missed the boat

In a post two or so weeks ago, I indicated that BRM no longer had the luxury of contining their staged exploration and development program as world events would overtake them. I suggested at that time that the take urgent steps to secure a market and transportation.

The predicted events are now happening. A global slowdown or recession will impact China's ability to sell its goods overseas which inturn will impact growth at home. It has been widely reported that Chinese consumption of steel is slowing and that they have adequate stockpiles. Compnaies like BHP and RIO, who are currently increasing production very substantially, may be able to satisfy Chinese demand in the near term. I don't know this for sure but its my gut feeling.

In the case of Brockman, with no buyers signed up, no rail access signed up and a question whether they can sell their detrital ore, their Pilbara iron ore projects have only conceptual value. Similarly, no one wants energy intensive lateritic nickel these days so their nickel project too only has conceptual value.

With investors focussing on real and not conceptual value, BRM is priced about right at around cash backing.

I have long been a supporter of BRM and put most of my money where my mouth was. I'm currently about $375k down and sadly I have to admit that I made a mistake. I am no longer optimistic about BRM in the near term unless they can pull a rabbit out the hat. But with conservative managment I doubt if this can achieved. Again, I urge managment to negotiate a sales agreement, try and obtain provisonal rail access to the coast and state the results of their metallurgical testing of the detritals; all as a matter of urgency.

These are my own thoughts. They are not investment advice.