BRM - Brockman Resources

[MiningGuru]

Options on Issue
December 2008 8.0 million
October/December 2009 (employee) 0.775 million
July 2012 (employee) 3.0 million
November 2011 1.0 million
Total 12.775 million

As per the companies media presentation today.

hardly any at all.

Makes the company an absolute bargain still with 1.1 billion tonnes of ore

 

[pajm]

Let's smoke some cigars...........last sp $3. What a great ride today and let's hope she goes on for a little more while before the breather.

 

[Fed23]

I saw this on theage market movers and took no note of it at 11am, was working away. I should of brothered to read the announce... Well done to all those that bought up. Ill be keen to see what it opens up at

 

[derty]

Well I must say that, other than a small amount of creep before the ann, the lid was kept well closed on this one. A very nice surprise for the market. What an impressive upgrade!

I watched it take off and thought I had missed the boat, saw it had come back to $2.19 about lunch and thought about putting in a bid. Came back from lunch and it was $2.80! Picked up a small parcel at $2.79 and will see how that travels.

 

[agro]

Well I must say that, other than a small amount of creep before the ann, the lid was kept well closed on this one. A very nice surprise for the market. What an impressive upgrade!

I watched it take off and thought I had missed the boat, saw it had come back to $2.19 about lunch and thought about putting in a bid. Came back from lunch and it was $2.80! Picked up a small parcel at $2.79 and will see how that travels.

doubt it, a couple of days prior to the halt i noticed heaps of parcels going through 50,000 a pop..

anyhow,

The Australian

SUDDENLY, out of nowhere, a new leader has emerged.

That's right, Brockman Resources has made a well timed dash to split the pack of iron ore juniors and take the lead in the hotly contested sector.

In a group where Fortescue Metals is God, Brockman looms as Elvis and the rest of them are beginning to look like the Jamaican bobsled team - full of promise but likely to crash at the fourth corner, or make it to the end of the run years after everyone else has.

At the time of writing, Brockman shares had doubled ... scratch that, they're up 125 per cent now and moving forward.

It seems everyone missed the fact that Brockman was about to release a whopper of a resource for its Marillana project in the Pilbara, which borders ground held by both Rio Tinto and Fortescue Metals.

When the statement revealed Marillana was a 1.1 billion tonne resource, with 338 million tonnes in the indicated category, traders went mad for Brockman stock. That's more than the other iron ore hopefuls in WA can claim to have on their balance sheet, but, as we will detail later, you can't quite compare apples with apples.

But the interesting word is that the announcement has piqued the interest of a certain New York fund that is piling in and filling its boots. Could it be Harbert? The same mob which made a killing on backing Fortescue Metals?

We're not sure, but the offshore interest was hoovering up virtually all stock available.

There's also a well known Australian who Brockman boss Wayne Richards said is an absolute pleasure to have on the share registry, and who wants more of the stock.

They were also believed to be in the market yesterday, scooping up anything they could get their hands on. Apparently, the mystery person also took part in a placement of Brockman shares in November that raised around $9 million, but the company never released details of who took stock.

There's not too much Brockman scrip around, with the top 25 holders controlling about 50 per cent of the company.

Anyway, back to the resource.

The low-grade hematite can be upgraded to around 59.5 per cent iron through beneficiation. There is a small pod of direct ship material, but let's discount that for the moment.

The company's initial testwork showed it would have to move around 1 billion tonnes of dirt to yield 550 million tonnes of marketable product. That's a whopping big bill right there.

One analyst told Daily Assay that that would mean Brockman's ore would be some of the most expensive to recover in the Pilbara, at around $35 a tonne, and double the cost of BHP and Fortescue ore.

Also of note is the high alumina content for the ore, which is in tenements near the Hammersley Ranges and about 30km from Fortescue's Cloud Break operations. But the good thing about the stuff is that it is a free dig and doesn't need blast and shovel help.

It is with Fortescue that Brockman will probably need to execute some kind of agreement to process its ore, if it ends up seeking a blending partner.

Also, there is no guarantee yet that BHP would come to the party and transport Brockman ore on its rolling stock.

