Juniors worth watching
THE news that Ferraus (FRS) is welcoming aboard, as a 12 per cent stakeholder, China Railway Materials Commercial Corp has concentrated the minds at Foster Stockbroking as to what other iron ore juniors will be worth watching. They view the Chinese investment in this company, while small in absolute terms, as very symbolic (China Railway is state-owned) and probably the thin end of the wedge.
What other deals might be in the offing? Well, the analysts at Foster see Brockman Resources (BRM) as the most likely company to obtain a big Chinese partner in the short term. The explorer has a 1.4 billion tonne resource right next to the railway line owned by BHP Billiton (BHP) and will require between $705 million and $1.35 billion in upfront capital. Foster is recommending a "buy" on BRM with a price target of $3.20 (it closed at $1.71 on Friday).
Juniors worth watchingTHE news that Ferraus (FRS) is welcoming...
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