To me, FMG shares are tangible whereas script in Wah Nam isn't. While my ideal would be $10 per share for BRM, I can't see anyone offering this - particularly as Marillana is stranded without a rail deal. I don't know that a rail deal will be penned anytime soon, so the SP will probably stay at it's current level or lower until there is something concrete. In the meantime, FMG is a producer and I anticipate that their SP will continue to rise, particularly if iron ore prices maintain their current level for next 3 years.
I believe that Wah Nam have become frustrated with BRM's inability to progress a rail deal with existing Australian producers and they've decided that they can get rail through Chinese investment and thus move things along. If anything, WN's actions have now put the pressure on BRM management to make things happen on the rail front.
BRM Price at posting:
$5.35 Sentiment: None Disclosure: Held
