# BRM - Brockman Resources



## Crash (20 November 2007)

YML today becomes BRM or Brockman Resources Limited - A new start with a new name more closely reflecting the Iron Ore ambitions of the company.  Should be an interesting few years ahead.  YML closed under it's old moniker yesterday at $1.40 - lets see where we go from here!


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## Crash (20 November 2007)

*Re: BRM - Brockman Resources Limited*

YML discussions can be found at https://www.aussiestockforums.com/forums/showthread.php?t=3267
Many many pages..........


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## Crash (21 November 2007)

*Re: BRM - Brockman Resources Limited*

Started slowly yesterday and it seemed that punters couldnt find it, but picked up and finished ok.  Wow what a weak finish today, so few shares in the 10 levels of buy and sell.


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## noirua (28 November 2007)

*Re: BRM - Brockman Resources Limited*

Brockman Resources ( formerly Yilgarn Mining YML) were placed in Trading Halt at 10.13a.m: http://www.asx.com.au/asxpdf/20071128/pdf/3163gsqms4150m.pdf


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## Synergy (28 November 2007)

*Re: BRM - Brockman Resources Limited*



noirua said:


> Brockman Resources ( formerly Yilgarn Mining YML) were placed in Trading Halt at 10.13a.m: http://www.asx.com.au/asxpdf/20071128/pdf/3163gsqms4150m.pdf




Hmm what could this be for?

Was there anything major expected around now?

A takeover would make a nice Christmas present. (the 100 word thing forced me to be creative)


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## Stimpy (28 November 2007)

Possibilities:

Carr-Boyd commencement of mining
Sale of nickel assets
Takeover attempt
JV with Chinese steel mill
Infrastructure agreement
Assays from Rockhole Bore or the gravity anomalies

Can anyone think of anything else?

Disclaimer - I'm a cartoon cat, DYOR!


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## nioka (28 November 2007)

Stimpy said:


> Possibilities:
> 
> Carr-Boyd commencement of mining
> Sale of nickel assets
> ...



Access to rail facilities  OR  Denial of access to rail racilities. One would be a great plus the other a problem.


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## gringokonyo (28 November 2007)

Stimpy said:


> Possibilities:
> 
> Carr-Boyd commencement of mining
> Sale of nickel assets
> ...




confirmation that the overburden contains sufficient Fe for it to be sold and therefore make its removal cost neutral


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## DionM (28 November 2007)

... and right while I'm in the middle of changing brokers and my holdings are "somewhere" in transit.  Hope they appear tomorrow for Friday's resumption of trading!


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## Crash (29 November 2007)

Reading the announcement they could start trading again today?  Hope they remember which drawer they put them in!


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## Stimpy (29 November 2007)

Another possibility: floating nickel assets.

I like the sound of that one, too - of course, I'd prefer them to strike massive supergene mineralisation in one of the three sweet gravity anomalies in the SE corner.

Disclaimer - I'm a cartoon cat, DYOR!


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## Stimpy (29 November 2007)

Suspended from quotation?

The plot thickens!

I wonder what they've got?

Disclaimer - I'm a cartoon cat, DYOR!


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## marklar (29 November 2007)

Stimpy said:


> Suspended from quotation?
> 
> The plot thickens!
> 
> I wonder what they've got?



BHP are going to hoover them up???
They've negotiated access to the rail lines???
The chinese are coming???
The've found a bigger stash of Fe than FMG???

the mind boggles...

I'm looking back through recent charts and am not finding anything significant in share price movements to indicate insider knowledge, makes me wonder if it's going to be significant or not.

m.


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## countryboy (29 November 2007)

no one has mentioned capital raising. They do have approx $4million in the bank and don't need  capital until next year at the earliest. Im on JV and good news about resources. If it was just a resources ann they would have traded tomorrow.


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## Crash (30 November 2007)

This is going to s*** me all day, and i guess all weekend.  Unfortunately I have seen to many share prices drop of late regardless of whether the announcement was positive of not.  Heres hoping this bucks that trend!


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## Stimpy (30 November 2007)

countryboy said:


> If it was just a resources ann they would have traded tomorrow.




If it's an upgrade based on new assays they could be waiting for the consultant to finish the report. That's just my 

Disclaimer - I'm a cartoon cat, DYOR!


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## Crash (3 December 2007)

So do BRM have to resume trading today?  Or can this go on indefinitely?


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## Crash (3 December 2007)

Doesnt seem i can edit my posts anymore either?  All the buys and sells have been wiped from the board when I try to view the market depth.  Is this normal or have all these trades just expired since the original halt?


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## Stimpy (3 December 2007)

Crash said:


> So do BRM have to resume trading today?  Or can this go on indefinitely?




It could be indefinite but it's unlikely. Having said that GGG was suspended from quotation for about six months which must have felt like forever to holders. On the plus side it went up about 1000% when trading resumed. If that were to happen to BRM I guess I'd be okay with it! 

Disclaimer - I'm a cartoon cat, DYOR!


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## Synergy (3 December 2007)

Crash it can go on indefinitely, and the orders have been cleared as a part of the suspension. Hopefully it won't drag out too long.


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## Crash (3 December 2007)

Synergy, thanks for the clarification - guess I am just looking for any indication that anything out of the ordinary is going on.  I also noticed their new website has been updated as previously it just showed the recent announcments.


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## rico01 (3 December 2007)

Just rang the company to find out whats happening. A Kathlean Oshay told me that an announcement will happen in the next 24 hours/Unlikely today.And would not give any clues to what it's all about
So just 1 more sleeep and we might see some action


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## kransky (3 December 2007)

Fingers crossed for a cap raising.. I only hold a few 

I am guessing its the selling of the nickel assets.


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## shinobi346 (3 December 2007)

I never saw this one coming. I wonder what it could be. I hope its not a sale. They still haven't released the Carl Boyd report.


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## Stimpy (4 December 2007)

Placement - yawn.

Still, they must have $11M cash. That should keep them going for a while!

Disclaimer - I'm a cartoon cat, DYOR!


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## rico01 (4 December 2007)

Ann out there is a placement at $1.05 for 7.75 million shares to domestic nand internatioal institutions.


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## grace (4 December 2007)

It really cheeses me off when they do not offer this also to existing shareholders.   All existing holders should email to Brockman and request this is done next time they need some money!  I will be letting them know how I feel about this!


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## gordon2007 (4 December 2007)

I don't know what I was expecting the announcement to be, but I know I definitely wasn't expecting it to be that. I don't understand the need for a suspension from trading just for that. Anyone have any ideas as to why? Makes me wonder why I'd pay $1.25 a share when apparently if someone's got a bit of money they can be had for $1.05 instead.


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## Stimpy (4 December 2007)

gordon2007 said:


> I don't know what I was expecting the announcement to be, but I know I definitely wasn't expecting it to be that. I don't understand the need for a suspension from trading just for that. Anyone have any ideas as to why? Makes me wonder why I'd pay $1.25 a share when apparently if someone's got a bit of money they can be had for $1.05 instead.




A placement will affect the share price as the share price will tend to reflect the price paid. One hopes it's above the market price but - as today - it isn't always the case.

Institutional investors aren't usually willing to put millions of dollars into risky specs without a discount. As it stands Brockman doesn't have an infrastructure agreement in the bag, risk is high, price is low.

Doesn't mean the latest valuations (Paterson's $1.81, DJ Carmichaels $2.14 from memory) aren't valid, just that the perceived risk is high when you're talking about millions of dollars.

Disclaimer - I'm a cartoon cat, DYOR!


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## gordon2007 (4 December 2007)

Ahh OK thanks for explaining that. I don't hold any shares but it is on my watch list. Was there a timeframe as to when it was supposed to mature to the 1.80 mark?


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## alphatrader (4 December 2007)

The announcement of the institutional issue at $1.05 sounds like a bargain and seems to have driven the price down. I had hoped for a more positive announcement followed by a surge. 

It also seems to me that the share price would have followed the same course even without the trading halt then the suspension so I can't understand why these were requested by the company.

Can anybody explain it?


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## Stimpy (4 December 2007)

alphatrader said:


> Can anybody explain it?




When the placement process was started, some investors had information that the rest of the market didn't have. That's why they called for a trading halt before it began - such things are against the listing rules. The placement process obviously took slightly longer than anticipated, hence the suspension. There was no point in telling the market that they were raising capital until they had finished - it may even have hurt the process.

Disclaimer - I'm a cartoon cat, DYOR!


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## shinobi346 (4 December 2007)

If that $1.81 was ever correct it won't be after the placement. This placement will dilute the value of each share.

I can't say I'm thrilled with this announcement. They should have offered it to ex shareholders. Even if the price was higher I still would have jumped on it.


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## grace (4 December 2007)

shinobi346 said:


> If that $1.81 was ever correct it won't be after the placement. This placement will dilute the value of each share.
> 
> I can't say I'm thrilled with this announcement. They should have offered it to ex shareholders. Even if the price was higher I still would have jumped on it.




If you are unhappy about existing shareholders not receiving the same offer via a share purchase plan, email the company your negative thoughts as I did!  Hopefully, they will never do it again.


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## Mozart56 (4 December 2007)

shinobi346 said:


> If that $1.81 was ever correct it won't be after the placement. This placement will dilute the value of each share.
> 
> I can't say I'm thrilled with this announcement. They should have offered it to ex shareholders. Even if the price was higher I still would have jumped on it.




I've posted this on HC and an happy to do it here to as I have been with YML/BRM for 4 years ..

"Well I'm a long term holder and will continue to be so .. but I am appalled at the $1.05 placing. Existing shareholders have been short changed here and deserve to be upset. $1.30 would have been passable but $1.05 reaks of mates rates. Given the hype and much vaulted undervalued nature of the shares this has set us back 6 months. We will get there in the long run but I'm not happy with this decision. Poor form all round. As for not mentioning this at AGM I won't even go there. Not happy Wayne!"


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## MiningGuru (7 December 2007)

Very few sellers at the moment.

This share has been known to move significantly upwards very very quickly because of this. 

Drilling results are due in around 2 weeks. In specualtion of results expect the share to move up rapidly back to its highs of $1.85 next week.


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## prawn_86 (7 December 2007)

MiningGuru said:


> Very few sellers at the moment.
> 
> This share has been known to move significantly upwards very very quickly because of this.
> 
> Drilling results are due in around 2 weeks. In specualtion of results expect the share to move up rapidly back to its highs of $1.85 next week.




Thats a 50% increase you are implying on speculation alone MG.

Can you please provide some evidence as to why speculators would push it this high? ie - what kind of results are they targeting?

i could understand a 5 or 10% increase on ann speculation but 50% is a lot without any facts backing up your statement


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## Stimpy (7 December 2007)

MiningGuru said:


> Drilling results are due in around 2 weeks.




Really? Rockhole Bore and the gravity anomalies? Where did you come upon that nugget? Is it in any of the announcements?

Disclaimer - I'm a cartoon cat, DYOR!


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## MiningGuru (11 December 2007)

Announcement now out. Sensational further discoveries of high grade iron ore!

I have made my predicitions on past performance of the share price, which has been known to spike heavily due to the tightly held register.

Expect the share price to start to move up once the ann has been digested.


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## Crash (11 December 2007)

Doesnt look like it is being digested too well so far.  Down to 1.18 currently and not looking like heading north!  Maybe no one will be happy until there is a rail deal.


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## Stimpy (11 December 2007)

This latest announcement is huge.

Given that screening can upgrade by up to 20% I think they might already have their 100MT - if not they can't be far off. Iron continues pretty much all the way along the tenement's southern boundary. They haven't even touched the gravity anomalies in the eastern part of the tenement yet.

Now the question is how much will screening cost?

Disclaimer - I'm a cartoon cat, DYOR!


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## Mozart56 (11 December 2007)

Stimpy said:


> This latest announcement is huge.
> 
> Given that screening can upgrade by up to 20% I think they might already have their 100MT - if not they can't be far off. Iron continues pretty much all the way along the tenement's southern boundary. They haven't even touched the gravity anomalies in the eastern part of the tenement yet.
> 
> ...




The screening will be cost-neutral.  WR mentioned this at the AGM.  What this does however is significantly reduce the cost of mining as effectively removing the overburden is "free"


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## Stimpy (11 December 2007)

Mozart56 said:


> The screening will be cost-neutral.




Which means that much more of the channel iron will be profitable, even where the thickness wouldn't previously have justified removing the overburden. That is a lot of extra area and a lot of extra tonnes!

Disclaimer - I'm a cartoon cat, DYOR!


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## Mozart56 (11 December 2007)

Stimpy said:


> Which means that much more of the channel iron will be profitable, even where the thickness wouldn't previously have justified removing the overburden. That is a lot of extra area and a lot of extra tonnes!
> 
> Disclaimer - I'm a cartoon cat, DYOR!




Suggest that they haven't calculated the new resource levels yet as to not draw shareholder wrath over the giveaway placement price.  Looks like there will be a lot more than 100MT on the deposit now though doesn't it?  Anyone care to estimate just how much they have now?


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## vine (11 December 2007)

Hi guys, very new to trading so I really appreciate the depth of knowledge that you guys freely share with all us who are not so knowledgeable in these areas. I have been following all the discussion on BRM and got some shares at 1.14 so I'm hoping these shares are on the way up.  Thanks


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## Stimpy (11 December 2007)

Mozart56 said:


> Suggest that they haven't calculated the new resource levels yet as to not draw shareholder wrath over the giveaway placement price.  Looks like there will be a lot more than 100MT on the deposit now though doesn't it?  Anyone care to estimate just how much they have now?




Assuming that there is detrital material covering all of the DSO - that's a pretty big assumption by the way - and assuming detrital material starts at 10m depth, with an average thickness of 25m, and with 50% recovery, then:

NW Sector - 43MT DSO. About another 28MT recoverable in the overburden (area of NW Sector 750,000m2).

Rockhole Bore - nowhere near enough drilling results yet but say there is one channel of (average) 1000m x 1000m x 10m depth gives another 30MT channel iron with another 37.5MT recoverable in the overburden. This is very rough and it looks like the channel iron would require screening too.

We're looking at around 70MT DSO plus another 65MT recoverable (cost neutral).

That's without Abalone or the Eastern Prospects or considering regions of low thickness mineralisation.

In my humble opinion the next upgrade will be memorable.

Disclaimer - I'm a cartoon cat, DYOR!


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## Crash (19 December 2007)

Yep todays announcement/letter to shareholders pretty much confirms that the total Fe will be up.  But really nothing new.

The rail deal surely is the critical factor here - if that comes off things should really rocket.  Until then drift, drift, drift.


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## Mozart56 (19 December 2007)

Crash said:


> Yep todays announcement/letter to shareholders pretty much confirms that the total Fe will be up.  But really nothing new.
> 
> The rail deal surely is the critical factor here - if that comes off things should really rocket.  Until then drift, drift, drift.




Well it shows the first ortho view of duck creek which looks very prospective. It also tells us more about the detrital stuff which looks very good also.  Long term hold will reap benefits IMHO ..


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## shinobi346 (20 December 2007)

Crash said:


> Yep todays announcement/letter to shareholders pretty much confirms that the total Fe will be up.  But really nothing new.
> 
> The rail deal surely is the critical factor here - if that comes off things should really rocket.  Until then drift, drift, drift.




I was expecting this drop since this puts it at around the same price as the recent exclusive placement to some company.

Good to see some timeline on when YML plans to things up and running.


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## Crash (7 January 2008)

I would expect the price to jump up a little today on the back of the Fin Review list.  Most times it is the case when something is written on this stock, and with the small numbers on offer for sale we should see a rise.


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## Sean K (7 January 2008)

Crash said:


> I would expect the price to jump up a little today on the back of the Fin Review list.  Most times it is the case when something is written on this stock, and with the small numbers on offer for sale we should see a rise.



Wanna put a beer on that crash? Market's going down 2% today and very little will be spared except if a takeover is announced of something. 

I drink VB.


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## Crash (7 January 2008)

Fair points kennas, set to follow the US tumble of Friday.  Guess I will just have to hope this is a small green island in a sea of red.  I only bet on sure things, and I will take your experienced opinion over mine any day.  

If I ever bump into you down Brunswick St (that's where you hang out isn't it?) I will buy you a beer anyway.


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## grace (7 January 2008)

Crash said:


> Fair points kennas, set to follow the US tumble of Friday.  Guess I will just have to hope this is a small green island in a sea of red.  I only bet on sure things, and I will take your experienced opinion over mine any day.
> 
> If I ever bump into you down Brunswick St (that's where you hang out isn't it?) I will buy you a beer anyway.




mmmm....he owes you a beer after all!  Make sure you pick something expensive!  Up over 4% today..............


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## Sean K (8 January 2008)

grace said:


> mmmm....he owes you a beer after all!  Make sure you pick something expensive!  Up over 4% today..............



Yep, Crash, PM me your address and I'll send you some Cusquena, or Inca Cola if you don't drink.  Very good to have a rise on such a day. See of red for me.


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## tronic72 (8 January 2008)

kennas said:


> Yep, Crash, PM me your address and I'll send you some Cusquena, or Inca Cola if you don't drink.  Very good to have a rise on such a day. See of red for me.




Wanna put a beer on that crash? Market's going down 2% today and very little will be spared except if a takeover is announced of something. 

I drink VB.

Well called Kennas.


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## Crash (8 January 2008)

kennas said:


> Yep, Crash, PM me your address and I'll send you some Cusquena, or Inca Cola if you don't drink.  Very good to have a rise on such a day. See of red for me.




I think if you read what I wrote, I wasnt taking on the bet as enticing as those Sth American brews sound!  Am glad it kept up my faith that the price of this company is easily affected by media write ups (even if it took all day to finish in the green!).


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## Crash (18 January 2008)

Announcement out about upgrading rubbish on top of the CID.  They are confident they can get a useful product from it and there is a resource upgrade to be announced in Feb being prepared.  Hopefully the madness will have settled out by then.


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## rico01 (18 January 2008)

It's good to see this company quietly going along doing there business and continually upgrading the resorces they have, even in these rough times. I turned from a trader of this stock to long term holder.


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## Mozart56 (21 January 2008)

rico01 said:


> It's good to see this company quietly going along doing there business and continually upgrading the resorces they have, even in these rough times. I turned from a trader of this stock to long term holder.




Now fallen 53% from November highs. Anyone see an end to this or will BRM be sucked down the drain that is the market like many other specs?


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## Crash (24 January 2008)

Quarterly activities report out - lots in there, not necessarily much new.  Looking forward to the resource upgrade for Marillana and the estimates from the drill results on Rock Hole Bore and Abalone.  Nice to see on pg 13 the mine setup with the little rail loop on the BHP line!


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## kpas (24 January 2008)

So anny out today, details a resource upgrade in Febuary.

I am wondering why the buyers are not coming back onto this stock.

It was $1.70 at one point, shame to see it sold down and ignored.


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## kpas (24 January 2008)

kpas said:


> So anny out today, details a resource upgrade in Febuary.
> 
> I am wondering why the buyers are not coming back onto this stock.
> 
> It was $1.70 at one point, shame to see it sold down and ignored.




A clarification letter came out too at 5:11pm which most people may have missed.

Basically stated a typo in the quarterlys valuing the company at $1.18 instead of the correct value of $1.81.

A secondary broker has put a valuation of $2.16 on BRM.

So based on this, and it's current price of $0.80, would I be fairly safe in saying that BRM is a strong buy at current prices?



> Re: Clarification Letter
> Due to a clerical transposition error, there was a mistake on page 15 of the Quarterly Report for the period ending 31 December 2007.
> *The report incorrectly states a target price of Brockman as $1.18, instead of the correct valuation at $1.81. This paragraph should have read:
> “Two stockbroking firms (Patersons Securities Limited and DJ Carmichael and Co) have published research coverage of Brockman with target prices of $1.81 to $2.16 per share. *These reports can be viewed on the Company’s website.”
> ...


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## TheAbyss (24 January 2008)

Test the analysts, call them and offer them BRM shares for $1.50 and see if they will buy them at a discount to their recommendation.

Analysts recommendations are akin to betting odds in the newspaper,Both offer research and recommendations on a best endeavors basis only with no responsibility taken for accuracy.

That isnt to say that i do not sincerely want my BRM shares to increase in value sooner rather than later.


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## kpas (24 January 2008)

TheAbyss said:


> Test the analysts, call them and offer them BRM shares for $1.50 and see if they will buy them at a discount to their recommendation.
> 
> Analysts recommendations are akin to betting odds in the newspaper,Both offer research and recommendations on a best endeavors basis only with no responsibility taken for accuracy.
> 
> That isnt to say that i do not sincerely want my BRM shares to increase in value sooner rather than later.




Of course they won't if they are being publically traded for $0.80, but it is at least a solid recommendation that the company is worth more then the public currently perceives it to be.

I am much happier to invest in BRM with a reputable broker recommendation behind it, otherwise it could very much be considered a gamble.


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## kpas (11 February 2008)

Is anyone else watching BRM this month, or is it just sitting under everyones radar?

I am curious because I seem to be the only one slightly interested in it


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## Crash (11 February 2008)

I am watching but not sure there is anything significant enough to comment on.  Drifting up, down and around along with the rest of the market.


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## Mozart56 (11 February 2008)

Crash said:


> I am watching but not sure there is anything significant enough to comment on.  Drifting up, down and around along with the rest of the market.




A resource upgrade is flagged to be announced in February.  Not sure the market has factored anything into this.. as BRM has just been swept up in overwhelming Bear sentiment.  Anything over an additional 20MT upgrade will see the EV/Tonne drift into the cents/tonne.  That's a new mark for any junior Fe player with a JORC to my knowledge.


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## grace (11 February 2008)

Mozart56 said:


> A resource upgrade is flagged to be announced in February.  Not sure the market has factored anything into this.. as BRM has just been swept up in overwhelming Bear sentiment.  Anything over an additional 20MT upgrade will see the EV/Tonne drift into the cents/tonne.  That's a new mark for any junior Fe player with a JORC to my knowledge.




Due this month, revised JORC for Marillana, and initial resource estimate for Rockhole Bore and Abalone prospects.  Hopefully it will be a pleasant surprise.  I hold (albeit painfully).


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## Crash (20 February 2008)

A couple of good days for BRM in the run up to the expected resource upgrade - question is what way will the market go on the announcement?


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## kpas (27 February 2008)

Crash said:


> A couple of good days for BRM in the run up to the expected resource upgrade - question is what way will the market go on the announcement?




Been good movement in the last week - it hit $1.18 this morning.

If they hold true to their "Feb resource upgrade" there is only 3 days left for the announcement to come out.


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## sting (27 February 2008)

1/2 y account figures out.... still looks healthy enough roll on resource updates to see this rise to where it should be.  One point that worries me tho is the silence about carr boyd, big hype last yr now silence.

SEMPER UBI SUB UBI


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## agro (27 February 2008)

Crash said:


> A couple of good days for BRM in the run up to the expected resource upgrade - question is what way will the market go on the announcement?




look at past resource upgrades from companies like Polaris i think if it is more than likely to be a positive thing, 

drilling also to commence 1Q march i read in activities report


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## Crash (28 February 2008)

I know they havent stuck to it before when they said something was going to happen in a particular month, so it may not come for some weeks yet.


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## agro (3 March 2008)

What a good day to hold a trading halt,

looks as though the resource upgrade we have been expecting is to be released soon!

edit - wednesday!


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## MiningGuru (3 March 2008)

The Age

Brockman ResourcesBROCKMAN Resources (BRM) chief Wayne Richards is to fly from Perth to the eastern states mid-week. The reason is not clear, but you can bet he isn't coming to take in a mid-week race meeting.

What is known is that Richards, formerly an iron ore gun in the Pilbara with BHP Billiton, has flagged that in late February/early March the group would provide an update on the resource base of its Marillana iron ore project, one that is cut across by BHP's iron ore rail line to Port Hedland.

Marillana was upgraded in November to a more-than-handy 43.5 million tonnes of the so-called channel iron ore and there has been aggressive drilling since, as well as lots of work on the potential for the low-grade detrital mineralisation that overlays the channel iron ore to become part of the picture.

Simple screening and gravity separation allows detrital iron ore to be upgraded from 40-50% iron to more than 60% - the sort of stuff that attracts top dollar. Assuming Brockman has had further success in its tests, the initial target Richards set on his arrival last year of an initial indicated resource of 100 million tonnes at Marillana could well be in the bag, maybe many times over. We'll know this week.

Remembering that iron ore price rises of more than 65% have been secured in recent negotiations, Pilbara iron ore is worth between $92 a tonne (fines) and $120 a tonne (lump). So having 43.5 million tonnes is good, 100 million tonnes-plus is even better.

Ahead of Richards' tour east, Brockman shares closed at $1.13 on Friday, giving it a market cap of about $90 million.


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## agro (4 March 2008)

Patersons released a broker report out on their website

http://www.brockman.com.au/documents/Patersons_BRM_240108.pdf

IAP is 1.20

Pattersons estimates 80 to 100 million tonnes of upgradeable material which will result in up to 40 MT of saleable product.

Looking foward to tomorrow.


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## kpas (4 March 2008)

Crunch time - the announcement is due now or tomorrow morning before 10am (as per the trading halt announcement).


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## grace (5 March 2008)

Holy molies

jorc of 1.1 billion tonnes of iron ore.  Not in my wildest dreams

Trading resumes today.  Big day perhaps.

I'm so nervous I can hardly type!


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## Sean K (5 March 2008)

grace said:


> Holy molies
> 
> jorc of 1.1 billion tonnes of iron ore.  Not in my wildest dreams
> 
> ...



Good work grace. Match is 150 at the moment and rising. Hooly dooly. Wonder if traders will push it parabolic. Beware of spike and sell off. Or, golly, what's it fundamentally worth now??


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## kpas (5 March 2008)

OMFG

I was expecting 100 - 150mt - maybe 200mt, but not 1.1 BILLION.

This is insane - if it doesnt get attraction from the market I don't know what will.


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## agro (5 March 2008)

1.1 bn fme dead 

high grade stuff too!!

this compares to ARH, FMG levles 

wow cant wait for it to open


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## gfresh (5 March 2008)

The 1.1bn is 40-62% Fe

Probably key resource is 550mt hematite @ 57.5-59.5% Fe through beneficiation. 

For a comparison midwest (MIS) is priced at $4.65 with less hematite resources currently, and twice the amount of shares on issue.

This is big..


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## grace (5 March 2008)

Bought some more on open $1.99.

The market cap of this company was always low compared to others with the iron ore they had already found.

They say they didn't want to work at an MOU with FMG until they knew how much iron ore they had. 

I guess with BHP's rail line running straight through it I can see why they might have some choices now.


----------



## agro (5 March 2008)

gfresh said:


> The 1.1bn is 40-62% Fe
> 
> Probably key resource is 550mt hematite @ 57.5-59.5% Fe through beneficiation.
> 
> ...




not only that
next thing you will find is alot of chinese investors would be wanting a piece of the cake..

just wait and see


----------



## rico01 (5 March 2008)

There resources have gone up from 47 million tonnes to 1.1 billion thats 23 times the previous jorc!
  Can't help but think this share price has a little way to go


----------



## grace (5 March 2008)

rico01 said:


> There resources have gone up from 47 million tonnes to 1.1 billion thats 23 times the previous jorc!
> Can't help but think this share price has a little way to go




In my opinion, very good at these prices.  This company has good management - an ex iron ore cheif from BHP.  Cheap on $/tonne compared to other companies.

Does anyone know who has the tenements alongside this?  Look at the maps in the announcement today.  All ore along boundary.


----------



## totalinsanity83 (5 March 2008)

Currently trading at $2.30 up 103% be interesting to see where it stops.

Must be some happy traders on ASF today?


----------



## blehgg (5 March 2008)

Wow... 
congratz to all the BRM holders 

Looks like the winner for the march tipping contest has been decided


----------



## wipz (5 March 2008)

Young Trader, care to put your valuation skills to work on Brockman Resources? Compared to MMX and MIS, the current market cap seems very undervalued based on 1.1b JORC Fe. Even with todays jump.


----------



## YELNATS (5 March 2008)

totalinsanity83 said:


> Currently trading at $2.30 up 103% be interesting to see where it stops.
> 
> Must be some happy traders on ASF today?




Amongst all the doom and gloom of the financial stocks, BRM indeed stands out as a shining star. Glad I still kept some after selling a few as "Yilgarn" last year.


----------



## grace (5 March 2008)

The other company  that I think will come up with +1 billion tonnes is 
GIR  Giralia

Some located mid-west, Pilbara + north of Wiluna.


----------



## johnnyg (5 March 2008)

grace said:


> In my opinion, very good at these prices.  This company has good management - an ex iron ore cheif from BHP.  Cheap on $/tonne compared to other companies.
> 
> Does anyone know who has the tenements alongside this?  Look at the maps in the announcement today.  All ore along boundary.




Looks like BHP owns the tenement along side BRM Grace.

Check here on page 2 ---> http://www.brockman.com.au/pdf/reports/broker_reports/YML_061107.pdf


----------



## grace (5 March 2008)

johnnyg said:


> Looks like BHP owns the tenement along side BRM Grace.
> 
> Check here on page 2 ---> http://www.brockman.com.au/pdf/reports/broker_reports/YML_061107.pdf




Thanks.  They are located in a pretty good spot really.  It would be so easy just to be able to hop onto BHP's line instead of FMG.  I hope BHP don't get RIO so that they might have to start talking to the new major juniors!


----------



## pajm (5 March 2008)

Notice with announcement material today that BRM timelines for 2009, if I can remember correctly, note 'proposal' to use BHP rail line. Third party infrastructure discussions seem advanced. Bring it all on. Nice to have this ray of sunshine amongst the recent gloom. Brought a second lot early January and dive with everything else, but the bacon has come home today.


----------



## JTLP (5 March 2008)

grace said:


> The other company  that I think will come up with +1 billion tonnes is
> GIR  Giralia
> 
> Some located mid-west, Pilbara + north of Wiluna.




Grace, any reason why you think GIR will come up with this magical sum?

I am interested when their drilling program begins (GIR), as to see an increase in SP on anticipation...but this should really be talked about on the GIR thread!


----------



## grace (5 March 2008)

JTLP said:


> Grace, any reason why you think GIR will come up with this magical sum?
> 
> I am interested when their drilling program begins (GIR), as to see an increase in SP on anticipation...but this should really be talked about on the GIR thread!




Yes, should be on GIR thread and I have lots of postings there (sorry).  They themselves have put a target on just one of their deposits of +1billion tonne (Earaheedy).  Please visit GIR thread + asx announcements.  

I have information on their drilling there too.


----------



## agro (5 March 2008)

yeah i am happy as larry!

i think the other two to pay close attention to is:

GBG: ( i hold)
- 1bn + iron ore
- Ansteel Funded
- Produce in early 09

FRS: (don't hold would love to but no funds)
- resource estimate expected mid may
- lot of recent substantial holders of late

both iron ore..


----------



## Sean K (5 March 2008)

Anyone worked out an IGV for this new resource, breaking it up by haematite and magnetite at current prices? Also, how's the depth of the deposit. The cover doesn't look to be too great? How's capex and opex likely to play out? Any opinions, thoughts, ideas? Can't really be comparing this to FMGs and the like without comparing some of these factors.


----------



## grace (5 March 2008)

Sellers starting to dry up and having another run.  I for one won't be putting in a sale order.
At 1.1billion tonne MC  could be in the order of $1.1 billion for only 1 dollar a tonne.  Compared to peers, I have picked one of the lowest bases...

MC of $1.1 billion 

Shares on issue 80.4 million.

That is $13 per share.  Just looking for options outstanding though.....where can I find these?

I would appreciate feedback......even challengers to this.  I don't like rampers, so I don't want to become one myself!


----------



## agro (5 March 2008)

i get the feeling that the chinese have got the news and are accumulating right at this moment hence the price movement..

just my opinion though

edit - look at it this way, they have more than MMX and MIS.. both of which r $4 +


----------



## MiningGuru (5 March 2008)

Options on Issue
December 2008                                    8.0 million
October/December 2009 (employee)         0.775 million
July 2012 (employee)                             3.0 million
November 2011                                     1.0 million
Total                                                 12.775 million

As per the companies media presentation today.

hardly any at all.

Makes the company an absolute bargain still with 1.1 billion tonnes of ore


----------



## pajm (5 March 2008)

Let's smoke some cigars...........last sp $3. What a great ride today and let's hope she goes on for a little more while before the breather.


----------



## Fed23 (5 March 2008)

I saw this on theage market movers and took no note of it at 11am, was working away. I should of brothered to read the announce... Well done to all those that bought up. Ill be keen to see what it opens up at


----------



## derty (5 March 2008)

Well I must say that,  other than a small amount of creep before the ann, the lid was kept well closed on this one. A very nice surprise for the market. What an impressive upgrade!

I watched it take off and thought I had missed the boat, saw it had come back to $2.19 about lunch and thought about putting in a bid. Came back from lunch and it was $2.80! Picked up a small parcel at $2.79 and will see how that travels.


----------



## agro (5 March 2008)

derty said:


> Well I must say that,  other than a small amount of creep before the ann, *the lid was kept well closed on this one.* A very nice surprise for the market. What an impressive upgrade!
> 
> I watched it take off and thought I had missed the boat, saw it had come back to $2.19 about lunch and thought about putting in a bid. Came back from lunch and it was $2.80! Picked up a small parcel at $2.79 and will see how that travels.




doubt it, a couple of days prior to the halt i noticed heaps of parcels going through 50,000 a pop..

anyhow, 

The Australian

SUDDENLY, out of nowhere, a new leader has emerged.

That's right, Brockman Resources has made a well timed dash to split the pack of iron ore juniors and take the lead in the hotly contested sector.

In a group where Fortescue Metals is God, Brockman looms as Elvis and the rest of them are beginning to look like the Jamaican bobsled team - full of promise but likely to crash at the fourth corner, or make it to the end of the run years after everyone else has.

At the time of writing, Brockman shares had doubled ... scratch that, they're up 125 per cent now and moving forward.

It seems everyone missed the fact that Brockman was about to release a whopper of a resource for its Marillana project in the Pilbara, which borders ground held by both Rio Tinto and Fortescue Metals.

When the statement revealed Marillana was a 1.1 billion tonne resource, with 338 million tonnes in the indicated category, traders went mad for Brockman stock. That's more than the other iron ore hopefuls in WA can claim to have on their balance sheet, but, as we will detail later, you can't quite compare apples with apples.

But the interesting word is that the announcement has piqued the interest of a certain New York fund that is piling in and filling its boots. Could it be Harbert? The same mob which made a killing on backing Fortescue Metals?

We're not sure, but the offshore interest was hoovering up virtually all stock available.

There's also a well known Australian who Brockman boss Wayne Richards said is an absolute pleasure to have on the share registry, and who wants more of the stock.

They were also believed to be in the market yesterday, scooping up anything they could get their hands on. Apparently, the mystery person also took part in a placement of Brockman shares in November that raised around $9 million, but the company never released details of who took stock.

There's not too much Brockman scrip around, with the top 25 holders controlling about 50 per cent of the company.

Anyway, back to the resource.

The low-grade hematite can be upgraded to around 59.5 per cent iron through beneficiation. There is a small pod of direct ship material, but let's discount that for the moment.

The company's initial testwork showed it would have to move around 1 billion tonnes of dirt to yield 550 million tonnes of marketable product. That's a whopping big bill right there.

