BRM - Brockman Resources

[enigmatic]

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]

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]

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]

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]

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]

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?

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]

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]

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]

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]

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]

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]

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

 Development of the Marillana Project advances significantly with more than 86% of the Mineral Resource now classified as Measured and Indicated following successful 2009 in-fill drilling
 Measured and Indicated Resources include 1.327 billion tonnes of beneficiation feed hematite detrital mineralisation and 84.2Mt of CID (Channel Iron Deposit) mineralisation that does not require beneficiation
 Continuity of mineralisation provides improved confidence in resource definition and underpins ongoing project development
 16% increase in total Mineral Resource to 1.63 billion tonnes (vs 1.4 billion tonnes reported previously)
 Potential for an additional 150 – 250Mt of detrital mineralisation grading 39 – 43% Fe

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]

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]

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]

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]

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]

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.

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]

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]

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]

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%).