ann out - sdl investor presentation july 2010, page-5

Sundance shares continue march higher
The West Australian July 20, 2010, 1:12 pm


Iron ore explorer Sundance Resources says a definitive feasibility study for its Mbalam project in Cameroon is on track for completion this year and the market has undervalued the project's resource.

Shares in Sundance were up 2.5 cents, or 20.83 per cent, at 14.5 cents at 1.10pm.

The Perth-based company's shares resumed trading yesterday after a month-long suspension following the death of its entire board on June 19 in a plane crash in the Republic of Congo en route to Mbalam.

Sundance shares closed 7.69 per cent weaker at 12 cents on Monday, a solid result in the context of a weaker broader market, analysts said.

"Sundance is undervalued based on market comparables," Sundance said in a presentation released to the Australian stock exchange on Tuesday.

Sundance said WA-focused FerrAus, a fellow iron ore explorer, had an enterprise value per resource tonne of well over $1, while Sundance was only valued at 22 cents per resource tonne before its shares resumed trading yesterday.

Broker StoneBridge Securities last month slapped a "buy" recommendation and a 12-month target price of 66 cents on Sundance.

Sundance expects to start constructing the Mbalam project next year and says the selection of a strategic partner is well advanced.

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