In Perth, representatives of the mining fraternity meet on the...

In Perth, representatives of the mining fraternity meet on the first Friday of each month at 46 Ord Street in West Perth. It's a great opporunity for listening. Of course much of what one hears is rumour or personal opinion, but there are also facts from professional individuals.

As a result of "listening" if have began to "exchange" my shares in BRM for shares in AGO. Why? AGO have forward sales contracts, BRM have none; AGO do not need access to rail to export its product, BRM does. AGO has a product it can sell, BRM's main resources is "detrital ore".

Now if one talks with with current guys in iron ore at BHP, and not the BHP iron ore "has beens", (remember companies never retrench their best staff) detrital ore is not worth that much. Thus by BRM needs to increase its supply of DSO to be commercially atractive.

Whilst there are always adverse comments about management of any company, I get the impression that manamgment of BRM cops more flack than mangement of AGO. Whether this is justified or not I don't know.

So I elected to take a tax loss and move sideways into AGO. I still own 140,000 shares in BRM which I bought at around $2.25 and I will slowly move out of these in any BRM rally.

In my view waiting for BRM to rally to $5 is a mugs game, one will miss so many opportunities. For example, less than a month ago MQG was $15 now its $30; not to long ago RTZ was about $32. For disclosure I have shares in all of these companies and in BHP.

Anyway these are just some thoughts that I thought I would share. None is investment advice