"Only" an infill drilling result - but a impressive one. Is it a one off? No. Infill drilling have repeatedly delivered very good to exceptional drilling results. Coincidence? Probably not! Conclusion: At the least the core at Kitumba is really high grade and world class. Outlook: more drilling results to come. Catalysts for the one or other good or excellent announcement or even positive surprise.
So what is the problem here?
a) I think that some larger holders (funds!) are still forced to sell because the market cap or other criteria do not longer match the internal rules (e.g. market cap to low). So they wait for days with more volume (like today) to further reduce their positions. A part is profit taking by traders a part is forced selling by funds. My view.
b) As already mentioned in the last week I have the strong suspicion that the PFS has been released just because they were under time pressure and with the aim to met the deadline for the mining application. Under other cirumcstances the results of drilling phase 7 surely would have been included into the PFS. So if I am not completely wrong, then the updated PFS should results in better economics. Problem here: We have to wait another 3-4 months to see a results and nobody has an idea how the outcome will be (10 % better, 20 % better, 2 % ???). As long as the facts are not on the table BTR will move within a certain trading range...plaything in between of traders, good or bad news.
c) Perkoa must finally come on the ground. I will see the zinc be shipped and sold and the cash flow coming in. No further delays. This will also stabilize the SP.
I am waiting for the next drilling results and for the name of the new MD.
It is a shame how bad things went this year. Let's hope that 2013 was some king of bad gap year from a communications/marketing point of view.
It really seems that Buyitlow is right. BTR is heavily undervalued. I am still optimistic but also cautious at the same time. Let's wait for the things to come. Especially the updated PFS will be decisive for 2014.
BTR Price at posting:
30.7¢ Sentiment: Hold Disclosure: Held
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