the valuation of ago, page-9

upssala,

No, I knew BRM was trading below cash reserves... But todays market no valuation holds to be true... If you look at the chances of BRM producing in next couple of years, then pretty risky in my view. They are apprx. 500km away from port.... May cost BRM $50 just to carry (transport cost only) 1tone of ore to port. Can they get rail access? Then anyone can build a company by wishing praying very very hard...

Cash reserves are depleting, they also need to build beneficiary plant, etc, etc...

So thats why i am suprised, in todays market not ONLY look at cash reserves of company, but management and what its selling / producing....

So having 100mil in the bank only proves to me that an exploration company can withstand this turmoil for another 2years or so (not that the comapny is worth that much). By that time there will be plenty of chances to buy it at bargain prices...

You may remember when cape lambert sold its magnetite resource to a chinese company for 400mil, and SP did not even reflect it... I believe there was no debt either...

The only indications I am getting from BRM rising is that the Iron Ore sector is strong...