Katanga Mining Ltd Ord KATFF

RE:1Q19 Results

[Sogosohubidu201]

Nothing is surprised about Q1 Financial Report. I knew that it was going to be weak: a loss of 9 cents per share, slightly better than the previous Q; operating cash flow of about $27 millions, but if working capital difference was included it was neutral; outside cash required was in capital investment, about $170 millions. From Q2 it is probably the beginning of the turning point of KAT financial for a long time. While it is still not profitable, but the loss would reduced significantly and the company may generate $150 millions operating cash flow. I am now thinking about 2 - 3 cents of loss per share for Q2, breakeven for Q3 and slightly profitable for Q4. For Q4, KAT may start to generate positive free cash flow. This means no more debt increase in Q4. KAT net debt should be reduced from Q1 next year and significant net debt reduction Q by Q into next year. I am starting to see the light at the end of tunnel and the light is getting bright going forward!