One analyst told Daily Assay that that would mean Brockman's ore would be some of the most expensive to recover in the Pilbara, at around $35 a tonne, and double the cost of BHP and Fortescue ore.

Also of note is the high alumina content for the ore, which is in tenements near the Hammersley Ranges and about 30km from Fortescue's Cloud Break operations. But the good thing about the stuff is that it is a free dig and doesn't need blast and shovel help.

It is with Fortescue that Brockman will probably need to execute some kind of agreement to process its ore, if it ends up seeking a blending partner.

Also, there is no guarantee yet that BHP would come to the party and transport Brockman ore on its rolling stock.

But this won't stop the Chinese from continuing to knock on Richards' door and for Richards himself to try and lock in customers and access to infrastructure.

At the moment, the company wants to start production in 2011 at perhaps around 10 million tonnes per annum. Who knows what the price of iron ore will be in three years?

But for the time being, Brockman will continue to push forward with more metallurgical testwork and combine both a pre-feasibility study with a feasibility study, given that it has already done a lot of hard work on the plant design.

And maybe there�ll be a celebratory drink or two this week, while it takes its turn as the market darling of the moment.


----------



## Rocket man (5 March 2008)

BIG DAY .. I sold at the end of day but I get the distinct feeling I made a mistake there ... .. it will jump out of blocks tomorrow IMO

Just mention the words 1 BILLION TONNES IRON ORE and market goes crazy ...


----------



## JTLP (5 March 2008)

Hmmm interesting day.

It died at the end of the day though. From 3.20 close to 3.00 pre open.

Still, 150% rise in a day 


Tomorrow should be interesting as to see if anybody takes out a substantial holding etc (as per that article). 

Could BRM have a MAK style run on these results?:


----------



## kpas (5 March 2008)

JTLP said:


> Hmmm interesting day.
> 
> It died at the end of the day though. From 3.20 close to 3.00 pre open.
> 
> ...




I am very keen to see what happens at open. Naturally you can understand people wanting to take profits at the end of today - but looking back at what FDL did I did not sell.

I will see how things pan out in the morning however I am quietly confident based on the huge amount of ore + massive buying today that we'll have some decent SP action sometime tomorrow (if that is at open or sometime later in the day I don't know).

Congrats to all that have held throughout the last little while, it has been quite a rough ride for some to see all their profits dry up and reappear and dry up and reappear.

Hopefully it holds it's head well above $3 while the infrastructure is sorted out.


----------



## pk_wasp (5 March 2008)

I actually bought this one a while ago for a cobalt and nickel play, still waiting news for that. Cobalt prices have been going up too.


----------



## YOUNG_TRADER (5 March 2008)

JTLP said:


> Could BRM have a MAK style run on these results?:




JTLP this stock was 15c when I found it about 12 months ago, its now $3 = 20 Bagger, so MAK "style run", I think its already had one,

Thats not to say it won't go higher, just stating the fact that it has gone up 2000% in 12months and 300% in the last few days,

It brings me so much joy to see YML (BRM) all grown up as a company


----------



## Snakey (5 March 2008)

YOUNG_TRADER said:


> JTLP this stock was 15c when I found it about 12 months ago, its now $3 = 20 Bagger, so MAK "style run", I think its already had one,
> 
> Thats not to say it won't go higher, just stating the fact that it has gone up 2000% in 12months and 300% in the last few days,
> 
> It brings me so much joy to see YML (BRM) all grown up as a company




Dont tell me you've sold out YT. JORC resource @ 500000 million tonnes of ore say conservatively at 1 buck a tonne = share price $6.00 if im not wrong. Please pull apart my theory, but remember its location...nice neighbors... remember FDL they've got nice neighbors.


----------



## Snakey (5 March 2008)

JTLP said:


> Hmmm interesting day.
> 
> It died at the end of the day though. From 3.20 close to 3.00 pre open.
> :




Very healthy close IMO ....Only 7-8% down of the days high always will have some end of day profit takers...Nothing to worry about there IMO.I just got back from golf ...bought as many as I could at lunch before playing. This thing needs time to go to value. I had no problem going of to golf. Tomorrow another good day for holders IMO

 Its not cooked yet IMO.


----------



## michael_selway (5 March 2008)

YOUNG_TRADER said:


> JTLP this stock was 15c when I found it about 12 months ago, its now $3 = 20 Bagger, so MAK "style run", I think its already had one,
> 
> Thats not to say it won't go higher, just stating the fact that it has gone up 2000% in 12months and 300% in the last few days,
> 
> It brings me so much joy to see YML (BRM) all grown up as a company




Yeah this one has done well 

YT do u think it can increase its production rate at much higher than 10mtpa?

thx

MS

• Total JORC Compliant resource estimate of +1.1 billion tonnes of haematite
(Channel Iron Deposit and detrital) mineralisation.
• Includes 338 million tonnes of Indicated Resources within North-West
alone.
• Beneficiation test work confirms that detrital mineralisation can be upgraded
+59% Fe.
• Potential for +550Mt of Final Product grading 57.5-59.8% Fe.
• Positive initial results from Scoping Study on potential 10Mtpa operation.


----------



## johnnyg (5 March 2008)

This thread comes to mind in regards to BRM and possible potential in a few years time ---> https://www.aussiestockforums.com/forums/showthread.php?t=7196&highlight=turn+$5000


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## grace (5 March 2008)

The candle looks good today.....closing near high.  Seems to be plenty of strength in that.  Hopefully MD doing the rounds in eastern australia will keep the talk going...and a few news stories in the papers tomorrow..


----------



## pajm (5 March 2008)

Article from online 'Age' newspaper tonight

Shares in iron ore explorer Brockman Resources Ltd skyrocketed on news it has increased the resource estimate for its wholly owned Marillana project in Western Australia's Pilbara almost tenfold to 1.1 billion tonnes of iron ore.

The company's shares closed at $1.87 or 165.49 per cent higher at $3.00 after hitting $3.21 in intraday trade.

The resource is compliant with Australia's mineral reporting standard, JORC and comprises channel iron deposits with grades ranging from 55 to 60 per cent iron as well as detrital ore with grades ranging from 40 to 62 per cent iron.

Managing director Wayne Richards said the resource inventory was based on three deposits within the project area, 100 kilometres north of Newman.

The initial indicated resource announced last year, based on one deposit, was 43.5 million tonnes grading 57.6 per cent iron.

Mr Richards said the upgraded resource significantly exceeded the company's previously announced target to confirm a mineralisation potential of at least 100 million tonnes.

"This gives us great confidence that Marillana has the potential to develop as a world-class iron ore project capable of producing ore as a direct shippable ore (DSO) product with an average grade of over 59 per cent iron," he said.

A scoping study is underway for a potential 10 million tonne per annum DSO operation.

The Marillana project is near BHP Billiton Ltd's Yandi mine and Rio Tinto Ltd's Yandicoogina mine. On the other side of the Fortescue Rive lies Fortescue Metals Group Ltd's Cloudbreak project.

DJ Carmichael resource analyst James Wilson said the market had been "blown away" by the resource upgrade, not realising Brockman was sitting on such a large, JORC-compliant resource.

"Out of one billion tonnes, 499 million tonnes is DSO product ... so its a big deal," he said.

Mr Wilson said getting transport costs right would be the key to the Marillana project's success.

He said Mr Richards had previously held roles with BHP Billiton and at Andrew Forrest's former vehicle Anaconda Nickel.

"He's very advanced in negotiating offtake, I believe," Mr Wilson said.

"My worry with the detritals, if it's said to be upgradeable to 59 per cent iron, is how much silica and how much alumina (contamination) is in that?

"High levels of contaminants would be hard to get rid of.

"But if it has low levels of contaminants, it's game on and it (the share price) will rocket once people recognise the fundamental value in the details."

Industry observers expect iron ore prices to rise another 30 per cent next year on top of the 70 per cent increase expected this year.


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## DionM (6 March 2008)

Well well well.

YML (now BRM) was one of my first ever spec plays.  I have a small parcel I bought at 30c (about $1000 worth - told you it was small!).  I think I'll be happy to let this little one just run, there's no way I'll lose any money on it at all I think.  Sure it'll probably fall from $3 (as it has done in the past, though on slightly less significant news) ... 

Pity I didn't buy a bigger parcel!  Oh well, it's a nice little profit so far and one to sit on for a few more years I'd say!


----------



## grace (6 March 2008)

Trying to put a value on this one is quite hard.

If 500 million tonne is either DSO or can be upgraded to DSO then it should be at least worth $500 million ($1/tonne).

At closing of $3   MC = $241 million yesterday.

Could easily go to double, but I don't think it will.


----------



## Fed23 (6 March 2008)

It's dipped 24% today, I'm going to assume profit takers have sold out.

Did anyone sell out today?


----------



## kpas (6 March 2008)

Fed23 said:


> It's dipped 24% today, I'm going to assume profit takers have sold out.
> 
> Did anyone sell out today?




While I wish I had sold at $3 and bought back in this morning at 2.25 or whatever, I still haven't sold.

Personally I can see it going higher - scoping study will stir up more interest and if they can organise infrastructure in the next few months it will go up as well.

Next 6 months will be interesting.


----------



## INORE (6 March 2008)

yep i'm in the same boat...i mean the SP isnt that far of its previous highs when they only had 30 mill tonnes(or whatever) of resources pegged in the ground....didnt it get to 1.90 something....


----------



## YELNATS (6 March 2008)

Rocket man said:


> BIG DAY .. I sold at the end of day but I get the distinct feeling I made a mistake there ... .. it will jump out of blocks tomorrow IMO
> 
> Just mention the words 1 BILLION TONNES IRON ORE and market goes crazy ...




I couldn't stand the temptation either and sold out yesterday in 3 lots, the last at $3.15. Yesterday was just too euphoric and for once I got it right. Looking to get back in around the low 2's, or better if possible.


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## noirua (6 March 2008)

Boardroom Radio interview:  Mr Wayne Richards, MD, talks about the Marillana Resource upgrade:  http://www.brr.com.au/event/43101

Brockman Resources website:  http://www.brockman.com.au


----------



## JTLP (6 March 2008)

Wow...what's with the all the selling pressure?

Iron ore turn out to be fairy floss? Sheesh

I expected a retrace as such but as Inore has stated, its close to their $1.90 mark when they had a far smaller resource base.

HMM


----------



## prawn_86 (6 March 2008)

JTLP said:


> Wow...what's with the all the selling pressure?
> 
> Iron ore turn out to be fairy floss? Sheesh
> 
> ...




Ahhh the joys of electronic communication where anyone can open an account and jump onboard following the herd.

I have to say the lack of fundamental opinions/analysis/pricing within the ASX has really annoyed me of late. Everything is based off of panic selling or herd behaviour. Hence why i am looking into other short term alternatives such as forex.

In answer to your question:

Who knows, nothing follows fundamentals any more


----------



## Snakey (6 March 2008)

I think you need to give it time. fundamentals will shine through. a lot of people bought this way cheaper and they are locking in profits as others are buying a bargain.  Bottom of sell off found at @ 2 bucks ( same as open from ann.) 
Buyers building in strength again now.


----------



## Fed23 (6 March 2008)

Listened to the interview, from the sounds of things they aint in a rush,, they will continue drilling, they have had some interest from the chinese and no captial raising is on there books. 

$2.22 is cheap as chips.


----------



## JTLP (6 March 2008)

prawn_86 said:


> Ahhh the joys of electronic communication where nayone can open an account and jump onboard following the herd.
> 
> I have to say the lack of fundamental opinions/analysis/pricing within the ASX has really annoyed me of late. Everything is based off of panic selling or herd behaviour. Hence why i am looking into other short term alternatives such as forex.
> 
> ...




Prawn, I actually take offence to that comment. For a moderator, you are not very professional (read: you seem to think you can comment unfairly on people and stocks and think you have immunity).

FYI, I haven't just "jumped on" and followed the herd. I am watching from the sidelines as I thought I would be too late with the increase.

Also, if you are questioning my time at ASF, I think I joined in Oct/Nov, but had been reading for a long time before that. Only signed up to participate and gain further understandings of stocks/ask questions.

Moderator to be moderated...


----------



## prawn_86 (6 March 2008)

JTLP said:


> Prawn, I actually take offence to that comment. For a moderator, you are not very professional (read: you seem to think you can comment unfairly on people and stocks and think you have immunity).
> 
> FYI, I haven't just "jumped on" and followed the herd. I am watching from the sidelines as I thought I would be too late with the increase.
> 
> ...




Wow, paranoia will destroy ya :

I was not saying anything about you, and I apologise if it came off sounding that way.

FWIW I was having a go at all the people who just follow the crowd and panic sell or herd buy (not that there is anything wrong with it if you are profitable).

My main gripe is the fact that stocks prices no longer seem to reflect their underlying fundamental 'value'.

Apologies again if you thought I was attacking you.

Prawn

PS - moderators are allowed to express their opinions also.

PPS - I had barely even heard of BRM until yesterday, and have certainly never held, or considered holding


----------



## JTLP (6 March 2008)

Ok Prawn,

Glad we cleared that up.

I assumed by your comment about electro comm. that you were referring to me.

Same boat as you, had never heard of BRM til yesterday.

Thanks for clearing things up

JTLP

(Also my comment of moderators commenting was based on the thought that you were attacking me, perceiving I had bought in. I agree you can comment, you are afterall just the same as anybody else)


----------



## grace (6 March 2008)

Was looking to adding to my position today at $2 (took lunch and missed it).  I like the MD - that is the strength of this company IMO.


----------



## kpas (6 March 2008)

Boardroom radio announcement - the MD is very positive. Alludes to scoping study coming out in the coming weeks (March).

He also alludes to chinese interests contacting him.

Very positive overall.


----------



## juw177 (6 March 2008)

Lol hotcopper pump and dump. I guess people dont learn their lessons around there. Since this morning from $3 down to $2, everyone there is saying that they are holding and looking to top up because it is about to run (while throwing around some "fundamentals" that they dont understand). And behind the scenes, they are trying to sell out for a lesser loss.


----------



## Snakey (6 March 2008)

juw177 said:


> Lol hotcopper pump and dump. I guess people dont learn their lessons around there. Since this morning from $3 down to $2, everyone there is saying that they are holding and looking to top up because it is about to run (while throwing around some "fundamentals" that they dont understand). And behind the scenes, they are trying to sell out for a lesser loss.



disagree here. I think 3 bucks will be tested in the near term as sellers are drying up and buyers are clearly building up. Im not selling mine because I know what they're worth How hard is $1 dollar a tonne to understand???


----------



## juw177 (6 March 2008)

Snakey said:


> Im not selling mine because I know what they're worth. How hard is $1 dollar a tonne to understand???




Can you elaborate on this? If you know how much the share is worth, how did you come to that number, whatever it is? Where does $1 come from and does that take into consideration the grade, the transportation costs, the cost to dig the ore and treat it, and whatever risks exist for a project like this?

I will admit I am not a good analyst and know little about geology but I am not that blind to believe everything is as simple as the rampers say it is. I also know that just because a stock is trading below their value does not mean it will change any time soon.


----------



## pajm (6 March 2008)

grace said:


> Was looking to adding to my position today at $2 (took lunch and missed it).  I like the MD - that is the strength of this company IMO.




Ditto Grace. First came across then Yilgarn in article by Barry Fitzgerald in 'Age' last July who menitoned about Richards coming on board and his BHP background. That was enough for me. Who is driving a company is crucial. Hindsight can now tell us also he didn't cross over to BRM without knowing there was more than a few crumbs on the table.


----------



## Go Nuke (6 March 2008)

> I couldn't stand the temptation either and sold out yesterday in 3 lots, the last at $3.15.




Hey...I was the idiot who bought those at $3.15 yesterday!

What a mighty loss today.
Guess it looks like I'm holding longer than I intented now

Oh the bank is going to love me!


----------



## Fed23 (6 March 2008)

Go Nuke said:


> Hey...I was the idiot who bought those at $3.15 yesterday!
> 
> What a mighty loss today.
> Guess it looks like I'm holding longer than I intented now
> ...




Heads up still early days. I bought my batch at $2.30, I was hoping after lunch it would ramp up as I went out, then found it even lower. I wanted to buy more as close to $2 but I just missed the chance. Just hold out for the next announcement about transport feasibility. Be tops if BHP would be nice and shared their rail line.


----------



## agro (6 March 2008)

Fed23 said:


> Heads up still early days. I bought my batch at $2.30, I was hoping after lunch it would ramp up as I went out, then found it even lower. I wanted to buy more as close to $2 but I just missed the chance. *Just hold out for the next announcement *about transport feasibility. Be tops if BHP would be nice and shared their rail line.




agree- although the 1.1 bn half of it was full of silica, the remainder 500 or so mts was quality

they are still drilling so one can expect more to come 

as far as rail line, i think they are more lily to access FMG's from their cloud break mine as a few companies like BCI have already suggested future use of the track - thats provided they win against BHP in the higher court


----------



## spectrumchaser (6 March 2008)

Very interested to know if BHP have a rail share agreement on any of their Australian mines?
My impression is the company is uncooperative toward new comers on the block.


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## INORE (6 March 2008)

part of bhp's rgp5 expansion is to duplicate the rail from yandi to port...this will have to help brockmans case to jump on board...

_BHP Billiton Approves Funding For Accelerated Growth At Western Australia Iron Ore4 February 2008
Number 05/08

BHP Billiton today announced approval for US$1.094 billion (BHP Billiton share US$930M)(1) of capital expenditure to underpin accelerated growth of our WAIO business. This amount represents pre approval expenditure for Rapid Growth Project 5 (RGP5). RGP5 is expected to increase WAIO’s installed capacity to more than 200 million tonnes per annum (Mtpa) during calendar year 2011. 

*This pre-approval funding will be used to commence duplication of the railway track between the Yandi mine and Port Hedland* and begin the expansion of the inner harbour at Port Hedland. Construction of this second railway is expected to begin in May 2008, subject to various government approvals. The early funding will also allow early procurement of long lead items and detailed engineering studies to expand capacity at Yandi and Area C. 

President BHP Billiton Iron Ore, Ian Ashby said "The core of the Pilbara is progressively moving to the Yandi/Area C mining hubs. Double tracking the rail to this area will create the rail capacity to support our planned expansion to more than 300 Mtpa._


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## kransky (7 March 2008)

Business is like war without the blood (most of the time)

BHP have been trying to fight off the newcomers to the Fe scene by not wanting to let them use their rail.

What generally happens when a company wants to build a long railroad from a mine to a port. Surely they dont have to buy up all the land along the way.

Use of crown land surely means the rail lines should be used by others. And BHP could be compensated with a return on some of their costs in building the line by the newcomers.. simple.. for the Good of Australia not just BHP shareholders.

<end rant>


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## grace (7 March 2008)

MD said a fund from New York had been buying up + a well known Australian identity.  AFR speculates that it could be Packer as he took up some of the placement at 95c (and this fits with MD comments).


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## Snakey (7 March 2008)

Buyers have nearly regained control 152 v 182  so few share available large movements up and down will be expected bought top up parcel this morning at open 2.04 now think we will see the retest now buyers160 v 183sellers. buyers building
market cap 186 mil for jorc 1  billion tonnes fdl 100 mil for 300 million tonne TARGET


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## Sean K (7 March 2008)

Snakey said:


> market cap 186 mil for jorc 1  billion tonnes fdl 100 mil for 300 million tonne TARGET



 I think it's fair to do a peer comparison with other wannabe iron ore miners although you have to ask yourself if FDL is overvalued. Personally I think it is, but by how much makes it hard to do a direct comparison. Also, you need to check what the target is. Is it all DSO? Everyone needs to do a recheck of what BRM's 1.1Bt is made up of. You'll find just a small % is DSO. Then you need to question the Magnetite and the other metals to see how easy it's going to be to convert. Has anyone looked at that yet? Just food for thought. Just trying to add some sanity to the blanket 1.1Bt fe claims and comparisons to FMGs and the like.


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## Snakey (7 March 2008)

kennas said:


> I think it's fair to do a peer comparison with other wannabe iron ore miners although you have to ask yourself if FDL is overvalued. Personally I think it is, but by how much makes it hard to do a direct comparison. Also, you need to check what the target is. Is it all DSO? Everyone needs to do a recheck of what BRM's 1.1Bt is made up of. You'll find just a small % is DSO. Then you need to question the Magnetite and the other metals to see how easy it's going to be to convert. Has anyone looked at that yet? Just food for thought. Just trying to add some sanity to the blanket 1.1Bt fe claims and comparisons to FMGs and the like.



Hers a snip of their presentation:
Marillana –Haematitic Detrital Processing Methodology

Simple Gravity Separation Flow sheet constituting Crushing, Heavy Media separation, jigs, cyclones and/or spirals

Beneficiation Plants have been designed and operated at various mines throughout Western Australia –including BHPBilliton’s -Mt Whaleback and Finucane Island, Rio Tinto’s –Brockman 2 deposit, Tom Price and Paraburdoo Projects

Technology is well proven –low technical risk

Low capital, operating and energy costs associated with processing of Detrital ores

No secondary, tertiary or quaternary crushing /grinding required

Product suitable for direct Sinter or Blast Furnace feed


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## juw177 (7 March 2008)

Hey Snakey, you still havent answered my last post... you keep quoting things like 1b tonnes and news releases. But what is your take on all that and does it address the issues that me and Kennas pointed out?


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## JMcDog (7 March 2008)

As much as many ASF members are not great fans of HC, there are a couple of posts that are worth a read on this subject....  and/or read the posts around them if you can put up with the copious rubbish posts too!!!

A poster "uio" put up a post on "io experts" (a BRM thread) at 18:20 on 6/3/2008.....  and subsequently a poster "needle" responded point by point under "focusing on the negatives such as uio" thread at 21:10 on 6/3/2008.

I believe both these posters are very switched on re iron ore.... a good starting point at the very least in your research.

Cheers,  MF


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## Snakey (7 March 2008)

juw177 said:


> Hey Snakey, you still havent answered my last post... you keep quoting things like 1b tonnes and news releases. But what is your take on all that and does it address the issues that me and Kennas pointed out?



Processing is inexpensive and common. the things I have stated are the facts. I think their still undervalued. lets be conservative say they only have 250 million tonnes at one dollar a tonne (very very cheap for jorc compliant resource because of mining issues, processing, depth,etc) thats a market cap of 250 million or roughly $3 a share. where dont you see value????
FDl say over valued say worth 5 cents at market cap 50 million for a target not a jorc a TARGET of 250 million tonnes 20 cents a tonne for something they think might be there and with fdl history They think a lot of things that aren't true from my experience.


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## pajm (7 March 2008)

Shares holding well this pm (last 2.32) with such a debacle overall today. Be nice if they can hold these levels with all the storms about.


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## grace (7 March 2008)

There was a wall sitting at $2.50 which seems to have been removed.  Someone accumulating perhaps...  Hopefully we'll see $3 again.


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## agro (7 March 2008)

speculation about James Packer on the register considering he aided a capital raising for FMG by purchasing shares at $34 prior to split

*Offshore buyers lift Brockman
*

OFFSHORE buying of scrip in junior iron ore hopeful Brockman Resources lifted the Perth-based company's share price 165 per cent yesterday.

Demand for Brockman shares surged immediately after it released an updated resource of 1.1billion tonnes for its key Marillana project in the Pilbara with an indicated resource of 338 million tonnes.

The project borders tenements controlled by BHP Billiton and Fortescue Metals, and contains the relatively lower-grade Brockman mineral hematite resource.

Previously an unloved style of mineralisation, Fortescue and Rio Tinto have made recent noise about the size of Brockman-style ore they control as Chinese steel mills look to get their hands on Australian iron ore.

According to Brockman Resources, its hematite ore could be upgraded through beneficiation to about 59 per cent, although analysts noted the high amounts of alumina in the ore and the high mining and processing costs of about $36 a tonne double that of what Fortescue and BHP Billiton face.

Managing director Wayne Richards said Marillana had the potential to deliver 550 million tonnes of iron ore over a project life of up to 50 years.

But the company is yet to agree to any agreements on how it will get its product to port, although Marillana is close to BHP Billiton's Newman railway. Mr Richards said that although a New York-based fund had been scooping up as many shares on issue, so too had a *"well known" Australian identity.*

Brockman shares lifted $1.87 in trading yesterday to close at $3.

*"This person is someone who partook in the placement we had in November and is a very good person to have on the share register," Mr Richards said*.

Brockman is expected to begin a pre-feasibility study for Marillana in June and is likely to combine that with a feasibility study.

The company is eyeing a start-up date around late 2011 and may upgrade its studies to include a production rate above the 10 million tonnes a year it has already mooted.


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## juw177 (7 March 2008)

Interesting article.



agro said:


> although analysts noted the high amounts of alumina in the ore and the high mining and processing costs of about $36 a tonne double that of what Fortescue and BHP Billiton face.






			
				Snakey said:
			
		

> Processing is inexpensive and common..... How hard is $1 dollar a tonne to understand???




Snakey, so does that change your valuation of $1 a tonne? Does that make -$35 a tonne? 

And back to the topic, besides mining and processing what else will affect the value that goes into each tonne of a resource estimate? There are transportation and certain risks to consider right?

We see rampers on many resource stocks saying things like 1bn tonnes = next Fortescue as if everything was so simple. Can anyone shed more light on this topic?


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## pajm (7 March 2008)

I would be really interested YT on your thoughts with latest developments with BRM, given your historical input. I bought my first lot in Oct. Sounds like the little one has graduated and left home for Uni.!


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## enigmatic (8 March 2008)

I did a quick but small digging arround and found that in May 2007 the avg price of Iron Ore in china was 97 to 113 USD per tonne. obviously the comparison of that time can not be made as shipping cost may of been cheaper and the USD stronger(please correct me if I'm wrong)
however Vale has recently signed with Baostell Group for a 65% increase in the price of its Iron. 160 - 185.

After reading up a little i found shipping iron ore to china from australia ranges from $15-$25 a tonne doubling that to be conservative lets make it $50

not a hundred percent sure how much an entire plant would cost or if they would even build one but lets say they decide to and lets put a high price on it 3billion. current FMG is arround 2.7Billion from memory could be wrong

Using the low end of the price they may get for it $160 a tonne and not considering any possible price increases or decreases in Iron ore we have the following figures.

$160\t -$50\t -$5.5\t - $55\t = $49.5\t

$160\t price of iron ore
$50\t cost of shipping ore
$5.5\t cost to set up plant
$55\t cost for operation life of 50 years ($600million a year please correct me as this number i believe is a little excessive)

so basically that has left us with close to $50 dollars a tonne. excluding risk capital raising, changes in current economic climate, USD, oil prices, price of Iron ore and many other factors effecting the chances of success and profit.
Any how i believe someone estimating that they could get $1 a tonne from either setting up there own plant or by selling either all or part of their resources to FMG or BHP wouldnt be to far fetched.

However this is only my personal opinion and in the above analysis i have used minimal values for income and what i believe are maximum for cost. please correct me if i have under stated any cost or income or possibly overstated cost of income. 
DYOR


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## Fed23 (11 March 2008)

What happened to my last post on here?

It's down 12%, this just panic selling? Doesnt the market care that it's got 1.1billion of iron ore?


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## Crash (12 March 2008)

The market cared last week, today it doesn't care so much.  Theres plenty out there keen to take a profit.  If you think that it's being considerably undervalued you may want to up your holding.


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## grace (12 March 2008)

I have been watching the depth a bit today.  Accumulating going on.  Sellers putting in large sell orders, forcing price down, then they disappear.  Although dissapointing the share price goes down, good sign they are filling up.


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## Fed23 (12 March 2008)

Grace are you still holding?

I have been waiting for the share price to start going up before I consider topping up my holdings


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## grace (12 March 2008)

Fed23 said:


> Grace are you still holding?
> 
> I have been waiting for the share price to start going up before I consider topping up my holdings





Yes, still holding.  Mining study is due end of March so I'll wait and see how that looks.  Very large volume at the moment.  Also, iron ore prices will be locked in April and no reason to think that will be bad.  I was surprised to see it down today though.  We might see a substancial holder soon with all of this turnover??????? 

I'm a medium term holder - not good at day trading.  

MD working on rail deal.  When (and I'll add if) that comes through, this will be rerated.  Will lower risk and more buyers will come in.


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## monkeybusiness (12 March 2008)

Thought it was the railway announcement due at the end of this month, will re-listen.
cheers monkeybusiness


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## Gspot (13 March 2008)

You would think Mr Richards would be making this a very attractive buy for his old mates at BHPB. With their railway running right through this deposit, why wouldn't BHP want it?


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## grace (13 March 2008)

Need to hold key support today at $1.68 which is October 07 high.  Seems to have found support there at the moment.

Wayne has been busy lining up staff for the project. 



> Western Australian iron ore company, Brockman Resources Limited (ASX Code: BRM), has added further depth to its senior management team with the appointment of experienced project management executive, Mr Paul Bartlett, to the newly created position of General Manager –
> Project Development.
> 
> Mr Bartlett has 33 years experience in engineering, construction and mining operations in the resource sector, and joins Brockman from a senior role with project management, engineering and construction specialists, Calibre Projects Pty Ltd.
> ...


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## grace (13 March 2008)

Gspot said:


> You would think Mr Richards would be making this a very attractive buy for his old mates at BHPB. With their railway running right through this deposit, why wouldn't BHP want it?




BHP have said they will take mine gate sales.  This leaves outsiders in a bit of a bad position though IMO.  BHP have plenty of their own Iron Ore to ramp up production elsewhere.  I guess we'll have to wait and see how it plays out though.  It is certainly handy to BHP.


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## grace (20 March 2008)

The robots have appeared.  Sales going through for 1 share at a time, and plenty under 20 shares.  Take a look at the course of sales.

Someone trying to manipulate the price perhaps.


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## Fed23 (20 March 2008)

I cant see sales going through on my online broker, but the volume of shares changing hands has been very low for the last few days.

Any idea when the next accouncement is due?


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## grace (20 March 2008)

Fed23 said:


> I cant see sales going through on my online broker, but the volume of shares changing hands has been very low for the last few days.
> 
> Any idea when the next accouncement is due?




Mining study is due end of Q1.  Wonder though whether they will rework the figures now that they have a bit more ore up their sleeve.


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## monkeybusiness (23 March 2008)

Announcement is due at the end of 1st 1/4 on the logistics of transporting the resources out!
cheers


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## eric35 (28 March 2008)

BRM has dived today. But the volume over the last few days was low, not many sellers. I hope it gets close to the recent high again (too optimistic?).
If I get stopped out, I will get in again at the lowest possible price.


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## grace (28 March 2008)

eric35 said:


> BRM has dived today. But the volume over the last few days was low, not many sellers. I hope it gets close to the recent high again (too optimistic?).
> If I get stopped out, I will get in again at the lowest possible price.




Consolidating at the moment.  Danger if breaks below $1.68 (last years high), so all good at the moment closing at $1.85.  MD is in China for 3 weeks.  Wonder what he's up to...


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## inefekt (28 March 2008)

Bought in today at 1.955 
Not happy to see it close at 1.85
What's up with this stock, yesterday it went crazy......why? Today it get's hammered, again why?
Isn't there supposed to be an announcement due this month, upgraded resources or something??? I bought in on that supposition, thinking it would be either today or Monday. I can't believe a stock like AGO is up near the same level as BRM, with more shares on issue and only 10% of the Fe in the ground that BRM has. Crazy. Where are the fundamentals these days.........damned day traders.


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## eric35 (28 March 2008)

I got stopped out today at 1.91, bought back in again at 1.86
I think it is a stock keeping an eye on, it may jump very quickly again.


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## juw177 (28 March 2008)

eric35 said:


> I got stopped out today at 1.91, bought back in again at 1.86
> I think it is a stock keeping an eye on, it may jump very quickly again.




So why do you use a stop at all if you are so attached to the stock? Stops are used because you want to get out early once you realise you traded on the wrong side. Sorry I couldnt help writing that.

I suppose you see today's drop as a shakeout?


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## eric35 (28 March 2008)

I had an automatic stop loss in since I bought the stock, thus got stopped out. But then again, I can't see anything wrong with buying in again at a lower price.


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## pajm (28 March 2008)

Patience seems to be the thing here while awaiting results with scoping study and confirmation (hopefully) of Chinese and infrastructure deals. Hopefully MD trip brings goods news on the former.


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## grace (28 March 2008)

Two lots of Chinese "groups" have signed confidentiality agreements with Brockman.  We don't know what about, but you can be assured that it is important.  MD gets approaches all of the time from Chinese wanting in (see previous announcements/interview with MD on BRR from memory), but he says no need for now.  Plenty of money in the kitty.

Although no rail agreement in place, he has been working on this but always said he wanted to wait to see how much ore Brockman had before getting serious about this.  Now we know the majority of ore (still some to go though) you can be assured he will be on the job!  MD was BHP iron ore chief, and also worked with triggy in the past.  He has a nice resume!

MD said he is going to accelerate the project.  Let's hope he does.  

This is one of my holdings I least worry about....adding to that it is rediculously undervalued based on comparison to peers.

By the way, it will go into a trading halt/suspension when any such rail agreement is in place, so if you are not in before, save up more for later!

I'm a medium term trader so this stategy would not suit some!


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## pajm (28 March 2008)

It will be interesting to see Grace what eventuates with a rail agreement. Can see further anns pushing the sp quickly going by last ann and what is to come. I'm happy to sit as a long term holder. Came across BRM in article in Age newspaper by Barry Fitzgerald last July at time of MD appt. - pretty much sold on immediately.


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## grace (29 March 2008)

pajm said:


> It will be interesting to see Grace what eventuates with a rail agreement. Can see further anns pushing the sp quickly going by last ann and what is to come. I'm happy to sit as a long term holder. Came across BRM in article in Age newspaper by Barry Fitzgerald last July at time of MD appt. - pretty much sold on immediately.




Hello pajm.  Mining is planned to start next year so I don't plan on selling any time soon either.

My initial entry last year was based on
-  MD resume
-  location of BHP rail line (straight through it) and FMG rail 35kms away.

Still hold the same view that these two factors will get Brockman over the line compared to other juniors.

Bigger times ahead hopefully.


----------



## pajm (29 March 2008)

Hi Grace - I was also impressed with MD background and location of resource, outlined in the Fitzgerald article. BRM seems to have really jumped out of the junior pack with the last upgrade and seems well undervalued compared to other juniors (ago etc.). Would be good for JP holding to be out in the open (presuming it is him) to give things a further boost. Loaded-up a couple of times, each time unluckily at the higher end prior to last updgrade, however well and truely makes it all now cheap for me with sp. going nth. since. All signs looking good.


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## Crash (31 March 2008)

Always expect late announcements from BRM - having all that extra ore only drags it out further.


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## INORE (1 April 2008)

grace said:


> Hello pajm.  Mining is planned to start next year so I don't plan on selling any time soon either.
> 
> My initial entry last year was based on
> -  MD resume
> ...




Hi Grace

you said in this post that mining was planned to start next year...is that stated in one of BRM announces cos it seems a little/way tight...

i would be thinking about 3 years until they can process anything and get it to port...dont get me wrong...next year sounds fantastic...but...


