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SDL - Sundance Resources

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jonojpsg said:
I'm loading up, and if you're reading this Nioka, which you should be given it's one of the few stock threads active, this is a share worth getting on IMO.
Click to expand...

I'm in

19/07/2010 WB53072336 Buy SDL 100,000 100,000 0.115 19/07/2010
plus
19/07/2010 WB53073250 Buy SDL 100,000 100,000 0.115 19/07/2010

been watching this one for awhile. Had intended to enter when they were closer to production. Still speculative and not short term unless trading the swings but has possibilities. Worth a small punt but dont get too carried away with sympathetic hype. Trading and emotions are as bad as drinking and driving.
 
Impressive timing nioka! I also bought in yesterday at around the same price. I wonder how SDL will fare today
 

Great work nioka That was the point to get in, when they restarted trading on a down day Agree with the sentiment re emotions and trading, I have been in and out of SDL for the last three years and watched as they hit 80c pre-GFC Lots of people holding I reckon from those highs which I reckon is what provides the large sell side I mentioned last post.

There is definitely a process to follow though as they move along the timeline to production, in terms of relative value. I like the report (RM Research) from 2006 which compares SDL to FMG with regards to how they were/are valued at scoping, PFS, DFS, financing stages. This shows just how much SDL will jump once DFS is finished. Can't see there being too much issue finding companies to take on build/operate/finance of rail/port etc given the sort of payback they are looking at (3-4 years).
 

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Hi Fellow Shareholders, Whats up! Am I reading correct the announcement that UBS and DBA stop to be substantial shareholding? In Canbberra Times today SDL is recommended as BUY. I am thinking to buy more. But there is no posting last few days. Your opinions are always helpful to determine th ebuy or sell. Thanks to all contributors.
 

Researching SDL brings up snippits of information such as:

"'Broker StoneBridge securities Ltd last month slapped a "buy" recommendation and 12 month target price of 66c on Sundance'"

And

"A Chinese company will assemble cars in Cameroon
FINANCE - Developments
Written by Blaise Etongtek Batam
Thursday, July 22, 2010 6:35 p.m.

The consortium China General Technology Group (Geneterc) will soon establish in the Cameroonian city of Bamenda (North West), an assembly unit for tractors and buses. The revelation was made Tuesday in Yaounde, the capital, after a hearing between Chinese businessmen and the Prime Minister Philemon Yang.

The Bamenda region was chosen because of its proximity to Central and West Africa who are the target market announced, said the president of the consortium, He Ponxing."

Plus;

"http://uk.reuters.com/article/idUKLDE66I22D20100720

DANIELI (DANI.MI) The company signed an agreement on Monday to build a 450 million euro steel plant in Cameroon, beating off Chinese competition, la Repubblica said citing a Danieli manager."

Then from company announcements:

"• Strong financial position with A$75 million cash in hand and no debt."

"• Discussions progressing with potential strategic partners on build‐operate‐finance
packages for key project infrastructure."


"• Key Mbalam Iron Ore Project remains on schedule for completion of DFS by end‐2010
and start of construction in 2011."

There are plenty of positives to be found if you "google" around. There are not many negatives. However operations in the middle of Africa may not be as stable as those in Australia and certainly air travel and travel in general is not as safe.

My daughter has just returned from working as a volunteer there and has a few interesting tales to tell. One thing she said was that a lot of the locals continually have their hand out for "something for nothing".
 

Hmm, yep albi I saw that as well? Couldn't be bothered wading through the whole ream of trades that both announcements included (why they do that and not include a summary I don't know??) but it was definitely a positive when they got on board so I'm not sure if it thus counts as a negative that they are offloading

Although the substantial shareholder level is 5% so they might have only just dropped back under it - again hard to tell without a summary of all their trades

I'm definitely thinking about topping up though


They are very interesting snippets nioka, both of which would be ideally supportive of a ready supply of...wait for it...yeah, you got it, iron ore

Don't know how much IO a Eu450m plant uses but it's gotta be at least a reasonable percentage of 35MT/a doesn't it?

Good times ahead
 
looks like going to be a bit of volume today - 15.5 cents in early trade 10M.

Another ASX substantial holder announcement also today.

Last one was 2 days ago.

