SDL - Sundance Resources

I think you guys have all read the article the wrong way.

When Don was talking about the project being delayed by 2 years due to the GFC, he was talking about old news. It was delayed by 2 years in 2008, and SDL have released new timelines that took this delay into account.

You guys are reading it as though it is now delayed a further 2 years, which is incorrect. Don Lewis was simply referring to the 2 year delay from back in 2008.

Something to think about, maybe.

From BusinessSpectator
Published 8:32 PM, 23 Sep 2009
AAP

Chinese parties are eyeing Cape Lambert Iron Ore Ltd's Lady Annie copper mine in Queensland that the deal-focused miner expects will be among several asset sales by Christmas worth about $430 million in total.

Chinese firms are also interested in Cape Lambert's 35 per cent-owned Marampa iron ore project in Sierra Leone, executive chairman Tony Sage told a briefing in Perth on Wednesday.

"I can tell you right now, we've got three Chinese groups crawling all over Lady Annie," Mr Sage said.

"We've got three Chinese groups crawling over Sierra Leone trying to buy either the (African Minerals-owned) Tonkolili asset or the Marampa asset.

"I know they're in Cameroon talking to Sundance. They'll be in our (doorstep) very shortly."

Mr Sage said Cape Lambert expected to receive at least $150 million in cash from the Lady Annie sale.

The mine, which was expected to bring in more than $1 billion in revenue at the height of the copper price boom, was acquired by Cape Lambert for a mere $80 million from the collapsed firm CopperCo in May amid depressed prices for the commodity.

"We've gone out and marketed this operation and had two offers, but the best process for us is an IPO (initial public offer) process," Mr Sage said.

"We get to retain an interest ... of five to 10 per cent .... mainly for tax reasons.

"I think we'll be pretty safe raising between $200 million to $250 million but that's all dependent on doing a full bookbuild on our next roadshow."

Mr Sage said the company expected to receive $US100 million ($A114 million) for its stake in Marampa.

"What did it cost us? $2 million," he said.

"I think something will happen before Christmas on that one."

The company's other assets will be proved up to make them attracted for acquisition, then offloaded at presumably a substantial profit.

Mr Sage said the market was now aware Cape Lambert wanted to be a mine developer, not a miner.

He said the company was producing copper at Lady Annie because stockpiled ore could be processed with minimal effort.

"We're doing that just to cover our holding costs," he said.

"I've always vowed not to be a (mine) operator."

Mr Sage said a $50 million dividend would be paid to shareholders in the March quarter, subject to the sale of Lady Annie.

see announcement Deutches bank apponted to seek finance.

starting to move north again.

We may see a bounce today in the SP?

Notice Received.

SUNDANCE APPOINTS DEUTSCHE BANK AS FINANCIAL ADVISOR TO ARRANGE FUNDING OF THE MBALAM IRON ORE PROJECT
International iron ore company Sundance Resources Limited (ASX: SDL – "Sundance") is pleased to announce that it has appointed Deutsche Bank as its financial advisor to arrange project funding to develop the Mbalam Iron Ore Project in West Africa.
Deutsche Bank is one of the world's leading global investment banks with an international network of offices spanning 72 countries. Deutsche Bank has advised on numerous high profile cross-border transactions in addition to having a leading global capital markets franchise. In the Asia Pacific Metals and Mining sector, Deutsche Bank has recently advised Hunan Valin Iron and Steel Group on the acquisition of a 17.4% interest in ASX listed Fortescue Metals Group, Baosteel Group Corporation on the acquisition of a 15% interest in ASX listed Aquila Resources and China Investment Corporation (“CIC”) on its US$1.9 billion strategic investment in PT Bumi Resources.
The appointment follows the recent achievement of several important milestones for the Mbalam Project including submission of a Feasibility Study to the Government of Cameroon earlier this month. This submission triggers the process for the negotiation of the Project Convention and grant of a Mining Permit.
Don Lewis, Sundance’s Managing Director, said: “We are very pleased to have secured the support and commitment of Deutsche Bank, one of the world’s leading financial institutions, to assist Sundance with development of the Mbalam Project, including advising and arranging of funding (including debt and equity) in conjunction with securing strategic partners for the Project.”
“Deutsche Bank has a strong track record of securing funding for Australian and international resources companies,” Mr Lewis said. “This is an important step forward for Sundance and we look forward to working with the Deutsche Bank team through project financing.”

*****

Pythagerous said:

I think you guys have all read the article the wrong way.

When Don was talking about the project being delayed by 2 years due to the GFC, he was talking about old news. It was delayed by 2 years in 2008, and SDL have released new timelines that took this delay into account.

You guys are reading it as though it is now delayed a further 2 years, which is incorrect. Don Lewis was simply referring to the 2 year delay from back in 2008.

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I think you are right Py. It is old news. My mistake and thank you for pointing it out.

With the appointment of Deutsche Bank, we are starting to look half respectable. Hopefully a few more folks will now begin to take SDL seriously.


Anyone going to attend the AGM and report back?