----------



## grace (1 April 2008)

INORE said:


> Hi Grace
> 
> you said in this post that mining was planned to start next year...is that stated in one of BRM announces cos it seems a little/way tight...
> 
> i would be thinking about 3 years until they can process anything and get it to port...dont get me wrong...next year sounds fantastic...but...




Hi Inore
Here is the announcement on time line for mining.  Says mining to start H1/09 with H2/09 road transport to rail.  Page 11  Ramping up to 10mill tonne 2011.  

http://imagesignal.comsec.com.au/asxdata/20080305/pdf/00819865.pdf

Money magazine has a little writeup about Brockman with a buy at market p92 in April edition.


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## JTLP (1 April 2008)

There is a bit of talk about a BHP/BRM JV to gain access to rail infrastructure and to lower the costs of both parties in respects to blending/beneficating (is that even a word? ) the ore.

What do people think of the likelihood of this?

Also, what is the chance of WR's China trip co-inciding with a new major investor?

Last but not least, when is the proposed scoping study due?

JTLP


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## inefekt (1 April 2008)

grace said:


> Mining study is due end of Q1.  Wonder though whether they will rework the figures now that they have a bit more ore up their sleeve.




If that's the case then they're late. Obviously that info didn't come from a reliable source


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## grace (1 April 2008)

inefekt said:


> If that's the case then they're late. Obviously that info didn't come from a reliable source




Hello inefekt....I keep a diary on all my holdings and take notes when everything is supposed to be released etc.  This was included on p1 of the Dec 07 quarterly report.  I just like to know what is going on with my investments.

http://imagesignal.comsec.com.au/asxdata/20080124/pdf/00805655.pdf

I have searched back and found the Scoping Study due Q1 08 - but I do think they will be running late due to all that new ore!


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## pajm (1 April 2008)

Could also be waiting Grace for MD to return from China and hopefully scoping study ann will also include some news on any other developments.


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## inefekt (2 April 2008)

pajm said:


> Could also be waiting Grace for MD to return from China and hopefully scoping study ann will also include some news on any other developments.




When is he due back, I can't imagine they'd put an announcement out when he is OS........................................................................................


----------



## grace (2 April 2008)

inefekt said:


> When is he due back, I can't imagine they'd put an announcement out when he is OS........................................................................................




It is either this week or next.  Sorry, my diary doesn't include everything!

Suspect the Chinese confidentialy agreements could be in relation to offtake, but just pure speculation on my behalf.


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## Mozart56 (4 April 2008)

grace said:


> It is either this week or next.  Sorry, my diary doesn't include everything!
> 
> Suspect the Chinese confidentialy agreements could be in relation to offtake, but just pure speculation on my behalf.




He is due back on the 14th April.. plenty more time to chat with propsective buyers or investors.  Wouldn't expect the scoping study to come out before he gets back.


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## inefekt (7 April 2008)

Bit of a run today, based on what?
Higher commodity prices?
Some stability returning to the market?
Impending announcement?
All of the above?


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## grace (7 April 2008)

inefekt said:


> Bit of a run today, based on what?




This might have been seen as quite positive. I have deleted the boring bits.  At least his comments have gone on record.



> FMG milestone: first ore from mine to port
> Posted 25 minutes ago ( ABC News )
> 
> Fortescue Metals Group has celebrated a milestone with its first train load of iron ore from its mine to port. (FMG)
> ...


----------



## pajm (7 April 2008)

SP seems to have found support around $1.80 recently and would probably see rise from hereon with pending announcement(s)?


----------



## pajm (7 April 2008)

Yes Grace, this could have pushed it along further today. Wonder if these comments foreshadow something pending for BRM?


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## grace (12 April 2008)

Looks like we have broken out of that resistance level of $2 to close nicely at $2.10.  WR and the mandarin speaking geologist are back from China this weekend.  Should see some sought of announcement next week I'm hoping on the mining study/chinese visit.


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## grace (16 April 2008)

First bit of news out - Positive scoping study on THE OLD RESOURCE.  ie excluded the 1/2 billion tonne of detrital.  However, based on this "lousy" old resource, gives a NPV of $1BILLION.  Here are some highlights....



> *BROCKMAN MOVES TO PRE-FEASIBILITY AFTER MARILLANA STUDY INDICATES POTENTIAL A$1B NPV*
> 
> •Positive Scoping Study completed based on a 10Mtpa iron ore project at Marillana.
> •Potential NPV’s ranging from A$876M to A$1,006M and IRR of 47-54%.
> ...




This is the very important bit...



> It should be remembered that we do not have any third party access agreements in place at his stage, *but we are in discussions with third parties in relation to these access agreements*.




Once we've passed this step, the share price will again be rerated in my opinion.


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## ColB (16 April 2008)

Hopefully Twiggy comes to the party Grace!  SP was all over the shop today opening at 2.14 up to 2.20 before diving under 2.00   Happy to see it climb back to 2.13 but if it keeps doing this I'll day trade it.


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## YOUNG_TRADER (16 April 2008)

I reckon Twiggy will definately look for a JV/offtake option with YML/BRM  because if I remember correctly FMG's huge deposit nearby at Cloud Break is also stranded without the rail, so I suppose if you put Marilliana and Cloud Break together the cost of extending the rail becomes almost insignificant


----------



## gringokonyo (16 April 2008)

YOUNG_TRADER said:


> I reckon Twiggy will definately look for a JV/offtake option with YML/BRM  because if I remember correctly FMG's huge deposit nearby at Cloud Break is also stranded without the rail, so I suppose if you put Marilliana and Cloud Break together the cost of extending the rail becomes almost insignificant



Hi YT, I believe that FMG's railway ends at Cloud Break which is the other side of the river valley from Marillana (35km).  I think you're probably thinking of FMG's 'stranded' Mindy Mindy tenement which adjoins Marillana's east/sth eastern boundary.  Mindy Mindy only has 44MT and is a 50% JV with CSM which probably explains why Twiggy has been loathe to extend the Cloud Break railway across the river flat to Mindy Mindy (I think there might also be environmental issues for building across the river).  Mindy Mindy has BHP's Newman railway running through it, hence Twiggy using the legal processes to gain 3rd party access to that line.  I agree that FMG would probably be pretty keen to get BRM to build the spur line in return for granting BRM 'favourable' rates to use its Cloud Break line.


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## pajm (16 April 2008)

YOUNG_TRADER said:


> I reckon Twiggy will definately look for a JV/offtake option with YML/BRM  because if I remember correctly FMG's huge deposit nearby at Cloud Break is also stranded without the rail, so I suppose if you put Marilliana and Cloud Break together the cost of extending the rail becomes almost insignificant




Twiggy has already talked about allowing third party acess, particularly in view of current battle he is having with BHP and RIO. Interested to know YT if you have any thoughts on the pending pre-feasability study in relation to the 1b mineralization resource?


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## monkeybusiness (16 April 2008)

Pretty disappointing really! 
Did anyone else notice the amazing trading numbers pre-ann? 
Cheers Monkeybusiness


----------



## YOUNG_TRADER (16 April 2008)

Hey thanks Gringo, got my facts a bit muddled,

Pajm have to admit I haven't followed BRM too closely since I exited around $1.50, see I boughtheaps of shares and options at 15c-20c and 2c-3c respectively, 

YML as it was known then was an amazing stock for me, however once it reached a certain mkt cap I decided to take my profits and move on to try and find the next YML as it were,

Its an amzing stock and always held so much potential, it makes me happy to see it reaching its potential 

Good luck with it guys


----------



## pajm (16 April 2008)

Be nice to know a few more things, but guess it is about patience. BRM trading rather consistent with the way some stocks move prior to anns; consistent with 'prior knowledge' -  no such thing as a level playing field in the market.


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## monkeybusiness (16 April 2008)

Will check my calendar but fairly sure BRM's quarterly report is due tomorrow, anyone have any thoughts on how this could shape up? 
Cheers


----------



## pajm (16 April 2008)

YOUNG_TRADER said:


> Hey thanks Gringo, got my facts a bit muddled,
> 
> Pajm have to admit I haven't followed BRM too closely since I exited around $1.50, see I boughtheaps of shares and options at 15c-20c and 2c-3c respectively,
> 
> ...





Thanks YT. Well done. Have been with YML/BRM since last Oct. and when I bought in and topped up, SP at high end each time, however kept recovering and now on the way and will hold long term. Loved the story. ACS came into my range as a result of first coming across you on YML thread and your cred. due to knowledge very noticeable with other posters, so thanks.


----------



## spectrumchaser (22 April 2008)

April 21

   North West Iron Ore Alliance
Five Iron ore juniors have joined an alliance to
fast track and streamline the iron ore industry in the
Pilbara.The members are :
Atlas Iron,BC Iron,Brockman Resourses,FerrAus and Iron
Ore Holdings.
key aims-access to Port Hedland for junior Iron ore
companies and access to rail and transport infrastructure. 
To be a stronger lobby with State and Federal Govt.

Is this Alliance going to be much benefit ?

spectrum chaser has no shares in any of the five
member companies though several are on the
"watch list"


----------



## agro (22 April 2008)

Announcement out today - China on their side!

Also mentions that the group is 1 of the 2 companies they have signed confidentiality agreements with

Brockman confirms discussions with Haoning Group


> Brockman Resources wishes to advise that it is aware of overseas news wire reports that Chinese iron ore trader Haoning Group is in talks with Brockman to secure an iron ore off-take agreement and to take an equity position in the Company.
> Brockman can confirm that it has signed a Confidentiality Agreement with Haoning Group relating to potential iron ore off-take agreements and a possible equity position in the Company and that Managing Director Mr Wayne Richards held discussions with Haoning Group during his recent visit to China. No commercial agreements or undertakings have been entered into at this stage.
> Brockman would also like to advise that positive meetings were held with a number of steel mills and iron ore traders during Mr Richards’ recent visit to China. Discussions were centred on potential off-take agreements for iron ore from the Company’s proposed 10Mtpa Marillana Project. The Company expects that several Confidentiality Agreements will be signed in coming weeks with some of these parties.
> At this stage, Brockman has signed two Confidentiality Agreements with Chinese groups, including Haoning Group. Both agreements were signed prior to the recent visit.



Colin Paterson
Executive Director


----------



## gringokonyo (22 April 2008)

This is the news article that they're referring to.

http://www.businessspectator.com.au...der-in-talks-with-Brockman-DX6FV?OpenDocument


----------



## eric35 (23 April 2008)

Looks like BRM is in a very slow uptrend again. Be interesting to see if it gets to the resistance (recent high) of about $3 again.

I am holding BRM


----------



## Fed23 (23 April 2008)

eric35 said:


> Looks like BRM is in a very slow uptrend again. Be interesting to see if it gets to the resistance (recent high) of about $3 again.
> 
> I am holding BRM




It's going snail pace and there has been a lot of announcements coming out. I thought the news article that the chinese had signed up with them would push them up faster

I too hold BRM bought in at 2.30.... been holding and hoping for it to get back up


----------



## eric35 (23 April 2008)

I think itill go back up in time. I bought in at 203  14 march 08.

here is hoping that we will rech the $3. Time will tell


----------



## skegsi (23 April 2008)

It would be nice if it could finish out of the channel, and make the at the new base. So much potential here!!
If they can get rail access this will explode!


----------



## eric35 (23 April 2008)

I guess it will break out of the channel. They should be able to negotiate a rail access.

Here is hoping. I think the probabilities are in our favour.


----------



## Go Nuke (23 April 2008)

eric35 said:


> I think itill go back up in time. I bought in at 203  14 march 08.
> 
> here is hoping that we will reach the $3. Time will tell




Hmmm $3.15 here. Couldn't have picked a worse time to buy really, but thats the story of my life.

So yeah im hopeing and sure that BRM will climb back to $3+ levels.


----------



## grace (23 April 2008)

Go Nuke said:


> Hmmm $3.15 here. Couldn't have picked a worse time to buy really, but thats the story of my life.
> 
> So yeah im hopeing and sure that BRM will climb back to $3+ levels.




I bought at $1.30 last year, only to see it go down under 80cents.  Felt all of the fundamentals were right, just the sp wasn't!  Hope to see you make a profit too!


----------



## YELNATS (23 April 2008)

Go Nuke said:


> Hmmm $3.15 here. Couldn't have picked a worse time to buy really, but thats the story of my life.
> 
> So yeah im hopeing and sure that BRM will climb back to $3+ levels.




Sold at $3.15, maybe to you? Sorry. Bought in again at under $2. Really optimistic about this company.


----------



## pajm (23 April 2008)

Hang in guys. Bought in last year at $1.38 to see them go up then down and bought more at around $1.12 early January before 'blood bath', sending them as low as 0.58c. Feeling toey at that stage however really optimistic now and hopefully more good news on the way as per link with recent development.  

http://news.theage.com.au/explorer-brockman-china-firms-in-talks/20080422-27ut.html


----------



## pajm (23 April 2008)

Buffett talks about buying on fear and sellling on greed.......if only this was in my headspace (along with some cash) when BRM went crashing along with everything else from mid to late Jan.....the wonders of hindsight.


----------



## alphatrader (29 April 2008)

BRM has gained a fair bit the last week with 16c rise today. Also plenty of buyers around so it might go higher.

Is an announcement expected or is it because of the write-up in the May edition of "ResouceStocks" (I got my copy yesterday direct from BRM)?

Any ideas?


----------



## alphatrader (3 May 2008)

alphatrader said:


> BRM has gained a fair bit the last week with 16c rise today. Also plenty of buyers around so it might go higher.
> 
> Is an announcement expected or is it because of the write-up in the May edition of "ResouceStocks" (I got my copy yesterday direct from BRM)?
> 
> Any ideas?




The quarterly report came out after close of trade on 29th and the SP has since gone even higher and appears to be climbing steadily towards $3.

I am fairly new to this but it seems to me that the relationship between the Market Cap of $200m+ and the NPV of $800m+ (excluding the Detrtital ore) is way out of kilter. 

Does this mean that we can expect significant SP increases ahead as further announcements come out regarding Marilana - arrangements with Chinese interests, further infrastructure arrangements, more drilling results and the scoping study covering the Dertital ore?

Also of interest is that BRM will be doing more exploration on other tenements.

Looks very positive indeed!


----------



## eric35 (8 May 2008)

At this stage $3 seems to be the resistance for BRM. It will be interesting to see if it keeps on climbing or if it does a quick drop like last time. I am very tempted to take profits now, but will hang in there and watch it carefully.


----------



## grace (8 May 2008)

eric35 said:


> At this stage $3 seems to be the resistance for BRM. It will be interesting to see if it keeps on climbing or if it does a quick drop like last time. I am very tempted to take profits now, but will hang in there and watch it carefully.




Note the 1 000 000 sales order in at $3.30.  Looks a little bit obvious.  Accumulation, then removal of this should get things higher....unless the US starts collapsing again of course!


----------



## Fed23 (8 May 2008)

grace said:


> unless the US starts collapsing again of course!




Why you have to say that Grace? Now it'll happen.

I been watching it all day..  it doesnt seem to hold itself once it hits $3. Im sticking in there, but if it looks like its going to drop like last time i'm outta here and on the side line.


----------



## enigmatic (8 May 2008)

This is one of those stocks that I have been watching for a while. With the current resource target and the possible upgrade of this target soon I wouldnt be surprised to see an increase in price however like most stocks if there isnt enough support I would see it droping to arround 2.50 in the short term.


----------



## reloadn (12 May 2008)

"Metallurgical test work has confirmed the upgradeability of the “detrital”ore at Marillana to a + 59.5% Fe Product"

Page 3 of todays presentation


----------



## alphatrader (12 May 2008)

A good day today for BRM with the Share Price hovering around $3 all day.

I see that the company released an excellent presentation today and Pattersons released their latest report that values BRM shares at $5.45 excluding and $7.79 including the Detrital ore.

Does anybody think the SP will get anywhere near this valuation over the next month or so?


----------



## grace (12 May 2008)

alphatrader said:


> A good day today for BRM with the Share Price hovering around $3 all day.
> 
> I see that the company released an excellent presentation today and Pattersons released their latest report that values BRM shares at $5.45 excluding and $7.79 including the Detrital ore.
> 
> Does anybody think the SP will get anywhere near this valuation over the next month or so?




That is a pretty amazing target.  I'd certainly be happy with that.

If this is an international roadshow, then it could spark some buying interest.

My guess is we'll be up there 2H 08 when we get a rail deal done.  Anytime sooner, would be a bonus.


----------



## michael_selway (12 May 2008)

alphatrader said:


> A good day today for BRM with the Share Price hovering around $3 all day.
> 
> I see that the company released an excellent presentation today and Pattersons released their latest report that values BRM shares at $5.45 excluding and $7.79 including the Detrital ore.
> 
> Does anybody think the SP will get anywhere near this valuation over the next month or so?




Hm do you have a link to that Patterson's Report?

Presentation looks quite good however

thx

MS


----------



## alphatrader (12 May 2008)

michael_selway said:


> Hm do you have a link to that Patterson's Report?
> 
> Presentation looks quite good however
> 
> ...




I got my report by e-mail from Patersons in a PDF. Unfortunately there are restrictions on distributing it so I can't help directly.

However it might be worthwhile calling BRM to ask if they can send it to you. The 24th January report is on the website but the new one isn't there yet - see http://www.brockman.com.au/investor_relations.html

Alternatively you could call Patersons to ask for a copy or become a client of theirs - http://www.patersonord.com.au/go/home.

Hope this helps.


----------



## Fed23 (13 May 2008)

$3 seems to the barrier that BRM can't break. Todays closing prices puts us back to 7th May close.

It's gonna take some great announcement from management I think to break the $3 mark. The $5.45 price target from Pattersons didnt make any postive impact on the SP.


----------



## YELNATS (13 May 2008)

Fed23 said:


> $3 seems to the barrier that BRM can't break. Todays closing prices puts us back to 7th May close.
> 
> It's gonna take some great announcement from management I think to break the $3 mark. The $5.45 price target from Pattersons didnt make any postive impact on the SP.




Agree, I had a sell order at $3.10 but it couldn't manage it. Could be a temporary retreat now back towards $2.50 or below. If so, will top up.


----------



## enigmatic (16 May 2008)

The good news about where BRM could be heading in the short and medium term $5+ and were does the sp head south.. Good time for accumulation I guess.


----------



## pelm1 (18 May 2008)

The market is pricing BRM on the 56 mil tonnes as that is all they have. Add to this that it is deep and on the edge of the tenement!

The detritals are suss, they have had plenty of time to get results on the silica and alumina, they will get smashed if they announce that the detritals are not sellable.


----------



## Crash (19 May 2008)

So run that by me again, which is it?  If they are valuing on the 56 million tonnes why would it make any difference what the detritals turn out to be?  Are reading the wrong story here?


----------



## grace (22 May 2008)

The new Patersons report is now available on Brockmans website, and here is the link. 

*In their words "trading at an 89% discount to our DCF valuation of $5.45".*

http://www.brockman.com.au/pdf/reports/broker_reports/PatersonsSecurities9May08.pdf


----------



## YOUNG_TRADER (22 May 2008)

pelm1 said:


> The market is pricing BRM on the 56 mil tonnes as that is all they have. Add to this that it is deep and on the edge of the tenement!
> 
> The detritals are suss, they have had plenty of time to get results on the silica and alumina, they will get smashed if they announce that the detritals are not sellable.




Hey pelm1,

The depth of the deposit was always a concern as the overburden increased mining costs, however given its location, savings in transport combined with very high current Iron Ore prices should outwiegh any costs because of the depth and impurities,

Having said that at $3 there is much more risk than say when it was $1 or 20c







grace said:


> The new Patersons report is now available on Brockmans website, and here is the link.
> 
> *In their words "trading at an 89% discount to our DCF valuation of $5.45".*
> 
> http://www.brockman.com.au/pdf/reports/broker_reports/PatersonsSecurities9May08.pdf




lol Grace YOUNG Trader Investments first alerted the mkt to this back whne it was 16c in Dec 06
https://www.aussiestockforums.com/forums/showthread.php?t=3267&highlight=yml

And also released its valuation report on the *5th of Jan 2007*, well before any of the experts were on it 




YOUNG_TRADER said:


> I think an updated fundamental sheet is due
> *
> YML*
> *Yilgarn Mining*
> ...


----------



## Sean K (22 May 2008)

Long term looks like a bit of a pole and pennent shaping up, $3.75 ish target.

Doesn't look like much on a short term chart though. 

So, could go anywhere....lol


----------



## grace (22 May 2008)

YOUNG_TRADER said:


> lol Grace YOUNG Trader Investments first alerted the mkt to this back whne it was 16c in Dec 06
> https://www.aussiestockforums.com/forums/showthread.php?t=3267&highlight=yml
> 
> And also released its valuation report on the *5th of Jan 2007*, well before any of the experts were on it




YT, I am only a new member here, so I certainly missed your early posts.
At the time you first invested in Yilgarn, I was very busy bringing my four children into the world, and also running a number of businesses in my "spare" time.  This little iron ore hopeful was the last thing on my mind!


----------



## Fed23 (28 May 2008)

Will just not break thru the $3 mark.

Its hung around in 2.90-2.97 for a few days. Now its fallen back to the support of $2.75.


----------



## alphatrader (28 May 2008)

Fed23 said:


> Will just not break thru the $3 mark.
> 
> Its hung around in 2.90-2.97 for a few days. Now its fallen back to the support of $2.75.




It looks like we will have to wait for the next announcement to generate more interest from buyers. Until then it might be in the doldrums. 

Does anybody know what happened with the "International Roadshow Presentation" (refer ASX announcement 12/5/08)? Is Wayne Richards taking this on the road and, if so, is it likely to generate more activity form institutional and/or overseas investors?


----------



## grace (29 May 2008)

alphatrader said:


> It looks like we will have to wait for the next announcement to generate more interest from buyers. Until then it might be in the doldrums.
> 
> Does anybody know what happened with the "International Roadshow Presentation" (refer ASX announcement 12/5/08)? Is Wayne Richards taking this on the road and, if so, is it likely to generate more activity form institutional and/or overseas investors?




WR is making a presentation in Asia, and they are also have a stand at the conference.  You'll have to give me time to find the link, but I have looked at it.


----------



## Fed23 (29 May 2008)

Im not liking the looks of the SP atm.

It's broken $2.75 which was where support had been for along time.


----------



## Mozart56 (29 May 2008)

Fundamentals remain unchanged.  The SP has fallen on relatively small volumes .. suggest that some of this money has flowed into some of the more glamourous Fe stocks with recent announcements like UMC, SDL, FRS and AGO and the blue sky's FDL (now FMS).

If you keep in mind the size of the resource and the relative MC, BRM is in very solid shape.  The have a 550MT DSO equivalent JORC and FMS are yet to drill a hole  It will recover and the next jump could be a big one depending on the nature of the announcement.


----------



## Fed23 (30 May 2008)

BRM has been placed in a trading halt.

Does anyone have any insight into why? Possible chinese investors?


----------



## sting (30 May 2008)

Fed23 said:


> BRM has been placed in a trading halt.
> 
> Does anyone have any insight into why? Possible chinese investors?




Either chinese investors...or.... maybe one of the neighbours next door are looking to expand. 

With whats in the ground BRM has to be an ideal takeover opportunity esp for someone with rail infrastructure already in place and running thru the centre of BRM.


----------



## Real1ty (30 May 2008)

Fed23 said:


> BRM has been placed in a trading halt.
> 
> Does anyone have any insight into why? Possible chinese investors?




It is in a trading halt pending the release about a placement.

It is available to read on the second page of the announcement.


----------



## countryboy (30 May 2008)

Placement to 'sophisticated investors" or will they let holders get their hands on a few at a discount. How much do they need ? 

Ill take a punt on @ $2.50 Why? cause its a nice round figure!


----------



## Atma (30 May 2008)

Mozart56 said:


> Fundamentals remain unchanged.  The SP has fallen on relatively small volumes .. suggest that some of this money has flowed into some of the more glamourous Fe stocks with recent announcements like UMC, SDL, FRS and AGO and the blue sky's FDL (now FMS).
> 
> If you keep in mind the size of the resource and the relative MC, BRM is in very solid shape.  The have a 550MT DSO equivalent JORC and FMS are yet to drill a hole  It will recover and the next jump could be a big one depending on the nature of the announcement.




mozart agreed brm may be good, but 550mT "dso equivalent" must be stated to those who may be new to the forum- it needs a lot of processing. At the moment BRM's marketable resources have been very flat lately - thats the general market view. It has good tenements that will benefit holders in the longer term.


----------



## Mozart56 (31 May 2008)

Atma said:


> mozart agreed brm may be good, but 550mT "dso equivalent" must be stated to those who may be new to the forum- it needs a lot of processing. At the moment BRM's marketable resources have been very flat lately - thats the general market view. It has good tenements that will benefit holders in the longer term.




Hi Atma

The market has effectively ignored the detritals completely.  On the DSO portion alone it is still on trading at just $4.50/tonne in-situ.  If it can demonstrate that the benficiation is cheap and results in a premium product it is ineivitable that the stock will be re-rated.  It's I nice bonus to have up your sleeve


----------



## Atma (31 May 2008)

Mozart56 said:


> Hi Atma
> 
> The market has effectively ignored the detritals completely.  On the DSO portion alone it is still on trading at just $4.50/tonne in-situ.  If it can demonstrate that the benficiation is cheap and results in a premium product it is ineivitable that the stock will be re-rated.  It's I nice bonus to have up your sleeve




This one is now in a trading halt. Chinese Haoning is taking a placement, may be around the current levels, who knows.


----------



## Mozart56 (31 May 2008)

Atma said:


> This one is now in a trading halt. Chinese Haoning is taking a placement, may be around the current levels, who knows.




Patersons are doing a bookbuild of between $75M to $100M at discount of between 10% and 20%.  Disappointing outcome IMHO.


----------



## mk1997 (31 May 2008)

Mozart56 said:


> Patersons are doing a bookbuild of between $75M to $100M at discount of between 10% and 20%.  Disappointing outcome IMHO.




Just saw this one,

------------------------
WA Business and Mining
Brockman eyes $100m for Pilbara iron project
Buoyed by Atlas Iron’s successful capital raising, fellow iron ore junior Brockman Resources was last night working on an up to $100 million book-build for its billion-tonne Marillana project in the Pilbara. 

Brockman put its shares in a trading halt yesterday morning, with the stock sitting at $2.70, only 30 ¢ below its record close three weeks ago. 

The timing of the capital raising is opportune given that a year ago Brockman was trading as low as 35 ¢. 

It is understood Patersons Securities was arranging a book-build of existing shareholders and new investors to raise between $75 million and $100 million. 

The book-build should be finalised by late next week, with the placement price expected to be at a discount of between 10 and 20 per cent to Brockman’s last trade. Shareholders are likely to have to approve the capital raising. 

It is unclear whether Brockman’s board, led by former Arthur Andersen Perth managing partner Ross Norgard who owns $47 million worth of scrip, will participate in the capital raising. 

Atlas raised $100 million at $2 a share ”” a 10 per cent discount to its prevailing price ”” through rival broker Hartleys a month ago. 

The success of the raising proved the market’s appetite for up-andcoming iron ore producers, despite the continued upheaval on global money markets. 

Participants in the raising have been rewarded handsomely, with Atlas shares closing at $4.08 yesterday. Atlas is more advanced than Brockman and expects to be producing first iron ore from its Pardoo project east of Port Hedland later this year. 

Brockman is raising the funds to finance a feasibility study for Marillana, which contains 1.1 billion tonnes grading an average 44.2 per cent. 

Brockman is eyeing first production next year.

PETER KLINGER 

http://www.thewest.com.au/default.aspx?MenuId=32&ContentID=76319

Cheers,


----------



## JTLP (31 May 2008)

If that article is true...then that is just bull#%^@!

And here's why:

"Hi everybody, we're Patterson's.

On this day we will put out an evaluation telling the market that BRM shares should be worth $5.45; a nice, handsome figure wayyyy above the current price."

Scroll forward about 2 weeks or so and a stagnating price with lots of resistance...

Trading Halt

"Hi again, Patterson's here. 

Just letting you know that we have decided to do a cap raising at an even nicer price of less 10 - 20% then the current sp. That's right, we value this company at $5.45 but we will slash shares by up to 20%...everything must go! SALE SALE BRM"

Does this not raise a few eyebrows of current holders?

Call me nuts...but I think Patterson's have got some balls ripping this out

***

JTLP


----------



## Atma (1 June 2008)

thats a killer dilution.

points to consider

assuming, top price paid, dilution is significant. BRM had 93m shares full dilution i believe. 42-44m shares are going to be added in this placement. This will dilute existing s/holders by 45% thereby reducing leverage of the stock. 

Positive?

It gets $100m in cash to do FS studies and drill other tenements. Also AGO has doubled since its institutional raising.(and has less JORC)

Now we understand why there were million sell offers above $3 per share. Insiders knew.

Disclosure: I exited a few days ago in the 2.80s.


----------



## gfresh (1 June 2008)

atma said:
			
		

> Now we understand why there were million sell offers above $3 per share. Insiders knew.




It depends what you mean (wanted to sell, or wanted to prevent buying) -- that 1m was more likely to be a price cap (quite high in the depth), to keep the price rising too much above the $3.00 mark, which it seemed to be pretty effective at doing that over the last week or two. Hence allowing the issue at $2.50, rather than $2.75 or $3.00 if the price had risen too much higher. 

Looking at the buy/sell que, on initial glance the 1M would put some traders off. It's all part of the games they play around these sorts of raisings. 

Again, small holders get the short stick.


----------



## Mozart56 (1 June 2008)

gfresh said:


> It depends what you mean (wanted to sell, or wanted to prevent buying) -- that 1m was more likely to be a price cap (quite high in the depth), to keep the price rising too much above the $3.00 mark, which it seemed to be pretty effective at doing that over the last week or two. Hence allowing the issue at $2.50, rather than $2.75 or $3.00 if the price had risen too much higher.
> 
> Looking at the buy/sell que, on initial glance the 1M would put some traders off. It's all part of the games they play around these sorts of raisings.
> 
> Again, small holders get the short stick.




Sentiment could change if the issue is tied to an offtake or transportation.  I don't think they need the cash so it is likely related to these?


----------



## Fed23 (5 June 2008)

Placement is out $2.50 a share to international and domestic instituations..

What happned to current shareholders!!!! I feel its only fair to include existing holders.

And who is Mr Paul Bartlett proposing to 600000 options?


----------



## TheAbyss (5 June 2008)

Fed23 said:


> Placement is out $2.50 a share to international and domestic instituations..
> 
> What happned to current shareholders!!!! I feel its only fair to include existing holders.
> 
> And who is Mr Paul Bartlett proposing to 600000 options?




No funds were raised through the issue of the Options. The Options were issued to attract Mr Bartlett into the position and to significantly align his interests to that of shareholders.

Paid help, carrot on a stick call it what you will.


----------



## alphatrader (5 June 2008)

The share price is heading south towards the $2.50 issue price for the 45m new shares. There is lots of selling going on and it looks like the few buyers that are around are snapping up the bargains.

While this is not unexpected, it seems to me that the market continues to under-value this company. 

Hopefully those of us who stick with it will ultimately reap the rewards.


----------



## YELNATS (5 June 2008)

alphatrader said:


> The share price is heading south towards the $2.50 issue price for the 45m new shares.





The sp may venture even below $2.50 in the short term. Hopefully, some of those "major international and domestic institutions and sophisticated investors" will feel some of the pain along with us retail investors.


----------



## Fed23 (5 June 2008)

Bit of a rip for retail investors I would of liked the placement to give exist holders like me the chance to buy them. Cant believe the SP was at 2.95 this morning now its at 2.60

Oh well maybe by 2010 this could be at $10


----------



## grace (5 June 2008)

Fed23 said:


> Bit of a rip for retail investors I would of liked the placement to give exist holders like me the chance to buy them. Cant believe the SP was at 2.95 this morning now its at 2.60
> 
> Oh well maybe by 2010 this could be at $10




Write to WR and express your disappointment.  I did last time they didn't offer to us.  One day management might listen.  Share price may not have dived so much if they had.  

I hold FRS as well and we just participated in a SPP.


----------



## ROE (5 June 2008)

What's up these fricken mining company doing dodgy fund raising that give institutions investors honeymoon treatment. I just have TMR pulling the same stunt.

Next time they raise fund i'm getting the hell out


----------



## Fed23 (5 June 2008)

ROE said:


> What's up these fricken mining company doing dodgy fund raising that give institutions investors honeymoon treatment. I just have TMR pulling the same stunt.
> 
> Next time they raise fund i'm getting the hell out





I did that for FMS... that was a mistake I learnt from. 

Not all shares are approved thou a big chunk have to get shareholder approval in July


----------



## YELNATS (5 June 2008)

ROE said:


> What's up these fricken mining company doing dodgy fund raising that give institutions investors honeymoon treatment. I just have TMR pulling the same stunt.
> 
> Next time they raise fund i'm getting the hell out




The trouble is the first you know about it is when they go into a trading halt. Only the insiders know it's going to happen. Hopefully they'll put the funds to very good use.


----------



## countryboy (5 June 2008)

countryboy said:


> Placement to 'sophisticated investors" or will they let holders get their hands on a few at a discount. How much do they need ?
> 
> Ill take a punt on @ $2.50 Why? cause its a nice round figure!




so predictable  they may as well let us punters write the announcements for them I expect the next 12 mths we will see us very close to mining. time to compare what we have with others with similar resources. i come up with a SP higher then where it finished today...including the additional shares


----------



## gfresh (5 June 2008)

Brockman Market Cap is now: 

93.8M + 45M (@ $2.50) =  138.8M shares full diluted. 

138.8 x $2.62 = $363.66M

---
Some comparisons:

Atlas Market Cap: 286.4M + 30.8M options = 316.8M shares full diluted.
Current Market Cap: $3.75 x 316.8M = $1188M 

Sundance Resources: 1873.42M + 93.5M opts = 1966.92 fully diluted.
Current Market Cap: $0.44 x 1276.92 = $865.45M

Gindalbie Market Cap: 512.38M + 16.75M opts = 529.13M fully diluted.
Current Market Cap: $1.565 x 529.13 = $828.09M

Flinders Mines (former FDL): 1100.63M + 377.26M = 1477.89M diluted
Current Market Cap: $0.24 x 1477.89 = $354.69M (and not a hole drilled )

United Minerals: 132.77M + 20.39M opts = 153.16M full diluted.
Current Market Cap: $1.835 x 153.16 = $281.05M

Territory Resources: 264.6M + 17.08M opts = 281.68M fully diluted.
Current Market Cap: $0.82 x 281.68 = $230.98M


---

Of course there are others somebody can add in if they are so inclined. 

Based on some of the above, Brockman is probably fairly valued at the moment compared to most of it's peers for it's initial 2mta operation. Somewhere close to Atlas' cap in 12 months may be expected for Brockman (on a quick and simple comparison) ?


----------



## grace (6 June 2008)

gfresh said:


> Brockman Market Cap is now:
> 
> 93.8M + 45M (@ $2.50) =  138.8M shares full diluted.
> 
> 138.8 x $2.62 = $363.66M




I guess you have to also consider size of resource, time to production, cash in the bank, strength of management etc etc, when doing these comparisons.

Brockman now have cash of $112.5 million, plus whatever else was left in the kitty.

When a few more American banks fall over, cash will be King.

I'm pleased we have some cash now, but a SPP would have been nice as I stated before.


