Hey Fellas
There is one substantial piece of the future profit/NPV share price for Sundance Resources that we haven't discussed on HC for a while now.
That is the revenue and profit they will receive from more than a dozen other stranded miners in this West African iron ore province to ship their ore!
Everyone is excited about QR Rail's future with this 30 year mining boom with their significant overheads, high per tonne cost, old infrastructure!
Well what about Sundance's 480km of rail, 200 wagons 3 engines and deep sea port at Lolabe? How much additional revenue will be included in Sundance's future expected share price to reflect this additional revenue/profit source?
We have significant upside factors, listed below, for Sundance that aren't reflected at all at the current share price!
Currently we only have valuation in the current share price for 480mtonnes of DSO Hematite and production of 35mtpa at $62 FOB Iron Ore Price.
We have the following significant rerating and share price uplifting factors that will begin to be factored into the share price as the derisking commences from Thursday:
1. Revenue from higher annual production - DSO Increase for 50-75mtpa production
2. Inclusion of revenue and profit of the additional 2.4B TOnnes of Itabarite Iron ore
3. Additional revenue and profit of the rail and port, shipping other stranded miners in the region.
4. FOB DSO Revenue of $100-$150 per tonne!
The clever analysts working for the big instos will be working all those factors into the share price as they continue to accumulate SDL shares while they still can!
Its important that you are aware of those factors and think the same...........to make serious money!
FYI - Recap of the rail and port below:
Have a Good Week Fellas, things are going to start to heat up!
Cheers Nectar
