could be 'game on', page-9

cabmerlo I would be surprised to see POSCO re-enter the frey. Since they ran their ruler over SDL they have purchased a 15% stake in Roy Hill for $1.5Bn and signed off-take agreements. So they have spent $1.5Bn to gain 15% equity, they will probably have to cover 15% of the CAPEX which is supposed to be $8-$9Bn, and have secured an IO supply. I think POSCO has moved on from SDL.

I personally think we have some posturing going on between the two sides at the moment, and could see them meet somewhere in the middle of 40-57c.

If the SDL board believes it has good enough relations with the Africans to walk away from this deal and wait until the market turns, that could also be an option. The sticking point would be how long the Africans are prepared to see the IO deposit sit there undeveloped when the Chinese would probably be in their ears saying they are ready to go straight away. It's been a very long process so far and you wonder just how much patience the Africans would have for further long (12 months+) delays.