e.g. Ravensthorpe.

Now is the perfect time to be exploring, discovering new ore bodies and laying the foundations for the recovery in metals prices, which admitedly no-one can predict for sure, but I don't think SDL will be over-concerned about the article.

jman

 

[CarbonSteel]

LOL. You're taking notice of a 'Citigroup says' article.

Good contra-indicator maybe.

As soon as there's a down day the bear articles surface.

The next 7% rally and the bulls will be front page.

So you think that advice given by Americas' second largest bank is nothing but a joke?

Why do you think that Citigroup has no credibilty?

I ask because I am kinda new and I didn't realise that Citigroup was chastised by experienced investors such as yourself.

Please enlighten me sir.

 

[CarbonSteel]

If contracts are signed in the coming months then that will determine where the SDL share price goes, not what the IO price will/may be doing in the next year or two.

So the IO price will have no impact on SP at any time in the future?

The SP will only be affected by the volume of contracts signed?

 

[Pythagerous]

To buy or not to buy, that is the question......

http://www.mineweb.com/mineweb/view/mineweb/en/page674?oid=80950&sn=Detail

 

[rogue_investor]

why buy? It's cheaper to buy on market now. If they are suggesting the 5 day VWAP will provide better value in the lead up to the offer closing then it's a sell now and buy later. I was thinking of buying more but don't quite get it??

 

[quinn123]

Apparently there was a fire at the Cam Iron Head office in Yaounde. I came accross this in a google search and don't know how credible the info is.

http://www.crtv.cm/cont/nouvelles/nouvelles_sola_fr.php?idField=3773&table=nouvelles&sub=national

 

[quinn123]

Strange trading this morning:

Higher volume than usual.
Share Quote as at 10:37 AM Sydney Time, Wednesday, 1 April 2009
Volume 10,532,71
% Change +9.09
Last 0.084

 

[Miner]

Strange trading this morning:

Higher volume than usual.
Share Quote as at 10:37 AM Sydney Time, Wednesday, 1 April 2009
Volume 10,532,71
% Change +9.09
Last 0.084

I think it is associated with issue of right shares at 8 cents and some interested parties to take hold of more shares too.

 

[ocelot]

As a shareholder in Sundance can somebody explain the shareholder offering in plain english? I received the package in the mail saying I could buy shares @ .08c Why wouldn't I Just buy them on the market? I don't understand

Thanks

 

[spottygoose]

When companies issue a SPP they are expecting that the price they offer will be a discount to the current price unfortunately, in this current market, quite often that is not happening. So in the meantime if you can get them cheaper on market then you would be wise to do so if you intend to increase your holding that is. My guess is that by the time the SPP closes Sundance are hoping that the share price will be higher than the offer and hence people will take it up. Perhaps some news will be out before then, maybe they will try and prop up the price, who knows...

 

[The Muffin Man]

As a shareholder in Sundance can somebody explain the shareholder offering in plain english? I received the package in the mail saying I could buy shares @ .08c Why wouldn't I Just buy them on the market? I don't understand

Thanks

It's 8c, or the weighted average of the stock price for the 5 days leading into the stock offer date, which ever is lowest. So if the average is 7.7c for the 5 days, that's the price you will pay, not the 8c.

 

[The Muffin Man]

When companies issue a SPP they are expecting that the price they offer will be a discount to the current price unfortunately, in this current market, quite often that is not happening. So in the meantime if you can get them cheaper on market then you would be wise to do so if you intend to increase your holding that is. My guess is that by the time the SPP closes Sundance are hoping that the share price will be higher than the offer and hence people will take it up. Perhaps some news will be out before then, maybe they will try and prop up the price, who knows...

That would be nice! Also remember that the company gets the money you spend on a SPP. You buy off the market, it doesn't help the company one bit as far as rasing funds goes. 0.1-0.2 might be a small price to pay to make sure your funds go to the company if, and I say if, you are an investor in the company and not a trader/speculator.

 

[jonojpsg]

It's 8c, or the weighted average of the stock price for the 5 days leading into the stock offer date, which ever is lowest. So if the average is 7.7c for the 5 days, that's the price you will pay, not the 8c.

I believe it is actually a 5% discount to the VWAP over the five days prior to offer - so about 0.4c less if it is trading at 8c.

 

[Pythagerous]

I've got a couple of questions about the Share Offer and Sundance as a whole.

1. If every share holder decides to buy $5000 worth, will they have to reduce the maximum amount of shares available for purchase per shareholder under the share offer?

