OTCPK:KATFF - Post by User
Comment by
Sogosohubidu201on Oct 03, 2018 2:01pm
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Post# 28739015
RE:RE:Strange.....But still holding
RE:RE:Strange.....But still holdingDebt is definitelly manageable. Based on the projected EBITDA in 2019, 2020, and 2021, the ratio of KAT net debt to EBITDA is about 3 for 2019, 2 - 2.5 for 2020 and 1.5 for 2021, which should decrease very quickly.
The average capital intensity to build a copper mine in the mining industry is about $14,500 USD per ton of copper equivalent. KAT will have 300k tons of copper and 40k tons of cobalt capacity after the 2nd train is commissioned, which is about 700K tons of copper equivalent at the current copper and cobalt prices. The amount of capital required to build a 700k tons of copper mine is in average: 700k tons x $14,500 USD/ton = $10 billions USD, which is much higher than KAT total debt of around $6.2 billions. More importantly, tons of cash will be generated from next year that will be used to pay off debt very quickly.