SDL is looking very solid atm its amazing how quickly...

SDL is looking very solid atm its amazing how quickly perceptions can change. One minute it is too hard, too expensive, and too risky (which some may still see it as) on the other hand it can be seen as a world class resource, low OPEX, high margins and an extremely attractive development opportunity.

China is reawakening IO is making headlines again and the ‘don’t want to miss out brigade’ are well and truly getting back into the market. This goes not only for equity investors but just as much to those in the market for strategic acquisitions.

POSCO, Tata, Mittal, etc are all run by people and as their outlook on the global situation changes so too will their view on what is a strategic acquisition. From a commercial perspective I would suggest they are contemplating if they are better off controlling a 2.5+ billion tonne resource with a 30 year supply as opposed to their competitors controlling it.

I believe the stronger this recovery gets the more GJ and KT will be rubbing their hands together and putting in place the best deal possible for the company and all the while the chances of a leapfrog situation becomes more of a possibility.

The wheels of industry grind slowly through recessions but once they get a sniff of recovery there is a rush to get to the front of the queue to set up for the next run.

SDL has been hitting their exploration milestones firming up the resource getting agreements and concessions in place with the Cameroon government and generally preparing a world class project for co-development with dare I say it .. the highest bidder.