I asked John Robertson from EIM Capital Partners if there was one resources stock that has his interest. Our conversation traversed numerous well worn iron ore names representing the beacon of light in the sector. But when you drift further down the risk curve looking for some sizzle John landed on Sundance Resources (SDL). After a protracted and unsuccessful takeover offer from Hanlong, Sundance is attempting to pick itself up off the canvas. The underlying iron ore asset is truly world class and likely to put West Africa along side Brazil and Australia as a major iron ore hub. Direct shipping ore with approximately 20 years supply a 30milion tpa is a good starting point. The challenge is to pull together the offtake, rail (construction) and mine development. Tenders are currently being negotiated, the outcomes of which we are likely to know within the next 3 months.
I have 13 years experience in equity markets and financial media. In 2013 I Co Founded, Livewire Markets with Tom McKay. Our vision is to be the #1 source of investment ideas in Australia. Opinions expressed are my own.