There are a number of factors that have us in this undesirable position SP wise. Number 1 for me is The Hammersley IronOre Project, and the dispute EQN is having with native title owners and Government departments.
IMO the setup put in place with EQN holding Hammersley was masterful and very well thought out. One can only imagine how the EQN SP would have risen and how cashed up BM8 would have been if Hammersley had been given the green light by the WA mines minister.
BM8 holds around 1/3rd ownership of EQN SOI
BM8 also has a agreement to receive a fixed royalty of USD$0.70 per metric ton
Early last year Hammersley would have easily fetched $100mill ++ Imo, thats only going from sales of smaller projects sold around that time.
Unfortunately as well thought out as that plan was, approvals have not yet come. This is not to say never, as EQN management still seem to think Hammersley is well and truly in play, so time will tell I guess.
But here we are, what we do I have no idea, but it may be up to the end of drill bit until we can hopefully get some good news out of one of EQNs very good projects.
Hammersley would be the game changer !
BM8 Price at posting:
6.1¢ Sentiment: Buy Disclosure: Held
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