King confident despite tumbling iron ore price, page-5

Hi Pika,

Here's the article from yesterday's Mining News:

King confident despite tumbling iron ore price

Thursday, 27 November 2014
Jack McGinn

INCOMING Sundance Resources chairman Wal King has backed the the Mbalam-Nabeba iron ore project in Africa despite widespread concern over the commodity’s falling value, as shareholders only narrowly elected him to the board. Addressing the company’s AGM today, as he assumed the role from retiring chairman George Jones, King said he was confident that the project, located on the border of Cameroon and the Republic of Congo, would have a strong future as a mine. “Many would say that the current iron ore price is not exactly conductive to developing a major project such as this in Africa,” he told the audience in his incoming chairman’s address. “However, I have a different view. “Having built numerous major projects over the years, and been through many cycles, I am confident that the bottom of the pricing cycle will be reached, and with recovery, will allow the project to go forward to be an operating mine. “Contrary to popular opinion, the current climate brings many advantages for Sundance, and it is one of the many reasons why I’m delighted and honoured to be receiving the chairman’s baton from George at this time. “The timing of the project should allow the company to have a better opportunity to build and commission the project within the time and budget parameters. “It is also important to remember that at current ore prices, Mbalam-Nabeba still could be successful. “That probably says more about the strength of our project than anything else.” The contrarian statement is a rare positive statement during a week when the iron ore price dropped below $US70 – a five-year low. King, who was chief executive of Leighton Holdings from 1987 to 2010, will step into the chairman role held by Jones between 2006 and 2009 and then again from 2010 after a plane crash tragically killed the entire Sundance board. But he was only just elected to the board, with more than 40% of Sundance shareholders voting against the appointment. Shareholders also only narrowly approved the re-election of Fiona Harris and the issue of convertible notes and options to investor Wafin. The company also received the first strike against its remuneration report.

Cheers,

Samson