BRM - Brockman Resources

[Sean K]

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]

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]

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

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]

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]

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]

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]

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]

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]

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]

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

Completion of a Favourable Pre-Feasibility Study for the Development of Multi-User Berths at Port Hedland

 Port Pre-Feasibility Study for the development of multi user berths and associated infrastructure at Port Hedland completed by North West Iron Ore Alliance (“NWIOA”)

 Study confirms viability and capability of development plans to accommodate NWIOA members’ projected 50 Mtpa of iron ore exports by 2013

 Major positive implications for the development of Brockman’s Marillana Iron Ore Project

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]

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]

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.



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..

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]

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]

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...

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
sampling has highlighted exploration targets* at Duck Creek with a combined
potential for 30 – 50 million tonnes of iron ore grading 56 – 59% Fe). Mineralisation forms discrete mesas of channel iron deposits (CID) 15-30m above the surrounding plains and so stripping ratios would be expected to be very low for the targets identified. Nine mesas containing ore grade CID mineralisation were identified during the sampling programme.

A total of 289 samples were collected, of which 109 returned results above 55%
Fe. These ore-grade assay results are comparable in geochemistry to the CID
mesas in the region (eg. the Red Hills CID deposits) with the average grades of iron (Fe), silica (SiO2) and alumina (Al2O3). being 57.3%, 4.87% and 3.21% respectively. With relatively high LOI (Loss-on-ignition) the calcined iron
grades within the target areas range from 61– 66% Fe.*
The Duck Creek results are highly encouraging, with the tenement shaping up as part of a potential second operation for the Company (after Marillana) in the West Pilbara
region of Western Australia. The Company expects to carry out confirmatory drill testing of the mesas as soon as the requisite approvals have been obtained.

 

[shinobi346]

Seems like BRM is riding the wave with the recent news of 100% increases in iron ore prices across the board.

 

[kpas]

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]

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.

The Australian Competition and Consumer Commission said yesterday the suspension would allow the companies time to answer a request for more information made on March 30. The ACCC was supposed to announce its findings on May 27.

Rio and BHP, the world's second-largest and third-largest iron ore exporters, plan to combine mines, railways, ports and workforces in Western Australia's Pilbara region in a 50:50 joint venture to save at least $10 billion. Steel makers in Europe and Asia oppose the deal.

The ACCC said last month it would study whether the venture and Rio de Janeiro-based Vale, the largest iron ore exporter, would have more ability to co-ordinate supply decisions.

South Korea's competition regulator plans to complete a review of the proposal in the second half of the year.

 

[JTLP]

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.

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]

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]

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...