Current in ground resource valuation for SDL is US$0.231/tonne which is very interesting considering that recent comparable market valuations have indicated that a price between US$0.95 – $1.86/tonne would be more realistic in better market conditions.
So even factoring in huge discounts there is plenty of upside here. In particular it goes to show how much of a re rating and potential surge there could be if we get a committed funding partner. ie the market seems to be discounting the value of the resource by about 75% due to funding risk using the 0.95/tonne BML deal valuation.
SDL Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
