I have finally managed to read each post on the AFR street talk article today and can't understand why the weekend AFR story on page 51 titled "A dangerous way to fly" hasn't scored a mention.
The full page article was a worthy read and highlighted the importance of maintaining high safety standards when flying abroad, citing the tragic loss of our former board as a case in point. Whilst reflecting on that tragic accident was sad, something that stood out was the 2nd last paragraph which quotes Mr Jones as saying "It's not an option for Sundance to own a plane yet, but when we kick off this project [Mbalam, straddling the border of Cameroon and the Republic of Congo], it will definitely be".
Doesn't sound at all like someone considering a 53cps takeover offer. In fact I found it was quite an understated but confident message that did not require an ASX Announcement, yet reinforced his opinion of any pending offer. Taking into account the fact that an 18% holding entitles you to the respect of the board, I thought it was very well played. Don't offend the party which will play a significant role in future negotiations (whether you like it or not), but advise the market that you are still working toward becoming a producer.
Until a new announcement is made by SDL on the Hanlong situation I refer to the latest which describes the potential offer amount as undervaluing the company.
I just remember the big picture numbers before getting caught up over 50 or 60 cents: 35MTPA would currently sell for close to $6B at spot price. Our DFS has 35MTPA being available from Nabeba at a cost of less than $1B. If I were a steel maker (Chinese, Indian, Korean, etc) I could see the value in retaining 50% of that profit margin over 25 years. And if I were an existing producer I could see the impact that would have on my future pricing negotiations - particularly if an additional 165MTPA were able to come on stream as a result of the infrastructure developments.
For mine, there are many more twists and turns to be encountered as this project moves forward. But the value is undeniable and I am excited watching how this plays out.
Best wishes all holders, Sth.
SDL Price at posting:
41.5¢ Sentiment: LT Buy Disclosure: Held
