The PortfolioDirect rating for Sundance Resources has been reduced
John Robertson
PortfolioDirect
The PortfolioDirect rating for Sundance Resources has been reduced. Risks have risen on two fronts. The production start has been delayed. The earlier rating had been assuming a 2017 start. The delay reduces the potential value proposition but also pushes production beyond the critical 2017-18 period when the next iron ore supply imbalances are thought likely to emerge. The risk for Sundance is that others will get in ahead to lock in production leaving Sundance with fewer potential buyers from whom to choose. It is still possible that the more optimistic demand forecasts are not realised and Chinese demand will be declining at this point placing Sundance in an even more difficult position. The investment risk is also elevated while the company waits for finalisation of a funding package which is now not expected to be in place before mid 2015.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
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John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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