I agree. I think the institutions might have had too much influence over Wayne on this one.
We know Wayne has the engineering / project mgt skills but does he have the connections and corporate wheeler dealer skills of Twiggy and George Jones?
He's going to be dealing with many different people and organisations that are all intertwined and their motivations won't be public. I think the timing of his meetings wouldn't have helped. Firstly in China. Haoning has access to massive capital and a behind the scene's mandate to get locked in access to iron ore giving Chinese co.s a stronger negotiating position in the IO market. Wayne would have said we have have a resource and no capital. Haoning would have said 'No problem... have $200m and we want 50% of your co.' Not where we want to be. Shortly after he met all those global fund managers 'Iron Ore you say - we'll have some of that but only in big chunks'. Wayne puts two and two together and Patto's drops a one million sell at $3.30 to keep the lid on growing momentum knowing all the biggies who could take out the one million sell are already in on the cap raising. I'd be interested in BHP's thoughts on a BRM - Haoning tie up. Do they really want a client owning a chunk of a mine running ore on their railway line? Given the pee wee volume relative to their own they might see it as a handy publicity move. The capital raising will certainly help with negotiations with Haoning - they don't have anywhere near as strong a negotiating position now - they'd be ranked the same as all other prospective buyers except Haoning have ships
I think Wayne will add shareholder value because he'll get the mine built on time - maximising value from high prices. We might lose a bit because he isn't a long term Iron Ore / Capital markets wheeler dealer.
The above is all speculation and I'm still holding because the shares should be at least $10 by this time next year. A bloody good return in anyones books.
Stu
BRM Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
