OTCPK:KATFF - Post by User
Comment by
Sogosohubidu201on Jan 08, 2020 12:38pm
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Post# 30531005
RE:Price reaction
RE:Price reactionCobalt price has been rising every day since the new year. With the Mutanda mine close, it is expected that cobalt price will continue rising this year. Next year it is highly possible for a big rise in cobalt price because of big shortage. Also with Mutanda closure, Glencore will start to sell Katanga's cobalt to long term contract buyers. With dryers back in operation, KAT is expected to sell 30k tonnes of cobalt this year. Together with 260k tonnes of salable copper this year, KAT should start deliver good earning and cash flow this year. This will be further increased significantly next year.
With above and there is a strong resistance at 0.13-0.15, KAT may be stuck at current price for a few months, but may rise above 0.15 from the 2nd half of this year and be traded in the 0.3-0.4 next year. Unfortunatelly, patient is still required.