Katanga Mining Ltd Ord KATFF

KBLT CEO predicts the rebound of cobalt price this year

[Sogosohubidu201]

https://www.youtube.com/watch?v=VMxWRzQuILY&feature=youtu.be

CEO of Cobalt 27 predicts the rebound of cobalt price with the current cobalt price of $15 per pound ($33,000 per tonne) and rise to $25 per pound ($55,000 per tonne) for the remaining of this year.  He thinks that cobalt price ceiling is around $30 per pound ($66,000 per tonne) near term.

[SAM1492]

With this analysis if correct where do you see the stock at years end? There has been so much negetavie news it’s food to see a light at the end of this dark tunnel... 

[Lech1988]

KAT is dead money this year. If you have a 2-3 year investment horizon and can stomach the vol these levels are very very attractive to get in at.  Without Cobalt the company simply is not profitable.  Only brightside is that Glencore will hopefully be off-taking the cobalt at higher prices next year. 

[johnny54]

to a certian degree one would have to think that the cobalt being stored has to somewhat already be weighed into SP as future earnings No? i dont believe just because its being stored that the market justs acts as if it is non existent? 

[Sogosohubidu201]

No, it is not priced in in my view.  Your assumption will be correct if we have efficient maket for KAT and if we have institutional investors.  We don't.  We have mainly retail investors and traders who take the float shares.  Many of them would buy if it rises and sells if it drops regardless of future prospects.

[johnny54]

so if this is the case, how does us achieving the levels and targets projected change the fact that those are the players we have for this stock?

[Lech1988]

A stock that is generating large and sustainable free cashflow is much harder to ignore.

[Sogosohubidu201]

Institutional investors will come and KAT share price will reflect its intrinsic value (i.e. $17 billions USD NPV including sunk costs) when we enter next year: (1) KAT to generate huge amount of free cash flow and earnings, (2) share price above $3 to remove KAT from penny stock status, (3) KAT to pay dividend, possibly from 2021.

[Lech1988]

No chance KAT pays a dividend while there is several billion dollars of debt outstanding to Glencore...

[topdop]

Yes, I agree. But sorry Nelson, thqis company is a GLEN controlled vehicle solely maintained for the purpose of controlling the supply and the price and therefore the trading opportunity of Co, and here's the kicker; not for your benefit, but for theirs*. * note I am also a GLEN shareholder. Absolutely zero KAT exec management attention is being paid to you (and me), nevermind into endeavors

[Sogosohubidu201]

@topdop, @lech. Good to see three of us still here, hahaha.  The issue of trace uranium in cobalt not only delay good earning quarter for 4 quarters, but also artificially increased costs for Q4 2018 and will increase the costs for this year because the company would needs to make provisions for it.  If not for this, copper product alone at full capacity may make the company profitable

[bobsacramento]

How much of this for instance can be regulated by the TSX? If the company is not working in the interest of all of its shareholders don’t they risk being penalized by the TSX?

[Lech1988]

If say KAT does unload all its Cobalt in 1Q next year (and that is a big if...) and ongoing cobalt production/sales remains on schedule there should most definitely be positive and sizeable EPS as soon as this sale happens. You don't think finally returning to profitablity will get KAT moving again? Personally for me its always a case of "show me the money" and this does seem to be

[Sogosohubidu201]

@Sam.  If cobalt price rises to $55,000 per tonne as expected by KBLT CEO for the remaining of this year, we have a trade deal between US and China, continue rising in copper price as expected, and all the permits obtained by March 11 to install Ion Exchange System and commissioned by October 1 per KAT Q4 report,  I see that the share price of KAT may rise to above $1 range by the year