SDL - Sundance Resources

[CarbonSteel]

However, do you notice the sp has not moved much, and the volumes have been below average?
With all the above, generally we should see some better movement either in terms of sp or trading volumes.
What do you guys think about this?

I agree with your analysis.

However, SDL has doubled since early in the year. Overseas markets have had 50 -60% increases. Last month or so they have moved sideways and so has SDL. Perhaps when the overseas markets stop procrastinating and put on solid gains, we will see some real increases as well. We are still holding a fairly speculative stock, so I think we're doing OK. Patience is the catch-cry now. Got to be happy that Don is saying that the process before us will now be fast-tracked to an extent tho'.

 

[jonojpsg]

Well for mine I'm gonna load up!!!! If SDL have locked in $85m in additional capital that is well and truly going to take them through to financing and final goahead - in which case it is only a matter of time until the SP reflects the figures that have been previously posted here, eg by 2013 it should be around $2-3. Even a bit of a punt of $1k or so will end up being worth $15-$20k by then

 

[Johnny Utah]

SHARE PURCHASE PLAN
International iron ore company Sundance Resources Limited (ASX: SDL – "the Company") is pleased to announce that its second Share Purchase Plan Offer (“the Offer”) opens 16 November 2009 for eligible shareholders, being those shareholders with a registered address in Australia or New Zealand as at 7.00pm AWST on 16 November 2009 (“the Record Date”).
Under the Offer, eligible shareholders will have an opportunity to acquire up to A$10,000* worth of New Shares free of brokerage or other transaction charges.
The price of the New Shares under the Offer will be 15 cents per New Share, being the price of shares to be issued pursuant to the recently announced placement agreement to raise $85 million from international institutional investors.
The Company proposes to raise up to $5 million through the Offer. If applications are received for more than $5 million, the Company may, in its absolute discretion, scaleback applications to the extent and in the manner it sees fit and/or close the Offer early.
The Offer Booklets and application forms will be mailed to eligible shareholders during the week commencing 16 November 2009 together with an Application Form. The Offer Booklet contains relevant information that eligible shareholders should consider in deciding if they will participate in the Offer, including details of how to apply.
Valid applications must be received by the Company’s registrar, Computershare, before the Offer closes at 5.00pm (AWST) on 30 November 2009 unless closed earlier.

********see attachment for more details*************

 

[bleach8]

SHARE PURCHASE PLAN
International iron ore company Sundance Resources Limited (ASX: SDL – "the Company") is pleased to announce that its second Share Purchase Plan Offer (“the Offer”) opens 16 November 2009 for eligible shareholders, being those shareholders with a registered address in Australia or New Zealand as at 7.00pm AWST on 16 November 2009 (“the Record Date”).
Under the Offer, eligible shareholders will have an opportunity to acquire up to A$10,000* worth of New Shares free of brokerage or other transaction charges.
The price of the New Shares under the Offer will be 15 cents per New Share, being the price of shares to be issued pursuant to the recently announced placement agreement to raise $85 million from international institutional investors.
The Company proposes to raise up to $5 million through the Offer. If applications are received for more than $5 million, the Company may, in its absolute discretion, scaleback applications to the extent and in the manner it sees fit and/or close the Offer early.
The Offer Booklets and application forms will be mailed to eligible shareholders during the week commencing 16 November 2009 together with an Application Form. The Offer Booklet contains relevant information that eligible shareholders should consider in deciding if they will participate in the Offer, including details of how to apply.
Valid applications must be received by the Company’s registrar, Computershare, before the Offer closes at 5.00pm (AWST) on 30 November 2009 unless closed earlier.

********see attachment for more details*************

All things need to be announced have been announced for this year....

obviously , the company does not need a 5m SPP to fund its further operation. The reason for this SPP is mainly to keep the individual shareholders happy. I guess we just have to wait till next year for some more news. I dont think there will be major SP movements untill next year.

 

[CarbonSteel]

From companiesandmarkets.com....

Cameroon Infrastructure Report Q4 2009
Cameroon’s economic performance this year looks slightly better than it did three months ago, but the country is still handicapped by its poor infrastructure. The government did sign a key agreement involving some of its most ambitious projects, but the immediate future will still include serious threats to its economic strength.

