On a Enterprise value to resource Sphere Minerals on the surface does appear more attactive.
However Sundance has a better relationship politically and also has a higher grade resource.
More importantly Sundance does not have any large blocking holder on their share registry (eg. no Chinese or Indian interests).
I really do not understand why Xstrata would not approach Sundance vs Sphere Minerals in terms of a Joint Venture Agreement / offtake agreement. As the bidding war for Sphere Minerals increases, it makes Sundance increasingly the most compelling opportunity in Africa as an Iron Ore partner.
DYOR, KJ
SDL Price at posting:
31.0¢ Sentiment: LT Buy Disclosure: Held
