brokers coverage ....who to believe ?, page-9

Hi Bigstar, I think the potential upside could be huge once the WACC risk factors are eliminated.

the BIGGEST problem of the analysis is in the EV/T estimated valuations which are extremely questionable.

Here they compare the world-class $21/T DSO resource with Afferro (as a peer) which Jindal has described as "Low grade magnetite and related problems in beneficiation, financial unviablility"...

http://www.thehindubusinessline.com/companies/jindal-steel-drops-plan-to-buy-afferro-mining/article4389028.ece

These brokers valuations also have deliberately ignored the largest single share holder in Sundance and one of the tender front-runners hell bent (hi NDRC !) on buying foreign IO assets(the Chinese).

They have deliberately ignored the valuation by Chinalco of greenfield Simandou ($7.2B) and even a discounted valuation using a high-cost magnetite producer (Tonkolili) at $/T would have provided some useful rough numbers.

Surely, $2.5B paid by China SOE (and approved by the NDRC for an African IO resource) for 40% of Tonkolili (18MTA)would not be less relevant than orphan Afferro.