----------



## gfresh (6 June 2008)

Yes, definitely.. I just didn't want to get too much into that, as that would be sure to start an argument  I know by looking at a few of those, which valuations (I think) are fair, which aren't  but I'll keep that to myself 

If you include the cash component into Brockman's market cap, that's quite healthy. Non-interest bearing as well. 

Their scoping study states estimated total Capex for 10mta operation $542-$755M, so they still will need to obtain some more significant funding (via debt, or further equity) at some point before fullscale production. Their early 1-2mta production should bring in some cash as well though before hand.


----------



## Mozart56 (6 June 2008)

gfresh said:


> Brockman Market Cap is now:
> 
> 93.8M + 45M (@ $2.50) =  138.8M shares full diluted.
> 
> ...





I think if you are going to do a realistic comparison you need to discount for cash (as it it is hugely variable amongst the list you have given) and factor in the size of the resource and volume of planned production.  I think BRM is looking very good taking these into account.  Correct me if I'm wrong, but I think that only AGO will be producing earlier than BRM's planned schedule.  Am I right?


----------



## Fed23 (11 June 2008)

BRM is currently seating at $2.53.

I find this captail raising to be complete BS, its lowered the SP from its highs of $2.90, massive discount for all the instituations that got jumped on board


----------



## Fed23 (11 June 2008)

well now its dipped to 2.45, major instituations must be hurting just like the little guys(like me) from the captail raising. Does anyone know when we can expect some positive news?


----------



## grace (11 June 2008)

Fed23 said:


> well now its dipped to 2.45, major instituations must be hurting just like the little guys(like me) from the captail raising. Does anyone know when we can expect some positive news?




WR presenting at the Mines & Money Asia 2008 Conference tomorrow (a stand and personal presentation about Brockman).  Let's hope that's enough to keep this at a bottem......


----------



## monkeybusiness (11 June 2008)

There's more to this story and information is also freely available on hot copper regarding brm, might fill in several gaps.
cheers mb
Ps l have noticed that Mozart also contributes to both forums.


----------



## Fed23 (13 June 2008)

hovering close to where I first bought in, $2.40 now thats a discounted price

Will anyone attend the General meeting on 7th july?


----------



## alphatrader (13 June 2008)

Fed23 said:


> hovering close to where I first bought in, $2.40 now thats a discounted price
> 
> Will anyone attend the General meeting on 7th july?




I bought in 12 months ago at around 50c. Since then, whenever there has been a major announcement, it has jumped incredibly then fallen back. So I'm used to these ups and downs but intend to hold on until the project is in the bag with transportation in place (rail) and scoping studies completed.

As with the previous capital raising at $1.05, I expected the SP to drop to the issue price of $2.50, even though the company's assets increase significantly because of the cash injection. 

Now, I am no expert and have only been in the share market for 12 months but, from my observations, my opinion is that the market has again over-reacted, probably driven by short-term traders selling off relatively small volumes to bargain hunters.

When the next major announcement comes along, hopefully there will be a significant jump to well above $3, possibly close to Paterson's valuation of $5+ (excluding the Detrital ore). 

In the meantime, the roller-coaster ride continues.


----------



## Fed23 (17 June 2008)

this roller coaster look slike it aint going to go up any time soon.

Why would instituations pay $2.50 when they can get a massive discount currently at $2.34!

this makes me sick! seeing it come down from $2.95 to its current price


----------



## grace (17 June 2008)

Southern Cross Equities have slapped a buy on Brockman, per the Australian today, but so far, hasn't attracted too much interest.  No target price.  Currently trading at 43cents per tonne of shippable ore, compared to sector average of $6.29! 



> Brockman Resources (BRM) ; Southern Cross Equities; Speculative recommendation with high risk/high reward; No share price target; Last traded at $2.39
> 
> SOUTHERN Cross analysts note that Brockman Resources, which is developing the Marillana iron ore deposit in the Pilbara, appears undervalued compared to its peers, with access to infrastructure one of its main hurdles.
> 
> ...


----------



## Fed23 (17 June 2008)

why are they stating 500million tonnes?

BRM came out with 1.1Billion tonnes in march for Marillana


----------



## grace (17 June 2008)

Fed23 said:


> why are they stating 500million tonnes?
> 
> BRM came out with 1.1Billion tonnes in march for Marillana




500million tonne can easily be beneficated to higher grade ore.  The balance is lower grade (apart from the 50 million of DSO), and won't be touched for another 20yrs I'm guessing.  Still probably worth something, but they chose not to put any value on it.  It is a strong buy, by the way from Southern Cross.


----------



## alphatrader (17 June 2008)

grace said:


> 500million tonne can easily be beneficated to higher grade ore.  The balance is lower grade (apart from the 50 million of DSO), and won't be touched for another 20yrs I'm guessing.  Still probably worth something, but they chose not to put any value on it.  It is a strong buy, by the way from Southern Cross.




BRM has always stated that their total resource is 550 million tons made up of around 50MT DSO plus 500MT from the 1.1MT detritals after benification.


----------



## Fed23 (17 June 2008)

What is DSO?????????

So if I get this right? out of the 1.1billion tonnes 550million is sellable?


----------



## grace (17 June 2008)

alphatrader said:


> BRM has always stated that their total resource is 550 million tons made up of around 50MT DSO plus 500MT from the 1.1MT detritals after benification.




Sorry to mislead fed23, alphatrader is certainly correct here.



> *Enlarged resource dictates revised strategy –1.1 B tonne resource ->550 Mt of final product Grading 57.5 –59.8% Fe-all Haematitic Ore*




Expecting more than 550 million tonne of final product Haematitic ore (DSO).  This is a very large resource and will be mined for a long long time.   

Perhaps read Pattersons report if you have not already done so - here is the link.

http://www.brockman.com.au/pdf/reports/broker_reports/PatersonsSecurities9May08.pdf


----------



## nick2fish (17 June 2008)

Expecting more than 550 million tonne of final product Haematitic ore (DSO).  This is a very large resource and will be mined for a long long time.   


Yes I agree, but the standout concern with the Philbra Juniors is infrastructure. I am looking for the next FMG along with everyone else but tend to baulk at the enormity of task these guys face to get rail access and once that is achieved in all probability face bottlenecks of the like the east coast coalminers have had to endure. I am holding SRK FRS GIR and a good reply from you Grace will see me add BRM  Cheers


----------



## gfresh (18 June 2008)

fed23 said:
			
		

> What is DSO?????????




To be pedantic, and to clarify.. DSO means "direct shipping ore" - means that it is high enough grade to be dug up, put on a ship, and sent to wherever. No processing undertaken, other than crushing and screening process.

Brockman's 550mT is *after* beneficiation process (I believe Brockman is considering a flotation process), so it's not strictly DSO. There will be extra costs in getting it to that state. The final product may be "DSO equivelent", but it's not DSO. 

DSO involves very little processing costs, and is pretty much raw iron ore that can go straight into a blast furnace, and hence is the "holy grail" of iron ore.

Some good general iron ore information in here: http://www.mtgibsoniron.com.au/uplo...- Final Email Version - reduced file size.pdf

It's a couple of years old, but still valid information.


----------



## grace (22 June 2008)

Here is Pattersons report on some of the junior iron ore explorers.  I note that they like BRM.  I think they have been a bit harsh on FRS (I hold).  FRS have been drilling up some nice high grades, and the project will be quite large.....sorry for that bit of advertising!  I'll get back on track now! 

http://www.minesite.com/fileadmin/c...s_June/Pilbara_Iron_Ore_Developers_170608.pdf


----------



## Fed23 (25 June 2008)

Can anyone explained what happened this arvo for the SP to go from 2.52 to 2.80 then back to 2.64?

etcetc


----------



## JMcDog (25 June 2008)

Chinese buying perhaps.... Reuters Newswire, just before close, indicated that this could be the case.  I guess tomorrow's open may confirm or otherwise.  Cheers, JM


----------



## Fed23 (25 June 2008)

found it

Australia's Brockman says China firms seek stakes
SYDNEY, June 25 (Reuters) - Chinese steel mills are seeking to buy an equity stake in Australian iron ore prospector Brockman Resources Ltd (BRM.AX 


BROCKMAN RESC25 June,200825/06/2008 16:23 Sydney, Australia.
Value Change % Change 
2.650 +0.060 +2.320% 

Company overview
Real-time quote
BRM.AX , 2.650, +0.060, +2.320%), Managing Director Wayne Richards said on Wednesday, adding that his firm was open to an approach.

Brockman has signed seven confidentiality agreements with Chinese groups over supplying ore, though no deals have yet been reached, Richards told Reuters in an interview.

The mills were smaller private-sector enterprises and were interested in investing in Brockman to secure future iron ore shipments, Richards said.

"In due course we will assess and make the determination whether we require equity positions in conjunction with off-takes or whether we solely build and fund our projects all the way through and just keep it very clean," Richards said. (Reporting by James Regan, editing by Mark Bendeich)


----------



## Fed23 (26 June 2008)

I would of thought that its SP would be in the green today and high as 2.80 today after the news of chinese investors


----------



## Crash (26 June 2008)

It really is no new news, we have heard this news before and until something is confirmed on it wont help much.


----------



## DionM (26 June 2008)

Crash said:


> It really is no new news, we have heard this news before and until something is confirmed on it wont help much.




Yeah it's a bit of a rehash of old news.  Attention also seems to be focussed on CNP, AFG, ABS today too ... all up strongly.


----------



## grace (2 July 2008)

Good news out today with an extra 20% of material likely from test work on detrital.  Potential $11 billion revenue project.  Still a fairly low market cap all things considered.



> *Improved Beneficiation Recoveries Indicate Potential
> 125Mt Uplift in Project Inventory*
> 
> · Average +59% recovery achieved from beneficiation test work on detrital mineralisation from Marillana Project – compared with 47% previously reported.
> ...


----------



## Mozart56 (2 July 2008)

grace said:


> Good news out today with an extra 20% of material likely from test work on detrital.  Potential $11 billion revenue project.  Still a fairly low market cap all things considered.




Actually it has a potential $11billion in EXTRA revenue.  If you believe WR the economics on this are huge.  Doesn't look like the market has fully grasped it .. or they just don't believe it.


----------



## grace (2 July 2008)

Mozart56 said:


> Actually it has a potential $11billion in EXTRA revenue.  If you believe WR the economics on this are huge.  Doesn't look like the market has fully grasped it .. or they just don't believe it.




Thanks Mozart, I didn't do the homework and look it up.  Thought it might have been $11 billion extra, but the wording was a bit confusing (for me anyway).  Thanks Grace.


----------



## Mozart56 (2 July 2008)

grace said:


> Thanks Mozart, I didn't do the homework and look it up.  Thought it might have been $11 billion extra, but the wording was a bit confusing (for me anyway).  Thanks Grace.




No worries Grace.  Doesn't look like the market agrees with WR ATM.  If so the SP would not be where it is. An off-take agreement incorporating the Detrital resource might change all that however


----------



## Fed23 (9 July 2008)

What is happening with BRM?

Is this the effect of the placement? massive discount from the price the placement was listed at currently


----------



## grace (9 July 2008)

Fed23 said:


> What is happening with BRM?
> 
> Is this the effect of the placement? massive discount from the price the placement was listed at currently




Placement at $2.50, current price $2 (or less).  Getting smashed.  Will do some MC calcs when I get a chance, but it must be 30c/tonne for the 680 million tonne, and then BRM have plenty of cash too!


----------



## Go Nuke (10 July 2008)

OMG
Whats happening to BRM???

Sub $2!

I think its down to the global economic wobbles.
What do you guys think?
Either way its not good for us shareholders


----------



## enigmatic (10 July 2008)

Short term holders this is definitely not looking good. Long term I cant say this is to bad if anything it is good. Alot of Long termers might of missed out and bought this just after it hit $3 dollars or when. So being able to accumulate this would be a treat. Shame i have no spare cash. There are a few Iron Juniors/ Soon be Producers that are looking extremely cheap again


----------



## Snakey (10 July 2008)

Fed23 said:


> What is DSO?????????
> 
> So if I get this right? out of the 1.1billion tonnes 550million is sellable?




DSO = direct shipping operation
50 million tonnes DSO = dig it up and ship it out
500 million tonnes after beneficiation  = 1.05billion tonnes will need treatment before shipping 500million tonnes out

Like everything this has been slaughtered too.


----------



## grace (10 July 2008)

enigmatic said:


> Short term holders this is definitely not looking good. Long term I cant say this is to bad if anything it is good. Alot of Long termers might of missed out and bought this just after it hit $3 dollars or when. So being able to accumulate this would be a treat. Shame i have no spare cash. There are a few Iron Juniors/ Soon be Producers that are looking extremely cheap again




Nice announcement out, with all the capital raising money in.  Might settle the nerves a bit.  Enough money in kitty to take Marillana through to first mining at 2 mill tpa next year. 

http://aspect.comsec.com.au/asxdata/20080710/pdf/00859283.pdf


----------



## shinobi346 (10 July 2008)

Announcement of a new significant investor too. Looks like he bought a bunch, sold it when it was still high and then rebought it all in the last couple of days when it was lower. Lucky guy.


----------



## grace (14 July 2008)

A bit of a write up in the West Austalian Today.

MC is only $133 million for iron ore.
Well, 660 million tonne valued at 19.6 cents per tonne.

Anyone think this is starting to look undervalued.



> A number of smaller iron ore mining hopefuls based in Western Australia have fallen out of favour with investors. BC Iron's stock has declined from around $A2 in mid-2007 to a close of $A1.20 on 11 July 2008.
> 
> Brockman Resources is also dismayed to find that with a cash holding of $A112.5m and its hematite resource of one billion tonnes, its market capitalization has slumped to just $A245.7m.
> 
> One major challenge is securing access to export infrastructure including railroads and a port, such as those operated by Fortescue Metals Group.


----------



## JTLP (15 July 2008)

Grace, my big gripe with BRM is that WR has stated that they have potential MOU's with about 7 parties...yet nothing has even been signed!

In this volatile market people want security...not a company that sits on their tails. I really hope they can start to firm up some things (sale of detrials becoming official, MOU's, transport solution/agreement)...only then will we start to see the price rise.

BRM better start ticking boxes to keep their placement purchases happy as well!


----------



## grace (16 July 2008)

JTLP said:


> In this volatile market people want security...not a company that sits on their tails. I really hope they can start to firm up some things.
> 
> BRM better start ticking boxes to keep their placement purchases happy as well!




Seems WR has been reading your mind.  Some news today in WA (and announcement to the ASX).



> In a bid to capitalise on the current strength of the iron ore market, Brockman Resources Ltd has appointed Perth-based engineering company Engenium Pty Ltd to immediately start a definitive feasibility study into its Marillana project.
> Brockman managing director Wayne Richards said the study for stage 1 development of Marillana, consisting of a start up production rate of 2 million tonnes per annum, will start immediately to capitalise on its recent fund raising.
> 
> Earlier this month the company finalised a share placement worth $112.5 million.
> ...




Nice to see things moving along.


----------



## JTLP (16 July 2008)

Ahh that was nice to seem some information...WR knows the big JTLP is watching 

I'll try and get him to notch up the 7 MOU's this week Grace...sound good? :

Didn't really move much on this today though...just throw in another 1 bil IO and we gets the money


----------



## JTLP (21 July 2008)

Another up day for IO hopefuls...another down day for BRM.

Do we have a major holder skipping out? 

Or as Kennas so eloquently put it (for MAK) high school kids just hitting the sell button :

I've pretty much written off BRM and bottom drawered them...seems like nothing is happening with this boring bunch. Why would you not get the ball rolling and start to sign off some things/instill investor confidence is beyond me?

If Wayne Swan gives the big thumbs down to open rail access...look out!


----------



## grace (21 July 2008)

JTLP said:


> Another up day for IO hopefuls...another down day for BRM.
> 
> Do we have a major holder skipping out?
> 
> ...




Well, if you take out the cash, the DSO is being valued at a silly $2/tonne, and you get $1.05 billion tonne of upgradeable product for FREE!  Compare that to SDL's market cap (and they have lower grade product, and their DSO is deep down)!  I'd rather have my money on this one for many many reasons, apart from the fact that it is rediculously undervalued at present.

I guess the share price is important if you are raising money, and BRM has plenty of cash, so try not to look at your screen.


----------



## YELNATS (21 July 2008)

A little Patience. 

I hardly think BRM's advance from around 30c to over $3 in less than 18 months is boring. And surely they will again challange $3 and beyond in the not so distant future.

When comparing BRM with SDL, it's the battle of the Wests, Western Australia versus Western Africa. I think I know which is likely to be the more stable politically.


----------



## fordxbt (23 July 2008)

BRM chart is heading north
momentum building, expecting MACD indicators to cross tommorrow, small resistance @ 1.93, i wager it will break through soon
with a JORC estimate of 1.1bt (625mt feasable for haematite (>55%), their close access to rail (MoU next?) and scheduele mining for 12 months (notice no FOOS date though)
its looking promising


----------



## JTLP (28 July 2008)

Another day another dollar...whipping in my impala!

LOL sorry for the opening line...

Anywhoo...BRM are getting beaten around the bush pretty badly. MC is smaller then some other player's with 0 - little drill results!

Can't really see the SP heading north without some big bang news...and the only thing I can think that would really do that would be a rail + port agreement...and we probably won't know about that for another month.

So...what do we have to wait for:
- Abalone results
- Confirmation that ore can be upgraded
- rail + port agreements
- MOU's

List as you see fit.

Hey WR...how about lifting whichever hand you write with and signing an MOU or 7.

Love JTLP


----------



## grace (28 July 2008)

JTLP said:


> Another day another dollar...whipping in my impala!
> 
> LOL sorry for the opening line...
> 
> ...




I think you need to get your bat out after him, he was listening last time as I recall.  It's amazing how fast you can move when threatened.

Money in the bank is one of the most important things, and I'm glad WR did that capital raising at $2.50, as it just gets that bit harder every day.  We have one of the best managers here in WR, and I hope that is enough to get this one across the line.

RIO said that there will only be a handful of juniors that will ever make it to mining, and I think the ones in the Alliance will make it......just my thoughts though.


----------



## JTLP (28 July 2008)

well Grace UMC and LNC both made ann's today (ableit a little early for my liking) so I'll see what i can whip up from WR for BRM. :


----------



## Fed23 (29 July 2008)

Hovering around $1.50... thats poor form. I wonder how all those that paid $2.50 in the placement are feeling right


----------



## shinobi346 (31 July 2008)

Don't know but as a holder before the placements I'm glad the placement wasn't done later.

Me, I'm just gonna wait....


----------



## JTLP (8 August 2008)

Don't want to sound like a ramper but I have an interesting thought (please shoot me down if it is bad).

If the NWIOA won the right to use the rail's of BHP and RIO etc; would these 2 mining giants not attempt to buy them out?

I raise this point as currently, the market caps of the NWIOA members have been smashed considerably (actually the whole mkt but eh!). Would it not make sense that if the decision was made to grant access to the juniors that the big boys should buy them out? Thus gaining more ore and basically controlling the rails and port again?

JTLP


----------



## grace (13 August 2008)

JTLP said:


> Don't want to sound like a ramper but I have an interesting thought (please shoot me down if it is bad).
> 
> If the NWIOA won the right to use the rail's of BHP and RIO etc; would these 2 mining giants not attempt to buy them out?
> 
> ...




You could be onto something there.

Everyone said that chart gaps have to be filled.  Fundamentals suggested that didn't need to be the case going from 50 mill tonne of iron ore to 1.1 billion tonne should have been enough.  Yet, it looks like the techs have won today.

If you look at it this way, if we liquidate today, you'll get your money back on brockmans cash holding anyway, and we can just forget about the main asset of 1.1billion tonne of iron ore (and growing).


----------



## YELNATS (13 August 2008)

JTLP said:


> Don't want to sound like a ramper but I have an interesting thought (please shoot me down if it is bad).
> 
> If the NWIOA won the right to use the rail's of BHP and RIO etc; would these 2 mining giants not attempt to buy them out?
> 
> ...




You would think that the prices of the IO juniors would jump significantly if the NWIOA won these rights, thus making any takeovers by BHP and/or RIO a lot more expensive.

If BHP/RIO thought they had a weak case against NWIOA's claims, you would think they would move with any takeover now, while the junior's prices are depressed, unless they think they still have some way to go down.

Just crystal ball gazing.


----------



## Gspot (13 August 2008)

YELNATS said:


> You would think that the prices of the IO juniors would jump significantly if the NWIOA won these rights, thus making any takeovers by BHP and/or RIO a lot more expensive.
> 
> If BHP/RIO thought they had a weak case against NWIOA's claims, you would think they would move with any takeover now, while the junior's prices are depressed, unless they think they still have some way to go down.
> 
> Just crystal ball gazing.




Maybe they are awaiting a DFS, to see exactly what they are paying for? Let Brockman do all the ground work.
 With Marillana sitting directly in BHP's tracks, surely It's ripe for a BHP takeover? Sooner or later.


----------



## JTLP (13 August 2008)

YELNATS said:


> You would think that the prices of the IO juniors would jump significantly if the NWIOA won these rights, thus making any takeovers by BHP and/or RIO a lot more expensive.
> 
> If BHP/RIO thought they had a weak case against NWIOA's claims, you would think they would move with any takeover now, while the junior's prices are depressed, unless they think they still have some way to go down.
> 
> Just crystal ball gazing.




Yeah that's what I was getting at 

Well a decision can't be too far away now (end of August). Hopefully it will be the best going away present I can get


----------



## Go Nuke (14 August 2008)

Anyone got any ideas as to why every other mining company is UP today...except BRM!

Surely it cant all be over that comment made about BRM not being able to share FMG's port?


----------



## JTLP (14 August 2008)

Where was that comment go nuke? Would like a read.

BRM might be down as UBS announced it was no longer a substantial holder...maybe flogging off their shares???


----------



## grace (21 August 2008)

Nice announement out today, an increase of resource by 40% to 1.6 Billion tonne.  Market showing some appreciation.

And from WR




> “With a resource of 1.6 billion tonnes, operations at Marillana now look set to span a very long life in the Pilbara, targeting a long-term production level of 15 to 25 million tonnes per annum or greater,” he said.




http://aspect.comsec.com.au/asxdata/20080821/pdf/00871591.pdf



> As part of the recent drilling, a significant new zone of direct shipping CID mineralisation was intersected on five consecutive drill lines over a strike length of more than 2km at Abalone, with best intercepts including 10m @ 55.8% Fe, 10m @ 57.3% Fe, 9m @ 56.3% Fe and 5m @ 58.5% Fe. This mineralisation has not yet been separately modelled in this resource estimate as the hole spacing is too broad.






> The revised estimate represents a 40% increase over the previously announced figure of 1.1 billion tonnes reported on 5 March 2008, and has the potential to increase the Marillana Project’s total estimated shipping inventory (Direct Shipping Ore plus beneficiated ore) to 952 million tonnes of marketable product grading 57.4-60.0% Fe. This represents an increase of 40% over the previously announced estimate of 680 million tonnes reported on 1 July 2008.


----------



## Go Nuke (21 August 2008)

Well it WAS shown some appreciation

Up 5% but still under $1.50 for a 1.6 Bil tonne project doesn't impress me much.
I'm still looking at a major loss.

Perhaps this will be the start of people taking more notice of BRM and buying up.
Insto's perhaps.
If the bank stocks keep going lower in the U.S maybe people will turn back to resources


----------



## YELNATS (21 August 2008)

When BRM announced the Total Mineral Resource estimate for Marillana as 1.1billion tonnes of iron ore on March 5th, the share price jumped a massive 203% from $1.06 the day before the trading halt to $3.21 the day trading resumed. 

Now we have a significant 40% upgrade and the market hadly batted an eyelid.

Makes me think that today's closing price of $1.43 represents very good buying indeed, particularly when the value of today's ann sinks in.


----------



## benwex (21 August 2008)

YELNATS said:


> When BRM announced the Total Mineral Resource estimate for Marillana as 1.1billion tonnes of iron ore on March 5th, the share price jumped a massive 203% from $1.06 the day before the trading halt to $3.21 the day trading resumed.
> 
> Now we have a significant 40% upgrade and the market hadly batted an eyelid.
> 
> Makes me think that today's closing price of $1.43 represents very good buying indeed, particularly when the value of today's ann sinks in.




That is one view....

Mine is somewhat more sceptical and see the dramatic difference expereinced in the sp from a good announcement is a keen measure of how this market has turned "big time".....

No daytraders on this announcement to me is the final indicator that the easy days are well and truelly over.

As a sentiment indicator this great news was unable to turn the tide on a strong  bearish trend and unless BRM can get into production and catch the tail wind of the current IO prices I think it missed the boat by 2 years.....  

benwex


----------



## grace (21 August 2008)

benwex said:


> unless BRM can get into production and catch the tail wind of the current IO prices I think it missed the boat by 2 years.....
> 
> benwex




Well, that is the key isn't it.  We need a key to the rail line actually.  That's all we need.  Stay tuned.  WR said he wasn't making any deals until he knew how much ore BRM have at Marillana.  Not quite finished drilling yet.  Would be nice to measure up some more DSO first.  I suspect we'll have a better idea before Christmas, and then first mining 2009.

WR is focused.  Hasn't disappointed yet.  Market sentiment will turn eventually.  A decision by the government on third party use of the rail lines might be a near term catalyst for some turn around, should it be favourable.


----------



## Real1ty (22 August 2008)

benwex said:


> That is one view....
> 
> Mine is somewhat more sceptical and see the dramatic difference expereinced in the sp from a good announcement is a keen measure of how this market has turned "big time".....
> 
> ...




I also agree with benwex.

The sentiment is terrible for i/o juniors and even AGO that had many resource upgrades and announced its deal for rail and port access, and it's plans on how they were negotiating contracts amid strong demand and would sell a certain amount into the spot market to maximise revenue yet the stock has since continued to drop.

There is virtually no news they could release that would make the market happy in this current sentiment.

I do believe it will turn eventually as long as we don't get any significant slowdown in China, but i have taken my losses and won't be back in until sentiment is proved to have turned once again.

Sadly it may be a long wait but good luck to all holders.


----------



## gfresh (22 August 2008)

Iron Ore up-and-comings will eventually reflect correct value, but only once they reach production, and producing cashflow. Anything else will be muted. 

Just have to keep an eye on things as to which producers are slipping below the radar in 12 months.


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## grace (11 September 2008)

Well, it seems the US collapsed hedge fund held shares in Brockman.  Could it be that they are liquidating?  



> US-based Ospraie Fund has been a major investor in Australian resources stocks in recent years. The failed hedge fund is believed to have held stakes in companies such as Iluka Resources, Consolidated Rutile, Murchison Metals and Brockman Resources at various times


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## Go Nuke (11 September 2008)

grace said:


> Well, it seems the US collapsed hedge fund held shares in Brockman.  Could it be that they are liquidating?




That might explain some of the down trend, other than all commodities doing likewise.

BUT BRM has held up pretty well imo.

It has been up while my other stocks have been down thought the days.


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## johnnyg (11 September 2008)

Id say its just following the market trend. Look at FMG, AGO, BRM, FMS, JMS, BMY and pretty much any other Company related to Iron Ore is down 50% +, no matter how far advanced their projects are...........


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## Gspot (24 September 2008)

Fortescue wins court case against BHP, Rio

The High Court has ruled mining giants BHP Billiton and Rio Tinto must share their Australian iron ore rail networks with other miners.
Nice jump today, on very positive news. Me thinks it should run alot higher.


----------



## Gspot (24 September 2008)

Well me thinks this is big news, and I'm amused at sp and lack of talk about this.
With BHPB tracks running right through Marillana, quality/quantity IO at high prices and $100 million in the bank, $1.10 is a steal.
However fundamentals seem to be out the window on this one.


----------



## kpas (24 September 2008)

Gspot said:


> Well me thinks this is big news, and I'm amused at sp and lack of talk about this.
> With BHPB tracks running right through Marillana, quality/quantity IO at high prices and $100 million in the bank, $1.10 is a steal.
> However fundamentals seem to be out the window on this one.




Until the US stops crapping itself, fundamentals are out the door.

Plus there is still speculation on the table with the rail deal - it's not concrete yet.

While I love BRM & will continue to hold I won't hold my breath until the infrastructure is formally announced by the company, too many false starts on this one which are just annoying.


----------



## fordxbt (24 September 2008)

this bastards' also got a long way to recover like other specs
youve got to remember victory over BHP will affect their major project, Marillana with an awesome 950 mT DSO (roughly the same as FMGs christmas creek + cloud break)
with their NW Port Alliance, close proximity to rail and insane JORC figures it would seem they are moving along nicely but in the current climate it seems good news only lasts a single trading day then its forgotten in a cloud of sellers


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## kpas (25 September 2008)

martraci said:


> this bastards' also got a long way to recover like other specs
> youve got to remember victory over BHP will affect their major project, Marillana with an awesome 950 mT DSO (roughly the same as FMGs christmas creek + cloud break)
> with their NW Port Alliance, close proximity to rail and insane JORC figures it would seem they are moving along nicely but in the current climate it seems good news only lasts a single trading day then its forgotten in a cloud of sellers




down another 10% today.

I hope US settles down but from what I am reading the next 2 weeks is going to see some major negative news come our way.

~80c marks the cash value of BRM though, so that should stand a fairly good solid base. I wouldn't imagine there would be many people selling BRM for less then 80c.


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## YELNATS (25 September 2008)

Gspot said:


> Fortescue wins court case against BHP, Rio
> 
> The High Court has ruled mining giants BHP Billiton and Rio Tinto must share their Australian iron ore rail networks with other miners.
> Nice jump today, on very positive news. Me thinks it should run alot higher.




"Must share", but at what price? If they have to "share" I would imagine that BHP & RIO would charge the highest possible freight costs. 

Reminds me a little of Telstra being ordered to "share" its' infrastructure with its' competitors Optus, Vodafone, etc.


----------



## kpas (26 September 2008)

New announcement which confirms the $110m in the bank.

Nothing else really that interesting other then that they are confirming they will push forth.

Maybe this announcement will put

a) market cap at close to cash backing
b) massive resource
c) close to securing infrastructure

out to some investors who didn't already know about BRM and the SP will move up.


----------



## Gspot (9 October 2008)

kpas said:


> New announcement which confirms the $110m in the bank.
> 
> Nothing else really that interesting other then that they are confirming they will push forth.
> 
> ...




This is amazing.
Never thought they would get back to this sp, given their recent good news.
 So their 950million tonne of DSO (3km from rail), plus about $40 million cash is worth nothing????
With the $oz so low, these companies are juicy as!


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## dmc333 (9 October 2008)

Gspot said:


> This is amazing.
> Never thought they would get back to this sp, given their recent good news.
> So their 950million tonne of DSO (3km from rail), plus about $40 million cash is worth nothing????
> With the $oz so low, these companies are juicy as!




That's $110 million cash. If I recall correctly, the cash backing is 83 cents, now trading at 57 cents.


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## Fed23 (9 October 2008)

I'm sure those big instutions that bought in at $1.50 aint too happy right about now.

I bought this sucker at $2, how low can it go? Trying to pick up some more at it's lowest so I can dollar coast average down.


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## Gspot (9 October 2008)

dmc333 said:


> That's $110 million cash. If I recall correctly, the cash backing is 83 cents, now trading at 57 cents.




Which, off the top of my head, makes roughly $40million worthless.
And the IO, as good as dirt.
I wonder what the third party access decision will be? If it is approved, I'm sure BHPB would gobble this one up, without even burping afterwards.


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## DionM (9 October 2008)

Yep, crazy times.  I have been contemplating topping up - I've been holding since the YML days.  This is probably one of the best IO juniors and it's being flogged.


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## UPKA (9 October 2008)

Under the current credit or economic condition, it's next to impossible for junior explorers like BRM to get fundings from financial institutions. And the big players like FMG, RIO and BHP would be holding tight to their cash to keep themselves operational. Also news coming out of China isn't great either, reduced demand in iron ore won't push BRM into production any quicker... now it's the survivle of the fittest really...


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## fEkuaR (11 October 2008)

I bought in at 0.75 early this week. In hindsight holding out a few days and watching the market would have been a better idea. 

BRM have taken a real beating this week losing over 40%. It makes you wonder where the bottom will be. How do you think the market will react this coming week after last weeks storm?


----------



## kpas (13 October 2008)

fEkuaR said:


> I bought in at 0.75 early this week. In hindsight holding out a few days and watching the market would have been a better idea.
> 
> BRM have taken a real beating this week losing over 40%. It makes you wonder where the bottom will be. How do you think the market will react this coming week after last weeks storm?




Soon as the market is stable I beleive BRM will push back to at least it's cash reserves and then sit and wait for something solid in relation to infrastructure.

Should BRM be able to secure infrastructure in 2008 as planned then it will be a completely different ball game.

Keeping in mind they have $110m in the bank and have very little outgoings at the moment, they could easily stay afloat where other juniors will struggle to gain finance.

I am a holder since YML days, I recently topped up because I see it as a great opportunity to get in cheap.

That said, I still sit and wait for infrastructure - it could very realistically sit and meander for some time to come.


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## alex arigo (18 October 2008)

this is crazy i own brockman shares and to see them this cheap is amazing they have 110 mill in the bank and 1 .6 billon tones of iron ore and a market cap of 65 million add it up very over sold if i recall paterson have 12 month price target of 5.45 where are the buyers look a long term prospects 09 2mtpa  170 in sales 2012 15 to 25 mtpa 1.2 billion in sales 2 billon plus in sales at 25 mtpa excellent long term growth  heaps of money to be made here this iron ore boom is not over yet


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## Go Nuke (26 October 2008)

Just reading a small article in Saturdays Courier Mail business section titled " Cashed up BHP in buy mode ".

To quote one part of it , " Ord Minnett analyst Peter Arden said Bhp would most likely be interested in adding new assets in bulk commodities such as Iron Ore and Coal. Possible candidates include Pilbara iron ore producers Brockman Resources and Atlas Iron because of their closeness to bhp's mines and railways."

Brockmans gone from $3+ to what about 50 cents!
Would look good to me if i were bhp!
Would look bad as a shareholder if they offered anything less than $3 though


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## grace (26 October 2008)

Go Nuke said:


> Just reading a small article in Saturdays Courier Mail business section titled " Cashed up BHP in buy mode ".
> 
> To quote one part of it , " Ord Minnett analyst Peter Arden said Bhp would most likely be interested in adding new assets in bulk commodities such as Iron Ore and Coal. Possible candidates include Pilbara iron ore producers Brockman Resources and Atlas Iron because of their closeness to bhp's mines and railways."
> 
> ...




Yes Nuke, I read that too!  You know, if I was Marius Kloppers, I would forget RIO, and go for those tier 1 resources which are going for nothing at the moment in the market.  With a long-term view, BHP would make a killing.  Just my thoughts of course!  Still holding Brockman.


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## Go Nuke (27 October 2008)

Im still holding too Grace but as i say an offer would have to be over $3 in order to make any money


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## basilio (28 October 2008)

I simply can't understand this market. BRM's cash in the bank is worth 80 plus cents per share. It's sitting on a billion plus tonnes of high grade iron ore; it now has theoretical access to the necessary rail transport -- and its still going south! Surreal...


