OTCPK:KATFF - Post by User
Post by
Sogosohubidu201on Nov 06, 2018 8:01pm
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KAT Fundamentals don’t change with today’s PR
KAT Fundamentals don’t change with today’s PRAs pointed out by Credit Suisse analysts, the only material impact was the $25 million cost of the ion exchange system and revenues from cobalt sales were only being deferred. To remove trace amount of uranium by Ion Exchange is a proven technology. DRC will assist Glencore to obtain necessary permits to install such a System since DRC and Glencore are all in the same boat.
Don’t forget KAT is also a major copper producer at full production, the largest in Africa and one of 20 largest copper producers in the world. At full commission of the WOL project early next year, copper product alone should make KAT profitable from Q2 next year. So share price should recover well before the Ion Exchange System is installed.
Also this issue does not mean that KAT cannot sell any cobalt products to be produced. Katanga mine is a vast mine complex. Katanga had been produced cobalt for a long time and did not have uranium issue before. Apparently KAT hits the high uranium ore. After KAT finds out the location of high uranium ore, it can source the ore from other parts of the vast mine complex for production for the next 3 quarters before the Ion Exchange System is installed. So KAT can still check the cobalt products produced batch by batch, and only export those batches meeting the specs.