Minerals exploration company Brockman Resources has appointed Swiss-based investment bank UBS to help it fine tune its operations as it seeks to survive and prosper through the economic downturn.
The company said the appointment would help it capitalise on the prevailing market conditions and assess opportunities as well as progress its flagship Marillana stage 2 iron ore project, about 100km north west of Newman.
Brockman said Marillana was a world class JORC compliant resource of 1.6 billion tonnes with close proximity to existing rail, road and port infrastructure.
The company said it has a strong cash position with $103 million in the bank.
Managing director Wayne Richards said the board was determined to strike the appropriate balance between advancing the Marillana project and preserving the company’s cash position in a climate of volatile markets and low commodity prices.
Brockman recently announced the appointment of Ausenco to complete its stage 2 pre-feasibility study for the Marillana project, comprising a 15-20Mtpa operation with a forecast 40-year mine life.
The company said it was also involved in a scoping study into the development of two inner harbour berths and associated ore handling facilities at Port Hedland.
Brockman is one of many exploration companies to be hit hard by the global economic crisis and the corresponding fall in metals prices.
Shares in the company traded higher than $3 early last year, but fell to a low of 40 cents in November.
Brockman shares closed up four cents, or 5.56 per cent, to 76 cents today after reaching a high of 78 cents in earlier trade. More than one million shares were traded.
BRM Price at posting:
76.0¢ Sentiment: Buy Disclosure: Held
