Hi westcott Australia's iron ore is cheaper to produce than china, the same goes with coal mining in Indonesia (being a strip mine) they are cheaper to produce than China.
So does Africa...Sundance cost of production is no difference to their neighbour in Africa. As I stated before there are plenty of potential iron ore in Africa with bigger or better resources than Sundance and worth less than $100 million. The market is valuing sundance at $270 million now...and i believe this is because of the hype,extravagant and intensive publicity and promotion.
I also stated before the operating cost in Africa may be lower but the first capital expenditure is huge, they need $5 billion before they can export. Australian's Fortesecue only need $1.85 billion to ship the first ore.
Why dont you do further research to justify if Sundance is worth $270 million....the true may be hard to swallow after all
Again all in my opinion only and i could be wrong..but one thing i can assure you is that there will be another bloodbath tomorrow.
SDL Price at posting:
8.8¢ Sentiment: Sell Disclosure: Held
