SDL - Sundance Resources

[CarbonSteel]

I am starting to get a bit nervous with my share holding in SDL - invested a lot of $'s for me - nothing is happening as per their plan / timeline.

are any other holders starting to lose the faith. In the last couple of months we have gone from earlt 20cents to 14.5 cents - a big drop when the rest of the market is rising.

I hope there is positive news soon or i think it may tank quickly on panic back to 10 or 8 cents.

It is possible that the steel market (and therefore IO) has gone off the boil for the time being. If you go to the website below, you won't find too much positive news for steel.

http://www.steelprices-china.com/

 

[Johnny Utah]

FYI shareholders-
Annual report has been released this morning along with the notice of annual general meeting to be held on Nov 2nd.

 

[Miro]

FYI shareholders-
Annual report has been released this morning along with the notice of annual general meeting to be held on Nov 2nd.

You can find the report at http://www.sundanceresources.com.au/media/22993/2009 annual financial report.pdf

 

[Bigben101]

Annual report

Something interesting from the annual report


During the year, Sundance held discussions with a range of
potential strategic partners and investors with an interest in
product off-take, construction, investment and/or financing
associated with the Mbalam Project. A number of parties
visited site to conduct due diligence but, at the time of writing
this report, no agreements had yet been concluded. The
Company has received proposals from a number of major
international investment banks to assist with arranging project
finance in collaboration with such strategic partners.

Sounds promising.... wonder who they were.......

 

[LRG]

SDL has sounded "promising" for the last 2 plus years i have been buying it high and low with an avge price of 17 cents. A couple of months ago (at 20c) i was breaking even covering opportunity cost / interest.

SDL will flounder until they line up funding and/or a partner to go.

If they do it will break out north very quickly.

When will it happen - who bloody knows - it is always "comimg soon".

There is still a chance it wont ever happen - and SDL holders (like me) are stuffed!

IMO commodities will head north, SDL will stack up and it will go ahead sometime in the next 1 month to 3 years?

I still hold - cause I have to - put a lot of my chips on the table. With the wisdom of hindsight I should have put all my chips in PBG at 20cents which went to $1.25 in a few months (didn't even read about this 6x gain in the papers) - pity I only put 5k in PBG - should have been 100K+ like this one.

 

[samt75]

Thanks for that info LRG.

Hindsight is always a hard phenomenon to work out.

PBG could have gone backwards 6 x as well but i understand your frustration.

 

[pAKEHA bOY]

Hello All...I'm rather new to all this stocks and shares stuff, but I've been watching SDL for the past 14 months myself with varying amounts of interest and I'm getting ready to put a couple of grand into the pot. To that end, can any of you recommend me of a decent online broker to do the deal with? I'm based in the UK, I don't suppose that makes a difference though.

Thanks a lot

 

[Miner]

Hello All...I'm rather new to all this stocks and shares stuff, but I've been watching SDL for the past 14 months myself with varying amounts of interest and I'm getting ready to put a couple of grand into the pot. To that end, can any of you recommend me of a decent online broker to do the deal with? I'm based in the UK, I don't suppose that makes a difference though.

Thanks a lot

Please try these three :
BELL Direct On line (Bell Potter Security owned)- Minimum fee $19 or so
E TRade (ANZ owned) - you may qualify for $600 upfront fee discount
Commsec (Commonwealth Bank owned) - depending on deal going they also offer some brokerage free $600 or so for new clients. They are a bit more pricey than the other two

These three can come with with or witout advice. The fee differs accordingly. I believe Bell Direct offers no service as they will then compete their other wing BPS Securities who charge min $90 with rotten (IMO) advice.

There are Westpac Online and few more as well.

Since you are in London and may not be an Australian tax payer then please check with your UK rules and regulations as well as ASX rules for non residents.
The fees could be different for on line brokers - recommend writing them directly after you search in INternet and done your research

There are few ASF members who are operating from overseas so I am sure that you will get more appropriate heads up.

No one however will offer you any advice and DYOR

Regards

 

[Miro]

SDL has sounded "promising" for the last 2 plus years i have been buying it high and low with an avge price of 17 cents. A couple of months ago (at 20c) i was breaking even covering opportunity cost / interest.

SDL will flounder until they line up funding and/or a partner to go.

If they do it will break out north very quickly.

When will it happen - who bloody knows - it is always "comimg soon".

There is still a chance it wont ever happen - and SDL holders (like me) are stuffed!

IMO commodities will head north, SDL will stack up and it will go ahead sometime in the next 1 month to 3 years?

I still hold - cause I have to - put a lot of my chips on the table. With the wisdom of hindsight I should have put all my chips in PBG at 20cents which went to $1.25 in a few months (didn't even read about this 6x gain in the papers) - pity I only put 5k in PBG - should have been 100K+ like this one.

