I hear you Walbrook.It was obvious from the Quartely for me that it was a snub to the offer.And why not, SDL have obviously put sooooo much time and effort in this year and are currently intricately involved in so many processes it tends to blow my mind away as to the number of things that have to go right.They seem, from the Quartely, they are on the right track to obtain all the necessary support and approvals required to bring a project, across two countries, to fruition.
Hanlong NEED SDL.This to me was blatantly obvious from the Quarterly.Sundance are so aware of the logistics and little nuances and closely involved with local community figures and locals and have the necessary EMPLOYEES to see this project through.This is why they have the upper hand, imo in the negotiations. You could forgive them for considering a very reasonable offer, keeping in mind the challenges they are currently facing, but they seem resolute they have done too much work to just hand it over.
We can see from the release,imo, that defining the reserves is crucial to the project and has probably been highlighted by prospective partners.The continual drilling (at Nabeba) and adjustments of mining processes (probably blending), from the DFS, are testament they are aiming to increase this figure as this is the figure that financing will be based on.It is the reserve figures that are bankable.I will awaiting this release this quarter with anticipation.
People tend to fob off the Congo side of things when I tend to bring them up, but have a look at the drilling done at Nabeba this quarter to try and increase our numbers.This is crucial as the higher grade DSO here gives us the blend necessary to satisfy the final high (pilbra) grade ore that the market craves and our DFS is based on.
I was under the impression in a release a couple of months back we had submitted the the ESA to Congo, but have found now, it is still being converted to French???I was awaiting approval on this front soon hopefully.I have to remember and keep in mind that dealing in these countries is nothing we are aware of, and imo, we are looking at some delays, which I guess deep down we are all acutely aware of.It did state that we were, as previously stated, progressing talks with strategic partners, when it has been previously stated we would have one at the end of June.Hey, but what does it really matter when they have the confidence to snub a T/O offer, that surely must give us some confidence.All I'm saying is expect some more delays as some approvals haven't even been submitted and we need to increase our reserves, but if you LT like me we should see the giant steps made so far.
We should also bear in mind that is was the T/O that has brought the SP to where it is and it must be treated by the company with respect, for shareholders sake.Seeing as some think they announced it to help the SP perhaps they should raise it by 10c every month until a partner is found-lol!
Some of my thoughts on the quarterly folks hope they help explain my train of thoughts.
SDL Price at posting:
52.5¢ Sentiment: Hold Disclosure: Held