But this won't stop the Chinese from continuing to knock on Richards' door and for Richards himself to try and lock in customers and access to infrastructure.

At the moment, the company wants to start production in 2011 at perhaps around 10 million tonnes per annum. Who knows what the price of iron ore will be in three years?

But for the time being, Brockman will continue to push forward with more metallurgical testwork and combine both a pre-feasibility study with a feasibility study, given that it has already done a lot of hard work on the plant design.

And maybe there�ll be a celebratory drink or two this week, while it takes its turn as the market darling of the moment.

 

[Rocket man]

BIG DAY .. I sold at the end of day but I get the distinct feeling I made a mistake there ... .. it will jump out of blocks tomorrow IMO

Just mention the words 1 BILLION TONNES IRON ORE and market goes crazy ...

 

[JTLP]

Hmmm interesting day.

It died at the end of the day though. From 3.20 close to 3.00 pre open.

Still, 150% rise in a day


Tomorrow should be interesting as to see if anybody takes out a substantial holding etc (as per that article).

Could BRM have a MAK style run on these results?:

 

[kpas]

Hmmm interesting day.

It died at the end of the day though. From 3.20 close to 3.00 pre open.

Still, 150% rise in a day


Tomorrow should be interesting as to see if anybody takes out a substantial holding etc (as per that article).

Could BRM have a MAK style run on these results?:

I am very keen to see what happens at open. Naturally you can understand people wanting to take profits at the end of today - but looking back at what FDL did I did not sell.

I will see how things pan out in the morning however I am quietly confident based on the huge amount of ore + massive buying today that we'll have some decent SP action sometime tomorrow (if that is at open or sometime later in the day I don't know).

Congrats to all that have held throughout the last little while, it has been quite a rough ride for some to see all their profits dry up and reappear and dry up and reappear.

Hopefully it holds it's head well above $3 while the infrastructure is sorted out.

 

[pk_wasp]

I actually bought this one a while ago for a cobalt and nickel play, still waiting news for that. Cobalt prices have been going up too.

 

[YOUNG_TRADER]

Could BRM have a MAK style run on these results?:

JTLP this stock was 15c when I found it about 12 months ago, its now $3 = 20 Bagger, so MAK "style run", I think its already had one,

Thats not to say it won't go higher, just stating the fact that it has gone up 2000% in 12months and 300% in the last few days,

It brings me so much joy to see YML (BRM) all grown up as a company

 

[Snakey]

JTLP this stock was 15c when I found it about 12 months ago, its now $3 = 20 Bagger, so MAK "style run", I think its already had one,

Thats not to say it won't go higher, just stating the fact that it has gone up 2000% in 12months and 300% in the last few days,

It brings me so much joy to see YML (BRM) all grown up as a company

Dont tell me you've sold out YT. JORC resource @ 500000 million tonnes of ore say conservatively at 1 buck a tonne = share price $6.00 if im not wrong. Please pull apart my theory, but remember its location...nice neighbors... remember FDL they've got nice neighbors.

 

[Snakey]

Hmmm interesting day.

It died at the end of the day though. From 3.20 close to 3.00 pre open.
:

Very healthy close IMO ....Only 7-8% down of the days high always will have some end of day profit takers...Nothing to worry about there IMO.I just got back from golf ...bought as many as I could at lunch before playing. This thing needs time to go to value. I had no problem going of to golf. Tomorrow another good day for holders IMO

Its not cooked yet IMO.

 

[michael_selway]

JTLP this stock was 15c when I found it about 12 months ago, its now $3 = 20 Bagger, so MAK "style run", I think its already had one,

Thats not to say it won't go higher, just stating the fact that it has gone up 2000% in 12months and 300% in the last few days,

It brings me so much joy to see YML (BRM) all grown up as a company

Yeah this one has done well

YT do u think it can increase its production rate at much higher than 10mtpa?

thx

MS

• Total JORC Compliant resource estimate of +1.1 billion tonnes of haematite
(Channel Iron Deposit and detrital) mineralisation.
• Includes 338 million tonnes of Indicated Resources within North-West
alone.
• Beneficiation test work confirms that detrital mineralisation can be upgraded
+59% Fe.
• Potential for +550Mt of Final Product grading 57.5-59.8% Fe.
• Positive initial results from Scoping Study on potential 10Mtpa operation.

