bhp and rail access, page-13

MGS means that BRM get's say $70/t for its iron ore instead of $90/t.. but saves big time on upfront capex. Also means that it doesn't need an offtake agreement as it can utilise the agreement of the carrier.

If you have a resource the size of BRM's I don't think MGS is the best long-term strategy and I think WR would agree with this. BRM can ammortise the capex over 30 years meaning that it's actual operating costs can be minimised and it can realise more profit. Even if BRM only gets $70/t for its iron ore over the next 3 years and it costs as much as $40/t to produce, it will still make $60M EBITDA year 1 and then leap to $300M EBITDA year 2 climbing to $750M in year 3 if it hits its production schedule. Makes a mockery of its current $85M enterprise value.