I did not want to get to carried away by putting in $10 but I believe it is capable of getting that high. If you look back at schueym99 spread sheet figures he has a figure well above $10.I have met schueym99 at the Melbourne presentation and he strikes me as being pretty switched on with his research and spread sheet knowledge.I think he went as high as $34 per share depending on certain circumstances with tenements proving up.
The longer time period the NWIOA members keep drilling the more likely BHP are going to come to an agreement. NWIOA figures show AGO and FRS producing 1 million tonnes in 2009.In 2010 AGO 6m -BCI 2m -FRS 2m.In 2011 BRM 2m -AGO 9m -BCI 5m -FRS 6m.By 2012 all four 40m -2013 55m -2014 64m and by 2015 72 million tonnes.That is with what they know they have at present,this could soon change to 100 million tonnes.
I am sure BHP would prefer this ore being shipped by them and being No1 in the World which would give them more power in price negotiations. BHP are spending $8 billion on RGP5 included is rail line from Yandi mine this work started in May 2008 and scheduled to be completed by mid 2010.This is the extension that joins the Newman line near Marillana.BHP have put in applications for rail line permit to build infrastructure on Marillana tenement.The tenement running the full length of Marillana's Southern boundary is owned by BHP as well. The Yandi Iron Ore is the same type as we have at Marillana.
BHP will have to be careful as Hancock are to make a decision by late 2009 on the Roy Hill Tenements after doing their bankable feasibility study late in 2008.The project is possibly Australia's largest undeveloped Marra Mamba iron ore deposit.Hancock are looking at a rail line from Roy Hill to Hope Downs running through Marillana,They also have plans and a permit from Government to build a rail line from Hope Downs to Port Headland.
Regards Westcott.
BRM Price at posting:
88.5¢ Sentiment: None Disclosure: Held
