Whilst the issue has stirred up emotions on the dilution of shareholder value and questions as to "why now" it has also achieved two other significant things.
1: Production. The most beneficial of these is that the issue has clearly shortened the odds of getting to production. Production is the end game, and BRM is undoubtedly a big step closer with circa $125M in the bank and an agressive deployment schedule. When you consider the number of other IO hopefuls with larger market caps, no JORC's and feasability studies far into the distant future, WR has clearly distinguished BRM as ahead of the pack... although we wait patiently for this to be reflected in the market :)
2:Attractiveness for a takeover. Shortened odds to production definitely increases the attractiveness of BRM to potential hostile interests, and the fact that Norgard no longer controls a defninitive "blocking stake" has definitely opened the door here. An offer as low as $5/share would have to cause many to consider it given that it is double the present SP. For those who have just bought in, a 100% return in quick time would almost be too tempting to resist. $675M would buy you a very attractive resource and give you a bonus $125M to sweeten the deal. This is a real threat moving forward as further boxes are ticked.
BRM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
