BRM - Brockman Resources

[dmc333]

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.

 

[Fed23]

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.

 

[Gspot]

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.

 

[DionM]

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.

 

[UPKA]

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...

 

[fEkuaR]

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]

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.

 

[alex arigo]

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

 

[Go Nuke]

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

 

[grace]

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

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.

 

[Go Nuke]

Im still holding too Grace but as i say an offer would have to be over $3 in order to make any money

 

[basilio]

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]

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]

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.. ??

 

[UPKA]

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.

 

[johnnyg]

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.

 

[basilio]

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....

 

[Gspot]

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.

 

[eric35]

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.

 

[acouch]

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