the true picture, page-7

I’m new to this company and for me it’s a bit of a speculative punt because I like copper (to my cost usually as the biggest resources seem to turn to shit in production). I didn’t factor in zinc when I bought, but I’ve just been reading through the recent history on the zinc project. Simplesimone seems to sum it up well, but there are still questions in my mind

From the Annual Report:

• In July 2012 there were plans to increase plant throughput capacity by 40% and boost mine output with open-cut mining to supplement the underground mine.
• Funding for the expansion was agreed to be provided via an additional US$40 million project finance facility to be made available by Glencore.
• During the year Glencore advised the Company that there would be a requirement for additional funding of approximately US$80 million for the expanded Perkoa Project, beyond the level originally expected.
• In August 2013, we were also advised by Glencore that due primarily to forecast delays in deliveries to the port and export sales, the project would require additional working capital in the order of US$30 million (Blackthorn Resources’ share approximately US$9 million). We are currently in discussion with Glencore on a range of funding alternatives to address this funding requirement.
• Then from the announcement in Feb 2014 shareholders were advised of the suspension of open pit operations.

I’m not usually a conspiracy theorist, but I have to ask, is the operator blithely incompetent, or is this all part of a deliberate to dilute the BTR interest in the project to zero?