Yup Mozart, risk vs reward is always the key. Take on more risk...

Yup Mozart, risk vs reward is always the key. Take on more risk for more upside, but be willing to accept a large loss in return. I've made money on some of these and lost large amounts of money also, you don't get one without the other.

My point is that rail capacity will be reserved for high grade only. Even with FMG's excess rail capacity they will want to use that to take on high grade ore to blend with their CID. This has been flagged in recent announcements and they even contemplate using magnetite conc. for that reason.

The reason - if you have limited tonnage shipping capabilities, every tonne you ship you will want to get the highest price for. This means shipping off either high grade direct or high grade blended ore in order to get the best return on your rail and port facilities.

BRM need something else IMO to get this off, one scenario may be the discovery, purchase or development of a concurrent magnetite project to blend the magnetite concentrate with their detrital ore.

BRM's big advantage is scale. Their big disadvantage is that nobody has ever targeted detrital ore of this grade and purity in the Pilbara before.

Ex BHP management are a plus.

In my mind at the moment, the final ore quality is the wildcard. Unless they get it above 60% they will find it hard to organise transport.

Cheers UIO