SDL is an exploration company, it is always a high-risk business. I'd be quite careful in investing into projects in Cameroon and Congo ... Africa is far away from being a stable continent, look at all the regimes, civil wars etc.

 

[pAKEHA bOY]

Thanks a lot Miner, yes I will look into your advice and will continue to DYOR as well. Many Thanks again.

 

[Bigben101]

Miro,

Is that why Rio and other big miners are investing heavily in the region?

The place is highly geared to favour foreign investment with tax credits and loans, its a HUGE deal they need to put together it will take some time.

 

[Miro]

Miro,

Is that why Rio and other big miners are investing heavily in the region?

The place is highly geared to favour foreign investment with tax credits and loans, its a HUGE deal they need to put together it will take some time.

That's true ... though SDL is not RIO. It's a risky business, so I wouldn't be too concerned if the stock falls by 25%. If you believe in the project you're gonna be rewarded at some point, sooner or later but there's always a high risk involved.

 

[selig97]

After some advice from experienced investors.

I have had shares in SDL during many changes it has gone through and although I receive the annual reports and voting papers, these generally end up in my compost.

Regardless of the past practice, I am now trying to pay more attention to what is taking place in businesses I invest in, whether short or long term. Therefore I have the following question that relates to the recent AGM resolutions.

These being, where its states (Resolution 3) that it issued 17,111,317 shares for Ausdrill in Dec 2008 @ .094c and the Company is now asking shareholders to ratify. Does that mean these shares have been issued and have already had an impact to the share price or will we be looking at a further drop in price once these shares are ratified and placed into market?

Thanks.

 

[Johnny Utah]

Notice Received at 2:08pm today.

MBALAM PROJECT FEASIBILITY STUDY SUBMITTED TO CAMEROON GOVERNMENT
Further Key Milestone in Sundance’s West African Development Strategy
International iron ore company Sundance Resources Limited (ASX: SDL – "Sundance") is pleased to announce that the Feasibility Study for its Mbalam Iron Ore Project has been presented to the Government of Cameroon.
The Feasibility Study has been submitted by Cam Iron SA, the Company’s operating subsidiary in Cameroon, to the Minister of Industry, Mines and Technological Development of the Republic of Cameroon in support of:
● A proposal by Cam Iron SA outlining the key fiscal and development terms for the Project proposed to be included in the Mbalam Convention, and
● A Mining Permit application covering the strategic iron ore deposits identified on Exploration Permit No.92 held by Cam Iron SA including the key Mbarga, Mbarga South and Metzimevin deposits which form the core of the Mbalam Project.
The Environmental and Social Assessment (ESA) for the Mbalam Project has also been presented to the Cameroon Government, with feedback to be provided by the Cameroon Ministry of Environment and Nature Protection (MINEP) prior to release of the document for public review.
Sundance’s CEO, Mr Don Lewis, observed that “the completion and submission of the Feasibility Study marks a key milestone in the development of the Mbalam Project as it triggers the process under the Mining Code of Cameroon for the negotiation of the Mbalam Convention and grant of a Mining Permit”.
“The Feasibility Study indicates that the Mbalam Project is viable on the basis of securing Government agreement for the proposed fiscal and development terms and the definition of High Grade reserves sufficient to support DSO-quality production for the first 10 years of Project operations,” Mr Lewis said.
“The combined High Grade and Itabirite resources already defined at Mbalam are capable of supporting the 25-year term of the Mining Permit, indicating the strategic importance of the Project as a potential long-term supply source to the world iron ore markets.”
“Iron ore market fundamentals appear likely to remain strong in the medium to long term fuelled by growth in demand, particularly from China, and limited large-scale supply options outside the current major producers. The development of a major new source of iron ore will clearly be a welcome development for major international steel producers”.
Mr Lewis said “the Feasibility Study demonstrated the importance of the Mbalam Project to Cameroon. Significant economic, social and environmental benefits are expected to flow from the project, transforming both the mining sector and the broader economy of Cameroon.
The direct financial benefits to Cameroon will be around US$5 billion over the life of the Project, derived from:
● Royalties from the sale of iron ore products;
● Corporate and shareholder income taxes;
● Dividends from the Government’s equity interest in CamIron SA;
● Taxes paid by employees; and
● Proceeds from establishment of a Social and Environmental Sustainability Fund.”
Mr Lewis added that “the forecast financial returns to Cameroon are based on the fiscal package presented in the Feasibility Study to the Government. In addition, there is expected to be significant flow-on benefits through the development of employment, training and new business opportunities as well as regional infrastructure development that should assist related minerals, downstream processing and agri-business opportunities.”
Mr Lewis said that the previously foreshadowed re-commencement of drilling was on target to start shortly with arrival of the Company’s new drilling rig in Cameroon in mid-October: “if our Exploration Target* of 100 to 250 million tonnes hematite at 55-65% Fe at the Nabeba Deposit is achieved, this will significantly increase the tonnage of High Grade hematite already defined at the Mbarga, Mbarga South and Metzimevin Deposts”.

