BRM is currently trading at less than $1.50 per tonne for its Marillana resource (ignoring the other 30+ tenements).
Many analysts are predicting a rise of Fe this year to $200/tonne FOB. That is a huge discount that is being applied ... which in the past was applied for a variety of reasons, nearly all of which have been dealt with.
do they have a saleable resource - tick can their resource be economincally beneficiated - tick do they have the port capacity - tick do they have the rail - half a tick do they have the cash - ?
With rail and cash ticked off, and assuming WR hasn't sold the farm to Twiggy to get on the tracks, what is the kingdom worth..? Certainly not $1.50/tonne. More like $15/tonne leading into production I think... rising to $20/tonne should prices remain high.
$15/tonne = $7 billion MC or $40+ at the current SP. Allowing for a 49% capex dilution you are still looking st more than $20/share here. 2011 could indeed be the year for shareholders.
BRM Price at posting:
$4.90 Sentiment: Buy Disclosure: Held
