BRM - Brockman Resources
- Thread starter Crash
- Start date
-
- Tags
- brm brockman resources
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.
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.
- Joined
- 14 April 2007
- Posts
- 158
- Reactions
- 0
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.
- Joined
- 6 December 2007
- Posts
- 436
- Reactions
- 0
It is in a trading halt pending the release about a placement.
It is available to read on the second page of the announcement.
- Joined
- 30 April 2007
- Posts
- 195
- Reactions
- 1
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!
Ill take a punt on @ $2.50 Why? cause its a nice round figure!
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
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
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.
Patersons are doing a bookbuild of between $75M to $100M at discount of between 10% and 20%. Disappointing outcome IMHO.
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,
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
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
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.
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.
atma 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?
- Joined
- 11 January 2007
- Posts
- 791
- Reactions
- 1
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.
- Joined
- 4 December 2007
- Posts
- 9
- Reactions
- 0
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.
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.
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.
