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Simandou, No show for a long time

  1. 8,602 Posts.
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    Hi All.

    Rio Tinto Announcement to-day. In July, Rio said spending on exploration and evaluation had continued to fall, to $US340m in the first six months of the year from $US542m in the first half of 2013.

    (My say). A few years ago Rio were spending around $20m per month when drilling with around 18 drill rigs at Simandou.

    (My Say)Simamdou is not looking to be in production any time soon, in fact, I would be surprised if SDL's projects are not in Production years in front of Simandou's Projects. With the other problems in Guinea around the bribery around Iron Ore Projects, Tenements being taken away and Huge Court cases to be started in coming years, Simandou will still be looking for funding when Mbalam and Nabeba start production.

    Net debt in the half lifted to $US13.7bn at June 30, from $US12.5bn at December 31, 2014, resulting in net gearing of 21 per cent.
    The miner's break-even price for iron ore -- which has accounted for around 90 per cent of revenue in recent years -- is around $US31 a tonne, making it one of the lowest in the sector.

    (My say.) Rio were saying their break even price a couple of months ago was down to around $US18 per tonne and going down?

    Rio has forcast long term growth in China crude steel production to around 1 billion tonnes near 2030.
    Rio Tinto expects China's GDP growth at 7 per cent in 2015, down from 7.4 per cent in 2014. That is still a 7 per cent growth on top of 2014's growth of 7.4 per cent.

    Regards
    Westcott.
 
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