Australian (ASX) Stock Market Forum

SDL - Sundance Resources

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Wow....volume is now 70mill and up 1c. Is SDL leaking like a seathe again, or does everyone know it leaks like a seathe so is just jumpng on 'incase'.
 
You would have to think that something is going on. Up 15% and 77m shares traded. Trading today is absolutely out of the normal. So, who is buying into SDL heavily? There have been some rare 25m-30m trading days lately, but 77m? Watch this space I would think.
 
Sorry Pete, yes sieve :)

Up 22.5% now. Something is definitely up. When I saw the spike this morning I thought it gradually die out (as it often does) but this time its kept on running...
 
There will no doubtedly be some share traders that will take the profits before the day is out though, I don't expect it to finish the day as high as current levels. But still, very impressive, both the rise and and volume level.
 
went up to 31% at one stage 0.105 as usual must be some sort of announcement happening again hopefully it doesnt run out of steam but we know better :p: still holding.
 
What a day. Held solid and ended up 25%....but the volume 152mill!!!

Lets hope theres a good lead in the US tonight and we can hold onto our gains. If there is a announcement I look forward to it.

ocelot: Yes the options are looking better...early days yet but we'll see what happens.


Holding for long term.
 
Ocelot, my understanding is that if the shares are trading at higher than 8c, every man and there dog will take up the share offer, meaning that you won't be able to get the full $5000 worth.

Can anyone confirm if this is correct, and what the correct process is if everyone chooses to take up the offer.

As for the news, if there is an announcement, it can't be drilling results, so one would imagine that it would have to be information relating to:

- Finding a Backer
or
- Confirming particulars with the Cameroon Government
or
- Further information relating to the Rail and Port

With all of the above said, it could well just be just be another rally by the traders who love this stock.
 
Pythagerous said:
Ocelot, my understanding is that if the shares are trading at higher than 8c, every man and there dog will take up the share offer, meaning that you won't be able to get the full $5000 worth.

Can anyone confirm if this is correct, and what the correct process is if everyone chooses to take up the offer.

As for the news, if there is an announcement, it can't be drilling results, so one would imagine that it would have to be information relating to:

- Finding a Backer
or
- Confirming particulars with the Cameroon Government
or
- Further information relating to the Rail and Port

With all of the above said, it could well just be just be another rally by the traders who love this stock.
Click to expand...

That's the big question isn't it? Who is buying the shares and why? I don't think it would be a run of the mill rally by traders when you look at the numbers. If it were simply traders, they would have sold out and taken the profits to be had towards the end of the day. And I doubt you would have seen those kinds of volumes either. This was a day of constant and strong buying. As has been stated, rallies where traders are heavilly involved usually show signs of heavy selling and dpwnward pressure on price towards the end of the day. Just my opinion though.

Surely some kind of news has to be at hand. We have recently had days of 26m shares, 30m shares, and now 152m shares. In 2009 we have been lucky to see trading above the 10m share mark. So whats the news? Or who is increasing their share position?

It may well be something to do with the Cameroon Government or strategic partners, but if a deal with either was close, why would SDL announce a share purchase at 8c? Wouldn't it make more sense to get the deal done, wait for SP appreciation, and then either raise the same level of funds but issue less shares, or issue the same number of shares and receive more funds?

In any event, SDL has some pretty information hungry share holders I'm sure!
 
The big gain today could be due to the write up on SDL on page 15 of today's Financial Review. The report contained no new information, but quoted GJ as saying he was confident of having a major partner in place by the middle of the year
 
Rio Tinto to extend survey for planned Cameroon port - Report
Monday, 06 Apr 2009
Dow Jones reported that Mining company Rio Tinto PLC asked and got government permit to undertake a 3 months extra surveying for the planned deep sea port in the Cameroonian Atlantic town of Kribi.

Rio Tinto, a strategic partner of staterun Societe Camerounaise d'Aluminium, or Alucam, aiming to raise Cameroon's 90,000 tonnes of aluminum output to 400,000 tonnes and export shipments export will be via the 500 billion CFA franc port to be constructed and completed by 2013.

The port will also facilitate the transportation of oil products, iron ore, aluminum, cobalt and nickel.

(Sourced from Dow Jones)
Click to expand...

So, Rio is ensconced in "our" part of the world, and will be sharing a common port facility with SDL. I wonder if they'd be interested in mining a litttle IO while they're handy?
 
Here is the official response from Sundance in relation to yesterdays volume of trading. http://www.sundanceresources.com.au/media/20604/asx announcement - price and volume query.pdf

In regards to the below article, it says that RIO have got an extra 3 months for surveying the planned deep sea port in the Cameroonian Atlantic town of Kribi.

