SDL 0.00% 0.6¢ sundance resources limited

Today

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    Hi All

    I suspect today's sell off is to do with this article in AFR. Sadly some investors probably can't differentiate SDL with the other 800 junior minors/explorers and got panic. This gives the shorters every opportunity to "steal" money from them. Please note:

    .... Patersons Securities associate director Don Inglis said one of the biggest concerns within the junior mining and exploration sector at the moment is that many pure-play exploration companies have ceased exploration.

    “Investors need to be looking for active exploration companies; they have to be exploring or else they will wither and die,he said, echoing the resounding expectation of more casualties and consolidations within the sector.

    “Combined with the uncertainty on commodity prices there is no magical panacea for these companies unless they have exploration success.”....

    Patersons did a Research Report on SDL two months ago and have a "Buy" recommendation on SDL, with 12 months share valuation of $0.21.

    We now have $40m (just received a few days ago) in our account, we have already proved to the market we have all the first class resources and we are at the final funding stage before project construction/production. IMO, our faith and patience will be paid off. Further updates/good news will be out soon.

    Good luck to all genuine SDL holders.

    Cheers.

    Pikapika


    Small-cap miners fight for financing

    PUBLISHED: 5 hours 31 MINUTES AGO | UPDATE: 0 hour 0 MINUTES AGO
    A recent survey shows about 74 per cent of listed Australian mining juniors will need to raise capital this financial year, which raises questions as to whether there is appetite in the market for that extent of resources investment. Photo: Rob Homer

    The mining industry is expecting more casualties at its junior end as the intense funding pressure facing its smallest miners threatens to force many to close their doors.

    The 800-strong junior mining and exploration sector has been facing a decline in investment since late 2012, and is now dealing with liquidity that has shrunk “from the size a swimming pool to the size of a coffee cup”, says Hedley Widdup, executive director of fund manager Lion Selection Group.

    “There are about 800 companies that fit that junior miner slash explorer banner and we could probably do with cutting that down to about 200,” Mr Widdup said.

    It costs around $1 million a year for these companies to keep the door open and so if every one of those needed $1 million to stay alive, that’s $800 million that the market needs to provide for them to do nothing for 12 months. That’s an unreasonable number.”

    Almost one in five of listed junior miners and explorers have a cash balance of less than $500,000, while 50 per cent of them are sitting on less than $2 million, Grant Thornton’s latest annual survey of the sector shows.

    About 74 per cent of listed Australian mining juniors will need to raise capital this financial year, the survey said, a finding that raises questions as to whether there is appetite in the market for that extent of resources investment.

    Mr Widdup said the share market is keen once the company in question has made a “definitive announcement”, such as an exploration discovery, an acquisition or a move to a different commodity, but interest has dwindled in exploration plays with no short-term upside......

    Mr Mitchell said it was hard to find money in the market unless “you have a company changing event”.

    “The market is not rewarding you for anything unless it is definitive or approaching cash flow status,” he said.
    “Raising money from new investors at this level is getting harder and harder because investor sentiment towards resources is at a low ebb and there is a lot of competition for that investor dollar.”

    Veteran Perth stockbroker and Patersons Securities associate director Don Inglis said one of the biggest concerns within the junior mining and exploration sector at the moment is that many pure-play exploration companies have ceased exploration.

    “Investors need to be looking for active exploration companies; they have to be exploring or else they will wither and die,” he said, echoing the resounding expectation of more casualties and consolidations within the sector.
    “Combined with the uncertainty on commodity prices there is no magical panacea for these companies unless they have exploration success.” ................

    http://www.copyright link/p/busines...rs_fight_for_financing_Hszs3nMV2iILVTBCM4hfiM
 
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