1. If and when BRM starts to ship 10-25mt per annum, they represent a significant competitive threat to BHP.
2. If and when the BHP rail network is open to juniors, BRM represents a significant thorn in the side of BHP.
3. Many large companies take out juniors, not to progress the project as such - but rather shut it down, sit on it for the future - and take out a competitor.
All the above will be reveiwed by BHP in light of recent comments from Kloppers re:takeovers. In fact, for a few $billion, they could take out most of the Pilbara juniors and relieve themselves of significant grief going forward. Whether the Competition watchdog will allow this is another thing...
BRM Price at posting:
50.0¢ Sentiment: Buy Disclosure: Held