Thanks Yellow,FP Markets morning newsletter 03.08.11"Chinese...

Thanks Yellow,

FP Markets morning newsletter 03.08.11
"Chinese entrepreneur and chairman of the Hanlong Group Liu Han said yesterday that foreign investment laws in Australia could not stop his privately-owned company from taking over Australian-listed Sundance Resources (SDL) which has its major assets in Africa. Mr Liu said the strategic aim of his company was to become one of the top four iron ore producers globally so China would not have the massive funding flows that currently travel outward to companies such as BHP Billiton (BHP) and Rio Tinto (RIO)."

SMH 03.08.11
"Sundance had planned a two-stage $7.7 billion iron ore project in Cameron and Congo. Hanlong claims the mine could provide up to 200 million tonnes of iron-ore imports to China each year."

Gday all,

I was surprised to read the two quotes above this morning. Anyone crunching the numbers @ 35MTPA knows how phenomenal the project would stack up if you tweak the output up to 200MTPA (Yes I admit, I have run the numbers this high?!). For Hanlong to make the first quote above and then leak the potential of output to hit 200MTPA has me perplexed. When NPV is well above current bid price of $0.50 already, why let the market know you believe output would potentially increase so significantly? This is why I am still inclined to believe that they are attempting to force others to show their hand. That is purely speculation though.

I have not been able to find anything more on why Mr Casello was dispatched to Cameroon rather than present at the Diggers conference as planned. It is obviously an urgent matter, which makes me think it will be worthy of an announcement shortly. I just love the antici...
...pation.

Best wishes all holders,
Sth
p.s. I was too slow to read what SYD388 was moderated for, but we are in no way affiliated :)