A while back Pattersons report was saying that BRM was vastly undervalued with 50M tonnes, when shareprice was around $1/$1.50. Ore was being valued at $2 a tonne compared to peers at $8...
Therefore, fair shareprice BEFORE yesterday's ann was $3/$4.
Well now we have at least 10 times that amount of Ore....and if you think in terms of 500M tonnes of "useful stuff" (rather than 1.1 Billion all up....which is still to be increased in future, by the way) BRM is currently valued at less than 50c a tonne....absolute peanuts at this price.
Not only that, but the huge increase in tonnage puts BRM over the line of "critical mass" in order to attract the attention of the real big boys.
The chinese have been sniffing around for a while now, but management wanted to prove up the resource before accepting any offers....I guess we could say they've definitely "improved the resource" and then some.
So what's a fair price now?? If we use 500M tonnes...
@$1 a tonne=$6+ a share @$2 a tonne=$12+ a share @$4 a tonne=$24+ a share @$8 a tonne=$48+ a share
Sounds ridiculous, but Pattersons stated that peers were valued at $8 a tonne inground...and I'm using 500M to be conservative rather than the full 1.1 Billion reported....(this will likely increase soon as well to more than 1.1 Billion....ask the company!)
Right now somewhere between $6 and $10 would help to stem off what is likely to be IMHO a hostile takeover offer coming in unless traders stop trying to make a coupla grand and start actually doing some fundamental sums as above.
Disclaimer: I bought my first BRM at 72c based on 50M tonnes with the hope of that being upgraded to 100M....it looked undervalued then....it is way more undervalued now.
This is not somewhere in Africa folks (SDL) this is Pilbara Central.
BRM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
