Without China as a strong buyer in iron ore, SDL will have less bright future. What is the point FOR SDL to own a huge iron ore resource (world class project), if there would be less demand in the future. Hence, off-take agreements are extremely important to guarantee SDL future.
Companies in Europe can own SDL and fund the project but who will be the ultimate buyers of SDL's production? Europe and the US?
Europe and the US are still struggling to recover from the financial crisis.
Everyone's waiting China and hope China's economy growth would be sustained in the long-run, with high expectation that strong demand would be fueled from China's domestic market i.e., around 1.4 billion of people (in 2013).
Like or dislike whoever owns the big money, he or she speaks real LOUD in any BUSINESS DEAL.
Look at Qantas. This company is struggling to survive globally and planning to lay off 5,000 staff and now politicians are talking about how to allow more equity injection from foreign investors or greater foreign ownership in Qantas. Ford and Toyota will shut down their car manufacturing facility at Geelong, Victoria. Who are being naive?
"Arrogance leads to downfall".
ARE YOU BEING NAIVE?
SDL Price at posting:
9.8¢ Sentiment: Hold Disclosure: Held
