SDL (ASX) Whats the signal?

Originally posted by squidd ↑

Hi westcott,

Fair enough, but on the timeline, the EPC comes well before any funding announcements and is a separate event. Just because the signing of the EPC occurs, doesn't mean funding must occur IMO.

You've seen how worthless EPC's can be after the Mota-Engil affair. The Mota-Engil EPC was signed before any finance was in place, and in the end was meaningless.

For me, the major events are the mine equity deal and then the Sovereign Loan being committed.

It would be nice if Matt747 elaborated further on his comments starting with "I have been led to believe" and "I am told."

Who are these worldly sources advising Matt747 of information not currently available to the public? From past experience, I've learnt to take these sorts of comments from Matt747 very cautiously.

Cheers!

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Hi Squidd,

There is a major point that is lost in the current discussion. I recently had a fairly long conversation with GC. This project is not strictly a mining project per say. Its primarily an infrastructure project!!

As an infrastructure project it represents one of the seven pillar major projects that the Cameroon Govt is 100% behind. I have no doubt at all that the Chinese will support this infrastructure development. This is part of their long term strategy.

For that reason the current macro economics don't really matter when looking at a project that will serve the Chinese interests for decades long into the future. Just look a the amount of rail infrastructure that Vale built over many years in Brazil, when the IO price was less that half the price that it is today (easy to forget this).

The single biggest hurdle any new mining company has is the CAPEX of the Infrastructure.
But infrastructure projects continue to be built all over the world. Africa is an emerging economy with many prospects. The Chinese recognise this and are pouring billions into it!

In WA the Chinese are completing a $10B + magnetite project. Low grade, high processing cost IO project. On the strength of what some are saying on HC in the current economic environment Sino Iron should cease operating. But they are not and have no intention of doing this! The project owes them a fortune with little prospect of paying it back in the near future! So the Chinese are taking a long view on all their foreign investments.

So this is the reason that the Cameroon infrastructure project into the heart of the Cameroon/Congo IO and minerals belt will go ahead. The mine site is just a formality after the infrastructure green light GO.

The Mine/Port/Rail are all inseparable. We are talking years of planning and approval processes. The gap in closing now.

With regards to what Sundance shareholders will get out of it, well that's another matter.
So many possibilities and variables. That chapter is yet to be written.

My belief is that 2016 will be the Sundance 'Watershed' year.