The report is now forecasting GDP growth in 2009 of 0.8%. That is better than the 0.5% we were previously forecasting, but still far below the 4.8% growth of 2008. The economy should grow even faster in subsequent years. We are forecasting 2.4% growth in 2010 and then a surge to 5.8% in 2011. The main reasons for our reassessment of 2009 are higher gross fixed capital formation and stronger than expected consumer spending.

But nobody should overlook the problems in this resource-rich country. Electricity outages became a popular joke this summer. The power went down so often that the country’s aluminium smelter was forced to halt production in August. The highway leading into and out of Bamenda collapsed, preventing heavy goods from being transported across the gash. The government replaced the energy minister and sacked the general manager of the Electricity Development Corp. The changes in personnel might be reasons for optimism, but the country’s difficulties run deeper than a handful of officials.

Rio Tinto Alcan, which along with the government owns the Alucam smelter, has not given up on Cameroon. The company and the government signed an agreement this quarter on a US$5.36bn hydroelectric dam, an aluminium smelter, and the Kribi deep seaport. Cameroon’s ability to overcome obstacles in the long term depends on companies and investors being willing to help build the infrastructure, a reality that government officials openly acknowledge. The reward is access to the bauxite, iron ore, gold and other mineral resources the country has to offer.

Investors’ interest in the country bodes well for infrastructure development over the next five years.

Thanks to debt cancellation through the World Bank and the International Monetary Fund’s Heavily Indebted Poor Country (HIPC) initiative, public finances have been improved. The Cameroon government is collaborating with neighbouring countries and multi-lateral agencies, and the multinational corporations in the country are tolerant of risk and have diversified their risks over many countries. The government itself appreciates the benefits of build, operate and transfer (BOT) transactions.

The country still suffers from corruption, a lack of transparency and insecure borders, but the problems are not getting worse.

The Kribi seaport is one of two infrastructure projects that have the potential to influence the country’s long-term economic performance. The Lom Pangar Dam, on which work has now reportedly begun, is the second. If the two projects go ahead, Cameroon should be able to greatly expand its iron ore and aluminium production, reducing its dependence on oil. The dam would reduce vulnerability to drought by ensuring that the hydroelectric generators, which account for more than 80% of electricity production, have the water they need. Deep sea ports would be a gateway not only to Cameroon’s resources, but also to those of neighbouring countries.

If the country can take these and other projects to completion, the resulting momentum is likely to bring further investment in infrastructure, including into roads, railroads and water and sanitation.

Growth of 3.1% is now expected in the construction sector in 2009, accelerating to 3.5% in 2010 and then 6.1% the year after. Cameroon’s infrastructure activity, however, must be viewed in the context not just of the global economic climate, but specifically in the context of commodities prices. Oil prices and some metals prices have been moving up this summer, and although the gains are not uniform across the commodities sector, any sign of price recovery should boost investors’ confidence about undertaking projects in Cameroon.

Nothing untoward here and construction growth figures are in line with what we anticipate for SDL infrastructure.

 

[LRG]

what are the latest thought at taking up the SPP offer at 15 cents a share?

Would of thought there would have been a better discount 10 or 12 cents.

Most days you can by them on the dips at 15 cents anyway - so what is the advantage of applying?

 

[bleach8]

what are the latest thought at taking up the SPP offer at 15 cents a share?

Would of thought there would have been a better discount 10 or 12 cents.

Most days you can by them on the dips at 15 cents anyway - so what is the advantage of applying?

that is the idea. they dont want ppl to apply as they dont need more money. it simply give shareholders a fair chance rather than rise more funds

 

[LRG]

I wonder how the SPP went?

I hummed & harred? on whether to buy or not - in the end I did not lock up funds via the SPP at 15 cents when the actual SP has been between 14.5 and 15.5 anyway.

Can buy them for 15 cents on the market - which I recently did top up my holdings

Did anyone thake up the SPP offer at no gain to the market price?

 

[CarbonSteel]

I wonder how the SPP went?

I hummed & harred? on whether to buy or not - in the end I did not lock up funds via the SPP at 15 cents when the actual SP has been between 14.5 and 15.5 anyway.

