DJ MARKET TALK: Sundance Shares Up On Rebound, Project Estimates (Market Watch from Dow Jones) 12:51 PM
0241 GMT [Dow Jones] Sundance Resources (SDL.AU) one of best mining performers on ASX, up 3 cents or 20% at 14.5 cents; on rebound from 7.6% fall after return to market yesterday from month-long trading halt after chairman, CEO, three directors killed in Congo-Brazzaville light plane crash. MineLife analyst Gavin Wendt says maiden resource estimate for Nabeba project in presentation put out to ASX today, showing 200.2 million tons iron ore at 63.1% mineralisation at Nabeba North and 215.2 million tons at 60.2% at Mbarga, South Mbarga and Metzimevin, is "extremely encouraging". Also gives production cost of US$19.95/ton, estimates shipping cost of Cameroon/Congo-Brazzaville iron ore to China US$2.50/ton less than Brazil, although definitive feasibility study still awaited. "Investors who have any sort of perspective will realise that the resource is still there despite the unfortunate personnel issue," says Wendt; sees prospect for Chinese takeover bid, given necessity of major infrastructure expertise for construction of 480km rail line, deepwater port.
SDL Price at posting:
14.5¢ Sentiment: LT Buy Disclosure: Held
