logo
powered-by-canningspurple
Navigation
logo powered-by-canningspurple
  • Insight
  • Companies
    • Aeris Resources
    • Altrad
    • Argonaut
    • Artemis Resources
    • BLK Auto
    • BMG Resources
    • Buru Energy
    • Catalyst Metals
    • ChemX Materials
    • Core Lithium
    • DDH1 Drilling
    • Dreadnought
    • FBR
    • Finbar
    • Focus Minerals
    • Gold Road Resources
    • Hastings Technology Metals
    • Hyzon Motors
    • Jupiter Mines
    • Lykos Metals
    • Mineral Resources
    • Northern Minerals
    • Northern Star
    • NRW Holdings
    • Paydirt
    • Rand Mining
    • Raven SR
    • Rox Resources
    • St George Mining
    • Sundance Resources
    • Torrens Mining
    • Tribune Mining
    • Vimy Resources
    • VRX Silica
    • Westgold Resources
    • Zenith Minerals
  • Industries
    • Broking Firm
    • Clean energy
    • Copper
    • Gold
    • Insight
    • Iron ore
    • Lithium
    • Manganese
    • Mining Services
    • Nickel
    • Oil & Gas
    • Property
    • Rare Earths
    • Silica Sand
    • Technology
    • Uranium
    • Zinc
  • Video
  • About
  • Contact
  • Subscribe

Home / Iron ore / Sundance Resources provides annual report for the period ended 30 June 2020

Sundance Resources

  • ASX: SDL
    • Fe

Sundance Resources provides annual report for the period ended 30 June 2020

  • 27 October

Sundance Resources Limited (ASX: SDL) has provided investors with its annual report for the financial year ended 30 June 2020.


In their letter to shareholders, company chairman, David Porter, and CEO Giulio Casello said:

This has been an extraordinary year for all of us as COVID-19 impacted every aspect of our lives. None more so than the World economies that have been battered by lockdowns imposed by Governments. While we will not blame the pandemic for holding up the Company’s well-intended plans to eliminate Sundance’s $132 million debt and finally advance our world-class Mbalam-Nabeba Iron Ore Project it has had a slowing effect.

This is manifested by our inability since March 2020 to travel to and from Cameroon and the Republic of Congo where our Project is based, or to China to try to speed up a frustratingly slow financial agreement with AustSino. The Project has been in limbo for 9 months and this has added to the disappointment and frustration of Sundance management and our shareholders.

The year under review started with some momentum as Sundance and AustSino coordinated visits to Cameroon to progress the Project with Cameroon Government officials. Visits to China were also arranged for Cameroon Government officials to meet with the potential consortium lined up for our Project.

The consortium of Chinese players that are willing to fund, build and operate the Mbalam-Nabeba Iron Ore Project includes some of the largest companies in the world. Included in the Consortium are Shenzhen Yantian Port Holdings, China Railway Construction Co, China Baowu Steel Group and Shanghai Tsingshan Mineral Co Ltd. Naturally we and the Governments in Cameroon and Congo have been impressed with the quality and potential of the consortium members.

The efforts of AustSino and in particular Mr Chun Ming Ding in arranging this high-quality consortium have been essential in the support we have continued to receive in Cameroon, including the potential for the Mbalam Convention to be reinstated. Our last visit to Cameroon was in February this year just before COVID-19 hit. Pleasingly, on this visit to Yaounde the Government of Cameroon offered its support and expressed enthusiasm for the completion of our transaction with AustSino.

As you will be aware, the Company’s transaction with AustSino is progressing much more slowly than anticipated. However, the Board of Sundance continues to believe that completing the transaction is in the best interests of all shareholders as it will eliminate the Company’s debt of $132 million; see AustSino take a controlling stake of just over 50 per cent in Sundance; provide us with an immediate significant cash injection of $4 million to advance the Project; while still retaining a near undiluted 40% equity for our existing shareholders.

During the year it became clear to AustSino that WAPRC, the original funder of its plans to invest in Sundance was unable to secure the necessary finance. AustSino has since identified a new Chinese funder and remains confident it can complete the transaction with Sundance by 30 November 2020. The change in funder who has committed $100 million to AustSino coupled with the challenges of Covid-19 has resulted in multiple extensions of the deadline for completion of the Sundance/ Aust Sino transaction. Even with the many extensions of the deadline it is pleasing that Sundance shareholders continue to support AustSino and the transaction which was approved at a Sundance General Meeting on 29 July 2020. There has also been strong ongoing support from our Noteholders who approved the extensions.

