gs reduces price target and assigns a sell

FYI
Sundance Resources, $0.11 - Target Prices - $0.12 (was $0.20) SELL (was
Hold)

RECOMMENDATION: SELL (was HOLD)

Stock Code: SDL Rationale: -ve Neut +ve
Share Price: $ 0.11 Industry Structure:
Valuation: $ 0.11 EVA Trend:
Earnings Momentum:
Catalysts:
Price / Valuation:


Like MMX and SPH, SDL is another long dated project with a number of risks, these include:

1. Financing risk - Due to its size, we believe SDL will be forced to bring in a partner to help
finance the project. Given the current credit situation we believe it will be more difficult
for the company to fund its share of the initial capex.
2. Infrastructure risk - Mbalam is a very deposit, situated 490km from port, and thus
requires significant infrastructure to move the ore.
3. Project risk - Mbalam continues to move further towards an itabirite style mineralisation
iron ore project and away from its original plan of a high grade DSO hematite operation.
4. Sovereign risk - Operating in Cameroon carries political and social risks which company's
operating in developed nations would not face.