SDL - Sundance Resources

[CarbonSteel]

What do you think about the current price as a possible entry point?

// AJ

Today is the best possible day since the beginning of time to buy this stock..... if you think it will improve in price.

Today is the worst possible day since the beginning of time to buy this stock..... if you think it will decrease in price.

Hope this helps.

 

[jman2007]

What do you think about the current price as a possible entry point?

// AJ

bumclouds,

What kennas and Carbonsteel are trying to say is that none of us are allowed to endorse a particular stock and recommend that you buy it outright. That's what makes this site a little different from other stock forums perhaps.

A completely different scenario is one in which you present a case/argument based on your own research and what you know of the stock, kennas' bullet points are a good starting point. If you're still at a loss, there will be some very helpful threads in the beginners forum to point you in the right direction.

Good Luck

 

[samt75]

I agree with Kennas bullet points it's a pretty good way of looking at getting into a stock. I am a SDL shareholder and I hope this company will do well in the next few years.

 

[samt75]

They are going for a great run today they have hit 13c.
They have released a couple of Directors Interest Notices could this be driving the price up?

 

[Pythagerous]

There directors notices where just stating that both the Chairman and CEO took up the $5000 SPP.

Doubt this is the reason why we have seen a spike.

 

[jman2007]

There directors notices where just stating that both the Chairman and CEO took up the $5000 SPP.

Doubt this is the reason why we have seen a spike.

Agree,

Unlikely to be a small number of shares taken up by the Directors.

I am generally very suspicious of intraday tarding in SDL atm, there have been a number of days within the last 2-3 weeks where it has gone on a small run only to be sold down towards the end of the day.

Happy to proved wrong however.

 

[Jewels]

Whilst SDL has been getting sold down of late it would appear that over the past 4 to 6 weeks somebody (BBY perhapps) have picked up the ball and began to run with it. Whilst I have no doubt at all that we will see 8 to 8.5 cents again before we see 20cents, it looks like the general trend is up.
Remember GJ is expecting to announce offtake and financing arrangements in the June quarter, and once these announcements are made we should see a substantial re rating of the stock.
At current market cap I think the market is valuing SDL's Iron ore (in the ground that we know about) at less than 10 cents per tonne. Look at the aeromags, Mt Nabeeba is going to be at least the same size as Mbalam, and what about the congo? Realistically (and please don't accuse me of ramping) SDL could be sitting on 500% more ore than we already know about. (Check out the aeromags of the Congo for yourself and see what I'm talking about).
Once the ore is on the ship it will be worth $20/tonne to SDL. You do the maths.
It may go down to 8 cents again between now and June (personally I hope it does so that I can pick up some more) but I have no doubt the long term prospects for SDL are nothing short of sensational.
Beware though this is still a speccy stock and a political coup or change of government in Cameroon could see your investment in SDL evaporate.
Ciao......Jewels.

 

[CarbonSteel]

I wonder if we're going to see a "Response to Query from ASX" here shortly?

I think I know what the answers will be.....

Answer to Q1. - No
Answer to Q2. - N/A
Answer to Q3. - Don't know, just good luck I guess
Answer to Q4. - Coulda' happenend to anyone
Answer to Q5. - Would ASX like to buy some?

We deny any and all allegations and suggestions. If you think there's some insider stuff happening... Go ahead... prove it!:

 

[studmuffin]

Trading Halt requested pending upgrade in classification of resources at Mbalam.
Funny, how many shares changed hands today?..

 

[jman2007]

Trading Halt requested pending upgrade in classification of resources at Mbalam.
Funny, how many shares changed hands today?..

Always the way, the Directors mates are always the first to hear about it, and then the poor shareholders... the pecking order of life unfortunately.

On the other hand, SDL haven't been in a trading halt for a very long time. If it is a substansial resource upgrade, then this could really light a fire under the sp. Whether it be an increase in quality or quantity of the resource, this hopefully won't be lost on pontential partners and financiers - still a long way off in that regard imo however.

 

[Jewels]

Hey Bumclouds,

In answering your question, it looks like a sensational entry point!!
I guess the tension will build until the upgrade for Mbalam.
Remember this is an upgrade for Mbalam only, there are still all the rest of the tennaments to add to this, remembering Nabeba is likley to be at least the same size.
But going on recent announcements you would almost certainly expect the share price to fall after the announcement. Buy on rumour, sell on fact.

I'm wondering if there is likely to be an increase in DSO, if there is that could only be good for the share price.

We know we have a lot of ore, I guess the next big question is what sought of dilution factor do we need to do the deal?

Heres hoping fellow SDLers.
Ciao Jewels

 

[The Muffin Man]

Upgrade in the classification of resources at Mbalam. Could that possibly mean an upgare in the JORC term used to describe the resource? (Inferred, indicated, measured etc)

Unusual to go into a trading halt for an increase in resources, many of the previous resource upgrades haven't required trading halts.

I'm excited haha!

