The ongoing intersections of high grade mineralisation continues to add further value to Blackthorn Resources’ Kitumba Project.
Its expectation that an underground development could be more attractive than an open pit also bodes well, given the Scoping Study had concluded the project had positive economic potential.
With Blackthorn currently trading at close to 67% cash backing with cash of $28.6 million, or $0.174 per share, as of 31 March 2013 and a market capitalisation of $42.71 million and share price of $0.375, Proactive Investors considers the company to be undervalued considering the scale of its Mumbwa Project as well as the prospects of imminent zinc production from its 27.3% owned Perkoa project (Glencore 62.7%) in Burkina Faso.
The Perkoa project is expected to become operating cash flow positive during the fourth quarter of 2013.
With upcoming newsflow there are catalysts for re-rating.
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