2. Is it fair to say that the share price probably won't go much higher then 8c until the share offer expires?

3. What is the difference between a "Rail or Slurry Pipeline", as mentioned in their latest presentation? Is it suggesting that transport is going to be by either rail or by a slurry pipeline?

4. How long does it take to build a 485km rail road, and does anyone have an idea of the torrain. There looks to be quite a few rivers that they need to build across, yet the graph, if i am reading it right, looks as though the land is quiet flat.

5. Hyperthetical. If Ken Talbot IS NOT 100% confident in Sundance finding a financial backer, for what other reasons might he invest a further $5 Million?

6. How much land does Sundance own rights too, and what percentage of this land has been untested or left for later?

7. Has there been any indication as to when further information on financing might become available? I note that their timeline inidicates that they are hoping to have it finalised by mid 2009.

 

[CarbonSteel]

I've got a couple of questions about the Share Offer and Sundance as a whole.

1. If every share holder decides to buy $5000 worth, will they have to reduce the maximum amount of shares available for purchase per shareholder under the share offer?

2. Is it fair to say that the share price probably won't go much higher then 8c until the share offer expires?

3. What is the difference between a "Rail or Slurry Pipeline", as mentioned in their latest presentation? Is it suggesting that transport is going to be by either rail or by a slurry pipeline?

4. How long does it take to build a 485km rail road, and does anyone have an idea of the torrain. There looks to be quite a few rivers that they need to build across, yet the graph, if i am reading it right, looks as though the land is quiet flat.

5. Hyperthetical. If Ken Talbot IS NOT 100% confident in Sundance finding a financial backer, for what other reasons might he invest a further $5 Million?

6. How much land does Sundance own rights too, and what percentage of this land has been untested or left for later?

7. Has there been any indication as to when further information on financing might become available? I note that their timeline inidicates that they are hoping to have it finalised by mid 2009.

1. Yes. See Share Purchase Offer @ Sundance website.

2. It is very tempting for the company and its' major shareholders to ensure that the SP is above 8 cents at the end of the "5 per cent discount to the volume weighted average price (VWAP) to three decimal places of shares traded on the ASX in the five trading days up to and including the scheduled offer closing date." Put Simply, this will attract more new capital.

3.It will be by rail or slurry line. Slurry Line? Mix it with water and pump it.

4. Don't know. No. Yes and yes.

5. When I, as a poster asked essentially this same question, those who are a little more sceptical than I, say that even big players make mistakes. I guess they're right. Look at the US banks!

6. They have sh*tloads of land and preliminary test drills indicate possible large deposits in DRoC, not to mention adjacent landholdings in Cameroon. Again, go to the Sundance website.

7. Don't hold your breath on this one. The only certainty is that things in this regard will remain uncertain. I have a feeling that the educated money will have bought to the point of financial obesity before us little guys are told. If you analyse the recent raids (two in the last few days) it looks like something is imminent. But is that just manipulating the SP? Who knows?

SDL is considered a "speccie" I'm told. As such, information will be scant and you can expect educated money to be well in front of you.

In my own instance, I believe this company will go places. I don't know when exactly, but I do know that if I don't own shares, I will miss a very big opportunity if they succeed. That's my own philosophy. It is NOT intended to be advice or inducement.

Remember that there may well be folks in this very forum who paid 45 cents or more for the privilege of owning SDL in the not-to-distant past!

DYOR. Cheers.

 

[zmalecki]

Remember that there may well be folks in this very forum who paid 45 cents or more for the privilege of owning SDL in the not-to-distant past!

DYOR. Cheers.

They are
I'm one of them, but I think there is huge potential in this company.
This is a reason that when price went really down, I'm still increasing & increasing position.
There is a risk in there, but expected value is compensating it with huge margin.

 

[LRG]

3. What is the difference between a "Rail or Slurry Pipeline", as mentioned in their latest presentation? Is it suggesting that transport is going to be by either rail or by a slurry pipeline?

Transporting by "rail" in wagons is sel explanatory (i hope)

Transporting by "slurry pipe" means a big pipe/s the raw material iron ore is transported wet as a slurry pumped along a pipeline from mine to port.

 

[talktome]

Hello Everyone,

With all the extra aerograms and the like, what would be your current conservative estimate of future resources that SDL may have, come 2012.

Kind regards,

talktome

 

[RP_Automotive]

Nobody can really say, but considering the acerage they have there is a chance for considerable upgrades. Untill the drill it though no point speculating. I would say no more drilling or proving up of extra resources will happen untill they go into production. Unless funding / JV is very generous.

P.S. Massive volumes and up 11% at this point.......