SDL 0.00% 0.6¢ sundance resources limited

ok, this is strating to get very ugly..., page-41

  1. 377 Posts.
    Hi EmDe

    I can think of 3 reasons as to why they probably have thought of being all over SDL of the top of my head.

    1. 12 companies are in confidential agreements with financing for the SDL project, considering they have spent so much on smaller projects with less ore in the ground at a lower grade it would surprise me A LOT if none of these 12 were not chinese steel makers.

    2. SDL have only drilled approx < 1% of their total tenements and yet they have already defined a LOM > 20 years. I would love to think of the total JORC compliant resource they have under their arms. IMO 8-10 billion when referring to the blue shaded areas of itabirite from congo yet undefined and other ore deposits. Why wouldnt the Chinese want to lock in such a huge deposit?

    3. Considering BHP and RIO were after this tenement before SDL, yet SDL were the ones to aquire it, due to the size of the resource the Chinese would want to lock in as much supply to give the major 3 giants not as much control over price in the future to feul their growth. IMO BHP would be one of the 12 looking to help secure funding too so the law of supply, demand and price takes into effect. If BHP are able to provide finance it would give them more control in the future as they would have locked in a large resource. The Chinese would not prefer this.

    Overall, what does it for me, is that Don Lewis has stated he is NOT concerened about the GFC. If he were to OPENLY state this, to the public, and yet SDL did not secure some sort of finance, there would be some ignorance to his fiduciary/legal duty as a director IMO. Therefore based on this, i believe they have offers on the table, its just a matter of how good.

    DYOR.

    Cheers guys
 
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