direction of manipulation, page-4

Hi Doogs,

CamIron SA = 90% owned by SDL.AX; 10% owned by gov't and locals.
Congo Iron SA = 85% owned by SDL.AX; 15% owned by gov't and locals.

Now, CamIron SA is the Operating Company on the Cameroon Side of the mine, and Congo Iron SA is the Operating Company on the Congo Side of the mine.

To the Chinese, in doing business - control is very important, whether from inside or from outside. That's my experience in dealing with various Chinese nationals for quite sometime now. To gain control, they don't have to get more than 49% of SDL, as long as they could get 3%+ of the CamIron SA (which is 30% of the 10% not owned by SDL), and somewhere around 3%+ of the Congo Iron SA (which is 20% of the 15% not owned by SDL). If you do your maths, "if this happens" they would have a say for at least 51% of the direction on how the mines are being operated and managed.

That way, they don't have to be a majority shareholder of SDL to control the actual operations of the SA mines. I would not be surprised if I am right 60 to 70% on this one. That's the typical Chinese way.

Considering that Chinese will come in divided groups (there will be Hanlongs, Hanshorts, Hanlarges, Han.etc. etc.) from different directions like financing, engineering, constructions, operating managements, trading conduits, logistics, transports, freights, etc. etc....

The CR is one way to get more $$$ to make ends meet, while buying time, for a better deal on negotiations going forward.... But the problem is, the Chinese are probably among the most patient businessmen in the world. They can survive on making pennies, while waiting to get their hands on the control points of the bigger business. Now that they hold the keys to the vault full of $$$, it would be natural to feel the luxury of time in terms of the Commercial Terms and funding negotiations.

The more delay, in time, on the firm partners SDL would come up with, the more the SP would become unattractive. But that would only help those big ones that are buying in.... For us holders, it would just be not that beneficial for the short and medium terms.

We may have to learn from the traditional Chinese business sense - Patience and more Patience. Let's hope that the other big guys won't flood the market with more IO actually floating towards Chinese shores, if the delay compounds into an extended timeline.

Cheers Doogs.

Regards.