----------



## Go Nuke (28 October 2008)

Yes I did see the announcement by FMG today regarding the rail and am extremely suprised that Brockman hasn't rallied from that!

Obviously the cloud over China and their IO demand is still strong throughout the big investors.

I say $3 now because if BHP or RIO made a takeover tomorrow...it would probably be for peanuts considering BRM's market cap today


----------



## adobee (28 October 2008)

basilio said:


> I simply can't understand this market. BRM's cash in the bank is worth 80 plus cents per share. It's sitting on a billion plus tonnes of high grade iron ore; it now has theoretical access to the necessary rail transport -- and its still going south! Surreal...




As someone not familiar with BRM can you advise, does your calculation of 80c per share take into account any loans / debt etc they have also.. ??


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## UPKA (28 October 2008)

Guys please keep in mind that under the current credit conditions, it would be very very difficult for BRM to get the financial support it needs to start mining... and the outlook for iron ore demand isn't great either, so any possibility of a takeover is fading as well.


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## johnnyg (28 October 2008)

LOL I have to laugh at the last 2 posts. No offence guys but anyone who has some idea about the company will know that 1 - They have no debt/loans. 2 -Brockman dont need financial support. They have one hundred and ten million dollars cash or $110 Million in the bank, Earning Interest, Enough to pay for the current running costs so theres no cash burn and also, more importantly, that money is enough for them to start Phase 1 Production.

UPKA - Thats a downramp if ive ever seen one.


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## basilio (30 October 2008)

> Just reading a small article in Saturdays Courier Mail business section titled " Cashed up BHP in buy mode ".
> 
> To quote one part of it , " Ord Minnett analyst Peter Arden said Bhp would most likely be interested in adding new assets in bulk commodities such as Iron Ore and Coal. Possible candidates include Pilbara iron ore producers Brockman Resources and Atlas Iron because of their closeness to bhp's mines and railways."





Further to above there is an interesting comment in todays Age from BHP. Apparently they can read balance sheets as well and seem to be on the hunt for the  small miners. Don't how how generous they would be though....


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## Gspot (30 October 2008)

For the same price as fighting these guys off in the courts, BHP can just buy them out.
 BRM, AGO and UMC are looking like the juiciest in my book.


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## eric35 (30 October 2008)

At this stage, the daily chart of BRM does not show any sign of moving up in the nerar term. However I for one am watching the chart closely and would buy once I see a bit of volume come in. 

It will be interesting to see if it moves past the 20 day EMA.


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## acouch (31 October 2008)

morning,
my chart on brm..as you can see support at
.45 held price, now lets see if it can make it
to .80..gap fill is at .965..over that then 121 looks ok.
take care out there
ac


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## psychic (6 November 2008)

I need my sleep at night, or else I get grumpy, so I had to find a stock that would allow me peace of mind.  Thankyou BRM

With so many stocks going into voluntary administration and collapsing it is essential in times likes these ALL TRADERS OF STOCKS FIND SAFE AND SECURE PLACES TO PARK THEIR MONEY.

After plenty of hours research I have found BRM to be very much undervalued, based on cash on hand, no debt, and a high grade large iron ore deposit.

Cash on hand $105 million
No Debt
1.6 billion tonnes of iron ore (currently valued at ZERO $$)

The current market is valuing BRM at $ 70 million.  Now given this I have come to the conclusion that BRM is very much undervalued just on the cash component of the company alone.  Got to love this financial crisis, it creates amazing opportunites


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## Sean K (7 November 2008)

psychic said:


> I need my sleep at night, or else I get grumpy, so I had to find a stock that would allow me peace of mind.  Thankyou BRM
> 
> With so many stocks going into voluntary administration and collapsing it is essential in times likes these ALL TRADERS OF STOCKS FIND SAFE AND SECURE PLACES TO PARK THEIR MONEY.
> 
> ...



I have to agree. As a long term play this looks very good. The recession/depression will resolve at some point. Once the US starts buying cars and building houses again etc, China should continue on it's merry way. Or, we have to wait for enough Chinese middle class to make up the deficit. Whatever the case, it's probably going to be a waiting game and further falls could eventuate, but long term looks good. Would be very surprised if a BHP, RIO or FMG aren't considering scraping up the pieces. MC $70m with $110 in the bank!! The world's gone crazy..


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## aussiger (7 November 2008)

Has BRM any productive mines? If not, is there a roadmap available where i/we can see when the first mines are going productive? 

This sounds very interesting:


> Cash on hand $105 million
> No Debt
> 1.6 billion tonnes of iron ore (currently valued at ZERO $$)






Thanks for help!


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## psychic (7 November 2008)

No mines in production as of yet, looking at late 2009 for this to occur, with a 40 year mine life.

Try their webiste for more information

http://www.brockman.com.au


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## Sean K (7 November 2008)

psychic said:


> No mines in production as of yet, looking at late 2009 for this to occur, with a 40 year mine life.



I think the differencial in the EV and MC may be explained that the market thinks it's not going to get into production as planned. With the decrease in steel output, stockpiling, and the majors still pumping IO out, perhaps there will be a significant delay in start up? 

Is sure to get off the ground eventually imo, but when?

Any other ideas on the value difference?

Can't just be because it's being overlooked...


----------



## psychic (7 November 2008)

The key is forward thinking, stockmarkets work in a forward thinking process.  At this stage the stockmarket is pricing in an Australian recession.  Hopefully it will be brief, if at all.  

The most positive aspects of BRM is a high level of cash in hand, earning very high rates of interest.  This will allow BRM to continue its business with NO need to raise cash.  A very big bonus under current econiomic conditions.  Raising capital would cripple its share price.

Secondly a very large high grade resource valued at zero, why?  Future thinking again suggests a negative climate ahead.

Glad markets work in a forward motion, as this seems to be as bad as its going to get, and when bargain stocks emerge investors must take advantage of these with plenty of research.  Use your skills as a savy investors and spot value buys, based on hard solid facts.


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## basilio (7 November 2008)

Yes BRM does look really great with all that money in _*their*_ bank. Not to mention the 1.6 billion tonnes of iron ore. 

However there are probably many other companies that look similarly strong and looking back over the forums one can see many people  "assuming" that a rational/sensible market would not allow an underpriced asset to be missed. But the prices still keeping falling.

So when has the market ever been "rational and sensible" ? We are all aware that much of the trading is smaller stocks is  highly speculative, and in some cases sheer BS. But if see a potential profit I suppose we go along for the ride.

At the higher end we see companies like BNB, Macquarie et al create elaborate and complex stories which in a nutshell are designed to extract as much money from participants as is humanly possible and then justify their take on their revaluations of the value of the assets. And all the while an army of financial advisers  and stock brokers steer the sheeple to the yard..(Do the lucky ones only get fleeced?) 

Anyway the point I'm making is that for very good reasons many investors have lost faith in the market and want to see any money they have left in *their *bank account not a company with many other interests.

And of course with the loss of confidence the belief is that many bargains will still be around and the economic crisis is just beginning.


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## YELNATS (7 November 2008)

kennas said:


> Any other ideas on the value difference?
> 
> Can't just be because it's being overlooked...




The costs and arrangements to transport the ore from mine to port. In this regard I understand they are part of a consortium with other IO up-and-comers like Atlas Iron, but these arrangements don't seem to be finalised for BRM yet. Please correct me if I'm wrong.


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## psychic (7 November 2008)

*The question still remains, which stock is more recession proof?*


Stock 1 JJJ - 1.6 billion tonnes of iron ore with a grade of 58% and no cash

Stock 2 CCC - 1.6 billion tonnes of iron ore with a grade of 58% and cash

Stock 2 CCC is bound to be more recession proof. Cash is king


By the way I slept very well last night..ZZZzzzZZZzzzzZZZ


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## alex arigo (7 November 2008)

i know the iron ore market is weak and a lot of the smaller explores wont make it but brockman stands out to me i am self shocked to think how much there undervalued i own shares and i like there long term story management said there could be an up grade in the coming months of resources 1 billon tones of ore they think add the 1.6 billion tones you have a company that would have close to 3 billon tones of iron ore worth nothing and 110 million are there any chinese steel mills  that note this or am i the the only one 15 to 25 mtpa in 2011 and a 45 year old mine life 60 x 15 million tones =1 billion  in sales after cost profit of 15 dollors a tone =225 million add the rest up huge growth a head for a long term holder in this great iron ore company to be


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## grace (15 November 2008)

Good to see a bit of chat on this one (compared to some of my other holdings where I have been just talking to myself for it seems ages).

Haven't deserted this one yet.  Well, I sold half at $2.50.  Bought UMC with that money!  eeek!

Holding BRM, FRS, GIR, UMC, and a very little holding in DMM.  I guess I should mention MMX as well (oops, I think I have some in my super fund.....lucky I have now gone out and got a job!  Saving for that bottom....).

Some of these stocks are 10% of what they used to be.  eeek.  Am I an idiot or what?  One should always follow their trading plan!  Mine was to sell after the last round of iron ore increases.  Idea was good.  Just not disciplined enough to follow it.  Learning all of the time.


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## Sean K (16 November 2008)

Hi Grace. You'd think with $105m ish in the kitty, these guys will last out the recession and downturn in IO prices for now. They could effectively wait for the world to flush itself out over the next 2 years, recovery and growth restart with China continuing on it's merry way and be one of the few IO juniors to be left to take advantage of the upswing. Maybe there'll be some consolidation and with their balance sheet, who's to say they don't snap up some of the others and turn into a mid size player. At this rate, they may be able to pick up FMG....LOL. If long term IO prices stabilise and turn around with the inevitable world recovery (6mths - 5yrs ??) then BRM will be in a good position. It's just what happens between now and the recovery. Maybe some more downside with the market. Hopefully the 45-50c support holds.


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## basilio (17 November 2008)

What does one do in BRM's position with $105m in bank but no forseeable way of profitably exploiting the iron ore market?

In theory one could put the company into mothballs until the the market turns around and save the substantial cost of staff, directors fees, wages  ect . But then it would not be easy to find the talent again when you want to start. In a sense it looks as if most of the people involved will be twiddling their thumbs, painting rocks and otherwise getting bored. Which is very destructive of morale.

I will be interested to see how management plans to occupy its time and energy profitably in the next 2 years.

Of course it could be worse .... they might not have the money in the bank ... but most other miners..


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## JTLP (17 November 2008)

Why don't BRM look to flog off there other assets or at least do something about them. I'm sure everyone likes money in the bank but if they can at least define another resource base and get it on the brink of mining/production they may be able to sell it or at least bring it into production if and when the market turns...


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## Sean K (21 November 2008)

Golly, cash backing .75 cents ish, now trading at .41...

Broken that .48 ish support level. 

I thought the cash backing would hold them up....

Why wouldn't a BHP dip into the entertainment budget a buy them? Bamboozling.


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## eric35 (21 November 2008)

It will happen, mate.

Somebody will take it over or the s/p will just have to rise as the bottom will be hit soon.

Be an optimist


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## bas (21 November 2008)

I doubt anyone could take them over- would you accept a 60 cent bid when there is 70+ cents cash in the bank? Directors would never accept a bid anywhere near these levels.

However, i'm buying this stock. When the dust settles BRM and the like will be amongst the first to recover IMO- its not often you get to buy $1 for 60 cents


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## TheAbyss (21 November 2008)

Unless of course your cash in the bank will be burnt up for the next few years paying overheads, exploring etc with no prospect of a turn around in the price of IO in the for seeable future.

Then you would be pretty keen to sell your far from completed project to the highest bidder who has pockets deep enough to ride out the low period. That would be BHP or Rio who have other things on their mind at the moment so the SP will take a while to go again imo. 

This isnt to say that BRM do not have a quality tenement which they clearly do. Times like these are for companies that have a revenue stream not explorers. Get out and come back when credit is available and manufacturing and growth are talking points then the price of IO and coal will rebound and the explorers will see some growth but only after the large and mid tiers have first.


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## eric35 (21 November 2008)

Bas,  no takeover bid would be at 60 cents. They would be loved out of the data room, or not even let in. 

 No. I am sure there would have to be a good premium.

Happy trading


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## alex arigo (22 November 2008)

take over target for shore who cares about the money they have in the bank they need more money then that if they are going to produce a 15 to 25 million tone operation by 2011 bhp or fmg or the chinese steel mills will be hungry to eat them up they have 1 .6 billion tones of good iron ore and much more to come they will  still have to pay around 6 dollers if they want the company and thats about 600 mill thats a bargain price considering they have billions of dollers of iron ore hold on till next year and ride it out


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## Family_Guy (3 December 2008)

Holders of BRM.......todays announcement of 2nd stage of mine production........how long does something like that take? Could we see a rally on this stock with things swinging into some sort of action?


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## Sean K (4 December 2008)

Family_Guy said:


> Holders of BRM.......todays announcement of 2nd stage of mine production........how long does something like that take? Could we see a rally on this stock with things swinging into some sort of action?



It's not actually mine 'production' but just furthering the project towards development. They are still in the feasability stage, with no physical development of a mine at all.



> work to commence immediately and the *Study Report *to be submitted in June 2009.




and:



> In parallel with the Stage 2 PFS, Brockman will be progressing a number of complementary development activities for the Marillana Project, including:
> 
> • Completion of all *Environmental surveys *and submission of the formal Environmental Impact Assessment for the Stage 2 Project;
> • Finalising *negotiation* of a Mining Access Agreement with the Nyiyaparli Native Title Claimant Group to progress the grant of the Mining Lease. Brockman has already signed an agreement with the Martu Idja Banyjima – MIB Group;
> ...




So, it's all paper shuffling till June 09.

Might see some action on this if IO spot price turns around, or there's some T/O speculation/interest from a major.


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## Sean K (15 December 2008)

Has a floor been set here?

Is the cash enough to hold it at least at this level, even if the market deteriorates further?

Is this good for some short term trading for a % here and there since it's stabilised? 

Hmmmm


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## bas (15 December 2008)

Have been holding for a couple of weeks. Cash is nice to have, removes any possibility of a cheap issue being done.

Any corporate activity in the sector or a better than expected result for iron ore prices could be the spark for this little stock.

I am actually in profit on this- nice change- will be holding for a while longer yet i think.


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## Boggo (15 December 2008)

It popped its head up in one of my scans on the weekend, quite a few low priced stocks starting to trigger a few of my systems.


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## justiceotp (4 January 2009)

This has been slowly creeping up over the last few weeks, and I also noticed an increase in volumes over the last 3 days.


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## Family_Guy (4 January 2009)

Yes, i was trading this in the high 40's early 50's and am spewing i sold before it took off. But at least i didnt lose. You know when you sell and it takes off?? Happens to me all the bloody time. Good stock and still worth more on cash in bank. I'll wait for the next drop.


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## grace (8 January 2009)

Family_Guy said:


> Yes, i was trading this in the high 40's early 50's and am spewing i sold before it took off. But at least i didnt lose. You know when you sell and it takes off?? Happens to me all the bloody time. Good stock and still worth more on cash in bank. I'll wait for the next drop.




A bit of spirited buying now taking place.  I wonder what the interest was today when most iron ore stocks were down....except IOH in trading halt until Monday????

Well there you go, anyway back to my buying price of 80c.  Dreams can come true.


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## justiceotp (8 January 2009)

Yes this one has been interesting of late has just been slowly working its way up and then today with very nice gains and volumes over 1 mil in shares yesterday and then today 1.8 mil.


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## TheAbyss (8 January 2009)

grace said:


> A bit of spirited buying now taking place.  I wonder what the interest was today when most iron ore stocks were down....except IOH in trading halt until Monday????
> 
> Well there you go, anyway back to my buying price of 80c.  Dreams can come true.




There was an article today reporting that BRM have engaged UBS to act as advisors to BRM in developing a long term company plan.

Plus they highlighted the $103m uncommitted cash reserves vs the current market capitalisation of $96m

Richards is a canny one.

Link to article here

http://www.theaustralian.news.com.au/business/story/0,28124,24885134-5005200,00.html


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## abcboy (9 January 2009)

Interesting to see some rather large trades go through today.  One parcel of 1,000,000 units ($950k) just went through!

The volume for this one over the past few days has been higher than usual.  That announcement re: UBS looks like it brought some attention to BRM.


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## Sean K (9 January 2009)

One of the few good bets when it was around 50 cents.

I didn't buy enough, and didn't top up on break ups, and I'm an idiot.


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## shag (9 January 2009)

well i listened to yr hints kennas, tho i only got in finally a few days ago on a weak period of the day. and i bought too few.
u'd assume this being austalia that something fishy is happening.
a lot of these small miners/prospects are showing what i think u tech doods call a cup shape.
i must learn tech trading this yr.


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## Go Nuke (9 January 2009)

kennas said:


> One of the few good bets when it was around 50 cents.
> 
> I didn't buy enough, and didn't top up on break ups, and I'm an idiot.




YOUR AN IDIOT KENNAS........
Ha...at least you didnt buy in at $3.... like..um someone around here...


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## justiceotp (9 January 2009)

Yes I noticed the volume increase was interesting the last couple of days and then 4.4 mil today with some large buys makes you wonder who is buying in.

Well I'm happy anyway I averaged this one down and bought one of my biggest lots at 41.5 cents.


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## YELNATS (9 January 2009)

Go Nuke said:


> Ha...at least you didnt buy in at $3.... like..um someone around here...




Well at least I sold at around $3.15 last March, one of the few good things I've done in the last 12 months. But you may yet get your money back, dude !!


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## basilio (14 January 2009)

Still rising steadily. It's now over cash value (which at least makes sense) but the question remains is there a real operation within sight?  Or is the buying in anticipation of  a takeover at a relatively low price.

Any ideas ??


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## Sean K (14 January 2009)

basilio said:


> Still rising steadily. It's now over cash value (which at least makes sense) but the question remains is there a real operation within sight?  Or is the buying in anticipation of  a takeover at a relatively low price.
> 
> Any ideas ??



Real operation will depend on possible contracted off take agreements verses the capex/opex, which are all in the air.

The MC being under cash position with lots of good dirt in the ground was a no brainer, like a few others out there.

Could fall back again on overall market sentiment failure which to me will be another buying opportunity.


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## Wilson! (14 January 2009)

Evening all. 
I have an ok to decent size position in brm and very pleased with movements over the last week especially. 

The buying has continued to push this up into the 90's and on the verge of a break above $1.00

The push has been impressive as often it's pulled back and with a weak few lines on the immediate buy side lines, has managed to continue to rise

Closing on the high today will turn a few heads and trigger a buy I'd imagine 
AGO was up nicely today also so maybe the IO mid and small caps could be starting a return to form 

I'm a pretty lame chartist but from what I can tell an immediate target ST could be $1.20 

Hope everyone's doing well in this ever changing market 

Cheers,
Wilson


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## Buddy (15 January 2009)

kennas said:


> One of the few good bets when it was around 50 cents.
> 
> I didn't buy enough, and didn't top up on break ups, and I'm an idiot.




Ha, kennas. You're no idiot. I'm the idiot 
I sold about 2/3 of my current stock just when you were buying just before Christmas. I thought, ah bugger it, this is going to hang around 50c or lower for a while, so I might as well use the cash elsewhere and buy in later. Dumb, dumb, dumb! The olny redeeming factor is that I bought them around 20c some time ago and they owe me nothing ---profit is profit, and I still have some left.

Maybe I should let ASFers know when I am selling, that way you know when to buy.


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## Sean K (16 January 2009)

Buddy said:


> Ha, kennas. You're no idiot. I'm the idiot
> 
> Maybe I should let ASFers know when I am selling, that way you know when to buy.



 wish I had have added a 0 or 2 into my buy order.

and LOL 

Please let us know next time. 

Must pause for consolidation soon unless that volume is a major taking a stake for TO, which means it may have a little left in it.


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## justiceotp (16 January 2009)

The increased volume does make you wonder who is buying in.
A few days ago the day it did around 4.4 mil shares one purchase was 1 mil shares in one transaction on the market.


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## Sean K (19 January 2009)

kennas said:


> Must pause for consolidation soon unless that volume is a major taking a stake for TO, which means it may have a little left in it.



Falling off as might be expected, although I'm a little surprised since money is stil flowing into the market.

The fall off in volume attributed to distribution perhaps. 

My S&R indicated....

Cash backing is about 75-80 cents as well, so adds to the support. Market collapse then it's cactus like everything else..


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## justiceotp (19 January 2009)

Brockman is an interesting one if you watch it during the day it tends to be sold off early in the day regardless of over night news and prices of iron and then comes back during the day to be either higher or lower depending on the news and conditions of market.
If i had the time would be tempted to test it out and sell at close each night and buy back at about 11am


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## Wilson! (19 January 2009)

Actually I am not so sure about the market down cactus point

Brm tends to go up on red dow days and flat on green days
There is yet to be an explanation as to the rise and the significant buying we have seen, 1m in one go, over the last 2 weeks 

There is also news on drilling results at the end of the month, and who knows, maybe rail / port access news to come

So many questions, so few answers. 
Could go either way, but only time will tell

Cheers,
Wilson


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## Buddy (20 January 2009)

Wilson! said:


> Actually I am not so sure about the market down cactus point
> 
> Brm tends to go up on red dow days and flat on green days
> There is yet to be an explanation as to the rise and the significant buying we have seen, 1m in one go, over the last 2 weeks
> ...




Yes, this is a strange stock, isn't it. It's just done it again (opening on Tuesday), swimming against the flow.


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## Sean K (20 January 2009)

Buddy said:


> Yes, this is a strange stock, isn't it. It's just done it again (opening on Tuesday), swimming against the flow.



The announcement of a new DSO discovery might have assisted.



BROCKMAN CONFIRMS NEW DISCOVERY OF DIRECT SHIPPING IRON ORE AT ABALONE - MARILLANA PROJECT

Assay results confirm significant thicknesses of high grade channel iron mineralisation (CID) at Abalone.

Mineralisation contains low contaminants and moderate to high LOI (loss on ignition) – Calcined Iron grades average 62 – 65% Fe.

All CID mineralisation is shallow and is overlain by detrital mineralisation.

Good continuity of DSO mineralisation is evident, with many holes ending in mineralisation.

Supports expanded development concept of 10Mtpa DSO operation in addition to initial 15Mtpa detritals plant.


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## Sean K (30 January 2009)

Fell over at the resistance identified and now sitting in the support zone, linked to cash backing also. All things being equal you'd expect it to hold around here, but I think the cactus is still in play. If the market holds up maybe another opportunity. Maybe unlikely, potentially a few more skeletons to fall out...


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## dmagnus (30 January 2009)

I know abit about this company, the management is solid, the debt is low... it will survive unlike some of its peers and will probably take off at some point.. wish I bought in at 50c!


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## Sean K (2 February 2009)

Seems to be holding on the support line ish for now. Encouraging.

Is that a cup on it's side with and handle I see there? 

Nice target.

Although, not quite sure where the extension should go from after the break...


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## shag (2 February 2009)

kennas said:


> Seems to be holding on the support line ish for now. Encouraging.
> 
> Is that a cup on it's side with and handle I see there?
> 
> ...




jeez keenas what a chart, i like that arrow heading so far north it goes off the scale....
the depth differential has built up again.


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## Go Nuke (2 February 2009)

Could well be Kennas.
Although  C&H usually test old highs..not the case in BRM.

To me it looked like it made a late run today. I thought possibly the start of the next one?

Someone who knows Elliott charts...whats it say?

To help people make their own decisions on whether its a C&H or not

http://www.investopedia.com/terms/c/cupandhandle.asp


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## Wilson! (2 February 2009)

Looks good again, falsish high close at 98c was a bit soft, but good to see nonetheless
First resistance point at 1.17 perhaps, recent high?

I heard someone saying 1.38 as a technical target on the upside? Im a lame chartist though so am sure someone else knows better 

Still it has been here before, needs to hold these gains this time


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## Sean K (3 February 2009)

Go Nuke said:


> Could well be Kennas.
> Although  C&H usually test old highs..not the case in BRM.
> 
> To me it looked like it made a late run today. I thought possibly the start of the next one?
> ...



Yeah, I think it's too lopsided to be considered a likely scenario at this stage. Perhaps it will continue up gently to make a horizonal line at the tips to make it more likely. Now, THAT would provide a interesting target. LOL



> *Cup*: The cup should be "U" shaped and resemble a bowl or rounding bottom. A "V" shaped bottom would be considered too sharp of a reversal to qualify. The softer "U" shape ensures that the cup is a consolidation pattern with valid support at the bottom of the "U". *The perfect pattern would have equal highs on both sides of the cup, but this is not always the case*.


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## shag (5 February 2009)

seems stuck to a dollar, either many traders offloading for round figures and profit or some large punter quiting at a buck.
hasn't ranged off of it like it did last time.
ideas anyone?


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## kpas (5 February 2009)

There is a large number of buy orders automatically being put on at $1 in chunks of 25,000. Soon as one is filled, the next comes on. Always at $1 though.

I don't know what patterns to look for but is it possible someone is trying to keep it down while they accumulate?


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## justiceotp (6 February 2009)

Yes there is a pattern there with someone buying in lots of 25,000. I haven't noticed but it may also explain why it has continued to travel up on days when the market and even I/O miners have dropped.


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## nunthewiser (6 February 2009)

Forgive the question if already answered and my lack of research...... is BRM an actual producer of yet ? if so is it actually an exporter as yet ? if so what are the costs /tonne ? have they sales contracts in place? 

i have never looked at this co except for a quick trade in the past

i suppose i could go research it but intrested in your guys thoughts

thanks in advance


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## justiceotp (6 February 2009)

No not producing yet from memory its end of this year.

They are looking at 15-25 mtpa so not small stuff and have about 100 mil in bank.

The link below will give you a quick run down

http://www.brockman.com.au/documents/20081005_AGMPresentation.pdf


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## nunthewiser (6 February 2009)

justiceotp said:


> No not producing yet from memory its end of this year.
> 
> They are looking at 15-25 mtpa so not small stuff and have about 100 mil in bank.
> 
> ...




thanks for that..................100 mill dont go far in the iron ore game but will have a deeper look at them

cheers


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## justiceotp (6 February 2009)

Its interesting those 25,000 parcels @ $1 have continued so far this morning, at the rate at which they are buying you would think they would be accumulating a large volume and we might have to see an announcement re top 20 holders some time soon.


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## Sean K (6 February 2009)

justiceotp said:


> Its interesting those 25,000 parcels @ $1 have continued so far this morning, at the rate at which they are buying you would think they would be accumulating a large volume and we might have to see an announcement re top 20 holders some time soon.



Which 25,000 parcels are those justice?

There's some 40-60K parcels in there, not sure if they were buys or sells, if you know waht I mean..


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## justiceotp (6 February 2009)

Do full days trade and look at the 25,000 parcels before 10.03 and look at previous day you will see plenty. If they take place at exactly the same time and are split they are more than likely to be buys in lots of 25k but can happen either way. Another thing that indicates a buy is that when the price rises above $1 they stop buying and if you where selling in 25k lots you'd be happy to get more than $1.


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## kpas (9 February 2009)

They are buys because you can see the order appear on the buy side and partially get filled as people sell into it.

As soon as the full 25k order is filled, another appears. It happens all day long and has been going on for quite a while now.


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## TheAbyss (13 February 2009)

I understand that resources are only showing glimmers of hope at the moment however the weekly chart on BRM looks like it might be starting to trend up into some good medium too long term prospects. Not that the fundamentals ever disputed this.

Perhaps we can post charts without the stock code somewhere just to have a pure technical perspective as charts can be used to paint almost any picture you want to see.

In for long term on this one since YML days so


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## justiceotp (16 March 2009)

Some nice gains here for Brockman Resources over the last few days of trade and another 10% gain today.


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## JTLP (16 March 2009)

justiceotp said:


> Some nice gains here for Brockman Resources over the last few days of trade and another 10% gain today.




Probably got the move on due to AGO's ann re: Offtake agreements.

WR has promised so much for BRM...time he better start delivering IMO.

He once spoke about 9 potential parties vying for BRM's product...where have these parties gone?

Benefication update/results of? No news on that front yet either (wasn't this meant to have been already announced).

My patience is growing thin with the BRM team.


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## snopandsnap (16 March 2009)

JTLP said:


> Probably got the move on due to AGO's ann re: Offtake agreements.
> 
> WR has promised so much for BRM...time he better start delivering IMO.
> 
> ...




Im not sure about the move due to AGO. The move is due to the valuation of BRM which is a no brainer. Take their cash away from the market cap and BRM is valued at stupid levels.  $4 dollars a share would still be cheap IMHO.1.6B tonnes and growing rapidly, near existing rail lines. New port loading facility and all the other excellent progress they are making.
WR doing an excellent job IMHO.
No need to rush with the off take agreements. Updates coming by the end of March which will be good.
It would not surprise me to see an equity agreement, JV or other major news coming in the very near future.
Good luck all, i am super long BRM.


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## JTLP (17 March 2009)

snopandsnap said:


> Im not sure about the move due to AGO. The move is due to the valuation of BRM which is a no brainer. Take their cash away from the market cap and BRM is valued at stupid levels.  $4 dollars a share would still be cheap IMHO.1.6B tonnes and growing rapidly, near existing rail lines. New port loading facility and all the other excellent progress they are making.
> WR doing an excellent job IMHO.
> No need to rush with the off take agreements. Updates coming by the end of March which will be good.
> It would not surprise me to see an equity agreement, JV or other major news coming in the very near future.
> Good luck all, i am super long BRM.




$4? Wrong and wrong...and I mean wrong.

Near existing rail? That's nice. Will BHP/RIO/FMG let them use it? Probably not. High Court decision in BRM's favour? Most likely (may have already occurred). BHP/RIO/FMG lock in legal battle to fight this issue...add 5 years court time. Bingo Bango rail not looking so sexy.

1.6 billion tonnes? MXR has 4 billion tonnes if you ask K.Willis :. This tonnage means nothing if BRM can't prove the benefication process works and they can actively sell all of it. Thought this was meant to be done earlier...mmm

New Port Loading Facility? Can't comment as I don't know much about it. If you are referring to the NWOIA study etc (from memory) then you are correct...this is a positive step in the right direction.

No need to rush on offtakes? Not necessarily...but you would prefer some concrete deals now to know your ore is going to good use...would you not? Why make such a fuss about potential partners and what not if you are not willing to cut a deal? Flick back to the start of this thread...people have been waiting on: Rail, Offtakes, JV's for a long time...I'm not saying it's not going to happen...but you would probably prefer WR pull his finger out sooner rather than later.

ALSO...cash backing is only at 70 something odd cents a share...so again...let's not go nuts on the $4 valuation. Even the book builders Paterson's slashed their fantastic valuation from +$5 to around $2.50 (and what a LOL that was)


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## TheAbyss (17 March 2009)

In January BRM announced that they had engaged UBS to formulate a long term business plan. I am waiting for that before i do anythng with them.

Link here: http://www.theaustralian.news.com.au/business/story/0,28124,24885134-5005200,00.html

It does say a few months to develop. Be nice if Richards could come up with something in the short term. 

It was a prudent decision to alter the business plan and cease the stage one project to produce 20-30 mtpa and focus on the larger long term production strategy given the price of Io so he has proven himself to be a worthwhile recruitment so far.

Prepared to wait for a while yet as the shares i have are free carried since YML days.


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## Sean K (18 March 2009)

Around 80c has formed up as some support. A break up would be nice, and looks pretty positive, but $1.10 does look difficult. 3 months of sideways consolidation may be enough?


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## Sean K (18 March 2009)

kennas said:


> Around 80c has formed up as some support. A break up would be nice, and looks pretty positive, but $1.10 does look difficult. 3 months of sideways consolidation may be enough?



Falling over again at $1.10. Needs to break through soon with this market strength you'd think or momentum will be lost..


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## snopandsnap (18 March 2009)

JTLP,

Maybe wrong in your opinion but not in mine.
Brockman being close to current rail and port facilities is huge. FMG are especially open to shared transport as well as the high court. This would save hundreds of millions of dollars in costs. Do you think that you are going to see many different train lines going in the same direction to the same place?
The high court decision was 100% in Brockmans favour.
Native title and the port loading facility is also a major positive.
With a cash position at 80 cents per share, BRM is clearly undervalued 

I believe production will begin in 2012/2013 which will also be excellent timing with the IO prices.
I have 100k plus shares in BRM and will not be selling any for the next few years. Valuations are so cheap at the moment and the Chinese are surely sniffing around. Besides, i all ready have a very handy profit.

Good luck all.


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## Go Nuke (19 March 2009)

Nah, Id have to say failing around $1.10 3 times and volume lower each time, doesnt look good.

I cant se IO picking up anytime soon.
The only thing that might help BRM's sp is all the talk of the Chinese loaded up with cash and looking at Aus assets.


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## Sean K (26 March 2009)

kennas said:


> Falling over again at $1.10. Needs to break through soon with this market strength you'd think or momentum will be lost..



Making another attempt at $1.10, closing $1.12 yesterday. Developed some support around the $1.05 mark. Is it a tripple top, or basis for a good beakout? Watch and shoot I suppose.


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## Sean K (26 March 2009)

kennas said:


> Making another attempt at $1.10, closing $1.12 yesterday. Developed some support around the $1.05 mark. Is it a tripple top, or basis for a good beakout? Watch and shoot I suppose.



Hey kennas! How's tricks? Nice to chat again...

Golly, what a move up intraday, today! eh?

I rarely post intraday charts because they almost always fail, so here's a good example. Let's watch this one fall over! lol

Even if it does, what we want to see is the sp to consolidate and maybe test the previous highs to firm as new support and then bounce up.

Of cource, just probabilities, and if the price retreats past previous highs then game over.

Anyway, back to card games. Cheers!



(wish I had have bought this around 50c! he he )


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## Go Nuke (26 March 2009)

Indeed a good break on volume today Kennas.

I was tempted to do a short trade on this after seeing that, but the way the markets have been behaving over the last few months....I wasn't interested in taking a possible loss

Not looking at the chart right now but I think $1.40 would be a good exit point based on previous support/resistance.

Like everything, a long way to go before Im back in the money.


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## grace (26 March 2009)

Yes, a nice move today for those die hard supporters such as myself.  Perhaps I'll remember to find the sell button one of these days.


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## justiceotp (27 March 2009)

Yes I was happy with todays gain although I wasn't expecting as much so soon. I am also a long term holder and no plans to hit the sell button soon, there is still a lot in this one they are not even producing yet.


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## justiceotp (27 March 2009)

Another nice day again today. Im not a charter but what do you guys think of this now on the charts?


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## trillionaire#1 (28 March 2009)

been looking very strong since i was stopped out at 86cents

i think there was some support around $1.40 in aug/sep 08
maybe this will be the new resisitance in this current climate.


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## Sean K (28 March 2009)

justiceotp said:


> Another nice day again today. Im not a charter but what do you guys think of this now on the charts?



Was an interesting day. Lots of buying support intraday and finished at it's top. I was concerned we might see an abondoned baby or evening star. Wouldn't want to see a red candle down through support anytime soon. I actually don't hold great hope that it will continue onward from here. $1.25 is some significant resistance and you'd expect (and probably hope) for some consolidation around here, above the previous significant resistance to give it some more stability for the next leg up. As much as we might like to see things go parabolic, it's not healthy for long term gains.


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## Sean K (1 April 2009)

kennas said:


> $1.25 is some significant resistance and you'd expect (and probably hope) for some consolidation around here, above the previous significant resistance to give it some more stability for the next leg up. As much as we might like to see things go parabolic, it's not healthy for long term gains.



