Directly mentions BRM in their valuation.. presumably to explain why they only included the 56Mt DSO and denied the existence of the 1.1BT on top.... it's just "dirt" remember!
Interesting because even ignoring the "dirt" BRM still looks undervalued on the comparative graphs. Of course if you include it (and BRM have to dig it up anyway) the price looks ridiculous. Taken literally, it would seem that they believe the price should have fallen after the announce.. ahh you can't please everyone. Good thing those drills are still whirring while WR chats in China.. and not just at Marillana .. Duck Creek may have a few surprises to, and with an apparent in-situ resources average of A$4.3/t BRM is cheap on just DSO only (let alone Nickel assets and the other 10 tenenaments!)
I get a feeling the market is actually penalising BRM for the overburden!
From the report:
"BRM. The reason we highlight BRM is because late last year it stated a target of achieving a 100mt resource of high grade hematite and is yet to negotiate infrastructure access. BRM recently has captured significant attention in the market following an upgrade to its resource statement which resulted in a DSO resource of 56mt at 57.5% Fe, significantly less than the 100mt target, but included a total resource of 1.1bt at 44.2% Fe. The Company believes it has 550mt of final marketable product grading 57.5-59.5% Fe which includes DSO and beneficiated ore. While we believe the market has discounted the very low grade resources BRM’s share price has still increased 57% since the resource upgrade (hitting an intraday high of A$3+ following the upgrade announcement)."
BRM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