Big organisations seem to be "lining up thier ducks"



 
I find the Quarterly Report a little disturbing. There is no mention at all about "negotiations with prospective offtake partners advancing". There is usually some reference to this aspect of the project, but this time, not a word.

Is there something sinister in this omission?

On the other hand, there are big players who are prepared to spend big money to develop ore mines in West Africa. Up to $US6 bn.

Click link below.

http://www.theaustralian.com.au/bus...ina-gets-its-ore/story-e6frg9cf-1225899234298
 
"Australian mining firm Sundance Resources has assured Cameroon's government its huge Mbalam iron ore project is on track despite a plane crash last month that killed its entire board of directors.

Mbalam, Sundance's main project is among a handful of big iron ore developments in west and central Africa and is seen as a cornerstone of Cameroon's effort to diversify its largely oil-dependent economy into mining.

Mr George Jones new chairman of Sundance met with Cameroon Prime Minister. Mr Jones said that "We came to assure him that the project is well on track. There is a new board in place and the new board has a strong determination to see this project implemented as soon as possible."

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 with operations starting up in 2012.

It added that construction is due to begin in 2011 after completion of a feasibility study.

Renaissance Capital in a research note said that "We believe strategic interest in Sundance has increased as the asset approaches the definitive-feasibility-study stage, which is due by year end."

(Sourced from mineweb.com)
 
Again appreciated nioka

nioka said:
Renaissance Capital in a research note said that "We believe strategic interest in Sundance has increased as the asset approaches the definitive-feasibility-study stage, which is due by year end."

(Sourced from mineweb.com)
Click to expand...

For me, this is the key point and fits with the pattern that I mentioned previously, that MC will appreciate significantly with DFS stage completed - potentially x3 or 4 depending on whether financing/partnerships/offtake arrangements come with it. If they do, I would think x5 or 6 would be a more likely outcome, bringing it up to around $1/tonne of resource.
 
News of more progress. the new board are not sittig and waiting for something to happen.

Tue Aug 03 23:47:59 2010 EDT

By Stephen Bell

Special to DOW JONES NEWSWIRES

Kalgoorlie, Australia (Dow Jones)--Australia's Sundance Resources Ltd.
(SDL.AU) said Wednesday that it remains confident of approving its US$3.4
billion Mbalam iron ore project late this year after a completing a week of
discussions with the governments of Cameroon and Congo.

Having returned to Australia from West Africa earlier Wednesday, Chairman George Jones told Dow Jones Newswires that he has received a warm response from the two governments in talks over the proposed fiscal and infrastructure arrangements for Mbalam.

Sundance and the Cameroon government agreed to complete negotiations on a development convention for Mbalam by "the end of September" and then document it for the remainder of the year, Jones said on the sidelines of the Diggers
 
Mbalam Iron Ore project : a project of great expectation

04/02/2008 One of the things Cameroonians have been longing for is to see the Mbalam iron-ore project begin, if only because it will give the countrys Gross Domestic Product (GDP) growth, an impulse, especially now that poverty is rampant.
The essentials that will be required to start the mining operations in the iron-ore fields of Mbalam, located to the south-east of Cameroon, have started arriving, such as office equipment and iron-ore laboratory-testing instruments.

CAM Iron, a limited liability company registered in Cameroon on April 14, 2005, has brought in the equipment. It has 10% shares of the company; the remaining 90% are owned by the Australian company SUNDANCE RESOURCES.

The company intends to put in investments worth 3 365 million USD, which is approximately 1 650 Billion CFA francs (more than half the state budget of Cameroon for 2008, which stands at 2 276 billion CFA francs, up from the previous budget by 25 OOO billion CFA francs). The iron production estimates at Mbalam have been put at around 35 million tons yearly. Its reserves are estimated at 1 000 million tons.

Exploitation proper should begin in 2011 and will last approximately 20 years. The National investment Corporation (SNI) could possibly buy over FOKOU iron rod investments so as to use part of the iron that will come in from Mbalam. In fact, the long-term goal of the country is to develop an iron and steel industry in the country. The authorities in government, negotiating this deal, are asking the Australian partners to be part-and-parcel of the deal, as well as to develop the entire port of Kribi, not just a part, as they previously intended to do.