 

[Pythagerous]

Although I would imagine that everyone was hoping that it would be an announcement in regards to finance, I think an announcement on a resource upgrade is potentially alot better news.

The Mbalam project is already considered to be one of the worlds largest, any upgrade in resource that requires a trading halt must be quite significant.

A significant increase in resources at this stage, will increase the attractiveness of the project to potential investors, and it will also increase SDL's bargaining power in order to search for the best deal.

Although it would have been great to get news on finance, I think that this announcement is going to make it all the more sweeter when finance is actually announced.

 

[The Muffin Man]

I'm a little conerned that many are thinking the announcement will be an upgrade in resource levels. It could well be, but the wording of the announcement might suggest differently;

"Upgrade in the classification of resources"

Wouldn't the classification of resources have to do with the JORC tag applied to the resources?

 

[jonojpsg]

I'm a little conerned that many are thinking the announcement will be an upgrade in resource levels. It could well be, but the wording of the announcement might suggest differently;

"Upgrade in the classification of resources"

Wouldn't the classification of resources have to do with the JORC tag applied to the resources?

One would imagine so; however, with the current resource base consisting of only inferred tonnages, a shift towards indicated and measured is essential for achieving financing and partners IMO.

 

[The Muffin Man]

One would imagine so; however, with the current resource base consisting of only inferred tonnages, a shift towards indicated and measured is essential for achieving financing and partners IMO.

Without a doubt, getting the resource to measured may even be conditions before a deal is struck, I'm just suggesting we shouldn't be expecting monumental increases in the actual resource.

 

[jman2007]

I'm a little conerned that many are thinking the announcement will be an upgrade in resource levels. It could well be, but the wording of the announcement might suggest differently;

"Upgrade in the classification of resources"

Wouldn't the classification of resources have to do with the JORC tag applied to the resources?

Yes, you are correct Muffin, good spotting.

That's the word used in the ann, I should have paid more attention to it myself . This terminology used in the ann itself shouldn't be concerning, as conversion of Inferred Resouces to Indicated and Measured status is a requirement for the eventual estimation of Ore Reserves - which I stress will still be a long way off. Only Indicated and/or Measured Resources can be converted to Ore Reserves, but never Inferred Resources.

Generally when a company talks about drilling "extensions along strike", or "down-dip" extensions etc they are trying to increase the overall tonnage of the resource. When they talk about "infill" or "resource" drilling, they are not aiming to add substansial tonnage, but rather trying to increase the confidence in the resource using the three JORC qualifiers (Inferred, Indicated, Measured etc).

Cheers!

 

[sw3]

Has anyone noticed an upsurge in the bid price and a drop in the sell price (30,000 @ 0.265cps and 16799 @ 0.06cps? Although the actual volume is quite low, does anyone think that this is an attempt to ramp? Or perhaps someone's attempt to offload at an average price of approx 0.16cps ahead of the competition?

 

[Jewels]

Hi Team,
For what it's worth I think that I may have been a little excited about the trading halt.
Now that I've had a bit of time to mull it over, here's my 2 cents worth.
Remember a couple of weeks or so ago when the ASX gave SDL a speading ticket and their reply was that there was nothing that they were aware of that should effect the share price? Then the very next day released the "Target" for Mt Nabeaba? Well DL got a bit of a rap over the knuckles from the ASX. He weezled out of it by saying that as it was only a target that they didn't think that it was price sensitive. Now believe me there would have been a lot more that went on behind closed doors than what we were able to read on the ASX website.
I think that what we are about to see on Tuesday (if not before) is that our resource will move one rung up the JORC compliance ladder. After what I am sure was a very stern warning from the ASX, and given the volume of shares traded in the last week, along with the movement in shareprice, DL just didn't want to run foul of the ASX authorities. So to play it safe and to prevent the hysteria going on for another couple of days (and possibly seeing the shareprice at 15+ cents) SDL have requested a trading halt to prevent the newcommers to SDL from getting burnt.
However there is one thing that sticks in my mind. GJ at the Perth meeting saying that "when this thing is in full flight it will provide 20% of Cameroons GDP". That is a huge statement to make, and I am sure it would have been intentional, not just an off the cuff comment.
Anyway have a good weekend all, Jewels is off to pick up his new surfboard and head north for a few days to get to know her better.
Ciao....J

 

[CarbonSteel]

Looks like you nailed it Jewels...

From the West Australian - Saturday...

Shares in Sundance Resources were in a trading halt today pending an announcement about a resource upgrade at its flagship Mbalam iron ore project in Cameroon.

The company called the halt following a query from the Australian Securities Exchange about its share price, which leapt from 10.5 cents on Wednesday to 13.5 cents yesterday.

Sundance Resources attributed the rise to its recent $15.76 million capital raising, a presentation at the Iron Ore and Steel Conference in China, discussion concerning possible investment and offtake deals and improved equity market performance and better sentiment towards the junior iron ore sector.

The trading halt will be in place until Tuesday or until the company releases its announcement.

Sundance shares last changed hands for 13 cents.

This sentence will hopefully get me over the 100 character limit.