I think the only way to get this back to cash backing levels Moz is to prove the resource. Many months ago I took the p1$$ out of Pelm for discrediting the product (high contaminants) and suggesting the SP would tumble. Well I apologised months ago for lacking Pelms foresight but contaminants imo remain the major concern.
- We know BHP,RIO and Vale all plan to increase output dramatically over the next five years with what at this stage (our current beneficiation results) are better quality products
- Although it is advantageous for the Chinese to encourage as much competition as possible, who honestly chooses to buy inferior product? My answer is absolutely no one!
When I first bought BRM shares (formerly Yilgarn) early last year there were a number of issues regarding its prosperity that I deemed important. This was well before rail etc. It involved establishing proven management talent, proving a resource on a scale worthy of development, proving the resource is worthy of sale and finding a customer. As the project has matured I recognise there are other imperitive issues facing us currently, but I reiterate I am referring to my feelings last year. Of the 4 issues I mentioned I believe only 2 of them have been completely addressed. I still wait for conclusive beneficiation results regarding the lowering of contaminant levels. WRs comments regarding contaminant levels facing no cost penalties with all due respect have no merit IMO. Recent developments in the IO industry give the comments no merit either! The issue of findng a buyer is still to this day a concern due to the big 3s production increases and the aforementioned contaminant levels.
I thought todays announcement was important though in regard to recent world events overdue! My initial reaction was WR must have been recieving to many emails of late to reply personally and thought it warranted an announcement. As I said yesterday I think the hard work for WR has just started.
This is a time of true reflection for many resource orientated companies. BRM for one is in the lucky position of not only having finance but enough capitol to reach production. The market has dismissed this and believes we cant and wont! If contaminant issues arent completely put to bed once and for all the market may infact be right. Its still way to early imo for the market to write BRM off altogether but WR needs to address some important issues before Xmas with a matter of urgency!!
BRM Price at posting:
57.0¢ Sentiment: None Disclosure: Held
