Post by
DasuDasu1 on Jun 13, 2018 6:28pm
The deal involves transferring KCC's debt to Kat
+ A bunch a of one time payments. This is what the deal entails. Previously, KCC's debt was owned according to the respective stakes in KCC. Gecamine effectively transferred its portion of the refinanced KCC debt (25%) to Katanga. There is no way this is more positive for Katanga than the situation before the legal challenge by Gecamine. 1.20 to 1.45 is right where the SP should be if Kat was correctly valued at ~1.80 before the legal woes.
Comment by
patels96 on Jun 13, 2018 7:15pm
Again you are failing to notice that the debt is in an SPV related to KAT
Comment by
DasuDasu1 on Jun 13, 2018 8:11pm
It's transfered to Katanga Mining Finance Limited, a wholly owned subsidiary of Katanga. The debt is 100% theirs.
Comment by
Telmelcel on Jun 13, 2018 8:14pm
STRONG BULLS IN FULL CONTROL. :)))))
Comment by
DonDeanoMarco on Jun 13, 2018 8:08pm
I recall seeing the debt interest reduced from 10% to 7%. I will not try to pretend to know what the terms of the agreement means. I read the press release off their website, too much information missing to know exactly what is going on, very confusing.
Comment by
DasuDasu1 on Jun 13, 2018 8:14pm
The debt that's refinanced at 7% is the portion of the KCC debt that remains in KCC. Not all of KCC debt was transfered to Katanga, but about two thirds or so. That's still a positive for Katanga.