Just had a quick look at MAU. With no intent to ramp up SDL or ramp down MAU, I thought of raising some pointers why I, as sdl holder will continue to stick with SDL.
Further drilling out of Rugged Rock to JORC resource will certainly give a boost to the current 8c SP but by how much?. Lots of I/O around nowadays and big players will be very "picky". But, as short a term investor it is something to consider to make some money but its not a company which I'd invest in in the long term - not while I'm already locked in with SDL (also only at 10c now) and for the reason mentioned below.
Project development for MAU is still many years aways. Say that because the Exploration licence is yet to be converted to a mining lease which means that the native title negotiations is yet to start and at least 18 - 24 months must be set aside to get that resolved. By comparison SDL (although it now requires significant/huge/massive project funding) is in the enviable position that all government negotiations are complete and mining conventions are in hand.
SDL management need to move their backsides in a big way (have approx 12 mths) to get funding or face losing the lot. If they succeed, SDL investors should, i think, be looking at, at least 20c, upside (thus 200% increase from current levels) which must materialise in the next 12 months. Only and main question (risk) is how reliable and trusting the SDL management is to genuinely pursue funding and to get project of the ground.
Based on the above, for me in any event, SDL then presents a better option of the 2 and I'd be prepared to take the risk and keep my trust in the SDL management to get this thing off the ground in months to come. SDL Management have learnt a hard lesson, Once bitten, twice shy.- Must keep trusting.
I'm sure other posters here will be able to give a different perspective based on the type of resources of the companies.
Au revoir
SDL Price at posting:
10.0¢ Sentiment: Hold Disclosure: Held
