This is just amazing!!!!!!!!!!!!!Decided to post before my shift starts, just to say that this is AMAZING!!!!! another story of a company meltdown and a great come back, just like URANIUM ONE, NOVAGOLD, MERCATOR MINERALS, TECK COMINKO and so many more!!!
Don't know how long this rally is gonna last, but for those who bought at the 30 cents level, are laughing all the way to the Bank by know, i bought in yesterday at 70 cents in my launch break and still holding just for a little while.
From Cannacord Morning Coffee:
Katanga Mining* (KAT : TSX : $1.07), Net Change: 0.50, % Change: 87.72%, Volume: 5,016,400
We like to think of it as orange gold. The Congolese government is expected to discuss the mining licenses that remain outstanding from its review of the sector at its fortnightly meeting next week. Questions concerning six of Congo’s most lucrative mining partnership deals remained unresolved after talks between government negotiators and company representatives broke down late last year. According to the Deputy Minister of Mines Victor Kasongo, proposals for projects from six companies have been rejected because they “didn’t meet the required terms of reference.” These terms include how the management of the projects is shared between miner and government, as well as environmental and community issues. Kasongo
indicated, “The state company is investing as well, and we need to ensure the terms for both sides are fair,” he said, adding he is “very confident an agreement will be reached very soon.” However, a report released just a few weeks ago suggested the review could take as long as six months, after which miners would lose their licenses if their revised proposals were turned down. The contract review was launched in early 2007 in an effort to boost the government’s stake in 61 agreements, most of which were signed during the chaos of a 1998-2003 war and a corruption-plagued post-war transitional government. The rationale behind the review is to restore Congo’s mining sector to its former glory. Katanga province, in Congo’s southeast, in particular is
potentially a huge economic driver. At their peak, its mines contributed 80% to the country’s gross domestic product, but output declined dramatically due to internal conflict and lack of reinvestment. The government started the review during the commodities boom, but after peaking at an all-time high of $8,940 a metric tonne in July, copper prices plummeted to lows on the London Metal Exchange below $3,000/tonne in December. The Congo holds an estimated 10-15% of the world’s copper reserves, with exploration expected to increase this figure to 20-25%.