SDL - Sundance Resources

[CarbonSteel]

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.

Lets not lose sight of the real intent here. That intent, I believe, is to raise the SP (and therefore interest in the SPO) as much as possible. They are playing with the Authority and the minor shareholders. Be honest, it does occur and the BIG BOYS see it as a necessary corruption of the truth!

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.

IMHO, It will take a lot longer. They are only pumping the SP right now. Meaningful announcements are far, far away.
For those who want a bigtime announcement forthwith, I think you will be disappointed.

This is not an "instant gratification" type stock. If you say you are a long term holder, then I really believe that you will need to remain a long term holder to profit from this stock.

Be prepared to be disappointed on a daily basis (called a "shakeout, I believe)
for the next 2 - 3 years. Then you will get your richly deserved payback. Small to nothing or less if you are a day trader, but very big if you are a long term investor.

For those who think they are on a winner and will make it big within the next year, my opinion is that you will be very, very disappointed.

Всё

 

[quinn123]

Would somone be able to post up the article from the australian financial review? Or give me the gyst of it please.

 

[DowJones]

I'm considering getting the shareholder option of 5k share @ 8c each to average down my current holding .

Anyone else considering doing the same?

If SDL continues to hold til the new shares being issued, it is a good discount.

I am bullish long term as their assets are significant, with potential Chinese interest for injecting capital (AFR) - apparently they are pro-Africa for securing their resource needs .

 

[CarbonSteel]

I'm considering getting the shareholder option of 5k share @ 8c each to average down my current holding .

Anyone else considering doing the same?

If SDL continues to hold til the new shares being issued, it is a good discount.

I am bullish long term as their assets are significant, with potential Chinese interest for injecting capital (AFR) - apparently they are pro-Africa for securing their resource needs .

I am considering the following.... Sell enough shares in the next few days ( at a price above $0.08) to get $5000. Then apply for $5000 worth of shares as per the offer. E.g. ... Sell 55,556 @ $0.09 = $5000. Then ... Buy $5000 worth at $0.08 = 62500 shares. So, I will have increased my holding by 6944 shares at only the brokerage cost of selling the 55,556 ($32).

While this strategy does not take account of dilution, my holding will be diluted whether I opt in or not, so I might as well opt in.

And the company gets an extra $5000, so it's a win, win.

 

[Piggy Bank]

Sundance are being very proactive about the current capital raising! Just got off the phone from an SDL representative who called to ensure I had received my offer documents. Apparently, SDL have employed a team to make contact with ALL eligible shareholders before the closure date of the offer. Expect a call... I am leaning towards taking up my full entitlement

 

[CarbonSteel]

Sundance are being very proactive about the current capital raising! Just got off the phone from an SDL representative who called to ensure I had received my offer documents. Apparently, SDL have employed a team to make contact with ALL eligible shareholders before the closure date of the offer. Expect a call... I am leaning towards taking up my full entitlement

Well, I followed through on my threat and sold 50330 SDL on Tuesday at 10 cents exactly. This gave me $5000 plus covered brokerage for the sale. I will now apply for my $5000 entitlement at 8 cents and will (if there is no scaledown) be issued with 62500 SDL shares. So, effectively, I have gained 12170 free shares. I'm happy with that! And I've supported the company that I've chosen to invest in long term!

 

[Pythagerous]

Below is a link to an Open Breifing with Don Lewis. Interesting read and sounds promising.

http://www.sundanceresources.com.au/media/20822/capital raising and project update.pdf

 

[Pythagerous]

Here is a link to the BBY report.

http://www.sundanceresources.com.au/media/20779/bby report april 2009.pdf

Interesting to read that Sundance controls 3,755 square kilometeres of land. To put this in perspective, it is only 3,300 Kilometeres from Melbourne to Cooktown in far north Queensland.

It is also about 3,960 kms from Sydney to Perth.

I don't know if I have worked it out right, but to me, that seems like a massive amount of land that the have control of.

 

[Sean K]

Here is a link to the BBY report.

http://www.sundanceresources.com.au/media/20779/bby report april 2009.pdf

Interesting to read that Sundance controls 3,755 square kilometeres of land. To put this in perspective, it is only 3,300 Kilometeres from Melbourne to Cooktown in far north Queensland.

