Mozart56, I think the market is discounting BRM right now on the basis that there is still a chance that the ore may not be beneficiable to saleable standard. Alot of posts treating it as a given, but note that management have always said "potentially" saleable. I agree that there will be a large price spike if in fact testwork reveals that contaminants can be reduced to acceptable levels due to the sheer size of the resource - but I think there is still a fairly widespread perception that this is not as simple as management have represented. This is not helped by them revealing only Fe head grade in their beneficiated end product and not the resulting contaminant levels. Should they clarify this, then it will either make or break the share price.
However I have another concern around transport of the ore to port. You have to ask yourselves, why would anyone with port and rail facilities want to let BRM use their rail line? BRM's end product is going to be mid grade, high contaminant shipping ore at best... FMG have a couple of billion of that stuff lying around...
BRM will have to build their own rail and port to ship any of their detrital ore.
I'm not saying BRM has no upside but would like to present an alternative view with some more objective questions raised. If and when these issues are resolved I may very well jump into BRM head first.
Cheers UIO
BRM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
