shipping index soars, boosting iron-ore hopes, page-24

Just reading through some of the open briefings with don lewis. This sounds very appealing. The following is an extract from december.

"The fact that major companies are continuing to invest in iron ore projects around the world sends a very positive message about the long-term future of the industry.
We are certainly seeing evidence that major steel producers are continuing to encourage the development of high quality suppliers of iron ore independent of the major mining houses. Of particular relevance to Sundance is the deal announced in October by a consortium of five major Japanese and Korean steelmakers and trading house Itochu Corporation to buy a 40% stake in the itabirite iron ore mining subsidiary of the Brazilian steel maker CSN for US$3 billion. This is a major investment which rivals Anglo American’s acquisition of Brazilian itabirite iron ore producer MMX earlier this year. Interestingly, our Mbalam Project holds resources equivalent, if not larger, than these Brazilian projects. The value of recent iron ore transactions in Brazil is also enlightening. The transaction value for itabirite projects in Brazil is approximately US$1.00/tonne of in-ground itabirite resource. Sundance’s current market capitalisation is equivalent to only US$0.05/tonne of in-ground resource – clearly a significant mis-match given that the quality and nature of the Mbarga itabirite is similar to the Brazilian
itabirite ores".