Katanga Mining Ltd Ord KATFF

Q3 Production and Earning Reports

[Sogosohubidu201]

Q3 production report will be out the end of next month and earning report out early November

Q3 should be far better than Q2 because Q2 was affected by one time charges, higher inetrest charge and delay in the product sale.  In the first half of this year, KAT produced 63,292 tons of copper and 2,954 tons of cobalt, respectively.  In order to meet the company guidance of 150k tons of copper and 11k tons cobaly this year, KAT may produce 86,708 tonms of copper and 8,046 tons of cobalt in the 2nd half of this year. On average KAT may produce 43k tons of copper and 4k tons of cobalt in Q3, or 31% higher copper volume and 65% higher cobalt volume than Q2 numbers. If the sale volumes are similar to the production volumes (big if), KAT may show positive earning, around 3 - 5 cents per share probably even at lower copper and cobalt price. But the big story is next year and in 2020 when copper and cobalt volumes double and triple while total operational expenditures barely increase, resulting in explosive earning numbers.