As at the writing of this letter, Sundance has given AustSino until 30 November 2020 to complete the transaction. In the meantime, AustSino continues to inject a significant amount of cash into Sundance as an interim funding measure. Over the past two years, AustSino has invested more than $4 million cash in Sundance. We acknowledge that it has now been two years since Sundance shares were suspended from trading by the Australian Stock Exchange Ltd (ASX). We also acknowledge the disappointment and frustration among our shareholders, which is shared by the Directors of Sundance who are sizeable investors in the Company.

The Board of Directors of Sundance is focused on the completion of Sundance/ AustSino transaction which is a prerequisite for the $6 billion capital funding for the Mbalam-Nabeba Iron Ore Project in 2021. Following the successful completion Sundance share will resume trading on the ASX.

View full announcement

Peter Klinger

  • Contact

Share

  • LinkedIn
  • Twitter
  • Facebook

Most Read

  • 1 November

Nickel, cobalt anomalies at Sockovac; large new gold, copper anomalies at Sinjakovo

  • ASX:LYK
    • Ni
    • Cu
  • 28 September

Core Lithium – Primero Group Awarded EPC Contract for Finniss DMS Plant

  • ASX: CXO
    • Li
    • Clean energy
  • Insight
  • 26 June

Picking winners – the portfolio approach that offers blue-sky potential

  • ASX: AIS
    • Clean energy
    • Cu

Related

  • Insight
  • 7 May

Uranium, manganese dealt into gold and battery metals Diggers forum

  • ASX: HAS
    • Broking Firm
    • Clean energy
  • 3 May

Northern Star reports group Mineral Resource of 56.4Moz, Ore Reserve of 20.7Moz to underpin growth, mine life extensions and more cashflow

  • ASX: NST
    • Au
    • Fe
  • Insight
  • 30 April

March Qtr delivers truckloads of Au, Li, Fe and Mn – and a promise of more value

  • ASX: ARV
    • II
    • Broking Firm
  • 13 April

Mineral Resources in world-first autonomous road trains run

  • ASX: MIN
    • Fe
    • Broking Firm

NEWSLETTER

Get news, as it happens

Sign up to receive our weekly roundup, and releases of interest, as they happen.

  • This field is for validation purposes and should be left unchanged.
logo

Investor Insight, powered by Cannings Purple, delivers the stories that matter to the people who matter – across your preferred communications platform.

From breaking news to analysis, opportunities and thought leadership, Investor Insight is your window into some of Australia’s most exciting listed and non-listed companies.

  • Insight
  • Companies
    • Aeris Resources
    • Altrad
    • Argonaut
    • Artemis Resources
    • BLK Auto
    • BMG Resources
    • Buru Energy
    • Catalyst Metals
    • ChemX Materials
    • Core Lithium
    • DDH1 Drilling
    • Dreadnought
    • FBR
    • Finbar
    • Focus Minerals
    • Gold Road Resources
    • Hastings Technology Metals
    • Hyzon Motors
    • Jupiter Mines
    • Lykos Metals
    • Mineral Resources
    • Northern Minerals
    • Northern Star
    • NRW Holdings
    • Paydirt
    • Rand Mining
    • Raven SR
    • Rox Resources
    • St George Mining
    • Sundance Resources
    • Torrens Mining
    • Tribune Mining
    • Vimy Resources
    • VRX Silica
    • Westgold Resources
    • Zenith Minerals
  • Industries
    • Broking Firm
    • Clean energy
    • Copper
    • Gold
    • Insight
    • Iron ore
    • Lithium
    • Manganese
    • Mining Services
    • Nickel
    • Oil & Gas
    • Property
    • Rare Earths
    • Silica Sand
    • Technology
    • Uranium
    • Zinc
  • Video
powered-by-canningspurple
  • About
  • Contact
  • Subscribe
  • Cannings Purple
  • Privacy Policy
  • Disclaimer

Copyright 2022 Cannings Purple