Some excellent posts and contributions about SDL's CR and expected share dilution, I think Homebrand is close with his estimates.
We need to be realistic about the number of shares that will be issued to source the funding for this incredibly profitable Top 5 Global Project!
Even if we use worse case scenario numbers which shows a worse share dilution than Homebrand's numbers in terms of additional shares issued to 5.8Billion shares, Cash Costs increasing to $28 per tonne, above the numbers in SDL's DFS. Using different Spot Iron Ore Prices ranging from a recessionary low of $85 per tonne to strong world GDP growth of $150 per tonne and a conservative 5 Times EPS for share price we come up with the forecast future prices below:
Due to the sheer scale of the mine, and its low cash cost, even with an excessive share dilution of an additional 3Billion shares(again Im playing worse case scenario) we still have a lot of upside to Sundance's Share Price!
I say lets just do it and get that dirt out of the GROUND!!!
Cheers Nectar
SDL Price at posting:
43.5¢ Sentiment: LT Buy Disclosure: Held
