There needs to be a chill pill taken by most of the posters getting worked up here. I, too lament the quality of posts of late, but to try and put some perspective on some of the recent comments;
1)SDL has a huge proven JORC resource.
2)Release of the DFS will de-risk the project as a more informed approximate Capex will be known. From this IRR and NPV will be calculated to give analysts an opportunity to calculate fair value of the company. These valuations may be conducted on various variations to the DFS (e.g blowout of costs by 10%, IO price of $100 instead of $62 etc.)
3)There has been talk that the Chinese hold all the cards since they will more than likely be the ones providing the funding. Aboslute bollocks imo. POSCO (Korean) have been linked to the project. Any other number of interested parties (RIO, BHP etc.) could step up once the DFS is known and the project is derisked. See point 1. SDL have a proven resource and a DFS showing the cost of extracting it. SDL has the power to choose its finance and off-take partner.
4)There was a comment by RVINTL saying that a deal could be made to sell the IO at the DFS price (expected $62) to minimize royalties. This would then be bought by a ?marketing? company that would on sell it to the ultimate buyers at near spot prices (possibly $150). The inference was that management would allow the set up this marketing company with the financiers of the project being the ultimate owner. SDL management are backed by the shareholders of the company to maximize the returns of the company. Any efforts by them to do such a deal would be detrimental to our returns, and since most of them either have substantial shareholdings or options, to them as well. Not to mention that it could be considered illegal.
Let?s hope that announcements are made relatively soon, so we can go back to discussing/debating the merits of the company rather than the recent dribble.
SDL Price at posting:
46.5¢ Sentiment: Buy Disclosure: Held