Rio Tinto to extend survey for planned Cameroon port - Report Monday, 06 Apr 2009

Dow Jones reported that Mining company Rio Tinto PLC asked and got government permit to undertake a 3 months extra surveying for the planned deep sea port in the Cameroonian Atlantic town of Kribi.

Rio Tinto, a strategic partner of staterun Societe Camerounaise d'Aluminium, or Alucam, aiming to raise Cameroon's 90,000 tonnes of aluminum output to 400,000 tonnes and export shipments export will be via the 500 billion CFA franc port to be constructed and completed by 2013.

The port will also facilitate the transportation of oil products, iron ore, aluminum, cobalt and nickel.

(Sourced from Dow Jones)


Just having a look at Sundance's proposed transport corridor, and it appears that they are proposing a port at the town of Lolabe. Does this mean that RIO are looking at developing a different port?
 
152 Mio. That is more than 7.5% outstanding shares.
Lets wait for announcement who bought and who sold.
It might be change of substantial shareholders........
 
Pythagerous said:
Here is the official response from Sundance in relation to yesterdays volume of trading. http://www.sundanceresources.com.au/media/20604/asx announcement - price and volume query.pdf

In regards to the below article, it says that RIO have got an extra 3 months for surveying the planned deep sea port in the Cameroonian Atlantic town of Kribi.

Rio Tinto to extend survey for planned Cameroon port - Report Monday, 06 Apr 2009

Dow Jones reported that Mining company Rio Tinto PLC asked and got government permit to undertake a 3 months extra surveying for the planned deep sea port in the Cameroonian Atlantic town of Kribi.

Rio Tinto, a strategic partner of staterun Societe Camerounaise d'Aluminium, or Alucam, aiming to raise Cameroon's 90,000 tonnes of aluminum output to 400,000 tonnes and export shipments export will be via the 500 billion CFA franc port to be constructed and completed by 2013.

The port will also facilitate the transportation of oil products, iron ore, aluminum, cobalt and nickel.

(Sourced from Dow Jones)


Just having a look at Sundance's proposed transport corridor, and it appears that they are proposing a port at the town of Lolabe. Does this mean that RIO are looking at developing a different port?
Click to expand...

Read: http://www.sundanceresources.com.au...nnouncement - kribi deepwater port final.pdf

RIO is developing the Aluminium port, SDL is developing the Iron Ore Port. They are one and the same.

The big question is, how will the share trade today? I think there will be some profit taking.
 
Looks like a pretty impressive target too! This definitely adds spice to the Mbalam resource with the possibility of another Mbalam-like hit, at least as far as DSO haematite goes. If they could reproduce Mbalam in itabirite as well...then we might see some serious interest - a cool 5bn tonnes resource, wouldn't that be nice:D

Oh well, it's fun to dream.
 
Things seem a bit fishy to me.

Yesterday, there was an unsual high volume of shares traded, warranting the Australian Stock Exchange Ltd to send a "Price and Volume Query" to Sundance, asking for an explanation on the sudden surge.

That same day, Sundance respond and say "The Company is not aware of any information concerning it that has not been announced which, if known, could be an explanation for recent trading in Securities of the Company". They then go onto claim that the article in the Australian Financial Review is more then likely the reason behind the surge.

The very next day, Sundance issue a Media Release, announcing a significant target increase.

Am I the only one seeing this? Surely the surge was in anticipation of the media release announcing fresh news, not by an article that was run on page 15 of the fin review, rehashing old news that everyone already knew.
 
Pythagerous said:
Things seem a bit fishy to me.

Yesterday, there was an unsual high volume of shares traded, warranting the Australian Stock Exchange Ltd to send a "Price and Volume Query" to Sundance, asking for an explanation on the sudden surge.

That same day, Sundance respond and say "The Company is not aware of any information concerning it that has not been announced which, if known, could be an explanation for recent trading in Securities of the Company". They then go onto claim that the article in the Australian Financial Review is more then likely the reason behind the surge.

The very next day, Sundance issue a Media Release, announcing a significant target increase.

Am I the only one seeing this? Surely the surge was in anticipation of the media release announcing fresh news, not by an article that was run on page 15 of the fin review, rehashing old news that everyone already knew.
Click to expand...


You may be right Pythag. A lot of us are of the opinion that SDL tends to leak information early.

But, I wouldn't play down the significance of the report in the Financial Review. There were some confident remarks made within that article regarding partners by the middle of the year. That's extremely big news. For those following the stock intensely, it comes as a bit of a surprise as the vibe coming from the company has pointed towards this process taking longer than what was mentioned in the article.

Any news/statements regarding possible partners is going to have more effect on the share price than further resource announcements in my opinion. The upgrade in DSO target is fantastic news, and should help the economic arguement for the project without a doubt. But, I don't think the level of ore in that province as a whole has been the issue holding back the share price. It's about securing funding to get the project off the ground in the current climate.
 

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