Katanga Mining Ltd Ord KATFF

RE:Entry point

[DasuDasu1]

Slightly below $2 is more accurate. All commoditites were a bit hyped up at the beginning of the year.

The SP is stil depressed because people came to fully realize that Kat's minority shareholders are the only losers of this deal. The Congolese-owned Gecamine got to offload some of its debt and put it on Kat's balance sheet. Glencore doesn't care because it's debt owed to itself.

This finally showed plainly to everyone how equity holders in Kat can hope to be treated by Glencore. Glencore's plans since the beginning had been to accumulate Kat at fairly cheap valuations (because everyone is afraid of their controlling interest), and add high interest debt onto the joint-venture between Kat and Gecamine (Kamoto), of course owed to itself. When Gecamine saw through their scheme and requested that they remove the debt lest they dissolve the joint venture, Glencore just moved it to Kat's balance sheets. They never cared about Kat other than how to extract the most value out of its assets and shareholders, and they found that to be high yield debt.

Topdog thinks the Ontario Securities Commission is going to stop this madness and force Glencore to buy the remaining shareholders out, but I wouldn't count on it. Glencore knows how to play this game. They've been doing it for longer than you.

Add to this a few other negative news such as ongoing politicial instability in the Congo and Glencore being investigated for corruption, most likely involving Kat in some way or another.