SDL's flagship mbalam project is located between the two...

SDL's flagship mbalam project is located between the two unstable countries(Congo and cameroon).It wants to produce 35 million tons of iron ore but need a $5 billion investment to build deep water port, 510KM railway passing 2 countries and other infrastructures before the company can sell anything. It has an ore reserves of 770 million ton hematite and the company is already valued at $350 million today.

FMG faced a similiar situation back in 2004. Like SDL, it has no infrastructure or enough cash. They wanted to produce 42 million tons of iron ore per year,located in stable country (Australia), had a sales contract and need only $1.85 billions investment for the railway. It had $100 million of cash in early days and 1.8 billion ton of reserves and is valued only at a mere market cap of $80 million prior to the construction of railway.

When comparing SDL $350 million dollar market cap VERSUS FMG $80 million dollar market cap i think even at current price SDL is overvalued.

All in my opinion only....do your own research...