Whilst it may have been pie in the sky stuff, there is actually some justification for that estimated value that comes from the presentation. Specifically slide number 28 (Life cycle of a mining share) which gives a typical SP trading pattern for iron ore developments. To date BRM's SP has followed this pattern almost exactly (taking into account the global recession).
If that trend is to continue and if BRM is current mid way through the grey area as shown in the slide then $5 by the end of this year is quite realistic and possibly even a little conservative.
It also indicates an SP of around $10-15 by the time of production.
Not a bad return, even at today's prices.
BRM Price at posting:
$3.39 Sentiment: Buy Disclosure: Held
