The cash burn is at least interesting. However at this pace cash...

The cash burn is at least interesting. However at this pace cash is gone in roughly 2-3 years. It seems that they are rather focussing on Kitumba then on further exploration. It seems that the area is prospective but it is (so far it was!) difficult to find something substantial. Maybe we will be of the same opinion after the release of the optimized PFS.

It is somehow difficult to find the positive in the story…even for me. What keeps my hope alive is the following:

Optimized PFS Kitumba ahead with the chance to see substantially improved economics as a result. Question of days – in the worst case 2-3 weeks - wait and see what then will happen next. The PFS might chance the mid term view with regard to the future of the company.

Exploration: Analysis of data collected from the Down Hole Electro Magnetic (DHEM) survey that was conducted on eight drill holes within the Kitumba deposit in September 2013 was completed during the quarter. Indications from the survey suggest that EM can assist in locating other mineralisation zones around Kitumba (if they exist). A program for a Fixed Loop Electro Magnetic (FLEM) survey has been prepared for Kitumba and if successful will be continued at Kakozhi. This work will be conducted during Q2 CY2014.
For me that means that they are not just drilling around. Which is good news on the one hand but might also mean that besides Kitumba there is nothing. We will know probably in 2-3 months.

With regard to exploration potential please check the following interesting essay by M. Robertson during base metal conference in Africa last year:

http://www.saimm.co.za/Conferences/BM2013/001-Robertson.pdf

At least interesting in my view:
It is interesting to note that Kitumba remained a blind and undiscovered deposit until 2006, with no surface expression of copper mineralization. The nearest historical workings to the Kitumba deposit are located at Lou Lou, 1200 m to the east of Kitumba.
The discovery of the Kitumba deposit by Blackthorn Resources in 2006 has resulted in a new style of copper deposit being recognized in Zambia. Kitumba is regarded as an IOCG type deposit, with significant potential for the discovery of additional deposits within the region. This has sparked exploration interest by a number of companies who are now operating in the region.
Robertson is of the opinion that along the 26km long anomaly there should be more deposits similar to Kitumba (e.g. Kakozhi – which seems to be a different style of deposit an nearer to the surface).

Last but not least: 2,660,000 employee options were issued under the Company’s Employee Option Plan approved by shareholders on 31 August 2012, with an exercise price of $0.25 per option exercisable between 19 March 2017 and 31 May 2017, if the BTR share price is a least $0.75
(based on 30 day VWAP) on 19 March 2017.
So it seems that there is also in the view of the management a certain hope that the SP will recover during the next 3 years (which is a rather long time….).

…and just to make it clear: In general I have an optimistic view. In the case of BTR I think this will be not sufficient. We will need a lot of luck to see our money again (at least in my case).