Moz, I think non-Chinese financiers may not want to take on the risk of funding a junior whose port allocation could be reduced. I'm pretty sure the Chinese will fund it even if it means the prospect of reduced returns.
I think the Chinese might start viewing FMG the same as Rio and BHP, that is, an organisation that is stifling competition so as to continue extracting 'premium' rates for the iron ore. The Chinese are hell bent on breaking the domination of the big players.
Personally, I don't have a problem with FMG, Rio and BHP protecting their patch and I'm all in favour of the Chinese paying the highest amount possible for the iron ore, but realistcally, I see the Chinese moving in to defend what they see as their right to extract Australia's resources at a price they deem to be fair ie. cost of extraction and shipping - with no or minimal profit.
I'm pretty sure that WNI are prepared to let the port uncertainty further destablise BRM and thus lower the share price so that they can mop it up for less than what they're offering. Good luck to those holding out, I hope you are able to get the price you're seeking.
BRM Price at posting:
$2.47 Sentiment: None Disclosure: Not Held
