Have been watching BHR for the last few months as 2010 came to an end.
I was going to post on them early Dec 2010. However I got side-tracked with my Russian commitments.
BHR are a potential terrific little miner and are being tipped for great things through-out 2011 not least because RIO Tinto are rumoured to be sniffing around them. This has been gaining credence since Rio Tinto offered $16 per share for Riversdale who also operate in the same region. (Moatize basin)
The current trend suggests that the market are on their marks re’ BHR who may already be expecting a bid from Rio. The 30% coking coal could be the catalyst here.
But hiving the Rio possibility off for the time being investors need to look no further than BHR’s production capabilities. They are well-funded to increase production, estimated at 2 million tonnes per annum, the infrastructure is already in place and the Moatize basin is one of the last great coal plays still under-developed. Broker targets range from 55p up to 100p over this coming year. Much to high in my opinion. Better to add in to the mix expected rises in price per tonne for thermal coal and coking coal possibly up this year by 33% then you have a POTENTIAL sp rise over the coming weeks and months.
“Prices may increase to between $270 and $300 a metric ton, analysts from Macquarie Group Ltd., Morgan Stanley and Daiwa Capital Markets said. Steelmills agreed to pay $225 a ton for the three months starting Jan. 1, Bank of America Merrill Lynch analysts said last month.”
They are being widely tipped from many within the city and now could be the last chance before they really take off for serious investors to take a long hard look at BHR! They could hit 35p very shortly if the trend continues upwards any further news or whispers re’ Rio Tinto and they will fly!