Wow Dr Brooks what a roller coaster its been. The threads during the Hanlong saga were very depressing. All faith lost and a dream crushed like an ant from a dirty steel capped boot.
Threats remain from the respective govts on whether to honour the work, man hours and lives that SDL has sacrificed. The board has to be accountable but it has not yet been decided who will have the last laugh. The permits are in hand, just like many speculated, was the reason for the acceptance of the Hanlong offer.
Now we hear of many interested parties again. Many of us are sceptical of the hype. You either believe or you don't at this stage. The political risks that were constantly preached have come home to roost.
What will become of the mountain of work and intellectual property that SDL possess. That image of the mining operations on the SDL website is first class. This is no joking matter. This is a seriously economically favourable deposit, nobody here denies that. What SDL face is the difficult task of gaining the confidence of a major in the face of govt demands and hurdles, imo.
There are many calls for new blood, including myself, but SDL have some of the most experienced in the industry. Iron ore is a fickle business, imo, sentiment can dictate to the highest degree. It is not a scarce mineral but a capital intensive one as dictated by the remoteness of some of the deposits. We need to stand back and assess what SDL have achieved and why it is where it is. Would it be any different if there were different people in charge, or would it be any different if existing supporters were still with us?
IMO we are back at a SP of 2010, were I took another gamble on the coy, but we have gained so much more in terms of JORC resource and experience in govt negotiations. Congo have come to the party, a constant questionable negative on my part in the past. I believe the associated countries have learnt a lot more from this than SDL or its shareholders have. I can see a more favourable participation on this front with any future negotiations, imo.
It has been a terrible ride for the first bidder on this project. Things may have been different if the permits were obtained before a bidder came forward, imo. Everybody is learning here, imo.
Anyways the game is on and the speculative risk is now alive and kicking.
Good luck holders.
SDL Price at posting:
9.0¢ Sentiment: Buy Disclosure: Not Held