Can buy them for 15 cents on the market - which I recently did top up my holdings

Did anyone thake up the SPP offer at no gain to the market price?

I didn't participate for the same reasons you give.

However, I note that the company says that more than 1000 SH's did subscribe to the tune of $4.6M

I think we're into the hard yards for the next 4 - 6 months at least. Anyone think there'll be substantial announcements before that?

If this turns out to be the case, why should the SP increase at all from where it is now?

Maybe even lower while we all cringe and wait?

Seasons Greetings to all fellow posters:chimney

 

[LRG]

With the xmas break upon us and SDL closing around 14.5 cnets for the year, for me it has been a year of buy more and lower my average purchase price to around 17 cents per share.

so I am behing the eight ball a bit with my holdings - not as lucky as some buying their parcels at 7 - 8 cents.

However lets hope in the 1st half of 2010 funding is put in place to develop the mine and the rail / infrastructure to port. If this milestone can be reached - then IMO there will be substantial movement in the SP.

They are still saying with a view to production in 2012 - I think this may be optimistic still!.

Anyway fellow SDL holders - I remain faithful that this venture will proceed. Are we all still positive?

 

[munga]

With the xmas break upon us and SDL closing around 14.5 cnets for the year, for me it has been a year of buy more and lower my average purchase price to around 17 cents per share.

so I am behing the eight ball a bit with my holdings - not as lucky as some buying their parcels at 7 - 8 cents.

However lets hope in the 1st half of 2010 funding is put in place to develop the mine and the rail / infrastructure to port. If this milestone can be reached - then IMO there will be substantial movement in the SP.

They are still saying with a view to production in 2012 - I think this may be optimistic still!.

Anyway fellow SDL holders - I remain faithful that this venture will proceed. Are we all still positive?

here here
there seemed to be a lot of support in the last week
with a couple of 15m days lets wait and see

 

[sidswingerhead]

Are we seeing a double bottom formation on the chart?

This has been the second attempt at breaking support at the 50% retracement level form the 03/03/09 low to 17/08/09 high.

Support appears strong at present with sellers drying up recently.

The SP is currently sitting at the outer channel line and hinting at breaking out of the downtrend. The stochastic is oversold on the daily and weekly charts now. The MACD is also hinting at heading North again.

All of the fibonacci time ratios are lining up with the most recent being the .786 time ratio date on the 26/12/09. Interesting to watch the start to the new year.

In all I am looking forward to 2010

 

[CarbonSteel]

From: FACTBOX-Cameroon mining projects....

Below is a list of major mining projects in the central African country, which is seeking to diversify its traditionally oil-driven economy:


ALUMINIUM, BAUXITE

- Rio Tinto Alcan (RIO.L) is a partner with Cameroon's government in Alucam, an operation scheduled to include a 1 million tonne aluminium smelter at Kribi. Rio has said the project, including a 1,000 megawatt hydroelectric dam to power the smelter, will cost 140 billion CFA francs ($317.6 million). Construction timeline is 2015-18.

- U.S. firm Hydromines, the United Arab Emirates's Dubai Aluminium (DUBAL) and India's Hindalco Industries have formed Cameroon Alumina Limited (CAL), a bauxite mining operation. The consortium says it has found 550 million tonnes of bauxite and is targeting at least another 200 million tonnes.

With start-up planned for 2013, the consortium plans to invest $5-6 billion in a bauxite mining and refinery project at Ngaoundal, north of the capital, Yaounde, and a railway linking the project to the port of Kribi, 860 km away. The expected bauxite output is 4.5-9 million tonnes per annum.


COBALT

- Toronto-listed Geovic (GMC.TO) owns 60 percent of a nickel-cobalt-manganese project in Nkamouna, in eastern Cameroon. Geovic expects to produce 4,200 tonnes of cobalt per year and 2,100 tonnes of nickel per year for 21 years. But Geovic said in early 2009 production would be delayed until 2012 and investment was cut to $250 million from $370 million.


