Whilst Brockman is pleased with the progress of negotiations to date, there can be no guarantee that the current negotiations with Fortescue will result in a binding agreement, and any agreement is likely to be subject to the satisfaction of a number of conditions. In addition to the advanced negotiations with Fortescue, Brockman has also held confidential discussions with existing Pilbara infrastructure owners that have the potential to achieve a rail solution in the necessary timeframe to meet the current production targets. In Wah Nam?s Bidder?s Statement it has identified that one alternative rail infrastructure solution is for the Wah Nam- Also
"Brockman-FerrAus Group to produce an independent end-to-end infrastructure solution. Brockman believes that in order for independent rail infrastructure development to be viable, ?critical mass? in terms of production output is required. In Brockman?s view, it is not clear that if it were to combine with FerrAus the entities would together have sufficient projected production levels to secure adequate funding for the development of independent rail infrastructure. However, as demonstrated by Brockman?s current discussions with Pilbara infrastructure owners, Brockman is of the view that third party rail haulage infrastructure options exist such that Brockman should be able to successfully develop the Marillana Project independent of FerrAus and Wah Nam."
BRM Price at posting:
$4.90 Sentiment: Buy Disclosure: Held