Spin-offs will also include, the development of infrastructures including roads and a railway line (490 km), to link the region to the deep sea port at Kribi. The railway line will take off a thumbing 65% of the investment capital while mining activity will take up 19%.

The impatience the jobless in Cameroonian today are manifesting, including perhaps several thousands more in neighboring Central African Republic is understandable. They look up to the Mbalam project, not only as a job creator, they see it also as a possibility of having technology transferred to them. Those in Cameroon hope that government will take the necessary steps to right some of the errors that were committed while negotiating the construction of the Chad-Cameroon pipeline. The problems that are now beginning to surface, when examined from the standpoint of socio-economic fall-outs, show that it wasnt well negotiated.

On the field, 10 million CFA francs have been invested in the upgrading of a road from a locality known as Lele to Mbalam. Part of that money has also gone to build a school and to develop the companys site. According to sources in the Ministry of Industries, Mines and Technological Development, a letter of intent for the signing of a mining convention, should be on the table for signature any time between now and March 2008 ending.

The information being gleaned from other sources is that the signing of that letter of intent could take place on January 15, 2008. This in the hope that the Mbalam project is not delayed; after all, its the first time Cameroon is getting into this sector, with the Republic of Guinea (a serious competitor) threatening to increase its production to well over 70 million tons per annum. The deposits of this country are said to surpass those of Cameroon largely. Put differently, Cameroon has every reason to hasten up the project at Mbalam.

However, according to Cameroons legislation, the letter of intent is an important document. It precedes all of such investments. Through it, the partners involved must come to an agreement over a number of issues, following which an establishment convention is signed. This is the last and indispensable step toward any financial and technological investment.



Gemnda Buinda

www.crtv.cm/cont/nouvelles/nouvelles_sola_fr.php?idField
 
I note from ASX announcements that:
- the new board was elected unopposed
- the share price is stable
- next milestones:
- mining permit august
- appropriation of land october
- complete drilling october
- signing of govt convention november
- finalise offtake contracts - DECEMBER
- secure project FINANCE - DECEMBER

if this timeline is maintained; IMO we will see a significant spike in the SDL SP late in the year. Maybe time to load up with some more shares?
 

Was there any mention of a share consolidation? In a report from The West, George looks at one by the end of the year.
Something to be aware of.

"Mr Jones also hinted that Sundance would carry out a share consolidation before the end of the year, likely to be announced alongside positive corporate news, because he did not want the company to remain a high-volume day-traders' favourite.

"We have to get away from being a 15 ¢ stock," he said"

Full article here,
http://au.news.yahoo.com/thewest/bu...ance-sets-year-end-target-for-mbalam-funding/
 
Could be just another unsubstantiated rumour, but it is the first time that I have seen someone naming names of potential offtake partners.


http://www.entrepreneurnewsonline.c...n.html?cid=6a00d83451c73369e20133f2ea98d1970b
 
CarbonSteel said:
Could be just another unsubstantiated rumour, but it is the first time that I have seen someone naming names of potential offtake partners.



http://www.entrepreneurnewsonline.c...n.html?cid=6a00d83451c73369e20133f2ea98d1970b
Click to expand...

Carbon steel

Thanks for the link

I have posted some months earlier in this thread that SDL unfortunately donot have the capability to become a producer. It is like the case one has $10 M winfall in Lotto or inheritance of a large prime plot of land. At the same time he orshe does not know how to turn that money into a money spinning wheel. He or she needs a mentor, partner, business assciate to develop the wealth .

I am not rude but similar case was Hancock. His CRC investment is today more meaningful with the hands of Rio.

Mittal is a top class steel maker and looking for coal,iron ore throughout world. So it is more than likely hood that SDL needs a partner
 
The following article is hard to read as the translation is ????? but it does show that Sundance is active in searching for a Chinese partner

"Hebei Iron and Steel Group on overseas mining commanded the troops in West Africa
20100818 12:23 At 12:23 on August 18, 2010

à ¿??l? By reporter Zhang Guodong each from Beijing

mYFV???????V_?FF??? "Entangled" in the iron ore negotiations so that more overseas Chinese steel enterprises seeking to speed up the pace of mine, Hebei Iron and Steel Group naturally not far behind.

