I welcome others in drawing an accurate picture,its possible/likley I am bias.
Before the GST BTR (then AIM) raised the required amount to complete the Zinc mine at Perkoa.As a result of the GST the mine construction was put on hold.The money to complete the mine was spent gradually by management but not on the mine at Perkoa(no judgements here,just a statement of fact).So in theory but for increase in the costs for setting up the mine it could have cost around $50m plus to complete the mine.
Forward 5 or so years and Glencore Take over as major partner to complete the mine .The cost of completing the mine goes from $50m to around $300m.This includes an extra mill,an open cut component as well extra plant etc to improve overall efficiencies.As well we have a lead and silver components to the mine.
Forward a couple of years and the zinc mine developed by Glencore is not making money even when Zinc prices are relatively high.To stay profitable it must revert back to the original plan developed by Glencore with a single underground operation....no bells and whistles. Even the money spent on efficiencies does not show up in grades or quantities mined.
Is that a reasonable take on what has happened?
BTR Price at posting:
16.5¢ Sentiment: LT Buy Disclosure: Held
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