Thanks Gringo
This is definitely a point of confusion that WR needs to clarify. Is BRM being positioned as low grade producer, or was the detrital just a headline grabber?
If you could make as little as $10/tonne on 500MT, then you'd think a $300M beneficiation plant would be a no-brainer. At 30MT PA thats an NPAT of $300M a year for 15+ years. You could pay the thing off in the the first full production year. Surely prices will hold sufficiently for that? What am I missing here?
I guess he needs to wait until he completes the drilling to decide just "what BRM is". The market is certainly confused and by the sound of it the brokers are too. DJC didn't seem to take account of the detrital at all, valuing the bulk of their assessment on the DSO from one gravity anomoly. You'd have to think a scoping study is also difficult to make any conclusions from if you still have another 9 months of drilling to do... and if I hear the dreaded "strategic reserve" term used I think we are all doomed :)
Can't JP just buy FMG's rail line and be done with it?
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