I posted a report on the BDR meeting I attended on 24th May. Here's the section I wrote regarding the iron ore deal with Anglo.
"The iron ore story. I went along wanting to ask why the heck Anglo would be condescending to talk with such a small fish. The answer (and I asked him to repeat this twice) we have far more iron ore than Anglo has within their nearby project. They have a resource that has a life of 7 to 10 years. If they can do a deal with BDR they’ll have at least 25 years (and a monster like Anglo is only interested in long term projects). We were told that an agreement is close to being signed. He told us that Anglo has been very active the last three or four months in trying to get this agreement. Now, I also heard rumours coming from both the ‘suits’ at the back of the room and also from the top table that Anglo might be trying to get their operation ready to be sold. PB assured us that he and the board are quite happy with that. If you go to page 13 of the Sydney Presentation you’ll see a target called Duckhead. As you can see it’s a high grade pod of gold with an overlay of iron ore. If/when the agreement with Anglo comes about he says he’ll get them to scoop all the top ore off and …….he gleefully announced the quick boost of cash that will result within the early days of production."
BDR Price at posting:
74.5¢ Sentiment: None Disclosure: Held