I'm surprised there hasn't been more talk and SP movement re the Deutsch Bank announcement??

Surely the appointment of DB makes getting finance a sure thing for a project such as this - well, at least a lot more certain than having no lead bank?

Will await some more discussion eagerly

There is no price movement in sp though a hope appear. I feel it is positive news but why market is not reacting.Does any body know?

RIO and BHP SP are down, hence market is less interested in purchasing mining stocks for today I believe......

I agree, its a fairly dead day on the market. not a great deal of volume anywhere. Although I would have thought todays announcement might have seen a little action - I don't think its major though. IMO its just saying 'we have someone to watch over our finances' - Not announcing any funding or anything...maybee thats why its stale?

I think things are certinally starting to roll together for SDL, with the spate of recent announcements & articles around the place, its certinally in a better position than it was 9 months ago.

I hold.

Albi said:

There is no price movement in sp though a hope appear. I feel it is positive news but why market is not reacting.Does any body know?

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Yeah Albi, I think people know.

We must remember that we are still at least four years away from production.
People have time to make money from other stocks and still come back and buy SDL in time for a major upswing.

Judging by the AR, it will now be at least mid 2010 before there are any announcements about Off-take partners. I guess (but don't know for sure) that Off-take is the next big issue to be resolved before SP can advance seriously.

jono, I agree wholeheartedly that we are looking better, but we also have a long way to go yet.

Now we shall see who is patient and confident.

I got quite a few of these and I'm gonna stick with 'em. I'll let you know if I ever think about selling early, 'cos the price will increase immediately afterwards!

CarbonSteel said:

Yeah Albi, I think people know.


Now we shall see who is patient and confident.

I got quite a few of these and I'm gonna stick with 'em. I'll let you know if I ever think about selling early, 'cos the price will increase immediately afterwards!

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same here. its hard to hold onto while the rest of the market heads north.
but i think the market will re-rate this one quickly when the news flow
comes thru

there is a bit of volume going through now over lunch. 18m through this hour (only 3m for the first 2 hours). SP up now a cent (+6%)

i would call hitting 18 cents (finally) movement lol.

ive been holding this for a long while and bought in more and averaged down again and again the last time it dropped. i doubled my profits already. i still havent sold the original parcel i bought at 10c though. gunna keep that one long term.

The Cameroon Gazette reports that the government wishes to employ 2000 extra public servants before Christmas of which a quarter will need engineering experience. I would hope that some of these engineers will be working on infrastructure plays for this project.

Zodiac

Zodiac said:

The Cameroon Gazette reports that the government wishes to employ 2000 extra public servants before Christmas of which a quarter will need engineering experience. I would hope that some of these engineers will be working on infrastructure plays for this project.

Zodiac

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Hey Zodes,

It is hard to see how some of these recruits could not become associated with Kribi or hydro dams or railways.

Nice work mate. You got a link to the page where I can find this gazette in English?

Carbon, refer to following link, hope it works and in particular refer to the chart below the main correspondence which highlight the numbers of engineers the government is to employ:

www.cameroononline.org/2009/10/24/m...civil-service-more-than-2081-to-be-recruited/

Zodiac

They are looking for a lot of professionals.

Where are they getting the money from and why do they "suddenly" need to find this many people?

IMF?

World Bank?

A run of the mill developing African country suddenly needs all these people? Isn't it a little out of the ordinary?

Probably the answer is glaringly obvious, but I'm not seeing it.

HELP!

Discussions are continuing with international parties with potential interest in investment, construction, product off-take and/or financing of the Mbalam Project. Further site inspections were undertaken during the reporting period but discussions remain incomplete.
In parallel, the Company received proposals from a number of major international investment banks with interest in arranging project finance in collaboration with the selected strategic partner(s). On 20 October 2009, the Company announced that it had appointed Deutsche Bank as its financial advisor.
Deutsche Bank is one of the world's leading global investment banks with an international network of offices spanning 72 countries. Deutsche Bank has advised on numerous high profile cross-border transactions in addition to having a leading global capital markets franchise. In the Asia Pacific Metals and Mining sector, Deutsche Bank has a strong track record of securing funding for Australian and international resources companies, having recently advised a number of major Chinese State-Owned Entities (SOEs) and China Investment Corporation (CIC) on acquisitions in, and financing of, significant iron ore and coal projects.
The Company is very pleased to have secured the support and commitment of Deutsche Bank to assist in the development of the Mbalam Project, with its role being to advise and assist the Company arrange project funding (including debt and equity).
Work will continue to focus on the introduction of strategic partner(s) to the Project with this work to be coordinated by Deutsche Bank. The Company remains confident of successfully concluding arrangements for the introduction of strategic partners/investors to the Project.

http://www.news.com.au/business/story/0,27753,26280240-31037,00.html

This may be an advantage for SDL.

RP_Automotive said:

http://www.news.com.au/business/story/0,27753,26280240-31037,00.html

This may be an advantage for SDL.

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i may be mistaken, but i thought one of the main reasons why BHP and RIO started a JV was because they were like geographically neighbours.

Does SDL have anything close to BHP?