 

[johnnyg]

This thread comes to mind in regards to BRM and possible potential in a few years time ---> https://www.aussiestockforums.com/forums/showthread.php?t=7196&highlight=turn+$5000

 

[grace]

The candle looks good today.....closing near high. Seems to be plenty of strength in that. Hopefully MD doing the rounds in eastern australia will keep the talk going...and a few news stories in the papers tomorrow..

 

[pajm]

Article from online 'Age' newspaper tonight

Shares in iron ore explorer Brockman Resources Ltd skyrocketed on news it has increased the resource estimate for its wholly owned Marillana project in Western Australia's Pilbara almost tenfold to 1.1 billion tonnes of iron ore.

The company's shares closed at $1.87 or 165.49 per cent higher at $3.00 after hitting $3.21 in intraday trade.

The resource is compliant with Australia's mineral reporting standard, JORC and comprises channel iron deposits with grades ranging from 55 to 60 per cent iron as well as detrital ore with grades ranging from 40 to 62 per cent iron.

Managing director Wayne Richards said the resource inventory was based on three deposits within the project area, 100 kilometres north of Newman.

The initial indicated resource announced last year, based on one deposit, was 43.5 million tonnes grading 57.6 per cent iron.

Mr Richards said the upgraded resource significantly exceeded the company's previously announced target to confirm a mineralisation potential of at least 100 million tonnes.

"This gives us great confidence that Marillana has the potential to develop as a world-class iron ore project capable of producing ore as a direct shippable ore (DSO) product with an average grade of over 59 per cent iron," he said.

A scoping study is underway for a potential 10 million tonne per annum DSO operation.

The Marillana project is near BHP Billiton Ltd's Yandi mine and Rio Tinto Ltd's Yandicoogina mine. On the other side of the Fortescue Rive lies Fortescue Metals Group Ltd's Cloudbreak project.

DJ Carmichael resource analyst James Wilson said the market had been "blown away" by the resource upgrade, not realising Brockman was sitting on such a large, JORC-compliant resource.

"Out of one billion tonnes, 499 million tonnes is DSO product ... so its a big deal," he said.

Mr Wilson said getting transport costs right would be the key to the Marillana project's success.

He said Mr Richards had previously held roles with BHP Billiton and at Andrew Forrest's former vehicle Anaconda Nickel.

"He's very advanced in negotiating offtake, I believe," Mr Wilson said.

"My worry with the detritals, if it's said to be upgradeable to 59 per cent iron, is how much silica and how much alumina (contamination) is in that?

"High levels of contaminants would be hard to get rid of.

"But if it has low levels of contaminants, it's game on and it (the share price) will rocket once people recognise the fundamental value in the details."

Industry observers expect iron ore prices to rise another 30 per cent next year on top of the 70 per cent increase expected this year.

 

[DionM]

Well well well.

YML (now BRM) was one of my first ever spec plays. I have a small parcel I bought at 30c (about $1000 worth - told you it was small!). I think I'll be happy to let this little one just run, there's no way I'll lose any money on it at all I think. Sure it'll probably fall from $3 (as it has done in the past, though on slightly less significant news) ...

Pity I didn't buy a bigger parcel! Oh well, it's a nice little profit so far and one to sit on for a few more years I'd say!

 

[grace]

Trying to put a value on this one is quite hard.

If 500 million tonne is either DSO or can be upgraded to DSO then it should be at least worth $500 million ($1/tonne).

At closing of $3 MC = $241 million yesterday.

Could easily go to double, but I don't think it will.

 

[Fed23]

It's dipped 24% today, I'm going to assume profit takers have sold out.

Did anyone sell out today?

 

[kpas]

It's dipped 24% today, I'm going to assume profit takers have sold out.

Did anyone sell out today?

While I wish I had sold at $3 and bought back in this morning at 2.25 or whatever, I still haven't sold.

Personally I can see it going higher - scoping study will stir up more interest and if they can organise infrastructure in the next few months it will go up as well.

Next 6 months will be interesting.