Prime, You want a logical point - You said "this deal is a disaster for GBG, who wind up funding the development of a relatively small deposit, 400 km from the coast, in a politically unstable area. ". How far inland is GBG resources? How are they going to get it to port? Given the impressive tonnages GBG are talking about - there is not enough room at the current port facilities in Geraldton to handle this. Where does that leave them? Vying for access to the new port at Oakagee. So unless I am wrong it looks like GBG are in much the same boat as SDL if they want to ramp up their production - with no railway or port! Please correct me if I am wrong as I don't want to offend you - but it seems the one question people fail to ask about all these new io deposits is how will they get it to market?
Also Cameroon will always have the soverign rick factor hanging over its head but from all reports the government is behind this project due to the royalties, employment and infrastructure it will create. Resource Stocks Australia magazines latest issue has a report on risk through loads of countries worldwide. Whilst Cameroon didn't mention - surrounding countries like DMC did - and rated alot higher than people would think. Africa is changing its tune and I believe if someone like Rio Tinto are keen to get into Guinea (one of the most unstable countries) then SDL into Cameroon shouldn't be dismissed on pure speculation.
I personally am for the merger as I believe it has great potential as a long term growth company. 60Mta production by 2013 is very appealing imho. I would have liked to seen SLl go alone by the majority doesn't see it that way. I don't believe we have been given the full picture yet - maybe more will be revealed Fri.
All the best.... Maxi.
Just my worthless opinion......
SDL Price at posting:
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