Hi JAYNEEN, valuation are a hard thing on out-of-fashion iron ore projects. Just speculation but Rio might have thought its cheaper to develop new projects in the brown fields of the Pilbara rather than punt $20B in a crap jurisdiction like Guinea. They have obviously had problems there considering the recent publicity. Don't know anything about the circumstances of the Exxaro sale. Back to SDL. Bluto posted a good point. No SDL and no licenses hence no asset for Noteholders. They both need each other so maybe not all zeros for shareholders. But not even 1.4 cents like the buy that Westy (?) made (ha ha, joke). Current valuation of SDL $20M plus $90M of debt = $110M. About $300M spent. Someone has to take a haircut or the Noteholders have to get creative about their debt or both. At $79.72/t there is hope. All up SDL costs $47/t so free cash flow now of $1.1B/pa. A buyer - someone who needs some +60% Fe ore long term.
SDL Price at posting:
0.3¢ Sentiment: Buy Disclosure: Held
