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0.6¢ sundance resources limited

Well, Nothing to do but wait another 12 months and hope the IO...

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bthotcop

7,922 Posts.

29/11/14

12:48

Post #: 14377390
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Originally posted by squidd ↑

I reckon I started saying 18 months ago that SDL would be better off selling the port and rail.

This would reduce CAPEX required to be funded substantially, and hopefully allow the company to keep a greater portion of the mine.

The flip side is of course though that the OPEX would increase. Currently, tariffs to a third party for rail and port use are not factored into the OPEX.

Current OPEX of $22p/t + 15p/t port and rail tariff + $20-$25p/t freight to China gives a break even point of $57-$62p/t before any funding costs & sustaining capital. A break even point of $65+ may be the end figure, so it's a big call to find investors wanting to put up nearly $5Bn in a market where IO is @ $70p/t.

Good luck!

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Well,

Nothing to do but wait another 12 months and hope the IO price picks up and brings out the investor cash.

SDL Price at posting: 3.4¢ Sentiment: Buy Disclosure: Held
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