10
SUNDANCE RESOURCES LIMITED
ANNUAL REPORT 2013
Dear Shareholders
The past twelve months have certainly been
interesting. It is fair to say they have also been
challenging, character-building and productive.
Although it was disappointing that the Scheme
Implementation Agreement (SIA) with Hanlong did
not complete as expected, I strongly believe we’ve
substantially increased the value of the Mbalam-
Nabeba Iron Ore Project during this time. This
significant progress puts us in a much stronger
position today than one year ago.
The most notable achievement over the past year has
been the finalisation of the Mining Convention and
Labour Collective Agreement in Cameroon. This is one
of the benchmark conventions agreed in Africa. We
also have the Mining Permit in the Republic of Congo.
Environmental approvals, including the Declaration
of Land for Public Utility (DUP) for the rail corridor, are
in place, and we have issued our first Environmental
Annual Report in Cameroon and Congo, updating
both countries on our progress towards achieving
our obligations.
The Cameroon and Congo Governments remain
very supportive of Sundance and are eager to see
the development of the Project as quickly as possible,
something they consider extremely important for the
economies of their countries.
In light of this, our strategy for maximising value for
shareholders and our in-country stakeholders is based
on progressing the development of the Mbalam-
Nabeba Iron Ore Project. And we are already well
advanced in this respect.
Sundance has held formal discussions with
a number of Chinese parties, all of which have
carried out due diligence on the Project over the
past two years. In April, we resumed discussions with
them as well as other potential partners from China
and elsewhere.
MANAGING DIRECTOR AND
CEO’s REPORT
We’ve held numerous meetings with potential
interested parties such as steel mills, iron ore traders,
and infrastructure providers, in order to test a range
of commercial solutions and determine which would
provide the best outcomes in the current market.
We’ve received encouraging support for these
proposed structures out of China as well as from non-
Chinese companies, all of which believe the Mbalam-
Nabeba Iron Ore Project is one of the few - and best
- development-ready iron ore greenfield projects on
the market.
The Mbalam-Nabeba Iron Ore Project is a high grade,
low cost, long mine life iron ore project that will deliver
a product of quality equal to Pilbara sinter fines at
comparable shipping prices to an international market.
It boasts high-grade Hematite Resources of 775.4
million tonnes at 57.2 per cent Fe, including Hematite
Reserves that were upgraded in December 2012 to
436.3 million tonnes at 62.6 per cent Fe. In addition,
it also has Itabirite Hematite Resources totalling
4 billion tonnes at 36.3 per cent Fe.
As described and evaluated in the Definitive Feasibility
Study completed in 2011, these Mineral Resources
and Reserves, along with other factors, support the
commercial returns required for construction of the
dedicated Infrastructure (railway and mineral terminal).
We believe the outstanding size, quality and economic
merits of our project have been overlooked in the
wake of media and market attention that was focused
on the collapse of the Hanlong deal and short term
thinking about the iron ore price and the ongoing
supply/demand balance.
Going forward we will continually and pragmatically
look for opportunities to ensure shareholder value
is enhanced. We believe the strategy that we are
currently implementing to develop the Mbalam-
Nabeba Iron Ore Project will work to achieve this.
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