Sundance Resources: Einschätzung von Goldman Sachs

http://www.sundanceresources.com.au/

INITIATION  
21 November 2007

Sundance Resources Limited  
Strike While The Iron Is Hot
Materials | Metals & Mining | Australia

Event:
• Initiating coverage on SDL with a BUY recommendation.
• SDL is an aspiring iron ore company with a concept to produce 35mtpa
from its Mbalam project in Cameroon.
• The concept is based on a study conducted by the United Nations
Development Fund (UNDF) which concluded that >800mt of
mineralisation was present at Mbalam.
• A significant amount of work needs to be undertaken before the concept
moves into production, however we highlight the key attraction of the
Mbalam project is its conceptual shear size and the potential of a high
grade hematite deposit.
• We see SDL as the "higher risk / higher reward" option for direct
exposure into the iron within the Australian iron ore market as its
Mbalam project still needs to be proved up then funded and then
developed.
• However, we highlight that should the project be developed, its potential
size and scale create a very attractive iron ore company.

Investment View:
• Our view on the outlook for the iron ore market is favourable over the
short to medium term. We see the market remaining very tight with not
enough supply available to meet demand.
• While equities in the iron ore industry have performed very well over the
past 12 months, we see further upside to our iron forecasts continuing
the favourable environment for iron ore exposed equities.

 

Ich hoffe heute auf 50%  HOHOHOHO  

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