finale : prediction & analysis, page-5

Hi Westcott, firstly I am sure we all want the best outcome for holders.

IMO, China buying 100% of SDL’s share of Mlabam-Nabeba (company delisting – cash proceeds paid to shareholders) and adopting a JV model are NOT mutually exclusive.

I don’t subscribe to the view that Sundance wants a JV only full-stop. Unless, they stipulated a partial asset sale CAPPED at a defined % or ruled out a 100% asset buyout, anything is on the table.

Sundance could still end up called Sundance and key staffers (managerial, technical) could still be on the payroll (pay master will be Chinese SOE). Foreign engineering and construction contractors and services could be engaged and drafted in to fill gaps and deficiencies. Money will be no object in a project to develop the New Pilbara.

In this day and age (global mining construction slump), you can get anything and anyone at anytime with the right money. A Chinese SOE led EPC solution could already have many international components for all we know.

Given the EPC work will be EXCLUSIVELY rewarded to either the Chinese SOE or to the European company, logical decision would be Chinese (as the NDRC stated it wants to build infrastructure and down stream processing). Building, owning and running the infrastructure would provide total control of the entire supply chain to enhance the supply security objective.

I think you may be partly equating the numerous Chinese failures in Australian IO mining (low grade, high construction, mining & processing costs, budget over runs, technical problems, high AUD, high labor cost and previously shortage, onerous green and red tape and lack of economy of scale) with Chinese incompetence.

I would give the Chinese a lot more credit. Think 3 Gorges Dam and numerous infrastructure projects China has already delivered in Africa.

Good luck to all holders.