It certainly not trading like a junior Fe play on the verge of a rail deal... market still doesn't believe it.
Must admit the "$60/tonne" cost mooted by Investec was a bit scary...
"Assuming an average realised price of A$113/t (US$99/t) and total costs of A$60/t, we estimate that the project may generate NPAT in the order of A$500m in FY?15E, assuming partial ramp up and sales volumes of 12.9mt."
Just 10 months ago it was supposed to be nearly half this..
From the September Feasability Study
"Free On Board Port Hedland average life-of-mine cash operating cost (pre-royalties) range estimated at A$35.6 - A$36.9 / tonne"
Having said that, even on Investec's conservative figures the MC of BRM is LESS than one year's NPAT!
BRM Price at posting:
$3.53 Sentiment: Buy Disclosure: Held