810??FFLx??JSUNDANCE?L??h?pFV?lM?? August 10, Hebei Iron and Steel Group chairman, met with Yi-Fang Wang, general manager of SUNDANCE Australia chairman George Jones and his party, the two sides cooperate on matters of iron ore in West Africa had a conversation.

?_??FV???_???818??FFh????Ã ¿??????j??]?_whw?? "They have expressed joining us for the West African iron ore projects in the intention to cooperate." Yesterday (August 18), Hebei Iron and Steel Group, a leader of the "Daily Economic News" told reporters, "At present the two no specific co-operation started, the next step would be talk about specific projects. "

HV?FV?rCF?rn?bI??RI£p???FV??O?? Sentiment in the three major international mining of iron ore pricing mechanism will be closer to the spot price, the Chinese steel production and operation costs of enterprises are facing new challenges in the current control, the two sides negotiate iron ore project this really interesting.

V?P? Ore source stability is essential to steel enterprises

?????F???????PT?QMFV?}?? It is reported that earlier this year, Baosteel, Wuhan Steel, Anshan Iron and Steel, Hebei Iron and Steel and other steel enterprises in China more than a dozen executives, have jointly written to the relevant departments, hoping to solve the problem of iron ore imports rose to national level. ?FV?r?q??FI??LfC?R?l However, the iron ore price rise inevitable, help steel enterprises to control costs long association mechanism is also facing the situation of collapse.

?FW?@?72?jc_'?FV?r???15% My steel mesh data show that since July 2 start low round of iron ore price increase exceeded 15% rebound. ?63%63.5%???Vr???r_153?/155?/??Vr??r155?/157?/?^???FV?cn_?jà ¿147?Krfh Of these, 63% ~ 63.5%, powder ore CIF India port offer has reached 153 U.S. dollars / ton to 155 U.S. dollars / ton CIF powder ore port in southern Brazil, quoted at 155 U.S. dollars / ton to 157 U.S. dollars / ton, is already more than Market rumors such as Rio Tinto iron ore suppliers and steel enterprises in Japan and South Korea the third quarter reached 147 U.S. dollars per ton pricing agreements.

??MFV???J????V???M?81.6% Over the years, China imported iron ore mainly from Australia, Brazil and India, in the first half, the three mines account for 81.6% of total Chinese imports. HVR@????HV??R?FV?\70% Monopoly of the international mining enterprises have obvious advantages, such as the International Vale three mining enterprises, monopolizing the global iron ore shipping capacity of 70%. RV??r?? Monopolistic advantage of stronger, mine asking price higher. P@???MFV?3.1|?L4.1%M?r?qM?r111.5?/??q47% Customs figures show imports of iron ore in the first half China's total 310 million tons, up 4.1%; but the average price of imports rose sharply, the average price of imports was 111.5 U.S. dollars / ton, up 47% year on year.

?bYF?T?s?V?FIP?FbI?FIh?"??@?IV?? Productivity experienced in the steel distribution business researcher Rong Liang He said mines crucial to the stability of the iron and steel enterprises in the steel industry chain, iron and steel enterprises have been in a weak position, so that the source of Chinese enterprises are eager to find mine.

M??_ Intended to collaborate on projects in West Africa

I??J?SFV?rCF?rnIl??????obI??? µ Industry analysts believe that, with the spot price of iron ore pricing mechanism to move closer to the development of fluctuations in raw material costs increased significantly, to the steel enterprise production and management of cost control has brought new challenges.

?j?FFHb_5000f µ?V?y?Mb?QFV?o??@ ¶oz Currently, the actual capacity of Hebei Iron and Steel Group has reached 50 million tons, relying solely on the domestic deposit and can not meet the normal production of iron ore supply, mind you want to solve has been shown.

818??FF?KdJFFV?? August 18, Hebei Iron and Steel Group are not denied the group's thirst for iron ore. ???FFcJFV?_l?SUNDANCE? ¡MbalamFV???_| In recent days, Hebei Iron and Steel Group is working with Australian iron ore development company SUNDANCE Mbalam Cameroon iron ore project to start their contacts. x??MbalamFV??_?R Yi-Fang Wang expressed the hope that Mbalam iron ore project in West Africa, can reach a consensus on cooperation.