It is also about 3,960 kms from Sydney to Perth.

I don't know if I have worked it out right, but to me, that seems like a massive amount of land that the have control of.

I think you might find that Australia is about 7.5m square km, to put that in perspective. 7.5 million... Still 3,700 is quite a paddock. Not much good unless there's something valuable under it though.

 

[skc]

Here is a link to the BBY report.

http://www.sundanceresources.com.au/media/20779/bby report april 2009.pdf

Interesting to read that Sundance controls 3,755 square kilometeres of land. To put this in perspective, it is only 3,300 Kilometeres from Melbourne to Cooktown in far north Queensland.

It is also about 3,960 kms from Sydney to Perth.

I don't know if I have worked it out right, but to me, that seems like a massive amount of land that the have control of.

You are confusing distance with area!

3755 square kilometres is around 61km x 61km. It's more like Bondi to Penrith. Nowhere near the perspectives of Sydney to Perth!

 

[Pythagerous]

SKC, me and my thimble research. I didnt think it was right, yet my google searches lead me to think otherwise.

Thanks for clearing that up. I was going to say, that I didnt think Cameroon was that big.

 

[Pythagerous]

With the Share offering closing on Friday, I was hoping that some might be able to give me some advice.

1. What date do we actually aquire the shares?
2. When do we find out if we recieve the full requested volume?
3. Is there going to be a mad sell off of shares on the day everyone recieves their shares?

 

[The Muffin Man]

1. Dates a on the website and in the information sent to holders.
2. See above.
3. Yes, it is a possibility until the share price being traded on the market hits the SPP cost of 8c. Some will have engaged the offer to sell for above 8c.

 

[Pythagerous]

One would imagine that there are a few nervous SDL shareholders out there, that sent their cheques off when they were trading at 10c, only to find that they have traded as low as 8.5c today.

 

[CarbonSteel]

One would imagine that there are a few nervous SDL shareholders out there, that sent their cheques off when they were trading at 10c, only to find that they have traded as low as 8.5c today.

I would imagine that most sold $5000 worth at 9 - 10 cents and used the entire proceeds to buy $5000 worth at 8 cents. They will soon hold 1000's of "free" shares, and won't stress too much about the 8.5 cents scenario.

I really don't think that there will be meaningful price movements for some time to come, and if people are stressing about a 2 cent movement, perhaps they would be happier elsewhere. At this stage, I stay with it because I really believe this stock will be a success.... ONE DAY. Not tomorrow or next month or maybe even next year, but I think within 3 years I will be happy I stayed.

 

[talktome]

In regards to the latest broker report by BBY April 2009, (pages 3 & 4, Tables 1 & 2), there is considerable up-side in value for SDL regarding an increase in future iron ore prices and decrease in capital expenditure.

Are these figures achievable?

There's not much SDL can do about IO prices but what is the latest on capital expenditure? From memory there hasn't been a specific announcement on Cap Ex.

Any thoughts ladies and gents?

talktome

 

[talktome]

Found this:

"We have recently had a major contractor on site reviewing the two options and will continue work to refine and develop the optimal solution. This will include review of our capital cost estimates which were last updated in early 2008. We are certainly seeing potential for reduction in our previous capital cost estimates due to significantly more competitive market conditions."

Don Lewis - April 16th 2009 interview.

talktome

 

[The Muffin Man]

Announcement released today, $15m has been raised (assuming the placement to Talbot Group gains shareholder approval which I'm sure it will)

What are everyone's thoughts on the SPP response and the overall amount raised? Those commenting within the announcement seemed pleased by the level of response. I would like to see what SDL's cash position is now, but if I'm correct, a March Quarterly cash flow report was never released so it would be impossible to ascertain at this point. In any event, they should have enough to see out the year, considering they have ceased drilling at Mbalam having already identified their target resource level.

 

[paddy]

Muffin Man - I'm pretty sure that the quarterly cashflow and activity statements are due at the end of the month following the end of each quarter. Therefore we should get these reports for the March quarter either today or tomorrow, then we'll be able to figure out SDL's (relatively) current cash position

 

[RP_Automotive]

SDL may have waited untill the last minute so they can include share placement figures in the report, scene as it was only 'signed as sealed' yesturday.