Well...as already mentioned here UBS released a buy yesterday with a price target of 39 cents.
Main catalysts were the higher long term zinc and price forecasts of UBS with the according impact on the economics of Perkoa. Obviously the buy was released before today announcement and therefore is not worth the paper.
They still recommend a wait and see approach. Especially what Kitumba is concerned. In there view moving some of the key project variables (grade, recovery & capex) could have a potentially significant positive impact on the project economics. As we know results should be known by April 2014.
The valuation was set at 97 cent per share (NPV) but to reflectfinancing risk for Perkoa and development uncertainty at Kitumba price target was set at 0.4x NPV (= 39 cents).
I guess that UBS will deliver an additional update within the next days (or end of March at the latest)to reflect the newest development
BTR Price at posting:
17.0¢ Sentiment: None Disclosure: Held
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