Getting what I wished for at the moment. Just need this to break up from this consolidation, and not down! And certainly not back down through $1.10 now support.


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## eric35 (1 April 2009)

Damn, I do not know how to insert a graph

sorry


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## JTLP (2 April 2009)

Well this one has been bouncing around...and lo and behold...they are late on the benefication update. WR really needs to pull his finger out...he even flogged off shares on the day the ann was meant to come! Seriously...

This guy was thrown in there as an infrastructure expert or for something of that ilk...have we got any infrastructure? BRM need rail deals, ore deals and a benefication process to be successful.

Perhaps it hasn't been successful, they are waiting for the resource upgrade to get to a decent DSO tonnage and then will drop the ball...wouldn't that be an ouchie!

Also, HHL reducing holdings.


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## Sean K (14 April 2009)

JTLP said:


> Well this one has been bouncing around...and lo and behold...they are late on the benefication update. WR really needs to pull his finger out...he even flogged off shares on the day the ann was meant to come! Seriously...
> 
> This guy was thrown in there as an infrastructure expert or for something of that ilk...have we got any infrastructure? BRM need rail deals, ore deals and a benefication process to be successful.
> 
> ...



And still no metallergical results. Hmmm. And the resource upgrade should have come out too I think. Hmmm. HHL bailing. Hmmm. Market green. BRM off 4%. Hmmm 

Only saving grace at the minute is that the $1.10 support has held well once. Hopefully it stays that way.


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## eric35 (14 April 2009)

Does not look too promising at the moment. But it is in a steady uptrend. I like the small retracemet. over the last couple of days. Maybe a chance to get in again. I made a bit of money out of brm, over the last couple of months, just short term trading. lets see what it will do now. I am still positive.


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## shag (15 April 2009)

resource is out, 10pc dso, i presume thats ok? i'm too new and lazy to fe processes so a little meaningless, but i presume benefication aint hard.
bhp's line is convenient isnt it, god i'd be pissed if i was bhp and rio and all these smallies start clogging up my brand spanking new lines....
anyone know how they do it, ie a one way line, and two of them, or do they have two way traffic on the one line to allow for return of wagons? like once youre really rolling a two track system seems ideal, unless u have small sidings and very well timed and controlled trains.
the logistics of its pretty interesting.


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## Sean K (15 April 2009)

Well it's been ugraded significantly as you'd expect and the DSO portion looks pretty good. 

Is there an extention of the DSO portion due at some stage, or is this it?


BROCKMAN ANNOUNCES 74% INCREASE IN MARILLANA INDICATED RESOURCES TO 605 MILLION TONNES

 Substantial increase in Indicated Resources after inclusion of 2008 in-fill drilling results
 More than 40% of the Mineral Resource at Marillana now classified as Indicated
 Updated Indicated Resource includes 551Mt of beneficiation feed hematite detrital ore and 54.2Mt of Direct Shipping Ore (DSO) quality CID (Channel Iron Deposit)
 Continuity of mineralisation provides improved confidence in resource definition and underpins ongoing project development
 Total Inferred and Indicated Mineral Resource of 1.4 billion tonnes


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## kpas (15 April 2009)

It looks as though they are not including the DSO at Rockhole Bore in this latest announcement, thus there should be more DSO to be announced.

I recall the last upgrade being in the order of 70mt, so it is interesting that they are now only claiming 54.2mt. 

Maybe they were not allowed to include the Rockhole Bore drilling as the analysis is not yet finished - or is the type of drilling they have done in that area not good enough?

Either way it is not a negative announcement, just probably not the one that the market is actually waiting on.

Also to note that the PFS is now due in July.

I'll continue to hold and buy on the dips as I am still confident in it's long term ability to get something happening.


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## kpas (17 April 2009)

The subsequent announcement clarified much of the above - so there should be more DSO to report.

Today is looking a bit better as it has broken up to $1.22, should see a strong close I would hope.


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## JTLP (25 April 2009)

BRM to me is lagging and will get left behind in the great Iron Ore race (btw I continue to hold...i'm so stupid really need to rethink my strategies!)

If you take a look at AGO it has been a very efficient outfit, updating the market VERY regularly, checking off deals, selling its ore and basically becoming a smooth operating outfit. Secured sales for them is great.

And what is BRM doing? Delayed ann's...Barely any updates on the important things that the market wants most...and just basically rehashing announcements. Quarterly barely inspired me...they have confidentiality agreements they say; why not sign off on some and get some of the ore sold?

Management is extremely lackluster (IMO) and I would like to see WR get the boot or shareholders give him a good shakeout by trying to vote him out. The guy's sole purpose was infrastructure in the beginning. Are BRM planning on moving the ore via 1000 workers on carts to the port?

Really need to pull the finger out...


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## kpas (25 April 2009)

I agree although I don't think it is that easy to change management.

Anyone got a list of the top 20 share holders?


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## Sean K (28 April 2009)

If I didn't think the overall market was due for a leg down then this is a decent set up. Bouncing off horizontal and uptrend support and a bit of a triangle forming there. Would be better if it was ascending or symetrical but anyway. A strong candle well through $1.20 would look good for a start. Breakdown through $1.10 looks ordinary.


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## kpas (28 April 2009)

kennas said:


> If I didn't think the overall market was due for a leg down then this is a decent set up. Bouncing off horizontal and uptrend support and a bit of a triangle forming there. Would be better if it was ascending or symetrical but anyway. A strong candle well through $1.20 would look good for a start. Breakdown through $1.10 looks ordinary.




Kennas - you need to be careful with some of the end of day results, it's being manipulated somewhat at the close (on some days at least).

If you look through the daily trades, a lot of bot trading occurs as well, sometimes the only thing that does happen is bot trading.

So while I am still bullish on the long term outlook for this stock, they really need to pull their finger out and get some decent announcements to the market before it will truely be a solid investment. 

I don't know about you guys but I am starting to wonder if Wayne Richards is really the right man for the job. He's had a hell of a long time to get something happening and we're really no further then we were 12+ months ago.


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## JTLP (7 May 2009)

JTLP said:


> BRM to me is lagging and will get left behind in the great Iron Ore race (btw I continue to hold...i'm so stupid really need to rethink my strategies!)
> 
> If you take a look at AGO it has been a very efficient outfit, updating the market VERY regularly, checking off deals, selling its ore and basically becoming a smooth operating outfit. Secured sales for them is great.
> 
> ...




Ipso Facto...I don't know why I am proud of this (because I hold) but my prediction of AGO being an efficient outfit who is well received by the market continues to ring true. BRM is just being punished (and rightly so) for basically doing nothing whilst everybody steams ahead in this (continual???) commodities recovery. 

Holder's in this have to realise that until REAL things start to happen (that have been the talk for over a year) then this is destined to languish. Couple this with the fact that if something fails (Benefication, Rail etc) then you could be looking at quite a miserable time for BRM. 

Any thoughts?


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## enigmatic (7 May 2009)

I'm hoping AGO aren't the ones to excel, I've got my money on BRM and AQA.. I have my preference on AQA though


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## Sean K (15 May 2009)

kennas said:


> If I didn't think the overall market was due for a leg down then this is a decent set up. Bouncing off horizontal and uptrend support and a bit of a triangle forming there. Would be better if it was ascending or symetrical but anyway. A strong candle well through $1.20 would look good for a start. Breakdown through $1.10 looks ordinary.



Update.

Still hovering above the $1.10 support line and in a larger triangle now. With the market potentially going into retreat, I think it'll be had for BRM to hold the line.


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## Viginti (15 May 2009)

That triangle keeps on tightening....

That's an awful lot of stored energy (high school science, flooding back) - if the laws of nature hold it should be spectacular movement....if only we knew which way!!!

Stupidly set my stop at 1.10 and stopped out yesterday.    Tried to get back in today at same price but no luck (though there was a bit of trade at that price).

Hopefully wont be too late on Monday.


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## Go Nuke (18 May 2009)

UH OH..........broken down through $1.10.
This doesn't look good for BRM holders
Next stop $1 imo.


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## Sean K (19 May 2009)

Go Nuke said:


> UH OH..........broken down through $1.10.
> This doesn't look good for BRM holders
> Next stop $1 imo.



I agree, there's more support at $1.00 but $1.10 was obviously important. Will be interesting to see how she goes. 

What was the cash backing? 80c?

If it gets back to those levels with all that potential money in the ground, could be a good opportunity. Again.


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## kpas (19 May 2009)

kennas said:


> I agree, there's more support at $1.00 but $1.10 was obviously important. Will be interesting to see how she goes.
> 
> What was the cash backing? 80c?
> 
> If it gets back to those levels with all that potential money in the ground, could be a good opportunity. Again.




From memory it was about 83c or so, but also from memory I recall the $ in the bank going up from being invested at a reasonably good rate with little outgoings for the last quarter.

Although some options got pushed through the other day, so it's probably 82 or thereabouts.

Sad to see it down because of no news from management on progress. I have been following this stock for the best part of 2 years and starting to get impatient with lack of news and them missing their deadlines.


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## Go Nuke (11 June 2009)

Ah BRM's been long forgotten I see.....except for Kennas

People speculating about a chinese buying into another IO junior after the RIO/BHP deal.

imo, if it can hold this trendline then today signaled a buy anyway.


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## Sean K (12 June 2009)

Go Nuke said:


> Ah BRM's been long forgotten I see.....except for Kennas
> 
> People speculating about a chinese buying into another IO junior after the RIO/BHP deal.
> 
> imo, if it can hold this trendline then today signaled a buy anyway.



Lots of IO juniors have gone for a run, all way off their lows. Was a great opportunity earlier in the year. Harry is slapping me in the back of the head saying 'why didn't you buy more you goose!'. Oh well.

Held $1.00 nicely which was a good sign. Now needs to tackle this $1.30 ish resistance. Looks pretty positive with the market just pushing and pushing. US going well at the moment so may be a chance.

You'd expect BRM to be involved in future M&A activity, one way or the other. Surprised they've lasted this long.


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## Sean K (15 June 2009)

AGO is flying while BRM is lagging a little. Or is it? 

*AGO *
300m @ $2.00 = $600m mc.
$67m cash
60m tn DSO
2b tn Mag around 36%
Target production 6mt in 2010 and 12 mt in 2012
Producing
Great location, excellent exploration potential

*BRM*
135m @ 1.34 = $180m mc
$100m cash
68m tn DSO
1.4b tn Mag around 43%
Targetting 15mt in 2012 and 25mt in 2015
BHP line runs through their bathrooms. RIO and FMG a stones throw.

One is either overpriced or the other underpriced.


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## shag (15 June 2009)

i think its partly because one has iron in its name. no bull.
brm has lots of better ore doesnt it, hermatite? 
aus is too small too, too many people with friends.
ive had both, hold none presently as need cash. 
maybe atlas is a good story/example for brm, once word and momentum take hold.


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## Go Nuke (15 June 2009)

Hasn't AGO already got take off agreements?

I think thats what i heard the other day. BRM doesn't have that yet does it?

Might slip in under the radar.
Another one of those smaller Chinese Iron mobs.

Maybe that guy who tried a bid for CFE might come back for another go...


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## justiceotp (15 June 2009)

I hold both AGO and BRM. Yes AGO has agreements in place BRM is a little behind them in the production time line but has stated in previous announcements its been in early negotiations. I'm expecting similar results out of both just BRM to be lagging behind AGO in time but only because AGO is already selling product and BRM is yet to and I  am planning to hold both very long term at this stage. I have AGO at ave buy of $0.77 and BRM ave buy of $0.84.


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## justiceotp (15 June 2009)

Kennas to add to your comments on pricing, In both ago and brm threads I have posted links to broker valuations of the two companies and from memory someone had AGO @ $4.00 Target and someone else BRM at $16.00 Target, these where a while back so values would have changed with the market but the ratio of the two should still be similar.


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## Sean K (25 June 2009)

Crikey, Wah Nam International have creaped up the registry fast. Now holding 11.3%. Anyone want to speculate what this could mean?


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## JTLP (25 June 2009)

kennas said:


> Crikey, Wah Nam International have creaped up the registry fast. Now holding 11.3%. Anyone want to speculate what this could mean?




Most likely with this mob nothing...unless WR has finally given the go ahead to somebody but kept it on the down low??? (remember all those wonderful MOU's in the wings... )

Could also be a blocking stake they are building? Or potential for the order book?

I hold


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## Sean K (30 June 2009)

Wham Bam have now increased their stake to 13.44%. Something might be in the pot, and on the boil. Or maybe not. Maybe they just like buying shares.


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## JTLP (30 June 2009)

kennas said:


> Wham Bam have now increased their stake to 13.44%. Something might be in the pot, and on the boil. Or maybe not. Maybe they just like buying shares.




LOL. "Maybe they just like buying shares" - solid chuckle!

I made mention that perhaps WR's MOU's are coming into fruition...who knows really? TBH it's nice that somebody is taking an interest in this co...maybe this is a prelude to rail deals + benefications?

Actually, I think the benefication was quite a massive ramp. Has there been any ann's on this yet? (My apologies if yes). If no, then ASIC really need to look into it...if this was a crock wouldn't it substantially change there figures and material that could be processed?

I'm still very critical about BRM and their operations. Management don't exude confidence and the train really doesn't seem to be leaving the station...maybe they will make me eat my words...


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## Sean K (30 June 2009)

PFS due in June 09.

That's today!

They'll then have to put a covering letter on it, so expect the announcement sometime in 2010.

Ann 3 Dec 08

*MARILLANA PROJECT DEVELOPMENT UPDATE

BROCKMAN AWARDS STAGE 2 PRE-FEASIBILITY STUDY TO AUSENCO*

Western Australian Iron Ore Company, Brockman Resources Ltd (ASX Code: BRM), is pleased to announce the signing of a contract with Ausenco Ltd for consultancy services associated with the Pre-Feasibility Study (PFS) for the Stage 2 development of its 100%-owned Marillana Iron Ore Project located 100km north west of Newman, in Western Australia’s Pilbara region.

Ausenco is a global leader in engineering, project management and operations solutions to the global resources and energy industries. Ausenco will work with specialist mining consultants Coffey Mining on the Stage 2 PFS, with work to commence immediately and the Study Report to be submitted in June 2009.


Gotta have a chuckle at Pattersons evaluation in June 08:

"We reiterate our A$5.45/sh price target...."




And, I wonder how Duck Creek is going?

Ann Sep 08:

*Brockman Identifies Potential Target of 30 – 50Mt of Direct Shipping Iron Ore at Duck Creek*

•Surface sampling identifies Channel Iron Deposit (CID) mineralisation with a potential for 30 – 50Mt of Direct Shipping Iron Ore grading 56 – 59% Fe
• Mineralisation contains low contaminants and moderate to high LOI (loss on ignition) – Calcinated Iron grades of 61 – 64% Fe.
• Mineralisation forms mesas, with potentially very low stripping ratios


WTF are these guys doing?


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## JTLP (30 June 2009)

kennas said:


> PFS due in June 09.
> 
> That's today!
> 
> ...




Pattersons reeks of failure. They slap price targets like that when they do the cap raising at 2.50 a share I believe. Bargain basement!

There is no way we will be seeing that stage 2 PFS (as you mentioned already) tomorrow. If they have an IN and OUT tray in the office they are still back officially listing themselves on the ASX under the new name.

The I/O boys in the Pilbara should just all merge and try and fight their way to the top..kind of like 3 players (BHP/RIO, FMG, NWIOA)...better than all this crap time wasting with PFS etc...just go hell for leather for more ore than you know what to do with!


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## JnrTrader (30 June 2009)

another increase in shareholding, something is brewing kennans, surely. The chinese have come out and stated they will invest large amounts of $$ in aussie iron ore projects and this co. might have some inside knowledge, or, making the first move with belief that $$ will be spent on brm soon enough.  If you look at ext now, when rio bought into them, and immediately so did polo, acorn capital, ect... perhaps this mob have decided to act first with strong belief of the big chinese steel co to come in like rio with ext, next few months will be interesting. i currently do not hold, but i think this will change very soon


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## Sean K (30 June 2009)

Chart is a good example of some triangley type formations appearing here and there and the outcome. Watch for volume coming off and the triangle narrowing as a good sign. Doesn't always result in a break up of course, just probable.


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## Go Nuke (16 July 2009)

Agree Kennas.

Its all about these triangles.

Either a breakup or break down coming.

Dont want to see $1.15 again.


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## Sean K (30 July 2009)

BRM just staggering sideways at the moment, while the market has run. Bit frustrating really. 

There was a report written recently by Foster Stockbroking which was pretty bullish.

Major risks are still access to the rail line and capital costs, expecially for the port facility which will cost billions. 

Valuations will be effected by opex associated with milling too, highly dependant on benefication of the detrital ore. 

Increading the DSO at Abalone might be handy.

PFS due *today*!!!


*Valuation*

We have modelled BRM ramping up to 25mtpa by 2015 and assumed capital cost and operating costs of $1.2b and $40/tonne FOB respectively. Using long term prices of $0.95/Fe unit and $0.82/Fe unit for lump and fines respectively and an AUD/USD exchange rate of 0.75, the Marillana project potentially generates an annual EBITDA of close to $650m, has a current valuation of ~$12.00/share, and an IRR of greater than 30%. The capital cost of the port is not included in the analysis above, but is included as part of the operating cost of the port handling fees.

While the project is in the early stages of development, the progress to date BRM has made on rail access and port development is very positive. We expect to hear further encouraging announcements on rail access early next year. In anticipation of positive news on this front, a nearer term catalyst for the stock could be further corporate activity, either at the parent level or a sale in a minority stake in the project. Encouraging Pre-Feasibility Study results in July 09 may also act as a short term catalyst for the stock.

BRM has ~$100m in cash, no debt and a Market Capitalisation of ~ $160m. Despite the risks, we don’t believe the risk/reward profile reflects the current progress and position of the Marillana project and believe the company will significantly re-rate over the next 12 months. We have set our 12 month price target to $3.20/share, reflecting a 75% discount to our one year forward DCF based valuation.

Recommendation. BUY BRM (Price: $1.20; $PT: $3.20)


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## Amor_Fati (10 August 2009)

Interesting prefeasability study out today. I present their dot point summary for your perusal but their is more info in the actual report (eg discounted risk free rate assumed to be 8%, which I thought was maybe a bit low/optimistic given the borrowing rate for companies is almost that high now if I'm not wrong) If the NPV is really 1.4billion and they have a net cash balance of close to 100 mill then they look pretty attractive with market cap of 177million. But anyway things are looking good, need to tie up the rail access now.



> Pre‐Feasibility Study confirms the (“Marillana Project”) is financially and technically positive,
> positioning Brockman to become the most substantial producer amongst the Pilbara’s emerging
> iron ore miners
> 
> ...




Sorry about the asterisks I don't know what happened there


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## fEkuaR (10 August 2009)

huge volumes traded on today's announcement. Any speculation as to why the share price went back to 1.230 on the back of a "positive" announcement?


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## Amor_Fati (10 August 2009)

fEkuaR said:


> huge volumes traded on today's announcement. Any speculation as to why the share price went back to 1.230 on the back of a "positive" announcement?




No idea, which makes me a bit nervous. It was a long retreat from the intraday high at $1.39! The fact it jumped shows that it must have beaten expectations so what explains the fall? Hmmm... Market irrationality or someone knows something we don't!


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## Sean K (11 August 2009)

I'm not sure what Capex was expected to be, perhaps that's a bit higher than expected. Big range in costs, $700m - $1.3b. Geesh. Perhaps the large numbers have scared some people off? Going to be a little difficult to get the Capex you'd think, unless they get a big Chinese backer, or a FMG to invest in them. There's going to be significant dilution you'd think. 

Opex looks pretty good with IO prices steadying and raising a little it's a profitable operation. Producing 17-20Mt pa. The previous guidance was for a 15Mt pa start up expanding to 25Mt pa, so maybe the long term reduced tonnage was a concern. Not sure how the paybe time and IRR rates on the scale of things. 5 years seems reasonable.


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## Amor_Fati (11 August 2009)

Was that 25mt beneficiated or raw? Because 25mt of ore at 40% is very close to 17mt of beneficiated ore at 60%. Yes the capex is large but if it's a profitable operation then it should not be too hard to raise equity, borrow debt. Especially as you would hope we would have this recession behind us.


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## Sean K (11 August 2009)

Pretty sure it was final product. I can't download their last presentation that had a timeline to production and numbers, as my (stolen) wifi internet connection is dreadfully slow. But if you check you will see it.

Long time till DFS completed. Richards says this time next year on the BRR interview. Long time to wait for any real action on this.

In the news:

*Brockman Resources 'on track' to be major*
Sarah-Jane Tasker | August 11, 2009 
Article from:  The Australian 

IRON ore hopeful Brockman Resources is on track to become the fourth-largest producer in the Pilbara, after a positive review of its billion-dollar project.

The Perth-based company released a pre-feasibility study on its West Australian project yesterday that suggests it could become a substantial producer in the vibrant iron ore region, with the fourth quarter in 2012 targeted for first production. 

The study of its Marillana iron ore project shows that Brockman will be targeting 17 million tonnes a year, making it the fourth-largest producer in the sector dominated by the majors, Rio Tinto, BHP Billiton and Fortescue Metals Group. 

The study also found that the upfront capital costs are forecast to range from $705 million to $1.35 billion. 

"The pre-feasibility study shows that the Marillana project stands to be a financially rewarding project, with robust operating margins, strong rates of return and simple mining and processing technologies," managing director Wayne Richards said. 

"The findings of the study pave the way for the execution of a definitive feasibility study to get under way later this quarter, putting Brockman firmly on track to become a major iron ore producer within the Pilbara."


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## jonojpsg (11 August 2009)

kennas said:


> *Brockman Resources 'on track' to be major*
> Sarah-Jane Tasker | August 11, 2009
> Article from:  The Australian
> 
> IRON ore hopeful Brockman Resources is on track to become the *fourth-largest producer* in the Pilbara, after a positive review of its billion-dollar project.




Not sure how they figure this given that Gindalbie is heading for 30Mt a year??  Are they basing it on start-up tonnages, but even then I think GBG will be ahead of BRM.


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## Sean K (11 August 2009)

jonojpsg said:


> Not sure how they figure this given that Gindalbie is heading for 30Mt a year??  Are they basing it on start-up tonnages, but even then I think GBG will be ahead of BRM.



Maybe Sarah-Jane needs to do a little more research.

Did BRM state that anywhere, or just a media error?


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## Amor_Fati (12 August 2009)

kennas said:


> Pretty sure it was final product. I can't download their last presentation that had a timeline to production and numbers, as my (stolen) wifi internet connection is dreadfully slow. But if you check you will see it.




Alright mate, it took me a while but I have found something. It is from the presentation to the China Ore Conference and the whole document was pictures, figures and graphs with almost no text so I don't know exactly how this relates the the PFS. There was nothing about mining the DSO anywhere in the PFS was there, just 17mt/year of beneficiated ore? So that's slightly better than expected but where is the DSO production?


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## Mozart56 (19 August 2009)

Amor_Fati said:


> Alright mate, it took me a while but I have found something. It is from the presentation to the China Ore Conference and the whole document was pictures, figures and graphs with almost no text so I don't know exactly how this relates the the PFS. There was nothing about mining the DSO anywhere in the PFS was there, just 17mt/year of beneficiated ore? So that's slightly better than expected but where is the DSO production?




The detrital lies over the top of the DSO, so there is no plan to mine the DSO until the overburden has been processed.  This is a good thing, as it saves them having to move the stuff twice.  Cost to process is close to mining the DSO anyway given the strip ratios and depth.  Final product grading may even be better.


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## Sean K (21 August 2009)

No reason for this to jump yesterday through $1.30 resistance on some increased volume. Interesting. Has been working in waves over the past 6 months and may have just completed another small one before a slight rise and then more consolidation. 

Was there another IO takeover rumour or China rumour floating about elsewhere yesterday?


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## Sean K (24 August 2009)

As seen in the IO comparison table, BRM is currently trading at 5c per ton for it's Magnetite equiv alone. Then add in the DSO which could be up to 100Mt on further drilling. On all of the IO companies we have analysed this seems to be the most undervalued on a peer review. However, maybe there's a reason. Big Capex, and if the FMG deal with BCI is an example, they will have to give away 50% of the resource to use their railway. Probably a good plan and I would not be at all surprised if a deal of a similar nature was on the table right now. Might depend on what sort of China/Japanese/Indian interest has been sniffing about.  

Chart update to the above and you can see how important the region between $1.25 and $1.50 is. Pretty much the Great Wall. However, that support line looks pretty good. Will be an outstanding longer term breakout if it can finally break through this zone. In the mean time, it's short term ambling sideways, medium term going up. 

Was a handy pick up from the support and break up at 50c.


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## Sean K (24 August 2009)

While 1.25-1.50 looks most important to me, the next short term hurdle is 1.39 ish established over the past 3 months. Current gain is not supported by volume so I'm not overly confident this will continue. Chamapgne will be popping on a strong break through $1.50 however. In the mean time, fingers crossed 1.39 ish firms up as support somehow, otherwise the medium term up trend goes into some question. Need to stop this overlapping incimental rise and look more impulsive.


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## Go Nuke (24 August 2009)

kennas said:


> While 1.25-1.50 looks most important to me, the next short term hurdle is 1.39 ish established over the past 3 months. Current gain is not supported by volume so I'm not overly confident this will continue. Chamapgne will be popping on a strong break through $1.50 however. In the mean time, fingers crossed 1.39 ish firms up as support somehow, otherwise the medium term up trend goes into some question. Need to stop this overlapping incimental rise and look more impulsive.




I think we might see it touch $1.58 as next resistance.

Been a great few days for BRM hey Kennas.I/O seems to have regained a little favour recently with things lokoing a little brighter than once thought out of China.

The rail deal WITH big the next big thing for BRM and indeed, what will it cost them?
Wish I had the balls to put my money where my mouth is and back my charts..lol :>


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## Sean K (24 August 2009)

Go Nuke said:


> Wish I had the balls to put my money where my mouth is and back my charts..lol :>



Me too GN.  

I have had 20% on my money sitting on the sidelines waiting for a decent pullback to go all in and start using the banks cash. Complete failure on my judgement of the market and money management skills. Maybe being in Peru has been a stumbling block. 

Important issue now for this stock is to judge what is next. 

Do they turn into a producer backed by FMG, or into a JV with BHP, or what?

Or, do IO prices crumble into oblivian and they turn into crap!!!



Still a trading stock imo.


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## Mozart56 (24 August 2009)

kennas said:


> As seen in the IO comparison table, BRM is currently trading at 5c per ton for it's Magnetite equiv alone. Then add in the DSO which could be up to 100Mt on further drilling. On all of the IO companies we have analysed this seems to be the most undervalued on a peer review. ...




Hi Kennas - BRM does not have any Magnetite, and it would wrong to class their detrital as equivalent to Magnetite. It is all haematite and according to the PFS costs around $31-$32/t to process and transport which is comparable to many DSO operations.  This is because the detrital is all free dig and does not require any blasting.


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## Sean K (25 August 2009)

Mozart56 said:


> Hi Kennas - BRM does not have any Magnetite, and it would wrong to class their detrital as equivalent to Magnetite. It is all haematite and according to the PFS costs around $31-$32/t to process and transport which is comparable to many DSO operations.  This is because the detrital is all free dig and does not require any blasting.



They only have 50 or so million tons of DSO which is deep. The detrital ore covering it requires beneficiation. If it was all hematite DSO the company would be worth billions. I've left it's Detrital Ore in the Mag column as it's value would be more like Mag than DSO. You think it's worth the same as DSO? ie, well over 55% fe? Opex might be $32 ish as they say, but Capex of $700k - $1.35B, is part due to the requirement for beneficiation. The 2 x 18Mtpa plants will not come free. In fact I think they will cost about $532m. This must be considered when valuing the deposit. Maybe we need another column for beneficiated hematite?


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## Sean K (25 August 2009)

Made it's way through the resistance yesterday but dropped back. Going to open up about $1.50 at this stage, will be a real test around these levels. 

Harry is telling me that this wasn't a bad pick up under cash backing back at 50c ish. What an opportunity!!! I was hoping we might see something crazy like that again, but it looks like the craziness is going in the opposite direction. Damn it. 

On the IO junior comparison table, if you apply the average for DSO and Mag to this, it should be trading between $1.2 -$1.6b mc. Or, a share price between $9.55 - $12.50 ish.


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## swm79 (25 August 2009)

kennas said:


> Me too GN.
> 
> I have had 20% on my money sitting on the sidelines waiting for a decent pullback to go all in and start using the banks cash. Complete failure on my judgement of the market and money management skills. Maybe being in Peru has been a stumbling block.
> 
> ...




i'd like to put some money where my mouth is on this one too.

maybe they'll merge with one or (ultimately all) of the North West Ore Alliance.... i'd like to have some spare cash in all four of them - was in them a while ago, but had to get out for the SPP of AIO... some much for that!!!


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## Sean K (25 August 2009)

swm79 said:


> i'd like to put some money where my mouth is on this one too.
> 
> maybe they'll merge with one or (ultimately all) of the North West Ore Alliance.... i'd like to have some spare cash in all four of them - was in them a while ago, but had to get out for the SPP of AIO... some much for that!!!



There must be some consolidation amongst this group. At least a couple of them should merge. Not sure who has the best synagies. FRS and BRM look to be the cheapest.


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## swm79 (25 August 2009)

kennas said:


> There must be some consolidation amongst this group. At least a couple of them should merge. Not sure who has the best synagies. FRS and BRM look to be the cheapest.




BCI was cheap back in May when i was holding at $0.50 until i stupidly got out at $0.64

true, i think we'll see quite a bit of consolidation with these guys. maybe a full take on BCI by FMG will get the others moving?

but i read that by 2013 these guys will (approx) be producing around 50 mil t between them - same as FMG's first stage existing ops


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## Sean K (4 September 2009)

Update to 3 yr chart posted above and it's not a whole lot different. 

Trading between the $1.25 and $1.50 significant resistance (imo), and bound to be short term range bound until $1.50 is broken, then need to review. Still overall upward trend though which looks good. Certainly good from 50c! 

UBS are obviously earning their money. Lots of deals going on, they are moving and shaking, and all seems great! argghhhhh!! 

Come on FMG, just get it over and done with and buy these suckers. You could do with the cash.


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## Sean K (7 September 2009)

BRM is being left out in the cold as far as Chifa deals go.

But, hopefully one will come.

In the news:

*DJ Pilbara Iron Ore Juniors Move Forward With Own Port Plan*
07/09/2009 10:37AM AEST  

SYDNEY (Dow Jones)--A group of junior iron ore miners in Australia's Pilbara region said Monday they have appointed engineering company Sinclair Knight Merz to undertake a pre-feasibility study into a 50 million metric ton export port in Port Hedland. 

The project comprises two berths, developed by the North West Iron Ore Alliance, "integral to the evolution of the next tier of iron ore miner," the alliance said in a statement. 

The alliance has four members: Atlas Iron Ltd. (AGO.AU) Brockman Resources Ltd. (BRM.AU), BC Iron Ltd. (BCI.AU) and FerrAus Ltd. (FRS.AU). 

The cost and availability of ship-loading facilities has always been a major hurdle for smaller iron ore miners, which has now become feasible as a "result of joining forces," it said. 

The port project was well on track and "the onus was on the owners of railway lines in the Pilbara to provide third-party haulage on their networks." 

"It is time for the iron ore majors to cooperate with the emerging iron ore producers because it is in the best interests of the state to maximize utilization of the existing rail networks on a fair, transparent and commercial basis, Alliance Chief Executive Justin Walawski said.


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## Amor_Fati (7 September 2009)

It is up to $1.60, do you think resistance is broken? 

Big jump today, the news that they started a PFS on the port operation is not that surprising/positive is it? AGO an BCI have done almost nothing (up 1%, down 1%) and FRS is in a trading halt pending an announcement. Why did BRM jump? Is it purely technical?

Also from the announcement over Wayne Richards signature



> Brockman, which is one of four founding member companies of the NWIOA, recently completed the pre‐
> feasibility study on its 100% owned Marillana Iron Ore Project in the Pilbara. The study found Marillana was technically and financially robust *at a nominal production rate of 17 million tonnes a year of final product over
> an initial mine life of 20 years.  *




(Emphasis added) Confirming that ramp-up they predicted is off the agenda

Disc: Still holding


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## Sean K (8 September 2009)

Amor_Fati said:


> It is up to $1.60, do you think resistance is broken?



A tentative yes. Finished close to high well above $1.50, volume OK but not spectacular.

News today that AGO and WRK are going to merge should provide more support to the break.

There will be more consolidation and BRM would probably be part of that. I just hope they're the target.


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## Sean K (14 October 2009)

A few here will remember back to the discussions around Nov/Dec last year. Still disappointed I didn't back up my opinion with more action, but still happy with the result nevertheless. 

I'm almost free carried after taking profits recently, but wondering what value to place on this. It's really hard to say. We can't class it as DSO, nor Mag, so where's the benchmark? 

I have a suspiscion that the recent run is due to the BHP/UMC chat, and with BHP having a line running through their deposit, it seems to be a no brainer. IF BHP was this type of ore with the beneficiation associated.


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## Ruincity (14 October 2009)

Hi Kennas,

I think the recent surge in BRM has a lot more to do with this speculation:

http://www.theage.com.au/business/tracks-of-their-tears-20091011-gsgg.html

Maybe UMC to a lesser degree.


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## MOSSuMS (15 October 2009)

Out of FMS and in to BRM yesterday on hopes of more Fe consolidation in the area. Great resource size and price, but is the quality too low (compared to UMC next door that BHP is said to be looking at)? Both looking a bit toppy, just waiting for more news flow...


----------



## MOSSuMS (16 October 2009)

MOSSuMS said:


> Out of FMS and in to BRM yesterday on hopes of more Fe consolidation in the area. Great resource size and price, but is the quality too low (compared to UMC next door that BHP is said to be looking at)? Both looking a bit toppy, just waiting for more news flow...




Out of BRM as well now at 2.21 for a quick 8% rise.  Not usually a trader like this, but Fe and energy just seemed too good today. Will get back into the sector once I can decide which junior I like most. FMS and BRM still 'feel' the best based on price, resource and location (missed the UMC play completely though).

Any technical experts see a retracement so I can get back into BRM soon?


----------



## kpas (22 November 2009)

Still in BRM and will hold them until production.

Things looking much better then the last time I posted (price has doubled).

2010 will be the defining year for this company - everything looks like it's going to fall into place and it really is looking positive.

Wayne Richards is already discussing the commencement of developing their other non-Marillana projects within the next 12 months.

It is an exciting time to be a holder anyway.


----------



## Sean K (22 December 2009)

Had been curling sideways the past 3 months and looks to have finally broke up. May have been some positive sentiment to Directors cashing in options to buy shares. Around $2.20 still a hurdle, so might pause there before pushing on. Not much volume support.


----------



## Go Nuke (1 January 2010)

Its still looking good Kennas.

I decided to buy some more. Very few sellers and news of securing rail access would be great.
Been some bigish buy orders going through over the last couple of days.

It was also good to see the I/O prices in the paper the other day. Might put the spotlight back on I/O for a little bit.