?_??FV???_??818??FF???Ã ¿??????j??]?_whw?? "They have expressed joining us for the West African iron ore projects in the intention to cooperate." August 18, Hebei Iron and Steel Group is not named, responsible person of the "Daily Economic News" reporter, said, "now the two have not yet started specific cooperation, could talk about the next step will be based on specific projects. "

?SUNDANCE?jJ11FV?b?I??MbalamFV?? It is reported that, SUNDANCE is Australia's 11th largest iron ore producer, with operations concentrated in West Africa Mbalam iron ore project.

_lFV???K Development of iron ore in West Africa there are still many obstacles

McJ?FV?????HFV??? ? While in Australia, Brazil and India, a major exporter of iron ore, Africa or the international iron ore market newcomers. ^?jS???D_FVY? But now, many large multinational companies have turned to look at iron ore mining in Africa.

??_???I? In fact, opening up markets in West Africa there are other Chinese companies figure. jFY1.678|?^arJ??VI?12.5%L??cFV?_l?729?Xc?sp?_l??Ã ¢tSimandouFV? Previously, China Railway Materials to subscribe for 167.8 million pounds of mining companies in Africa 12.5% stake in iron ore development projects involved in Sierra Leone; July 29, the Rio Tinto Aluminium and formally signed in Beijing, the two sides will jointly develop Guinea West Mount Du (Simandou) iron ore project. MÃ ¢?Ã… ¡?FV?YbLhdXc?lR_lLY??c?} Although the West Mount Du item withstand "world-class iron ore assets," "third world" aura, but the future in cooperation with Rio Tinto Aluminium is still facing a long development period, capital investment enormous pressure and so on.

??@?]?l?FF Again, this is also reminding interested in Hebei Iron and Steel Group commanded the troops in West Africa. ?IcFV_l????KL?FV??l?s????\??AO?Or?h??^_V??^?@?o_V@?? "China's enterprises to participate in the development of West African iron ore, there are many obstacles." Long-term iron ore project in West Africa He Rong Liang said, the African political instability, economic backwardness and transportation infrastructure is poor, leading to some areas of mining Additional costs are too high, they gave mining earnings instability. ?V?d??·F·?AO? "Mining ore in West Africa, to construct the port, road and rail infrastructure."

?I?J?_FV?Y??_??????? ¡???b??Lrg@??I??_? Many in the industry believe that, in West Africa to develop iron ore resources, there are many uncertain factors, and many projects, including Cameroon, the project put into production yet to really take a long time, this will push Chinese enterprises in the local mining costs. FV????FV?Y?FV???cR????]?? "In the iron ore negotiations, wanted to help the West African iron ore resources in three major iron ore suppliers to break the monopoly of the market, not likely in the short term." "
 
BEIJING, Aug 19, 2010 (SinoCast Daily Business Beat via COMTEX) --

China's largest steelmaker by output, Hebei Iron and Steel Group, is reportedly talking with Australia's Sundance for potential co-operation on the Mbalam project in West Africa.

The Chinese steel producer was previously in talks with Aurox Resources to acquire a stake in the Ridley mine, but no actual agreement was reached. In March this year, Atlas announced its plans to buy Aurox Resources. Ridley is expected to produce 15 million mt of iron ore per year over the next 35 years. Hebei Iron and Steel Group started to look for overseas iron ore resources earlier this year.

Chinese companies have been interested in purchasing iron ore resources to secure raw material supplies and reduce dependence on the three big miners - Vale, BHP Billiton and Rio Tinto. China, the world's largest iron ore consumer, increased ore imports by 42% to a record 628 million tons in 2009.
 
Re: SDL - Sundance Resources

--------------------------------------------------------------------------------
I note from ASX announcements that:
- the new board was elected unopposed
- the share price is stable
- next milestones:
- mining permit august
- appropriation of land october
- complete drilling october
- signing of govt convention november
- finalise offtake contracts - DECEMBER
- secure project FINANCE - DECEMBER

if this timeline is maintained; IMO we will see a significant spike in the SDL SP late in the year. Maybe time to load up with some more shares?

did mining permit happen?

next step - appropriation of land - OCTOBER

SP is stable - low volume day traders have gone away
 
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