Ann: Trading Halt , page-17

This is a summary from fatprophets and why they recommended their sell.....

We are disappointed by the fact that the company has again come to its shareholders for capital. We last updated on the company in December 2011 on the eve of an entitlement issue to shareholders at A1 cent to raise A$4 million.

We note the recent increase in the Kangaluwi resource to 45 million tonnes of ore showing 0.67% copper with contained copper metal of 300,000 tonnes. The resource is significant in size but the grade at less than 1% has improved little since Fat Prophets initiated coverage on the stock.

We have considered the Kangaluwi project to be highly prospective which has proven to be the case for ore. What has to date eluded the company in its exploration efforts at Kangaluwi is the grade. Operations that are potentially high tonnage and low grade in the current uncertain global environment are facing development hurdles. These hurdles include rising development costs, high operational costs and funding
We continue to maintain a positive view on the outlook for copper.

We note that the company is seeking expressions of interest in its Kangaluwi project and to this end has signed a number of confidentiality agreements. We expect the search for partners is as a result of the dilution impact that further share issues will have on existing shareholders and the shares on issue when fully diluted swelling toward three billion.    

With the company again calling on shareholders for capital we have changed our recommendation on Zambezi Resources to a sell. Members should sell at market. 

Must remember they took a big loss as they bought at 23c. Yes we are all losing on this one but I think long term it will be successful.