----------



## Mid-Trader (5 January 2010)

Hi Kennas,

I've been a holder of BRM for 3 yrs now so have experienced some high's and lows!
Do you have a view or know of any research that shows where fair value is for this stock over the next 12 months?

Thx


----------



## Go Nuke (8 January 2010)

Share price looking a little overcooked right now?

Everything in my mind is telling me so but I don't want to be out of the stock if the ann regarding a rail agreement comes.

And with the port feasibility study due "early next month" I want to be in for that too.

Short term...I think sell (for a trade) perhaps buy in again about $2.60.

We;ll see


----------



## Go Nuke (11 January 2010)

Well, even though I'm talking to myself I bailed out today.

Someone is keen to buy BRM though with alot of shares going through at the close on Friday and a few more dumped just now (70K shares).

Longer term I think we are looking at the next big O/I producer in the Pilbara so still hold some shares that I bought for over $3 quite some time ago 

All good longer term.


----------



## jonojpsg (11 January 2010)

Current MC of $388m seems to me a bargain given their resource base, cash reserves, stage of development and potential income.  I guess the second last word in that sentence is the issue, however with IO prices looking pretty well supported through 2010 at least (see Weekend Australian article 9/1/09) and into 2011, I think BRM is likely to continue heading up.

Compare with SDL which is valued around $400m as well but a bit further back in progress and has a lot further to go with infrastructure.


----------



## Sean K (12 January 2010)

Mid-Trader said:


> Hi Kennas,
> 
> I've been a holder of BRM for 3 yrs now so have experienced some high's and lows!
> Do you have a view or know of any research that shows where fair value is for this stock over the next 12 months?
> ...



Check the broker reports on their web site:

http://www.brockman.com.au/bro_rep.html


Gee, really taken off since that break up. Almost at all time highs around $3.00, expect a rest again there perhaps. 

On my IO comparison spreadsheet they have the 6th highest market cap now.

In retrospect, it's very easy to say this was a no brainer under $1.00 after the panick sell off last year.


----------



## justiceotp (12 January 2010)

Hey Kennas interesting that you post that link to the broker reports I was reading them all again last night trying to work out where BRM is going to settle at, everyone in it or interested in it probably is reworking the figures. I have been in this stock for quite some time and averaged down during the crash. I have left this one go and haven't taken any profit yet as I feel it still has a long way to go over the next couple of years. Most well run I/O companies are doing well at the moment I also hold AGO, FMG and IOH and they have done well with this renewed interest in I/O. Could I ask in your MC list what you have at 4 and 5?


----------



## Sean K (12 January 2010)

justiceotp said:


> Could I ask in your MC list what you have at 4 and 5?



Here is the spreadsheet.

I haven't updated the tons IO column in a while so any recent updates may not be included.


----------



## TheAbyss (12 January 2010)

kennas said:


> Here is the spreadsheet.
> 
> I haven't updated the tons IO column in a while so any recent updates may not be included.




Hi Sean. Hows life in the tropics?
I do have a question re your Io sheet. There is a reference for the stock quote price to MSN. What do i need to do so i can access that?

The reference in the cell is 

"=MSNStockQuote.Functions.MSNStockQuote($B7,"Last price","AU")"

I  need to install something or maybe create a watchlist and download as a csv and import prices? 

Also do you format the sp as 4.12 or 412 cents for $4.12?

Thanks mate


----------



## Sean K (12 January 2010)

TheAbyss said:


> Hi Sean. Hows life in the tropics?
> I do have a question re your Io sheet. There is a reference for the stock quote price to MSN. What do i need to do so i can access that?
> 
> The reference in the cell is
> ...



Howdy, Back in Lima, weather is crap. :-(

Wrong'Un provided the detail here:

https://www.aussiestockforums.com/forums/showpost.php?p=454810&postcount=47

Use 4.12.

Cheers,


----------



## enigmatic (12 January 2010)

Hey Kennas not really BRM related but with your Iron Ore list you might want to include AQA the West Pilbara Iron Ore project is going to be a major Mine Rail and Port project. 

Back to BRM have been following for a while and do have high hopes for BRM have been recently wondering what is after this mine do they have any other exploration targets.


----------



## Sean K (15 January 2010)

enigmatic said:


> Hey Kennas not really BRM related but with your Iron Ore list you might want to include AQA the West Pilbara Iron Ore project is going to be a major Mine Rail and Port project.



It wasn't included because of its significant coal assets. Too hard to divide it up and attribute the IO to market cap for a fair comparison perhaps.


----------



## WRONG'UN (15 January 2010)

Hi Kennas
Yes, that's a problem with all the miners that produce more than one product.
Some of the copper miners account for their gold and silver by-products by converting them to "copper equivalent", and then adding this to the copper resource.
There is no reason why this concept can't be expanded to cover all the products that a company produces - you just need a common "currency", and I suggest gold. Just convert the values of all the products that a company produces into "gold equivalent", and then work out the market cap of the company per "equivalent gold ounce".
I realise that there are a host of other variables, such as different margins for the various products, price action of the products themselves, but the approach may still be a ballpark way of comparing apples with "equivalent apples" - better that just guessing.
It would also be interesting to compare one group with another - eg iron ore v copper - maybe a help in deciding which group to be in. 
Cheers, Wrong'un


----------



## kpas (10 February 2010)

New announcement last night - 133% upgrade in measured and indicated resource.

Things plugging along nicely. Market really waiting for a transport deal and the SP should rocket.


----------



## kpas (11 February 2010)

The market has responded well to the 133% increase - it's turned over a reasonable volume today and broken past it's 52 week high.

We are still waiting on a transport arrangement, but other then that - things are looking positive for this company.

I would hope that things will go ahead regardless of transport negotiations with BHP, given that FMG have announced that they will open their rail up to third partys. Not as cheap as using BHP (given their rail goes through BRM's tenement), but still a viable option to use FMG's rail.

Anyone else still following this stock or am I on my own again?


----------



## TheAbyss (11 February 2010)

kpas said:


> The market has responded well to the 133% increase - it's turned over a reasonable volume today and broken past it's 52 week high.
> 
> We are still waiting on a transport arrangement, but other then that - things are looking positive for this company.
> 
> ...




Don't know that it was the resource UG. Almost all IO mid tier Io companies were up 5-10% today. Suspect it is due to the BHP/ Rio profit announcements and the estimated 90% IO price increase being sought by BHP and RIO.


----------



## enigmatic (11 February 2010)

TheAbyss - I was wondering were you grabbed this 90% increase in Iron ore price from as I don't really see that happening or even BHP/RIO trying to ask for it. 

Are you able to provide some sort of source.


----------



## TheAbyss (12 February 2010)

enigmatic said:


> TheAbyss - I was wondering were you grabbed this 90% increase in Iron ore price from as I don't really see that happening or even BHP/RIO trying to ask for it.
> 
> Are you able to provide some sort of source.




I just made it up mate.

Just kidding, link below. Also IO players up again today on china news into US last night. My IO watchlist has 27 of 29 up by more than 2% in initial trading today so looking like a bit of a rally into base metals until somethings spooks the US again which is guaranteed atm.

http://www.theaustralian.com.au/bus...act-prices-gsjbw/story-e6frg9no-1225829141590


----------



## TheAbyss (12 February 2010)

TheAbyss said:


> I just made it up mate.
> 
> Just kidding, link below. Also IO players up again today on china news into US last night. My IO watchlist has 27 of 29 up by more than 2% in initial trading today so looking like a bit of a rally into base metals until somethings spooks the US again which is guaranteed atm.
> 
> http://www.theaustralian.com.au/bus...act-prices-gsjbw/story-e6frg9no-1225829141590




Excerpt from Business Spectator article re the china data i mentioned in case you were wondering.

Base metal prices were stronger on the London Metal Exchange as upbeat Chinese data on bank lending supported, prices. Copper rose 6.3per cent and Nickel 4.2 per cent. And the price of gold gained $18.40 an ounce to US$1,094.70.


----------



## enigmatic (12 February 2010)

ah yeah the spot price is 90% higher then the contract price which doesn't mean they are asking for a 90% increase

The biggest i have seen mentioned is 50% increase although on a less optimistic analysis arround 35-40% increase.

Generally the Spot price is much higher then the contract price. 
If the contract increased 90% i would be expecting about the same in spot price which would be crazy


----------



## Buckfont (13 February 2010)

Greg Peel from FNArena was talking about the IO price on Sky bus. this morn. 

It appears the the 90% figure could come about, but its more of a bargaining tool, so consequently the negotiating price could come down to 50/60/75% if the chinese start digging their heels in.


----------



## Sean K (17 February 2010)

What a champion BRM has been since the 'bottom'. Incredible turnaround really, and deservidly so. For it's assets and cash in the bank it was incredibly oversold. 

Latest update looked pretty good:



> *Major Resource Upgrade takes Brockman’s Iron Ore Project Closer to Development*
> 
> 133% Increase in Measured and Indicated Resources Highlights Continuity of
> Mineralisation, Providing a Strong Boost to Marillana Definitive Feasibility Study
> ...




Looks to be going through all time highs.

As has been said, hard to rate on the EV to DSO or Mag scale because of the beneficiation required for the detrital ore. 

MC reaching for half a billion now. Wonder what it should be worth?


----------



## kpas (18 February 2010)

http://clients.weblink.com.au/clients/brockman/article.asp?view=6480959

Wah Nam increased holdings from 13.44% to 15.39% over the last week.

They accounted for almost all the buying on market today - 1.2m shares

Very interested to see how the market treats this announcement tomorrow.


----------



## JTLP (22 February 2010)

Is it just me or was there a contradiction in the investor presentation today? They said rail access/agreement would be finalized first half of 2010. Further on in the piece they say they are aiming for Q3 2010. Somebody explain?


----------



## kpas (22 February 2010)

Could be the first target as an basic agreement and the 2nd target finalisation of all contractual issues.

Ie, they come to an agreement in this quarter and then hand it over to lawyers to finalise the fine detail by 3rd quarter this year.


----------



## kpas (24 February 2010)

New announcement

"Definitive metallurgical test work achieves final product iron grade range averages from 60.4% to 63.5% Fe with impurity levels comparable to Direct Shipping Hematite Ores"

"Confirms technical viability of Marillana Detrital Hematite Resource, which accounts for 94% of Marillana’s 1.63 billion tonne mineral resource inventory"

Just gotta get the rail agreement sorted and this is a very viable project.


----------



## Sean K (25 February 2010)

kpas said:


> New announcement
> 
> "Definitive metallurgical test work achieves final product iron grade range averages from 60.4% to 63.5% Fe with impurity levels comparable to Direct Shipping Hematite Ores"
> 
> ...



That's outstanding news. I think... Punters have been waiting on those resuilts for months and months. On the surface of it, it looks very very good. Yes, a rail line, a wharf, contracts, and capex for the beneficiation. Going cost and arm and a leg for all that. Must get a partner I think.


----------



## kpas (25 February 2010)

kennas said:


> That's outstanding news. I think... Punters have been waiting on those resuilts for months and months. On the surface of it, it looks very very good. Yes, a rail line, a wharf, contracts, and capex for the beneficiation. Going cost and arm and a leg for all that. Must get a partner I think.




The chinese seem to think so because Wah Nam released yet another notice to say they have moved up to from 15 to 17 odd % ownership.

Be interesting to see if they push themselves to 19.99% or further.

Feasible but not sure how likely - if the Wah Nam link could bring the funds to the table to build yet another railway for the NWIOA - that would mean that the NWIOA do not need to even ask BHP/RIO for anything and BRM has the final tick in the box.

Would really turn BRM into a takeover target for BHP just to block the competition.


----------



## bougedela (25 February 2010)

Funny they don't comment on phosphorous concentration or other penalty elements...
Makes me suspicious that production costs may be higher than they are trying to indicate.
But then I know very little and probably far off the mark


----------



## kpas (26 February 2010)

bougedela said:


> Funny they don't comment on phosphorous concentration or other penalty elements...
> Makes me suspicious that production costs may be higher than they are trying to indicate.
> But then I know very little and probably far off the mark




Firstly, did you just sign up to ASF to post that comment?

Secondly, did you even read the announcement? 

It quite clearly states the Phosphorus content going in and coming out post-beneficiation (less then 0.08%).


----------



## Sean K (27 February 2010)

kpas said:


> Firstly, did you just sign up to ASF to post that comment?
> 
> Secondly, did you even read the announcement?
> 
> It quite clearly states the Phosphorus content going in and coming out post-beneficiation (less then 0.08%).



hm, yes, it was all presented in a nice little table. Strange comment. Maybe he expected it to be in the summary and didn't read on...


----------



## Sean K (27 February 2010)

Anyone picked up this report from Arrowhead (whoever they are?)

Due Diligence and Valuation Report
Arrowhead Code: 14-01-04
Coverage initiated: 1 July 2009
This document: 11 February 2010
*Fair share value bracket: AUS$5.04 to AUS$25.21*
Share price on date: AUS$2.98i

http://www.brockman.com.au/documents/BROCKMANRESOURCES-ABIDreport-11Feb10.pdf


----------



## basilio (27 February 2010)

> Anyone picked up this report from Arrowhead (whoever they are?)
> 
> Due Diligence and Valuation Report
> Arrowhead Code: 14-01-04
> ...




Isn't it amazing what one can do with an XL spreadsheet and a commision from a company to develop a forward looking analysis of it's prospects !

For some (obscure) reason we want to believe that the outside consultant is so much more credible than the same set of figures on company letterhead.

I have shares in BRM and naturally want to believe that as the years roll on  all these magical figures will come to pass. But then I have also seen reams of other magical figures postulated about many other mining hopefuls.

In the end I feel that the big money is often made in the short term convincing  enough people that there will be a pot of gold at the end of the rainbow and they should get in quick.

Am I just too cynical ?


----------



## Sean K (28 February 2010)

basilio said:


> Am I just too cynical ?



Can NEVER be too cynical with 'fundamental' analysis basilio.

Page 15 of the report:

*Important disclosures*

Arrowhead Business and Investment Decisions, LLC
received fees in 2009 from Brockman Resources for
researching and drafting this report and for a series of
other services to Brockman Resources including
distribution of this report and networking services.


----------



## bougedela (2 March 2010)

kpas said:


> Firstly, did you just sign up to ASF to post that comment?
> 
> Secondly, did you even read the announcement?
> 
> It quite clearly states the Phosphorus content going in and coming out post-beneficiation (less then 0.08%).





I stand corrected, to my embarrassment, yes it was just the summary..

Would it be a correct statement to be made that with the benefication and heavy liquid sep these figures represent a minimum for profitability of mining the ore for a profit at todays prices? 

So just the small matter of railway tracks left...  they run so close to brockman, yet they are so far away...


----------



## Sean K (5 March 2010)

kennas said:


> Looks to be going through all time highs.



$3.00 was the major resiistance on that chart with all time high about $3.25. Really nicely consolidated above $3.00 and then finally pushed through. What a dream run.


----------



## Ruincity (6 March 2010)

I am very curious as to what Wah Nam are up to with their relentless buying of BRM.
Why no substantial interest from other parties?
What are their intentions?

A bit of research into Wah Nam provides more questions than answers - limousine services and Iron ore?
How much can a company like this buy? 

Hey it seems to be doing wonders for the share price but I'm wondering where this is all heading.. 
Actually called BRM yesterday, left a message and my call was not returned..

Been a long term shareholder and interested in others thoughts or speculation.. 

Cheers.


----------



## kpas (8 March 2010)

Relentless buying today has pushed it up to a touch under $4.

Surprisingly this is flying under most radars because of the likes of AOE and BOW having massive breakouts.

Still anyones guess as too WNH's intentions.

I continue to hold for the long term.


----------



## kpas (9 March 2010)

bougedela said:


> I stand corrected, to my embarrassment, yes it was just the summary..
> 
> Would it be a correct statement to be made that with the benefication and heavy liquid sep these figures represent a minimum for profitability of mining the ore for a profit at todays prices?
> 
> So just the small matter of railway tracks left...  they run so close to brockman, yet they are so far away...




I'll refer you back to the announcement again:

"Confirms technical viability of Marillana Detrital Hematite Resource, which accounts for 94% of Marillana’s 1.63 billion tonne mineral resource inventory"

"The results represent a critical milestone for the Marillana Project, confirming that detrital mineralisation at Marillana can be cost effectively upgraded to between 60.4% and 63.5% Fe, delivering a final product specification that is comparable with Direct Shipping Hematite Ore being mined from other major Pilbara iron ore projects.

In addition, the test work confirmed economic mass recoveries using Heavy Liquid Separation (“HLS”) in the range of 39 - 57% for detrital feed grading above 41% average Fe grade."

"Brockman’s Managing Director, Mr Wayne Richards, said that the excellent results from the test work program represented the final step in confirming the technical viability of the 1.63 billion tonne Mineral Resource currently defined at Marillana.

“The results are a fantastic outcome for Brockman, confirming that Marillana is a genuine large-scale iron ore deposit that is economically and technically upgradeable to DSO product specifications,” he said.
“This is a major step forward which significantly reduces the technical risk associated with the development of Marillana and should result in a potential re-rating of the Company and the Project, particularly given the excellent technical specifications of our final product,” Mr Richards added."

So in summary - yes, as the announcement already said


----------



## Sean K (10 March 2010)

BRM speeding ticket yesterday, as you'd expect. Amazing run on the back of IO price rises.

Plus, they are slowly ticking the right boxes for a move to development.



> ASX Release: 8 March 2010
> 
> BROCKMAN ON TARGET WITH DEVELOPMENT OF NEW IRON ORE PORT
> 
> ...




Now, if they could jut get into a MOU with BHP for the use of their line that runs through their deposit, that could be handy. Maybe even agree to upgrade the line a little here and there and build some second stretches of line to accommodate the extra traffic. 

EV still only $420m ish when they are sitting on so much IO, without even starting on their other prospects..


----------



## TheAbyss (10 March 2010)

Hats off to those still holding. My 20000 free carried since the YML days shares are looking very fine indeed.

Young Trader, don't know where you are but thanks mate and hope to see you back soon.


----------



## kpas (10 March 2010)

kennas said:


> BRM speeding ticket yesterday, as you'd expect. Amazing run on the back of IO price rises.
> 
> Plus, they are slowly ticking the right boxes for a move to development.
> 
> ...




Hi Kennas,

That is the real key - rail agreement. Which going by their investor presentations is due for some news in March, and to be finalised by 3rd quarter 2010. I can't help but speculate that he is using WNH'ings recent interest as a key negotiation point with BHP!

Also what you said needs to be reiterated - they have several other interesting and potentially viable projects. Duck Creek could well be another company maker in the winds. Wayne Richards stated late last year that he intended to start drilling at there other exploration tenements in 2010 which will also spur on more interest.

Definitely an exciting time to be holding BRM.


----------



## Sean K (11 March 2010)

kpas said:


> Also what you said needs to be reiterated - they have several other interesting and potentially viable projects. Duck Creek could well be another company maker in the winds. Wayne Richards stated late last year that he intended to start drilling at there other exploration tenements in 2010 which will also spur on more interest.



Yeah, what have they been up to here? Seems like they've been almost sitting on their hands in the office waiting for approvals while they've forgotton to keep drilling elsewhere. Or have they?

Some healthy profit taking going on at the moment, as you'd expect after such a great run. Some punters taking some well earned profits.

Has run away from support a little, now looking at very minor support here, before back to the all time high area, then uptrend support as shown. 

Unhealthy those spikes imo...


----------



## kpas (11 March 2010)

kennas said:


> Yeah, what have they been up to here? Seems like they've been almost sitting on their hands in the office waiting for approvals while they've forgotton to keep drilling elsewhere. Or have they?
> 
> Some healthy profit taking going on at the moment, as you'd expect after such a great run. Some punters taking some well earned profits.
> 
> ...




Agree, spikes like that are not sustainable without news so I think it is healthy that the gaps have since been filled.

From the 2009 Annual Report:



> Our principal focus during the year has been the Marillana Iron Ore Project, and this will remain the case during the forthcoming 12 months. *Strategies to progress the potential development of our other iron ore tenements in the West Pilbara as the basis for future production hubs are
> also currently being assessed, and will be progressed as opportunities present themselves. We have 26 tenements that are currently 100% owned and have either been granted or are priority applications for approval.*




This company is really going to come into it's own once they start getting those other projects off the ground.

Most promising is probably Duck Creek, but no one really knows what the West Hamersley or other tenements hold.



> Duck Creek
> 
> Last last year Brockman reported on initial exploration success from its Duck Creek iron ore project, located about 115km WNW of Paraburdoo in the West Pilbara
> region. Assessment of results received from helicopter-supported surface rockchip
> ...


----------



## shinobi346 (8 April 2010)

Seems like BRM is riding the wave with the recent news of 100% increases in iron ore prices across the board.


----------



## kpas (10 April 2010)

shinobi346 said:


> Seems like BRM is riding the wave with the recent news of 100% increases in iron ore prices across the board.




Market still heavily downrating BRM until it gets a rail agreement, which by all company announcements, will be sometime in the next 6 months.

Hopefully at that point we see the major rerating that we have all been waiting for.

BRM has many options in this area:

1. Get on BHP's rail which runs through their tenement. This would of course limit their output to whatever they can agree with BHP (unlikely to be much).
2. Build spur line to Hancock or Fortesque's rail (again, will be limited)
3. Build their own - get some external investment together and then sublease it to other juniors.

I'd love to see them do #3, but I imagine #1 will be the most favourable in the short term. Get on BHP's rail, start mining and making money and then pour the profits into another rail line which means they can expand their output.

1 billion tonnes of ore in the ground, at a very good % - it will take one hell of a down turn in the iron ore market to make Marinalla unprofitable.


----------



## kpas (18 April 2010)

Share price is still sitting tight waiting for a rail agreement.

I wish the ACCC would grow some balls & start pushing the companies around. 

Sitting on the sidelines giving them more time to answer questions - come on!!

This whole fiasco has been going on for like 7 or 8 years. The longer BHP/RIO keep 3rd party rail in the courts, the longer they can keep juniors at bay.

Poor form ACCC.



> The Age - BHP, Rio get more time
> April 17, 2010
> 
> AUSTRALIA'S competition regulator has suspended its review schedule for the proposed Rio Tinto and BHP Billiton iron ore joint venture to give the companies more time to respond to questions.
> ...


----------



## JTLP (18 April 2010)

kpas said:


> Share price is still sitting tight waiting for a rail agreement.
> 
> I wish the ACCC would grow some balls & start pushing the companies around.
> 
> ...




This will probably wager on for years...why not spin your statement on its head and ask the question why BRM doesn't grow some balls and go it alone? It may be more expensive but at least they can give a definitive timeline.

At the moment with 3rd party rail hanging in the balance you will probably see the SP range bound/possibly drift lower with the lack of news and opportunities elsewhere. BRM really need to have some concrete answers to the rail questions or else this is going down faster then the Hindenburg. 

I guess a positive would be if they could sign some offtake agreements...but I therein lies the rail question. As soon as an offtake agreement is signed then I guess you could say rail would be as good as done...

Long time to wait...


----------



## Sean K (18 April 2010)

JTLP said:


> This will probably wager on for years...why not spin your statement on its head and ask the question why BRM doesn't grow some balls and go it alone?



I'm not sure if that's feasable JTLP. If a major doesn't buy them (BHP should have but $1) then I think we'll find an offtake partner come on board to finance development and take the product on the cheap. This was quite possibly the biggest no brainer in the investment world at the bottom of the GFC. Should have made some people a lot of money!


----------



## JTLP (18 April 2010)

kennas said:


> I'm not sure if that's feasable JTLP. If a major doesn't buy them (BHP should have but $1) then I think we'll find an offtake partner come on board to finance development and take the product on the cheap. This was quite possibly the biggest no brainer in the investment world at the bottom of the GFC. Should have made some people a lot of money!




Hi Kennas,

Sorry I should rephrase that. I didn't mean BRM to raise money and try and pay for rail themselves...that would be crazy! I was referring to some sort of JV or offtake partner to build the rail with them...rather then waiting for the ACCC decision etc. I'm sure they are already doing this though...just wish they wouldn't wait for one to pan out before going through with the other. If they build their own rail its a few more years but it's a lot more haulage...


----------



## kpas (20 April 2010)

Well funny you should suggest that, BRM is now in a trading halt.

Quite possibly is going to be some sort of JV partner for rail.

Time will tell. Announcement should be released tomorrow morning.


----------



## Sean K (20 April 2010)

kpas said:


> Well funny you should suggest that, BRM is now in a trading halt.
> 
> Quite possibly is going to be some sort of JV partner for rail.
> 
> Time will tell. Announcement should be released tomorrow morning.



'A material business agreement'. 

Wish I was still in there.

Selling a while ago has cost me about 10ft off a yacht.


----------



## kpas (20 April 2010)

kennas said:


> 'A material business agreement'.
> 
> Wish I was still in there.
> 
> Selling a while ago has cost me about 10ft off a yacht.




That's the thing though, what is a material business agreement?

I got no idea.

Only thing I know is that BRM doesn't go into trading halt for fun, they only do it for large, price sensitive announcements.

So fingers crossed it is good news!


----------



## countryboy (20 April 2010)

only thing that worries me is the director selling last week. Maybe a substantial capital raising at $3. we will then see the SP drift back to that level.
To build a mine you need quite afew  million
To build a rail link and port you will need quite a few billion

I was nearly going to sell and chase some coal stocks...will wait till next week !


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## Pallen (21 April 2010)

Wouldnt worry about the director selling, these blokes have lives too, maybe he bought a house, boat, car whatever.

Things just got real, Brockman have signed MOU for an offtake agreement with Sino Steel to the tune of 6 Billion dollars, I think we are looking at a floor of $4.50 come the end of this week.

Thrilled with the progress over the last year.


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## kpas (21 April 2010)

http://www.theaustralian.com.au/business/story/0,1,27016264-643,00.html

That is over 12.5x the current market cap for only 10mtpa over 5 years.

Will be very interesting to see where the share price opens up this morning.



> Brockman seals $6bn ore deal with Sinosteel
> Sarah-Jane Tasker From: The Australian April 21, 2010 12:00AM
> Increase Text Size
> Decrease Text Size
> ...


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## basilio (21 April 2010)

Well that was an exciting little adventure today.

BRM opens at $4.00 plus (up 25cents)  on the strength of a couple of really big buys.(Obviously inspired by the Sinosteel announcement)  *And then proceeds to give up every cent over the next 4 hours!!* Obviously the right play was to have a juicy high sale at 10 am and then repurchase the shares after lunch.

Isn't hindsight wonderful?


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## JTLP (21 April 2010)

LOL!

Lead balloon they call this one.

I'm a holder but wasn't really expecting much from this MOU. After all...it's not concrete, no prices are set, ra ra ra. The financing aspect was positive but it wasn't a 12.5x market cap booster.

I did however think it would end in the green though! Flat for that sort of ann and a trading halt...what a waste. Maybe the director throwing down shares was a bit of a negative for sentiment...

Seems like there is more to this story then meets the eye...

DYOR


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## eddyeagle (21 April 2010)

I'm amazed that Brockman didnt finish higher with that announcement. I guess there is some profit taking going right now. 

This from AIR daily:

65 stocks in the ASX 300 have moved from short term uptrend to downtrend in the last 3 days giving you a bit of a clue that the trend is turning down. 


Also, do people think that having 50% of your ore going to one buyer adds an element of counterparty risk?


----------



## JTLP (21 April 2010)

eddyeagle said:


> I'm amazed that Brockman didnt finish higher with that announcement. I guess there is some profit taking going right now.
> 
> This from AIR daily:
> 
> ...




Not having a go at you eddy, but it's an MOU...so technically it's not going to anybody yet...just an understanding it will. That's probably why there wasn't a rise today. It's a nice MOU but it lacks a lot of detail...had they agreed to the sale of 50% of the ore at a set price then ppl could have done calcs and it would have rocketed. Until the rail comes it's more stagnation. 

As I said...an offtake agreement would seal the deal basically; an MOU leaves questions still.


----------



## kpas (26 May 2010)

I have googled for news articles trying to explain it, but would anyone care to explain the 21% increase in BRM today.

Could it possibly just be oversold & the indicators were pointing to buying back in on the punt that the selling has finished?

Ridiculous amount of buying in the final minutes of today's trading.

Surely it can't be the result of them saying that the tax won't effect them significantly (from the trading halt announcement).


----------



## outback (26 May 2010)

I have full confidence that it is all legit, and merely traders crystal ball gazing. The alternative explanation is just not possible.


----------



## sammy84 (26 May 2010)

Big buyer came in at 4.10pm buying nearly $1mil of shares at around a 15c premium to the previously traded price. Prior to that BRM was just micking FMGs rise, just on a higher beta.


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## kpas (27 May 2010)

sammy84 said:


> Big buyer came in at 4.10pm buying nearly $1mil of shares at around a 15c premium to the previously traded price. Prior to that BRM was just micking FMGs rise, just on a higher beta.




A couple of really big off screen buys today, one at a 10c premium to the market which went through at midday.

2.3$m in 1 hit.

So some seriously keen punters are getting on board.


----------



## sammy84 (15 June 2010)

$10.4m off screen buy at 12pm. 

Been watching these big purchases with great interest. A few very big buyers past months and for the rest not much activity.


----------



## kpas (21 June 2010)

An interesting point of contention is obviously when in the mining process the calculation of the RSPT is performed.

If it's done at the point where the ore is mined, in BRM's case where they have to go through the process of post-beneficiation to become "worthy of selling", it would provide a great advantage for the Marillana project.

Be interesting to see who the recent buyers were - still no trace of anyone becoming a large holder.


----------



## kpas (26 July 2010)

All quiet on the BRM front.

Looking for some news regarding the completion of the PFS (and the associated problems - ie, rail access agreement) in this week's quarterly announcement.


----------



## uvelocity (29 July 2010)

hello all,

part time lurker / first time poster here.... :

I hold a few of these and I hope I'm smart. Anyway....

Just got a letter about appointing Mr Barry Cusack as a non-executive chairman, with remuneration by way of fees and options anywhere between 3-5M with a 4 year expiry date, based on sp $3-$5.

For one financial year. Not bad work if you can get it? 

That's if I'm reading it right, which I think I am.

e&oe.


----------



## Sean K (29 July 2010)

uvelocity said:


> hello all,
> 
> part time lurker / first time poster here.... :
> 
> ...



Sorry, what are the details of the rem package? 

I do note that the initial Directors interest notice said 0 shares.

That normally troubles me.

Their cash position is slowly dwindling. Down to $85m, but still very handy. Nothing compared to the massive Capex required to get this up of course. 

Still big risk I think if China doesn't keep buying.


----------



## uvelocity (29 July 2010)

kennas said:


> Sorry, what are the details of the rem package?




750,000 options now, 750,000 options next year. Exercise price equals 30 day volume weighted avg prior to 23/8/10 of the sp.

plus 140k cash

options valued on binomial model taking into account 94% sp volatility based on 3-3.25 years.

Have to admit, I find it confusing.


----------



## kpas (12 September 2010)

DFS for Marillana is due sometime in the next 2-4 weeks - BRR alluded to it being released by end of September.

After that the major stepping stone will be a rail haulage agreement which is scheduled/anticipated to be finalised by December 2010.

So all things considered, the next 3 months will be a major turning point for BRM.

Anyone else still watching this thread or am I all alone?


----------



## YELNATS (12 September 2010)

kpas said:


> Anyone else still watching this thread or am I all alone?




Still vitally interested in BRM and hoping for more good tidings. Have been a major holder since the YML days - well "major" in terms of my own portfolio anyway.


----------



## Boggo (12 September 2010)

My weekly scan has picked it up as a potential candidate.

(click to expand)


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## kpas (17 September 2010)

Some good gains in the last 2 weeks - good to see for a change.

2 weeks left until DFS is due


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## shinobi346 (30 September 2010)

Feasibility study is out. Covers how much it will cost, possible transports routes and rough timeline of when they can get everything going. As a consequence of this the price goes south??? I hope this is because the study was already priced in.


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## Sean K (30 September 2010)

shinobi346 said:


> Feasibility study is out. Covers how much it will cost, possible transports routes and rough timeline of when they can get everything going. As a consequence of this the price goes south??? I hope this is because the study was already priced in.



Maybe the numbers were bad? I can't access info at the moment so can't comment. Or, yes, buy the rumour sell the fact perhaps.


----------



## sammy84 (30 September 2010)

My :

BRM can't be read of the daily charts alone. You need to pay close attention to it's intraday price action and associated volume. For me today was a bullish day. 

Today we hit a low of $3.53 but the volume taken to hit that low was nothing and we stayed sub $3.70 for very little time. I can recall at 5c drop happening on <$500 sell off. Price quickly shot back up and some big buyers entered in around the $1.70 mark. Have a look at the course of sales or the  intraday chart and see where the associated volumes are:

http://www.google.com/finance?chdnp...2&chddi=300&chls=CandleStick&q=ASX:BRM&ntsp=0

The last two month there has not been a great deal of selling conviction but some big buyers (refer to my early posts). I like BRM, just enforce your stop manually on this as people as playing silly buggers with BRM's price


----------



## JTLP (2 October 2010)

sammy84 said:


> My :
> 
> BRM can't be read of the daily charts alone. You need to pay close attention to it's intraday price action and associated volume. For me today was a bullish day.
> 
> ...




BRM still have the greatest hurdle of all...a rail deal. Without this they are useless. There seems to have been timeline blowouts and cost/transport changes...BRM better come clean and get a wriggle on.


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## kpas (5 October 2010)

JTLP said:


> BRM still have the greatest hurdle of all...a rail deal. Without this they are useless. There seems to have been timeline blowouts and cost/transport changes...BRM better come clean and get a wriggle on.




Agree. Although the DFS increased the NPV a considerable amount, I think that was already factored into the SP.

It shouldn't be discounted though, the DFS is a major step forward for BRM and is definitely the result of a lot of progress. It's just a little disappointing that the market still values BRM's deposit as dirt until it has a rail agreement in place.

It has to be finalised before they complete the BFS which is sometime in the 1st half of 2011 - so I guess anywhere from 6 to 9 months away.

Another long wait for shareholders.


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## kpas (8 October 2010)

Good to see that the MRRT has not dampened Wah Nam's buying spirit as they just took a massive slice and pushed past their previous 19.9% holding to 21%

Definitely a good sign for Brockman - means that we may be closer to a rail agreement then previously thought.

This could well provide the catalyst needed for BRM to become a takeover target. 

Anyone else remember what happened last year when the Chinese attempted to takeover UMC?


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## sammy84 (11 October 2010)

kpas said:


> Good to see that the MRRT has not dampened Wah Nam's buying spirit as they just took a massive slice and pushed past their previous 19.9% holding to 21%
> 
> Definitely a good sign for Brockman - means that we may be closer to a rail agreement then previously thought.
> 
> ...




The news that Wah Nam is still buying has seems to have gone under the radar. Looks like a creeping acquisition could be in play. 
A quick google of Wah nam also shows that they purchased a pretty big chuck of FerrAus, another Pilbara miner.


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## kpas (11 October 2010)

sammy84 said:


> The news that Wah Nam is still buying has seems to have gone under the radar. Looks like a creeping acquisition could be in play.
> A quick google of Wah nam also shows that they purchased a pretty big chuck of FerrAus, another Pilbara miner.




http://www.nwioa.com.au/

And of no real coincidence, they are both members of the NWIOA and have access to ~50mtpa of port berth

Definitely looks like they are setting themselves up for a takeover with access to port; there is potential there to build their own rail network and be completely separated from the rest of the market.