***official doc attached***

 

[Johnny Utah]

Notice Received overnight-
DJ Sundance Resources Seeks Permit To Mine Cameroon Iron-Official
Special to DOW JONES NEWSWIRES
YAOUNDE, Cameroon (Dow Jones)--Cam Iron S.A., Cameroon's partner to
Australia's iron firm, Sundance Resources Ltd. (SDL.AU) has officially requested a permit from the Cameroon government to start drilling for the mineral, a senior Cameroon government official told Dow Jones Newswires Monday.
The application covers the iron ore it has prospected in Mbalam, a senior official in Cameroon's Ministry of Industries, Mines and Technological Development told Dow Jones.
The request lodged Friday comes after Cam Iron S.A. completed its feasibility studies on the $3.3 billion iron mining project in Mbalam, in south eastern of Cameroon, the official said, who declined to be named.
Sundance Resources owns 100% of Cameroon Iron Co., which itself owns 90% of the Mbalam iron ore deposit, considered to be one biggest in Africa.
According to the company, a combined total of Inferred Mineral Resource of 2.2 billion metric tons of enriched itabirite and Direct Shipping Ore, or DSO, quality hematite are found in eastern Cameroon.
Cam Iron and the Cameroon government have been in protracted negotiations to redefine a memorandum of understanding for the project, following the company's search for tax cuts and investment incentives to make the project economically viable and internationally competitive.
Production could begin by 2012 or earlier, if the Cameroon government issues the authorization by the end of this year.

Sundance Resources aims to export an estimated 35-40 million tons iron ore yearly.

 

[Bigben101]

Uh ooh from Reuters:

By Tansa Musa

YAOUNDE, Oct 13 (Reuters) - Australia mining firm Sundance Resources Ltd (SDL.AX) said Tuesday the global economic slowdown has forced it to delay its target for initial production at its Mbalam iron ore project in Cameroon by two years to 2013.

"This revised timeline largely reflects the impact of the global financial crisis which seriously impacted iron ore markets, particularly in Europe and North America, and the availability of project finance in 2009," company CEO Don Lewis told Reuters.

"We are seeing these issues starting to abate with confidence returning to markets, particularly commodities markets driven by Asian demand such as iron ore," he said.

Sundance submitted a feasibility study on the project to the Cameroonian government last week, projecting the Central African country would receive some $5 billion in royalties, taxes, and dividends during the 25-year life of the mine.

The Mbalam project, southeast of Yaounde near the Belinga mine in Gabon, holds an estimated 2.5 billion tonnes of high grade hematite and itabirite hematite. Sundance hopes to produce some 35 million tonnes per year.

"Iron ore market fundamentals appear likely to remain strong in the medium to long term fuelled by growth in demand, particularly from China, and limited large-scale supply options outside the current major producers," Lewis said.

He added Sundance was still negotiating fiscal terms of the project with Cameroon's government. (Writing by Richard Valdmanis; editing by James Jukwey)

 

[CarbonSteel]

Big volume, 31 Mil, and plus 10% today. Do we have another announcement coming soon? Or is there some other good reason for this "out of character" performance?

 

[LRG]

big volume yes but still stagnate - very disappointing.

thought it would have made progress by now.

as predicted a few months ago - they have now admitted they are 2 years behind their time line now.

patience is a virtue!

 

[CarbonSteel]

Is it time for truth yet?

Yeah man, we've got banks and IO offtake clients beating a path to our door man.

Oh, we're gonna delay our production startup schedule till 2013 'cos the GFC beat us up man. It's like nobody is interested now man.

So, was there any truth at all, like even 1% of truth, in the initial statement?

Come on Don, how about a little respect for your shareholders, you know, the TRUTH!

 

[Zodiac]

Hey Carbon Man, I have always appreciated your input. Don't be too disappointed with the obvious delay notice Don has finally given. We all knew that the project has been delayed, but it is beyond belief that the board did not think it prudent to put in a new time frame for the completion of the project in its recent annual report. Their problem is that they cannot as to do so would be to tell the market that they know when the mining permit would be approved and when offtake and financing is confirmed. They obviously "do not know this" but I go back on this, why would they be spending their last dollars on further exploration unless they have a very good feeling. I would punt that the mining permit will come sooner than later, followed quickly by off take and financing. This could even be followed shortly after with a friendly take over.

Zodiac