If the Hanlong deal falls over the first thing would be a fall...

If the Hanlong deal falls over the first thing would be a fall in the share price. I can see that SDL will be in the range of 20-25cents depending on the market environment as well.

If economic situation and bank liquidity remains crap like it is today then could take a while for Sundance to find another partner.

Core mining at this stage has Glencore and Severstal in their share registry but does not mean they will be forking out $4billion to develop the project anytime soon. The idea of combining SDL and Core Mining may sound good on paper until you start to develop the stuff ... that is when you get the bickering and massive delays ... just look at the Midwest projects in Australia.

If you look at Rio Tinto they still have 2 massive Haematite deposits called Rhodes Ridges and Shovalanna that can easily add 40-50 million mt together with development costs well less than $2 billion for both of the projects (due to proximity to infrastructure). I am sure BHP and CVRD still have projects in hand that are considered world class that has not been exploited yet.

While there are many that are confident that long term SDL is worth much more than $1.6billion if development stage is reached but that is still a long way away.

Before the GFC there was money floating around because of bad lending practices from the investment banks (junk bonds) but now the structural problems mean that banks are not willing to lend. Just look at the bailouts given to banks today ... most of that money is retained to keep the balance sheet afloat. Development of $3-$4billion projects are going to be extremely difficult for the foreseeable future unless the structural problems of the world banks magically gets resolved.

I honestly hope that the Hanlong deal does not fall over for shareholders sake. I have sold out because I am scared that there is a possibility of this happening. As I mention before that if Hanlong does not come up with solid evidence that they can do this deal by end of January 2012 then the chances of Hanlong not doing the deal is greater than 50%.