Its certainly been a quiet month for BRM. Its come as no surprise though as the company has always maintained infrastructure decisions would be made late this year. That means December to me. There was no chance BRM would finalise any decisions before Wayne Swans announcement regarding 3rd party rail haulage. It seems increasingly probable that he will maintain silence on the issue and use the financial crisis as an excuse. This would then mean BRM must strike a deal with FMG and soon!
Todays announcement from a fellow NWIOA member AGO regarding operational changes is more than a blow for BRM. Beneficiation results as previously mentioned by numerous posters has now become increasingly vital in terms of reducing contaminant levels. WR said earlier this year he didnt expect contaminant levels to affect the sale price! He also said recently in Melbourne he expected IO prices to go up next year! I believe WRs toughest challengers have come sooner than most of us expected and he must deliver! I say this because it is WR and his management team that are currently asking for a substantial pay increase and generous option packages whilst our MC deminishes and IO outlook uncertain! With Brazils Vale continuing with their plans to double IO output to over 500 mt by 2013 where will BRM stand with their inferior product.
Many questions need to be answered very soon IMO. I wish I could be in Perth for the AGM. WR has done an incredibly good job up until now but he must reconsider changing strategies and time frames when circumstances change. I believe AGOs announcement today is a clear sign things have changed. Im not even sure if the MOUs weve heard so much about are even relevant now? Who really knows? Time for some transparency here and good leadership. I hope WR is again ready to step up to the plate because he needs to deliver now more than ever!
BRM Price at posting:
54.5¢ Sentiment: None Disclosure: Held
