SUNDANCE RESOURCES LIMITED
ANNUAL REPORT 2013
9
Thanks to the progress made at the Mbalam-Nabeba Iron Ore Project throughout the course of the
Hanlong proposal, your Company is now in a very strong position to secure agreements with strategic partners.
The Convention in Cameroon and the Mining Permit in Congo will underpin both the development of the mines
as well as the rail and port infrastructure.
At the time of writing to you, your Company has issued tender documents for the financing and construction
of this infrastructure as well as term sheets for development of the mine and for off-take agreements. These
documents have been sent to parties including those with which Sundance had already held negotiations,
further reflecting the rapid progress made since the termination of the Hanlong proposal.
The timing of this process is crucial because it is aimed at enabling the Mbalam-Nabeba Iron Ore Project to be
in production by 2018. Iron ore market forecasts show that by this time, global demand will again exceed supply.
The key to avoiding this imbalance, and the price rises that accompany such circumstances, is to ensure that
major greenfields projects such as ours are brought into production.
In the absence of such developments, there is a very real risk that steel mills, both within and outside of China,
will suffer again from substantial rises in iron ore prices which they were forced to endure in 2011. I do not believe
that is a risk they will be prepared to incur and as a result there will be strong support for new projects, such as
ours, to be developed.
The Mbalam-Nabeba Iron Ore Project is world class – both in terms of the quantity and quality of its iron ore
inventory. Our feasibility study shows that the estimated operating costs will be among the lowest in the world,
meaning that it will make strong returns even if iron ore prices fall significantly.
I have no doubt that the outlook for Sundance is extremely bright. The collapse of the Hanlong takeover, while
disappointing, should not detract from the fact that we are working hard to develop an outstanding iron ore project
that will be characterised by high grades, long life and low costs.
These traits are the envy of mining projects around the globe – and we have them in abundance. When they are
combined with what will be the world’s need for new, major iron ore supplies, it becomes clear that Sundance is
ideally positioned to secure the finance needed to bring this project into production.
Upon completion of this process, your Company will be on the cusp of achieving its goal of generating strong
shareholder returns from an iron ore project of substantial scale.
Along the way we will create valuable job and training opportunities, as well as significant government and
export revenues, for the people of Cameroon and Republic of Congo. The governments of both countries have
readily acknowledged these benefits and I thank them for the strong support they have provided to Sundance
and the Project.
I would like to thank Sundance management and staff, who have worked tirelessly over the past year to
advance our project to its current stage. As you would appreciate, it has often been a frustrating process.
But they have remained focused on the end result and the benefits of their skills and commitment can be
seen in the strong progress now being made.
Finally, I appreciate that it has also been a bumpy road for shareholders. I thank you for your support during this
process and I look forward to updating you as we move closer to achieving our goal of developing what I believe
will be an outstanding iron ore project by any measure.
Yours faithfully,
George Jones AM
Chairman
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