re: wait for direction from sdl board!:), page-3

re: wait for direction from sdl board!:) Everyone is guessing so here my opinion.

Hanlong would not offer its best price for sdl with the first bid.

Hanlong knows sld would want more,but will talk tough knowing full well it will have to up the bid for a successful takeover.

Hanlong wants sdl management to stay on - a good bargaining chip for sdl and shareholders.

SDL reckons its share would be valued at $1.40 after announcement of JV partner and finance. Hanglong is offering 50 cents.

SDL will inform Hanglong that it has more iron ore - much more - so the metrics are present are low.

SDL will also be aware than many shareholders bought in at 0.665 earlier this year, and will not want to burn them.

SDL reckons the company is worth $1.40, probably more, but will negotiate and say if Hanlong wants this and this then you are going to have to pay X amount.

Even at 70 cents Hanlong picks up a world class iron ore deposit in a new frontier that has a lot of upside and could well be the next Pilbara.

So 70 cents is the minimum this company will go for imo. That way Hanlong get what they want - and we are yet to see all the conditions - and SDL can save face by knowing it has done the best deal and although it's not what all shareholders wanted it's not a bad outcome as no investors have lost money - they might not have made as much as they expected, but they haven't lost any

So I reckon we will see 70 cents minimum.

Of course if another company comes in over the top of Hanlong all bets are off.

Cheers,

T