this is old report but it is very usefull to read it Sundance expects strong growth 15:08, Wednesday, 28 May 2008
Sydney - Wednesday - May 28: (RWE Australian Business News) - Sundance Resources Ltd (ASX:SDL) expected to see significant growth in value as it progressively reported JORC-compliant resources through 2008, managing director Mr Don Lewis told CorporateFile in an open briefing lodged today. The company recently reported its maiden JORC-Code compliant mineral resource at the Mbalam Iron Ore Project in Cameroon – an inferred resource of 190m tonnes of of Direct Shipping Ore (DSO) quality hematite (60pc Fe grade) at the Mbarga and Mbarga South deposits. "Sundance currently has a market capitalisation of around $540m. "In our view, we are now significantly undervalued on the basis of both identified and targeted resources at Mbalam," he said. "Current undeveloped DSO projects in Australia are valued at anything up to $A10/tonne of in-ground DSO resource. "Our current market capitalisation is equivalent to around $A2.50/tonne based on our current SO Inferred Resource base of 190m tonnes of high-quality DSO material. "This ignores any prospect to increase this DSO tonnage as drilling extends to new exploration targets and completely discounts the value of the significant itabirite mineralisation identified to date. "Recently completed acquisitions of itabirite projects in Brazil translate to a value of $US1 to $3 per tonne of in-ground itabirite resource. "Clearly, the Mbarga deposit is of very significant scale. "Our current 1 to 1.2bn tonne range for itabirite therefore has significant value when assessed on a comparative basis against recent transactions in Brazil," Mr Lewis said. ENDS
SDL Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held