$us vs sdl capex, page-7

Interesting thread. Have SDL for many a year, though at the moment do not hold. The financial people repeatedly say that the US dollar will continue at current levels, if not higher until end of first quarter to mid year 2010. Thereafter it will slowly weaken, so the window of opportunity lies with SDL to get moving on developing necessary infrastructure on site, railway line and carriages, and or slurry line, port and necessary expenditure on trucks etc etc etc.....at a much lower cost than when the US dollar was a year ago (65c per $1Aus).

When they are in production the iron ore will be sold IMO at a premium to markets/ companies that want to break down the monopoly that Aust producers currently enjoy. China, India, Korea and Japan have all announced their concern over Australian companies like BHP & RIO holding them to ransom over price. Remember other markets in Europe are only a short distance away.

With these major steel producers wanting secure, long term, high quality, together with potential to be a JV partners with SDL, the short to medium term prospects will be very profitable for shareholders.

Hopefully, I will be in a position to return to SDL in the near future to ride the coming wave of profit! Will continue to watch with interest. Bernie