placement & legal implication, page-33

Baukaw,

Do you have rocks in your head, either that or a prema bear, compare the SDL deal to the one Gina Reinhart just did at Roy Hill selling a stake to Posco in the project for $1.5 bn at $4 per tonne of iron in ground.

SDL has 775 mt of high grade DSO plus an Itabirite Resources of 4.5B tonnes.

Iron surprise

Tim Treadgold

28 March 2012


PORTFOLIO POINT: A change in the prices being paid for undeveloped iron ore could lead to an entirely new industry based on trading in tenements.

The biggest story in iron ore is not that prices might be 'toppish’, thanks to slowing Chinese demand, but rather a remarkable re-rating of iron ore reserves triggered by Gina Rinehart’s spectacular $1.5 billion 'Roy Hill’ deal with South Korea’s Posco, signed earlier this month.

At the stroke of a pen, Rinehart has unleashed a game-changing deal which is set to revalue iron ore in the ground – and ultimately many iron ore stocks across Australia. Put simply, undeveloped iron ore, until very recently, was valued at about $1 a tonne. Under Rinehart’s deal with Posco, the valuation is at least four times higher, at $4 a tonne.

Rinehart is not alone here. Close behind is fellow WA tycoon Kerry Stokes, who has been trading in this space through his interests in Iron Ore Holdings and iron ore junior Haoma Mining, which earlier this week penned a deal at $5.79 a tonne

Read more at EurekaReport: http://www.eurekareport.com.au/article/2012/3/28/iron-ore/iron-surprise#ixzz22GayzO4W