Mozart, Australia depends on foreign investment to realise its assets. Unfortunately we're told that if the Government imposes restrictive investment conditions then Australia is seen as being investment unfriendly and there is no inflow of dollars.
China is different because it's communist. Their government is responsible for investment and taking the profits. Because they're making so much from their cheap labour, there's no need for foreign investment to get things done.
This whole Wah Nam fiasco really has shown up how out of their depth the BRM management team were. They initially facilitated Wah Nam's involvement and increased holdings, could have done a quick 15% cap raising to dilute Wah Nam to below 50% position; convert their cheap options etc and then plans A, B and C were hoping for support from ASIC (sort of like their initial rail deal being entirely focused on BHP for a couple of years). If they hadn't of wasted 2 years on BHP and instead gone to FMG early, then a rail deal would probably be in place and Wah Nam would be nothing but a minor holder. I'm still pissed off about the 3 years lost banging on BHP's door when it was apparent to all and sundry (except BRM management) that BHP wouldn't budge.
This whole saga has shown BRM management to be total dimwits and now we are where we are with Wah Nam calling the shots. We can be angry with Wah Nam, but it's nothing with the anger that I have towards the tools in BRM offices that were sitting back contemplating their navels and dreaming of ways to increase their reward for their ongoing inept management.
BRM Price at posting:
$2.14 Sentiment: None Disclosure: Held
