G'day Foxtrot, who is the Chinese gentleman with President Biya?
At the end of the day, the party that is truely willing to risk everything for the right outcome, is going to be the one that comes out on top in the end.
By SDL not accepting Hanlong's offer of 50c, the risk is losing the support of the Cameroon Government, and possibly the only serious interested partner.
By Hanlong walking away, the Chinese risk never being able to break the current Iron Ore Monopoly.
So, it comes down to who is prepared to dig their heels in the most and risk walking away with nothing.
For Sundance, this is saying "We don't care if we lose the support of the Cameroon Government, or we never end up getting the iron ore out of the ground, but there is no way in hell that we are going to be selling out all the work we have done to date, for only 50c".
For Hanlong, this is saying "We don't care if BHP and RIO hold a monopoly over us forever, there is no way in hell that we are offering more than 50c".
The party that can stick to their guns the longest, is ultimately going to have the upper hand in negotiations.
SDL Price at posting:
43.5¢ Sentiment: None Disclosure: Held
