aces are lining up for sdl

Morning all,

Pg 17 of todays AFR is good fundamental news for SDL holders. Article titled "Snub bodes ill for iron ore negotiations" mentions how China Iron and Steel Association(CISA), at a key conference leading up to iron ore negotiations have snubbed the big 3 suppliers and have invited only FMG to speak. CISA stated that the theme of the conference was to focus on "new mining resources".

I have also just come back from seeing Citi Group speak at today's Iron Ore conference where SDL are due to speak at 11.35 am.

My key take out was that SDL's low cost of production separates it from the pack and will be able to weather the storm should IO prices decline back to more normal levels. Eventhough Citi didn't mention individual mining companies it did say that producers with costs less than $25 USD per ton would be in a solid position. Given that SDL is aiming to make $1bill per year profit it would have a PE ratio of 1 at a share price of 50 cents.

I'm holding in. Central banks will cut rates (RBA today) and markets should settle down after a few weeks or months. I feel we may have seen the worst of it with possibility of a tad more downside before we get some form of rally.

SDL has a long mine life and I am looking beyond the next few years.

Regards

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Disclaimer: DYOR, the above may contain a few estimates please check with the source for accuracy. Contains personal veiws that are not in any way advice.