IMO, SDL will make ASX history in terms of where the sp has been suppressed and maintained at and what share holders will eventually realize.
It's not because SDL is a miracle stock awaiting a rebound delivering multi-baggers to holders. It's because the stock has been manipulated completely beyond any semblance of fundmantals and raeality taking advantage of ignorance and misunderstanding of the events of the last 2 years and the pefect storm of IO failed deals, scare campaign of IO oversupply and China coming to a massive hard lending.
IO spot price today is at $136/T when "the market" - may investment banks predicted a $50-$60/t spot price in the last 2 quarter of the calendar year...LOL !
Look no further than what China has deliberately flagged to the world of how she values her inferior assets in Africa. China has just waged war on the cartel by snapping up IO assets all over Africa to bring that wall-of-supply onto the market come 2018-2020 in Cameroon, Congo, Sierra Leone, Guinea, Liberia and others.
If the China (as widely reported to be elbowing India out of Liberia - presumably with a circa $3B offer for nothing more than an IO exploration target), then Indian interests (possibly Jindal or in combination with other Indian steel giants) will (having ditched Afferro after SDL obtain the mining convention from Cameroon) are almost certain be lobbing a bid for the asset.
Just as well, Jindal's forecast her IO requirements (alone) in the next few years will be 30-40 MTA.
China's valuation of Simandou weeks ago IN PARTICULAR is of relevance. Like SDL, it is an as-yet non producing DSO resource (probably won't be until 2020 if RIO has her way).
Unlike, SDL Simandou is not sought after hot property in a competitive context and has a prohibitive capex of $20 BILLIONS nor is it a vital hub to spear head regional consolidation.
China's valuation of her 45% share of Simandou values it at $4.5 Billion at 100%. Considering China bought this white elephant on the cheap when RIO was about to be stripped of those tenaments.
SDL Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