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## sammy84 (19 October 2010)

$1.2 mil buy today at $4. Could be Wah Nam topping up under the creep provisions?


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## sammy84 (25 October 2010)

sammy84 said:


> $1.2 mil buy today at $4. Could be Wah Nam topping up under the creep provisions?




Turns out I was right:
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01111960

Does anyone know the rules for topping up after 19.9% ownership is reached?


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## derty (26 October 2010)

sammy84 said:


> Turns out I was right:
> http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01111960
> 
> Does anyone know the rules for topping up after 19.9% ownership is reached?



I'm pretty sure if an entity wants to take a 20% or greater stake in a company they need to make an official takeover bid.


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## grace (26 October 2010)

derty said:


> I'm pretty sure if an entity wants to take a 20% or greater stake in a company they need to make an official takeover bid.




There are creeping provisions as well.  Can't find a link at present sorry.


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## noie (26 October 2010)

In Aus, is it not

10% declare your holdings, 
20% declare your interest

3% creep allowed each year.


ill find it now


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## noie (26 October 2010)

See the definition of "relevant interest" in sections 608 and 671B(7) of the Corporations Act 2001.

well that was harder than i thought....

http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/rg159.pdf/$file/rg159.pdf

and

http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ps171.pdf/$file/ps171.pdf


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## shinobi346 (26 October 2010)

They must think $4 is cheap to be buying so many at that price. Its good to see such confidence in BRM.


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## Sean K (26 October 2010)

shinobi346 said:


> They must think $4 is cheap to be buying so many at that price. Its good to see such confidence in BRM.



Plenty of companies have bought assets with a very long term plan, so keep that in mind. They may be thinking 10-15 years out, which normal investors do not. Hence the premiums often paid. This was an amazing investment 2 years ago, but now, I don't see too much upside for a few years until they get past construction and into development. I'm searching for the next BRM, sold off on panic with a great long term asset that will deliver a 500%+ gain.


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## shinobi346 (26 October 2010)

kennas said:


> I'm searching for the next BRM, sold off on panic with a great long term asset that will deliver a 500%+ gain.




I did the same thing as you Kennas. I made a little profit however felt bad soon afterward and bought back in. Unfortunately I couldnt aquire the same number of shares as I first had so my gain now isn't as large as it would have been. I'm searching for the next BRM too, in the time being however, this move by Wam Nam gives me the confidence to leave the "money" parked here.


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## YELNATS (8 November 2010)

BRM up massively again today to as high as $4.80 on continued low volume and no official news.

It does look as if something's in the wind.

BRM has been a terrific earner for my SMSF, not sure when and if to take profits, however.


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## barney (8 November 2010)

YELNATS said:


> BRM up massively again today to as high as $4.80 on continued low volume and no official news.
> 
> It does look as if something's in the wind.
> 
> BRM has been a terrific earner for my SMSF, not sure when and if to take profits, however.






shinobi346 said:


> I'm searching for the next BRM too,





I don't hold any BRM unfortunately, but well done to you guys. I do have its (hopefully) little brother from next door, DMA .... Not sure whether it will be the next BRM, but there are quite a few parallels between the two, and the comparative market caps of $630+ million verses $22 million makes it look very interesting.
Cheers.


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## Sean K (8 November 2010)

This and GIR (amongst others of course) have been absolutely champions post GFC panick sell off. Amazing gains for those that held on, or took the chance. This was an absolute no brainer when it was trading under cash, and I thought had run it's course back around 2 bucks. LOL


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## grace (9 November 2010)

kennas said:


> This and GIR (amongst others of course) have been absolutely champions post GFC panick sell off. Amazing gains for those that held on, or took the chance. This was an absolute no brainer when it was trading under cash, and I thought had run it's course back around 2 bucks. LOL




I did a too early sell too.  I just can't work out why GIR and BRM are going great guns, but FRS is not.  Of course, that is the one I kept. 

FRS has such a nice deposit and location. Last time I looked, FRS had a very low $ per tonne of DSO compared to others, and they just keep increasing the size.  Have I missed something???


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## shag (9 November 2010)

grace said:


> I did a too early sell too.  I just can't work out why GIR and BRM are going great guns, but FRS is not.  Of course, that is the one I kept.
> 
> FRS has such a nice deposit and location. Last time I looked, FRS had a very low $ per tonne of DSO compared to others, and they just keep increasing the size.  Have I missed something???




i have gir n frs, the only difference i know of is gir is a margin loaner, like brm
tho the increasing desposit gir has with its grt depths/thicknesses looks like its a company maker.
i think i've actually lost money on frs.....


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## countryboy (9 November 2010)

Im also struggling to understand why FRS is sitting at mid 80c and BRM continues to rise. Hold both but sold off half of BRM at 2.80...like kennas thought it had run its course and needed that rail deal to go to where it is now.

With a nickel target in its back pocket i am now going to sit and watch BRM as a rail deal should see it spike if it is someone elses capital

IO and coal takeovers have dug me out of the GFC


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## gordon2007 (11 November 2010)

Very interesting. News out this morning.

ASX Release: 11 November 2010
TAKEOVER OFFER FROM WAH NAM
Brockman Resources Limited (ASX: BRM – “Brockman” or “the Company”) advises that it has received a
conditional off-market takeover offer for all the shares in the Company that it does not already own from its major
shareholder, Hong Kong Stock Exchange-listed Wah Nam International Limited, through its wholly owned
Australian subsidiary Wah Nam International Australia Pty Ltd.


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## enigmatic (11 November 2010)

wow i didn't actually see that coming, is there anyone with a little bit more knowledge if this is a good thing, will it bring some of the big aussies to the table.


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## happytown (11 November 2010)

yes, 30 wah nam shares for every brm share

note that wah nam have also ann'd a t/o offer for FRS this morning at 6 wah nam shares per frs share


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## basilio (11 November 2010)

It looks like a very creative deal from wah nams point of view. By amalgamating the 2 junior miners they can create enough  size to warrant either another train line or real access to the BHP/RIO facilities. Look out for the other junior miners Atlas and co

On first looks the price offered for FRS is skinny. I think Grace's analysis suggests it is worth a tidy bit more than the nominal $1.30 a share.

Of course given that shareholders will be getting shares in the takeover company they should gain value from the overall development. Shouldn't they ?  

In theory of course yes. But is there a risk of transfer pricing deals which shift the profits to other players?  Not suggesting there is but I think it is a question worth asking.

Unfortunately I can't see how there will be any competition for the companies. Who else will put their hand up ? Maybe BHP will put in a spoiler bid ? (Crazy idea...)


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## YELNATS (13 November 2010)

basilio said:


> Unfortunately I can't see how there will be any competition for the companies. Who else will put their hand up ? Maybe BHP will put in a spoiler bid ? (Crazy idea...)




Can you expand a little on this Bas? What do mean by a spoiler bid? 

Are you thinking that someone like BHP would put in a bid with the sole purpose of making Wah Nam ultimately pay a higher price. Afterall if Wah Nam are to become a long term competitor of BHP, it would serve BHP's interests to hurt them as much as possible. And if Wah Nam didn't match or better BHP's price, BHP could always withdraw their offer if they were not serious about the takeover.


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## Sean K (13 November 2010)

I do have to question this Wa Nam mob. When I saw them come up on the register ages ago and did a little research to see their main investment was hiring cars out, I just didn't get it. How are they really going to do everything required to start mining iron ore in Australia? 

Maybe it's just an 'investment' and they are waiting for someone else to offer something so they can sell out having pumped the price a little?


----------



## grace (13 November 2010)

kennas said:


> I do have to question this Wa Nam mob. When I saw them come up on the register ages ago and did a little research to see their main investment was hiring cars out, I just didn't get it. How are they really going to do everything required to start mining iron ore in Australia?
> 
> Maybe it's just an 'investment' and they are waiting for someone else to offer something so they can sell out having pumped the price a little?




One of their main activities is investing in equities I thought, although I don't know too much about their transport business.  They say they will list over here on the ASX if the takeover is successful (well that is in the fine print of FRS).

Like you, I think they are a short-term investor and have other motives.  BRM's Managing Director Wayne Richards is the ex-chief of BHP's iron ore division (didn't he do well after BHP!).  

It would really surprise me if this is the only 'activity' on BRM and FRS.  FRS have other substancial shareholders other than Wah Nam.  Can't see them agreeing to it.  Well I hope not anyway.

This is a really bad time to receive a takeover offer for FRS as their PFS is just about to go out, and a new jorc upgrade any day (recent drills around that 60% Fe, sweet).  I think FRS would have been re-rated after that in any case.  BRM took off after PFS.

Anyway, fingers crossed for better times.

I think BRM is trading at about 60c per tonne at a guess, but this is average 40% Fe (a few costs there to upgrade).  FRS at about 50c but at about 55%+ Fe (only minimal costs there, all DSO).  BRM have their PFS and DFS, FRS are just about to.  It is all a timing thing unfortunately.


----------



## basilio (13 November 2010)

YELNATS said:


> Can you expand a little on this Bas? What do mean by a spoiler bid?
> 
> Are you thinking that someone like BHP would put in a bid with the sole purpose of making Wah Nam ultimately pay a higher price. Afterall if Wah Nam are to become a long term competitor of BHP, it would serve BHP's interests to hurt them as much as possible. And if Wah Nam didn't match or better BHP's price, BHP could always withdraw their offer if they were not serious about the takeover.




Certainly makes sense doesn't it ?  In another field for example we saw Channel 9 put in a very big bid for AFL footy rights which effectively forced 7 and 10 to  go that much higher. It is easily possible to pay too much for an asset and go broke in the process of developing it.

In industrial fields companies will pay a handsome price to buy out up and coming competitors to protect their margins. They might let the new company stay in business but it won't be a serious competitor any more.

The rise of competing iron ore sellers in Australia is not in BHP/RIO's interest unless they can come to some  *agreement* about market share and prices with the other players

It would be very interesting to know more about Wah nams origins. For instance how closely is it associated with the Chinese government or steel companies ? From either of of those perspectives having a direct interest in Australian iron ore development would be immeasurably valuable.


----------



## kpas (16 November 2010)

BRM management rejected the bid today - so either WN have to come back with a higher (maybe cash) offer.

I consider their offer very serious considering the 500 odd pages of documentation that they prepared.

Quite speculatively I suspect WN will resubmit with cash and higher price, then BRM will be looking to put pressure on BHP for a Rail JV or suffer the consequence of a Chinese iron ore exported capable of pushing 50mpta with the current port infrastructure.

We all remember what happened to UMC (with a much lower iron ore contract price) - BRM has to be worth more then $6.50/share on that basis alone.


----------



## shinobi346 (16 November 2010)

I hope wah nam fails on this and in getting FRS. I have no intention of holding shares in a limosine company and if in the event they succeed I will be cashing out my shares at the first chance. Having said this, I am glad wah nam has put in this offer because if BHP decides to come and play they will have no choice but to beat wah nams offer. And I would be surprised if BHP doesnt because their track is right there and resource at Milbarra continues into their land.


----------



## TheAbyss (18 November 2010)

shinobi346 said:


> I hope wah nam fails on this and in getting FRS. I have no intention of holding shares in a limosine company and if in the event they succeed I will be cashing out my shares at the first chance. Having said this, I am glad wah nam has put in this offer because if BHP decides to come and play they will have no choice but to beat wah nams offer. And I would be surprised if BHP doesnt because their track is right there and resource at Milbarra continues into their land.




Why would BHP buy BRM when they can earn a dollar (and maybe a % of the resource?) by renting out train and rail access to BRM without buying their resource? Same applies to AGO and FRS. Company making for BRM, AGO and FRS in that they are guaranteeing delivery to port for land locked assets but see no reason for BHP to buy them.


----------



## kpas (18 November 2010)

TheAbyss said:


> Why would BHP buy BRM when they can earn a dollar (and maybe a % of the resource?) by renting out train and rail access to BRM without buying their resource? Same applies to AGO and FRS. Company making for BRM, AGO and FRS in that they are guaranteeing delivery to port for land locked assets but see no reason for BHP to buy them.




Surely their motivation would be simply to maintain control over the duopoly that is iron ore in australia?


----------



## shinobi346 (19 November 2010)

TheAbyss said:


> Why would BHP buy BRM when they can earn a dollar (and maybe a % of the resource?) by renting out train and rail access to BRM without buying their resource? Same applies to AGO and FRS. Company making for BRM, AGO and FRS in that they are guaranteeing delivery to port for land locked assets but see no reason for BHP to buy them.




I don't think BHP likes renting out rail and track.

With AGO, BHP has no choice since the ACCC forced them in the middle of the year to open up the Goldsworthy railway line to third parties.

With FRS, BHP is playing hardball and threatening to take them to court if they try to force BHP's hand in opening up their railway line so no, I dont think BHP is more interested in renting out train and track than buying new assets. I'm not too familiar with where AGO and FRS' tenements are located but I think BRM being right next to and sharing BHPs iron ore resource would make it very attractive to them. If BHP were to build a spur line deeper into BRM territory it wouldnt cost them all that much and when BHP finishes mining their existing ore they could keep on going into BRMs land, without having to set up another mine, get in the labour/equipment etc. so theres a lot of synergy BHP could have by buying BRM.

I think the recent potash and rio tinto business has been kept BHP very busy or at least distracted from the juniors. Now with those things out of the way I think BHP will be more focused on this pesky alliance that dares to duplicate/barge into their rail line.


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## TheAbyss (19 November 2010)

Agree totally Shinobi

BHP do not want to share and will do whatever they can to avoid it. They have been instructed to so yes, AGO are in discussions however they are not signing a deal as yet.

Note that BHP straight away have stipulated some new rules for any other intending IO juniors looking for access which were not part of the initial instruction, JORC compliant BFS etc.

Long way to go and Goldsworty suits if BHP want to buy some time by giving at least one junior access and BHP dont need it anyway.

Still see no reason for BHP to be buying BRM, FRS or AGO though. I would like it but it wont happen which was my initial  point.

Again, if BRM and AGO secure some access then it will be a huge positive without doubt and perhaps Barry Cusack knows more than he is telling regarding an actual access deal (and maybe that is why the Limo company want a bite of BRM also).


----------



## kpas (22 November 2010)

I think the rail deal might be coming this week (or tomorrow).

Some very strange buying on the hammer today, over $6m traded in a very short space of time pushing BRM to an all time high.

The only explanation for this kind of buying has got to be a third party rail deal which is the final piece of the puzzle for BRM.

Can anyone explain it any other way?


----------



## kpas (22 November 2010)

kpas said:


> I think the rail deal might be coming this week (or tomorrow).
> 
> Some very strange buying on the hammer today, over $6m traded in a very short space of time pushing BRM to an all time high.
> 
> ...




Actually, the only other explanation I can think of is WN is buying up more because they are going to offer a higher premium (due to their previously rejected offer of $6.50 being history).

Either way, it is significant volume today for what appears to be no real reason!


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## countryboy (22 November 2010)

i also believe a rail deal or opening to existing lines is just around the corner given todays trading in the last hour.
really annoys that people are privy to this info and the asx will do nothing about it other than a pat on the back for "risky" buying
For me FRS are a huge buy at the moment with BHP announcing rail haulage will happen as they expand their tracks

The alliance will pay for this expansion guarranteed BRM FRs AGo etc


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## JTLP (23 November 2010)

Sold half of my BRM at $6.17 yesterday. Was quite a ride since 2008 and am most fortunate to be in this highly profitable position 

It looks like it has legs still and I would be interested to see who is buying up large parcels at such a high price. Somebody will reveal their hand soon..


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## TheAbyss (24 November 2010)

kpas said:


> Actually, the only other explanation I can think of is WN is buying up more because they are going to offer a higher premium (due to their previously rejected offer of $6.50 being history).
> 
> Either way, it is significant volume today for what appears to be no real reason!




Cant see it being WN, they are only offering scrip so far which is why i think the offer will fail.

More news in the wings and it will be out of china imo.


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## shinobi346 (7 December 2010)

The limosine company has launched an initial public offering on the Australian stock market today at 20c a share.

Someone please correct me where I am wrong here but when it is listed on the ASX, the company that mainly hires out limosines is offering 30 of these shares for every Brockman share. 30 of these equals $6.00. That is less than the $6.47 they said they were valuing Brockman shares at previously.


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## TheAbyss (7 December 2010)

shinobi346 said:


> The limosine company has launched an initial public offering on the Australian stock market today at 20c a share.
> 
> Someone please correct me where I am wrong here but when it is listed on the ASX, the company that mainly hires out limosines is offering 30 of these shares for every Brockman share. 30 of these equals $6.00. That is less than the $6.47 they said they were valuing Brockman shares at previously.




They offered Singapore listed shares which are valued at more than 20 cents


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## shinobi346 (7 December 2010)

Makes you wonder then why they're even bothering to list on the ASX if your holding gets moved to an overseas exchange.

I'm bearish about the australian dollar too but thats another thing...


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## shinobi346 (11 January 2011)

Takeover offer extended to the 16th of Feb. No surprises here they haven't got 90%. It gave the BRM sp a nice push today however.


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## shinobi346 (11 January 2011)

Brockman appeals against Wah Nam bid

    * David Fickling
    * From: Dow Jones Newswires
    * January 11, 2011 4:22PM

WAH Nam is acting in concert with other local companies in breach of Australian takeover law in its bid for Brockman Resources.

The Pilbara iron ore miner made the allegation against the Hong Kong investment company in an appeal to the country's takeovers watchdog.

The Takeovers Panel said that a submission from Brockman alleged "unacceptable circumstances" in the takeover application, and said that Wah Nam had acted in association with Leading Pride, Star Ray International, and Beach Road Shareholders to raise its effective voting stake above the level of Wah Nam's own holdings.

Officials at Wah Nam weren't immediately reachable for comment.

The Panel said that Brockman had asked it to prevent the three other companies from transferring their shares during the takeover period and to stop Wah Nam from declaring its offer unconditional. Brockman also sought orders demanding the divestment of shares acquired in breach of Australia's takeover law, the Panel said.

Start of sidebar. Skip to end of sidebar.

End of sidebar. Return to start of sidebar.

Wah Nam in November offered $930.6 million in a stock-based bid for Brockman and neighbouring iron ore developer Ferraus.

The company's major assets are a Hong Kong-and-mainland Chinese-based limousine company, its stakes in Brockman and FerrAus, and a copper mine in mainland China.

According to the company's 2009 annual report, it is controlled by Leading Highway, a company registered in the British Virgin Islands and wholly owned by Hong Kong toy manufacturer and investor Cheng Yung Pun.

http://www.theaustralian.com.au/bus...inst-wah-nam-bid/story-e6frg9df-1225985725830












It appears wahhhhh nam is resorting to dodgy practices to try and take over the company easily. May be if they made a more appealing offer people might take it up but who wants to trade a company with a flagship product with a company with a flagship product and two lacklustre ones. If a BRM holder wants FRS they can go buy shares in it themselves. Thats what I did. I don't need a wah nam-brm-frs gimmick to own shares in the two good ones out of those three.


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## kpas (27 January 2011)

shinobi346 said:


> Brockman appeals against Wah Nam bid
> 
> * David Fickling
> * From: Dow Jones Newswires
> ...




Take a look at what BCI has been valued at, translating their resource back to what BRM has and it is no surprise that as a long term holder of BRM I have been waiting a very long time for them to finalise rail infrastructure!

You can imagine how disapointed I would be to have them forcefully taken over for $6.50/share with a rail and port deal with FMG just days/weeks/months away.

Rail is the absolute key to BRM becoming a company, if they can't get FMG on board for whatever reason then it will be a significant set back to the market cap. If they can sign it and start making a profit off Marillana then they will easily be able to reinvest the profits from that mine into Duck Creek etc.

Don't forget they have like 20 other tenements which are unrealised potential. Once the first one is underway, they will definitely be able to develop the others. 

IMO, it is just a matter of being patient and waiting for ticks in the boxes. Trust me, after 4+ years it is almost there!


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## enigmatic (9 May 2011)

Not sure what is happening with this one, everyone seems to have lost interest and is hoping the take over doesn't however slowly but surely they are buying out BRM which has such a great project worth far more then the current offer. I just don't understand the ease of which this offer has been accepted.


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## YELNATS (9 May 2011)

enigmatic said:


> Not sure what is happening with this one, everyone seems to have lost interest and is hoping the take over doesn't however slowly but surely they are buying out BRM which has such a great project worth far more then the current offer. I just don't understand the ease of which this offer has been accepted.




BRM in a trading halt today pending an announcement concerning the Wah Nam attempted takeover. Wah Nam now has over 42% of BRM shares. It does look as though they are slowly wearing away at BRM's resistance. Also note that FRS who are also subject of a Wah Nam takeover bid, seems to be taking a softer line.

As per FRS May 5 announcement,

Quote
FerrAus is continuing to monitor and review Wah Nam’s offers for both FerrAus and Brockman and the Board *may reconsider its recommendation *in relation to the offer for FerrAus should circumstances change.
In particular, the level of acceptances for the Brockman offer is one of the important factors, as the Board considers there to be merit in combining the assets of FerrAus and Brockman
Unquote

(My underling/bolding)


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## dmc333 (10 May 2011)

It's worth understanding what has happened here. Wah Nam's associates have clearly warehoused shares on its behalf. At the time Wah Nam and their associates had a total of 39%. The associates had about 16%. Brockman went to the takeover panel without success on the matter.

The t/o panel, while not making a recommendation, suggested if that 16% all transferred into the bid they'd have to reconsider their position. Brockman's trading volume has been non existant since that point. Until in March and April there were 2 separate occasions where huge volume went though - strangely enough the volume traded in those periods equaled 16%. Then later in April Wah Nam starts getting a large amount of acceptances for their bid - all of the acceptances besides 0.15% have been from offshore - Hong Kong and Singapore.

The big suspicion is those associates have transferred their shares to new entities who quickly accepted the bid.


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## JTLP (10 May 2011)

I've written it before on the other site - holders got screwed by Wayne and his flogging of shares to WNH.

What did he think he would achieve selling substantial holdings to a limousine company? He was clearly putting his own interests first - and now holders are paying dearly for it. If he couldn't envisage something like this happening then he shouldn't be running a company.

This is a slow and painful death for BRM holders - i'm glad I sold out half my holdings and have the ability to ride a free carry (on the extremely slim chance they get out of jail on this one).


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## YELNATS (11 May 2011)

JTLP said:


> I've written it before on the other site - holders got screwed by Wayne and his flogging of shares to WNH.
> 
> What did he think he would achieve selling substantial holdings to a limousine company? He was clearly putting his own interests first - and now holders are paying dearly for it. If he couldn't envisage something like this happening then he shouldn't be running a company.
> 
> This is a slow and painful death for BRM holders - i'm glad I sold out half my holdings and have the ability to ride a free carry (on the extremely slim chance they get out of jail on this one).




A serious accusation, if you are referring to Wayne Richards, Managing Director and a member of the board of BRM, which is stenuously fighting this takeover.

What evidence do you have of this?


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## G-Zilla (11 May 2011)

YELNATS said:


> A serious accusation, if you are referring to Wayne Richards, Managing Director and a member of the board of BRM, which is stenuously fighting this takeover.
> 
> What evidence do you have of this?




I beleive WR has admitted in QandA previously and there were various announcements which confirmed the sale. I don't believe the take over was on the cards then and I believe he had no idea Wah Nam were going to pull this... I am a long time holder and WR has only been a man of integrity, its unfortunate he was taken advantage of like that.

On a side note I think any holders who accepted the Wah Nam offer are either insane or part of the Warehousing plot. I just hope ASIC actually can act in this case otherwise we will set a precedent and other companies will be targeted in the same way.


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## JTLP (11 May 2011)

YELNATS said:


> A serious accusation, if you are referring to Wayne Richards, Managing Director and a member of the board of BRM, which is stenuously fighting this takeover.
> 
> What evidence do you have of this?




Are you a long term holder? (This isn't meant to be rude).

If so, look back through the ann's when WR was selling at a premium to the market price to WNH - either $1M parcels or 1M shares - either way no small punt.

What advantage do you get out of having a limousine company on your share registry as a majority holder? What was he thinking at this point? His back pocket no doubt - and now it's bitten him back.

WNH look to have accelerated the 'warehousing' tactic though - jump in holdings by 3%. Smug CEO too - that letter irked me.

Yelnats I want this CO to succeed just as much as you - just don't look through rose coloured glasses. As i've said - i'm free carried so I mind but not to the extent other holders do...


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## countryboy (11 May 2011)

Im quite surprised whan nam have managed to get themselves to 45% or there abouts. They and if they have associates do have a line of reasonable credit despite this all scrip offer sounding like they are getting this company for free.
I sold half my holding some time ago and now need to re-evaluate what are a WN controlled company may add in value....and this is extreemely hard to do given the lack of knowledge about their team.

I am surprised the board have not offerred up 15% of the company to a white night- I guess there hard to find

How many times do we hear of placements going to "sophisticated investors" another way of describing it is giving shares to whoever we want.


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## enigmatic (12 May 2011)

Something dodgy is going on the share price has dropped 14% today.

BRM is a company that was seiously undervalued at the time of the offer now its just looking dirt cheap


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## papatee (12 May 2011)

enigmatic said:


> Something dodgy is going on the share price has dropped 14% today.
> 
> BRM is a company that was seiously undervalued at the time of the offer now its just looking dirt cheap




Latest announcement from the BRM board this afternoon almost suggests they are conceding a loss of control of the company is now inevitable!!

This is absolutely extraordinary stuff that the all-scrip offer which so many scoffed at when it was announced some time back from a taxi/limousine company with no substantive assets outside of their BRM/FRS stake now seems certain to succeed given wholesale acceptances of a small number of offshore holders in Sing & HK who are alleged to be associates of the bidder. 

I have to say the BRM board have been totally outmanouvered and made to look fools by the extremely cunning and ruthless game corporate play that WNI have pulled on them (and on us minority shareholders). 

I find myself wondering more and more what WNI's real goal is here and what other parties are standing behind them ???? I suspect however that the answers to these questions will not become apparant until the fat lady has well and truly sung, and probably far too late for the small shareholders like us.

. . . . as I said, quite extraordinary stuff !!!


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## countryboy (12 May 2011)

Todays announcements involves raising the white flag and i have to admit to being stunned . I intend to keep my shares for the moment and see if BRM ends up in the hands of a steel maker. If BRM can under WN control aim to make a profit for shareholders ,not much changes but if we are going to be onsold to a company that wants a cheap supply of IO I 'll be jumping ship,

In the 80s we had a number of companies under seige from corporate raiders who made it really difficult and put up a real fight. Bring back John Elliot ..he knew how to fight !


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## papatee (13 May 2011)

countryboy said:


> Todays announcements involves raising the white flag and i have to admit to being stunned . I intend to keep my shares for the moment and see if BRM ends up in the hands of a steel maker. If BRM can under WN control aim to make a profit for shareholders ,not much changes but if we are going to be onsold to a company that wants a cheap supply of IO I 'll be jumping ship,




I too will continue to hold at least until some further clarity emerges as to the final outcome and implications of this TO, however of the two scenarios you have mentioned above I very much fear the latter may well be on the cards unfortunately.


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## YELNATS (13 May 2011)

JTLP said:


> Are you a long term holder? (This isn't meant to be rude).
> 
> If so, look back through the ann's when WR was selling at a premium to the market price to WNH - either $1M parcels or 1M shares - either way no small punt.
> 
> ...




JLTP, I still hold some BRM and have been a holder since about mid-2007, when they were known as YML. I have been fantastically successful in investing in this company, so they owe me nothing, as I now hold only about 10% of the shares, at less than $1, I held at their peak. 

I was interested in increasing my holdings once again, but in view of the current malaise I'm half inclined to cut and run.

From what I can glean, I don't think WR or the rest of the board foresaw the threat that Wah Nam has become, I guess he just sold some of his shares at very good prices, the same thing that many of us have done, or would be very tempted to do at the time.


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## Risk Chaser (17 May 2011)

Wah Nam International Australia achieves control of BRM.

so does this mean the takeover will go ahead?


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## YELNATS (27 May 2011)

Risk Chaser said:


> Wah Nam International Australia achieves control of BRM.
> 
> so does this mean the takeover will go ahead?




I would say "yes", as they now have 53% of BRM.

I wonder what their real plans are - to run this company to realise its' full potential as a miner/exporter or to try to attract offers to flog it off at a profit. I suspect the latter, and because of the uncertainty about its' long term path, I have fully exited BRM.


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## Nero64 (27 June 2011)

This stock has fallen 35% over the last week and I don't think it is justified. 

Other sector related stocks such as BCI and Atlas have fallen 5-10%. 

Perhaps it is back where it started before the Wah Nam raid, but it has so much potential. 

Nothing has changed. It still has the same board and Management except allowing one Wah Nam representative. 

Is it panic selling or do they need funding for its Marillana mine?


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## skc (27 June 2011)

Nero64 said:


> This stock has fallen 35% over the last week and I don't think it is justified.
> 
> Other sector related stocks such as BCI and Atlas have fallen 5-10%.
> 
> ...




From early April, many iron ore stocks have been hammered...
BRM - $6.2 down to $2.8 = -55%
GRR - 78c down to 42c = -46%
SDL - 50c down to 30c = -40%
IOH - $1.8 down to $1.15 = -36%
MGX - $2.24 down to $1.65 = -26%
GBG - $1.15 down to $85c = -26%
AGO - $3.9 down to $3.3 = -15%
MMX - $1.2 down to ??? (45c out of suspension would be my guess)

With the exception of GRR, the producers in general has held up better than the prospectors...

With the AGO-FRS tie up today, Wah Nam has little chance of netting FRS and consolidating the assets. Perhaps investors fear that BRM will become even more stranded with WNI's holding killing the liquidity...


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## JTLP (18 September 2011)

This stock is pretty much out the door and out of flavour now. Wah Nam holding a majority of shares (whether legally or not is anybody's guess) and WR giving donuts on the rail front (in the making for 3 years apparently)...it would appear that this Iron Ore hopeful will remain that...a hopeful.

Perhaps an opportunistic bid from AGO of FMG might give it a bit of spark...but they could wait it out until the things hits a buck and then offer 2.

Thankfully I free carry but might sell the remainder in fear of nothing happening...


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## G-Zilla (19 September 2011)

well something happened today... board cleanout.

Im thinking rail negotiations were going nowhere and Wah Nam decided to take control. Based on the wording of their announcement I guess previous rail deals discussions were based around no JV while now the new team sees a JV as an option or bargaining tool.


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## countryboy (19 September 2011)

mr Luk does have some ability raising capital. his ?? hundred million move on Brm proves this. Its amazing how all these small holders (all under 5%)came together to get to 55% of BRM.
combine this with Dick from Broken Hill and his knowledge from hancock mining and we may be in a better position to move this project forward.

Wham bam will have some extra cash soon after they exit FRS


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## kpas (22 September 2011)

I agree, maybe a new board is what this company needed. Market definitely had no confidence left in the old one to deliver on it's rail promises and the two new additions definitely have experience in the right areas.

WN clearly have been capable of getting finance and or money as they have put >$400m into BRM already.

As long as they can continue to get that finance in the world markets and the new board gets things rolling, then quite possibly now is the time to be buying.

$2.50 is so cheap considering they were poised to clear $10 or maybe even higher once rail infrastructure was solidified. If world markets continue the way they are going it may even drop below $2 for the first time in a LONG time.

I'll continue to watch from sidelines.


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## Nero64 (21 October 2011)

kpas said:


> $2.50 is so cheap considering they were poised to clear $10 or maybe even higher once rail infrastructure was solidified. If world markets continue the way they are going it may even drop below $2 for the first time in a LONG time.




It hit $1.60 today. Yearly low. I remember it being a 1 -2M Volume traded stock and it would rush from $5 - $6 in a few days. I heard terms about it being a Mini Rio due to its diversification. 

I sold out today for a staggering loss. Rarely do I hold out as a long term buyer but with this one I did for some reason. The dream ended months ago with its wild fluctuations. When other speculators like KAR, PDN and LYC jumped this one didn't, the writing was on the wall. There was a glimmer of hope as it rushed to $2 from $1.68 but then it fell 20% in 6 days. 

I wouldn't be surprised seeing it go up now, but in a way I am glad to be rid of it. 

Good luck to those that still hold it.


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## kpas (25 October 2011)

Nero64 said:


> It hit $1.60 today. Yearly low. I remember it being a 1 -2M Volume traded stock and it would rush from $5 - $6 in a few days. I heard terms about it being a Mini Rio due to its diversification.
> 
> I sold out today for a staggering loss. Rarely do I hold out as a long term buyer but with this one I did for some reason. The dream ended months ago with its wild fluctuations. When other speculators like KAR, PDN and LYC jumped this one didn't, the writing was on the wall. There was a glimmer of hope as it rushed to $2 from $1.68 but then it fell 20% in 6 days.
> 
> ...




I share your sentiment although I am stubborn enough to sit and wait to see what Wah Nam will deliver in 2012.

They have >$400m invested as well, I do not think they will want to see that investment turn into $0 overnight.

That is the only reason I have not sold yet.


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## kpas (9 November 2011)

Interesting development just now - ASX price query has resulted in BRM CEO admitting that there is a potential corporate transaction underway for the ownership of the company.


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## mr. jeff (6 March 2012)

Would be worth watching for that level to be broken.






I know nothing of this stock , anyone add anything relevant to current situation ?


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## prawn_86 (6 March 2012)

wow hadn't looked at these guys for years. Talk about a fall from grace


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## JTLP (6 March 2012)

mr. jeff said:


> Would be worth watching for that level to be broken.
> 
> 
> View attachment 46317
> ...




Do not touch with a 10ft pole.

They are currently being 'taken over' by a limosuine company - who somehow managed to buy shares and warehouse them to their associates without coming under any scrutiny.

Only hold a free carry but will look to dump if they get above 80% acceptance (which 1% has come from AUS holders LOL)


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## uvelocity (20 March 2012)

the takeover offer supposedly is unconditional now, I guess better accept too.


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## dmc333 (20 March 2012)

I wouldn't be giving up just yet, lot of good information here

http://brmcollective.blogspot.com.au/

Also if you've been reading their announcements they've started talking about 90% as the goal where they previously were talking about 80%.


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## uvelocity (21 March 2012)

well I don't have much to lose, it was only a small amount I invested anyway.


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## countryboy (27 March 2012)

clicked on the wrong end of the thread and read one of my posts from 2007- we have come along way since then but unfortunately been treading water since this takeover.
My read on this is that Whan bam(whatever) want the whole company to then onsell to a joint partner from overseas. They dont have the capacity or the cash to develop this resource.
having bought Clouster coal and selling into the Noble offer at around $9 and then watching it jump as noble fell short of the 90% i think i Will wait this out,,,cripes 5 years already !


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## uvelocity (1 May 2012)

they keep sending out bits of paper don't they.


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## shinobi346 (7 May 2012)

They keep sending me spam even though I haven't been a member all year. You'd think they'd have access to the most up to date shareholder list or are they too cheap to get it?


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## uvelocity (14 June 2012)

over 90%, compulsory aquisition time. that's it I guess


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