IRON ORE

- Australia's Sundance Resources (SDL.AX) has an exploration permit for the Mbalam deposits. The company delayed startup of production from the $2.46 billion project by two years to 2013. Reserves are estimated at roughly 2.5 billion tonnes, including 2.325 billion tonnes of itabirite hematite and 215 million tonnes of high grade hematite. Once operational, Sundance hopes to produce some 35 million tonnes of ore per year. The firm has raised $89.7 million with which to complete a definitive feasibility study on the project, it said in early December.

- The UK's African Aura Mining Inc. is exploring its 100 percent owned Nkout iron project located at Djoum in southern Cameroon, adjacent to Sundance's Mbalam project.

- Australia's Legend Mining Limited (LEG.AX) in September 2009 acquired a 90 percent interest in two exploration permits covering an area of approximately 2,400 km² after it obtained 90 percent ownership of Camina (Cameroon Mining Action) SA. The company hopes to start exploratory drilling by June 2010.


URANIUM

- Nu Energy Corporation, a subsidiary of Canada's Mega Uranium MGA.TO, is exploring for uranium in two sites in the north and the south of the country. After initial positive results in September, the firm is planning a follow-up 2,000 metre drill programme in the Kitongo project in the north.


GOLD

- African Aura Mining Inc. is drilling at the Kambele prospect of its 100 percent owned Batouri gold exploration licence in the East region where the company has recorded visible gold in 25 out of 44 holes drilled.


DIAMONDS

- C&K Mining Inc, a joint Cameroon-Korean company operating near the border with Congo-Republic, is due to begin mining in 2010 with output to be 1 million carats in the first year and expected to reach 6 million carats a year at peak production.

It would appear that investors are taking Cameroon mineral investment quite seriously, thereby discrediting the "banana republic/never get off the ground" mentality.

Could there be the possibility of cost sharing the rail asset with the nearby Pommy mob?

 

[sidswingerhead]

From: FACTBOX-Cameroon mining projects....



It would appear that investors are taking Cameroon mineral investment quite seriously, thereby discrediting the "banana republic/never get off the ground" mentality.

Could there be the possibility of cost sharing the rail asset with the nearby Pommy mob?

You never know!

With their resources so close to the Sundance prospects maybe there is an opportunity for a "Joint venture partnership"

Sundance are looking for prospective partners and offtake agreements..

I feel Sundance are sitting in the box seat on this one, with a massive expanse of high quality ore.

 

[LRG]

Sidswingers
i agree that at this stage it looks like support is remaining in place - we have seen reasonable volumes (given the holidays) and a move from 14.5 cents a couple of weeks ago to 16.5 cents the last couple of days.

This is good given the dilution due to the cash raising - there are now nearly 2,710 Million shares with a capitalisation (at 16.5 cents) of $447 Million. There are about 46 Million options also (see latest ASX notice).

I hope funding to proceed with the infrastructure is forthcoming withing the next 6 months. I hope there is some collaboration with other nearby ventures and govt. to share the cost of the infrastructure.

If the SDL management team can "line up all their ducks" this year - IMO we will see some significant movement in the SP of SDL. I remain very patient & very positive - have to be.

 

[CarbonSteel]

Wow, 14c!
Looks like those with the money and power to do so are creating another buying opportunity for themselves....worldwide, or is there more to it than more than that?

 

[tronic72]

Seems like a great time to get in to me. In fact I'm starting to invest my "rainy day" funds in these sorts of stocks.

.14 is good value IMHO and we have seen consistent resistance in October, November, December and January. The stock is pretty much in line with the market.

 

[bleach8]

Seems like a great time to get in to me. In fact I'm starting to invest my "rainy day" funds in these sorts of stocks.

.14 is good value IMHO and we have seen consistent resistance in October, November, December and January. The stock is pretty much in line with the market.

According to their most recent timeframe, they should have major annoucement at end of March or April. if so, the market should start to price in these annoucnemnts either end of Feb or begining of March. So we have to wait another month at least for some major movements....

 

[Johnny Utah]

Attached is the quarterly report from SDL for 09 just released at 2.30pm today.

**well worth a read, although you probably will be up to speed on the activities**

 

[bleach8]

the buyer side is so weak at the moment ...

dont know whether it will hold the 0.130 ............................