Katanga Mining Ltd Ord KATFF

RE:RE:RE:RE:RE:RE:RE:RE:RE:What's next for KAT?

[patels96]

@johnny54,


What I mean is that if you look at KAT's asset profile you will notice that all the mines (Kamoto UG, KOV Openpit, T-17, Katanga etc.) and its processing facilities (Kamoto concentrator, and Luilu) are all very close together and thus can save on costs associated with transportation. In addition, given higher ore grades at these mines the milling costs aka the majority of the cost will be low since, not as much ore needs to be processed to produce ~285ktpa of copper. Thus economies of scale are acheived at higher production, I wouldnt be surprised if KAT increase the production of copper to 400ktpa, I think given the concentration of the asset base, I think they can increase production while keeping per unit operational costs about the same or just slightly higher. In addition, costs around labour is saves, if you look at Chile and Peru, they have Labour Unions which try to maximize salaries paid to workers. I'm not trying to say that KAT should take advantage of the Congolese workers, but marginal benefit is better to the worker then nothing at all. 

The cost synergies created among the concentrated asset base, is quite enormous and can make KAT very profitable. Miners need to compete on a cost basis to be effective and effcient.

Best,
Katanga Shareholder