Appreciate your thoughts UIO.I agree with you that until the...

Appreciate your thoughts UIO.

I agree with you that until the beneficiation process is completely costed and final product ratified that BRM needs to be discounted and I think that the current relative value of $/tonne has proven that the market will discount it heavily until it is.

I personally don't think that BRM has any hope of building its own railway line and don't for a minute believe that it intends too. It wouldn't be economic and by the time it finished it Fe prices could be anything.

Even if the scoping study is positive and the end product saleable they still need a buyer and I think the next logical step is an off-take agreement. Then and only then can BRM argue strongly that it should have access to BHP rail-line. Of course BHP could tie them up in court for years, and to some extent FMG is fighting the fight for them, although in FMG's case I think the tenament they are fighting for isn't as economic as BRM's (correct me if I'm wrong)

If they can prove that they have a 500MT + product that a buyer is willing to take, then it's odd's of getting infrastructure definitely improve.

The interesting thing for BHP is that the deposit straddles their own tenament. Not that BHP needs the money, but effectively "for free" they could allow BRM to mine both sides of the tenament in return for splitting the profits and using the rail. I don't believe that any other Fe junior is in this position.

FMG also have excess rail capacity. They may have billions of tonnes of the stuff, but will be dependent on other users of its rail to subsidise its use. If 49% interest is sold (as planned) then that investor will be seeking a return which I beleive can only come from 3rd party use.

There are definitely risks, but should these risks be overcome the rewards are huge. A $10/tonne valuation would put BRM in the $5 billion club. Definitely enough upside to take a punt at least, and with WR at the helm I can't think if anyone else better qualified to make it happen.