OTCPK:KATFF - Post by User
Comment by
DasuDasu1on Dec 25, 2019 10:14am
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Post# 30489734
RE:I do not understand this and cannot blame myself for this Q.
RE:I do not understand this and cannot blame myself for this Q.There was always a massive conflict of interest because KAT's debt has always been owed to Glencore. Glencore benefits from dilution at the lowest possible share price; the retail shareholders obviously don't. They engineered a mastermind move to get rid of those shareholders at the lowest possible price. This is anything but unexpected of Glencore if you know anything about their history.
Even now they kept a bit of debt at usurious interest rates to siphon all earnings back to Glencore if this mine ever makes a profit.
It's very hard to value this company if it keeps piling on debt. If it ever manages to stay afloat and be in the green, it's still hard to justify a premium over book value given how Glencore will try anything to screw over the retails whenever it sees an opportunity.