My guess is as good or bad as anybody elses at this stage, but if history is anything to go by I would have to suggest that a rerating will occur at funding announcement. I think what weve seen in the last 3 months is a realisation by the punters that SDL was seriously undervalued, now we're sitting about right for this stage of development ,
Depending on how favourable the funding arrangements are I would think a doubling of SP would be par at that stage, and as offtake and subsquent announcements are made a steady upward trend for the next couple of years until production.
IMO The correlation between FMG and SDL is significant
If you align FMG march 2006 to SDL present, you find similar market caps, similar mining plan, ie 45mtpa- 35mtpa ,both have huge deposits with large expansion potential. Also we are aiming directly towards china for funding, offtake etc, as did FMG
looking at our(SDL) production plans, I/O prices, funding arrangements,I think the estimates given by other HC posters are reasonable, IMO $2-$10. There are too many variables ATM to give a solid valuation.
cheers Falcon
SDL Price at posting:
50.5¢ Sentiment: Buy Disclosure: Held
