good article...the issue is: do our friends at BRM mangagment have the commercial nous to get into an advantageous position. Marillana has had no shortage of interest, but the conversion rate on any level of rail/JV/offtake has been sub-standard. Whether BRM has has a bloated sense of its position, or has had its fate taken over by market events is neither here nor there. More worrying is that WR et al are at risk of falling into a continued cylce of losing.
The blanket rejection of stage 1 was based not so much on a reaction to global events, but rather on not getting itself access to rail & port...(I will leave to one side the option made by WR that he would truck to Port Hedland if he had to...was this just a bit of spin?) However, Why not extend stage 1 to 1H 2010??? Unless there is some other reason they have not told us, not having use generating cashflow as promised earlier, has put us at risk of a slow death.
How much of the 110m will be left in 4 years? BRM management will doubtless have gorged through a chunk.. I suspect the option for this, against the "hard yards" of attempting to keep true to the original intention of the 2.50 placement was just too attractive.
In either event if BRM really wants to get to stage 2, they will have to go back for another raising, by which time it will seem like groundhog day, as BRM management inertia will probably see it at a similar time of the cycle...they upside is they will have their excuses down pat when, as is likely history repeats itself.
My only remaining hope for BRM is that, miraculously we secure a JV with a solid partner, or we get taken over. I hope it happens soon, becuase the cash won;t last forever, and we need a managment with the strategic intent to put it to good use.
Stage 1 rejection was the bellwater event for me. WR went back on everything that was promised 4 weeks earler..so much for the "brave new world" spin put out in early Oct.
BRM Price at posting:
41.0¢ Sentiment: None Disclosure: Held
