BRM - Brockman Resources

[grace]

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]

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]

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]

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]

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]

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]

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]

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]

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) ?

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]

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]

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]

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]

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]

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]

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]

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]

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.

The broking house observed that the Marillana deposit was of insufficient scale to justify dedicated infrastructure and it was necessary for it to piggyback on existing networks in the region, which had so far remained closed to anyone outside of the BHP/Rio stranglehold. The BHP rail line runs through the lease, and Fortescue Metals Group's rail line is only 35km away. However, both are running flat out and are unlikely to accommodate a new player. A mine gate sale agreement could be an alternative.

"With one of the largest hematitic resources, albeit low-grade, of an ASX-listed iron ore junior, BRM appears undervalued compared to some of its peers. BRM is trading at $0.43 per tonne of shippable ore (550 million tonnes) compared to the sector average of $6.29 per tonne.

Clearly the uncertainty over infrastructure and the ability to successfully beneficiate what amounts to 95 per cent of the resource is justification for a discount," Southern Cross told clients.

Further resource upgrades, successful test work and progress with an infrastructure agreement should de-risk the concept and potentially support a re-rating. Southern Cross labelled BRM as a speculative high-risk/high-reward situation.

 

[Fed23]

why are they stating 500million tonnes?

BRM came out with 1.1Billion tonnes in march for Marillana

 

[grace]

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]

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.