Katanga Mining Ltd Ord KATFF

Any thoughts about the debt offer?

[stockhunter20001]

topdop,bigguy, others....can they swap debt with equity and wipe us out?

[Sogosohubidu201]

Don’t worry about it. Debts are due in 2021. By then KAT share price will be much higher than today’s price after a full year period that KAT is able to sell 300k tonnes of copper and 35k tonnes of cobalt at higher copper and cobalt prices as well as deliver super financial performance, over $1 billion free cash flow per year in 2020. It will be a good time for KAT to discuss debt payment

[Sogosohubidu201]

There will be several options available to handle the debts. Equity for debts swap is just one of the options, which is merely a speculation by Financial Time author. For example, several options may be available below: 1. Push the debts due day further from 2021 to 2025-2030 allowing Glencore to happily collect 6% interest on the debts while at the same time for KCC to pay off $500 millions

[stockhunter20001]

@Sogosohubidu201, how would option#3 "Buyout minority @$5" help in the debt case? Also, lets assume that the proposal is equity swap, what benefit will that give to DRC? And which equity we are talking about here? if KCC/KAT owns money to Glencore, it should give Glencore back equity in exchange for wiping out the debt right? Plus, why they need to wait till 2021 to have a deal?

[Sogosohubidu201]

The debts are due in 2021. KAT will not need to take any action on debts under its obligations with Glencore before 2021 except for discussion to handle the debts issue when they are due. If Glencore is going to buy out minority shareholders in 2021, Glencore will own 100% KAT and 75% KCC. It is between Glencore and Gecamines to handle KCC debts, of which Glencore and Gecamine always had the

[Sogosohubidu201]

After KCC pays off about $500 millions of debt per year from next year according to the agreement between Glencore and Gecamines, there will be extra cash available to pay Gecamines dividends, and the cash left over after paying Gecamines dividends will be on KAT financial book. How does KAT use this cash left over to pay off further Glencore debts considering the debts are due in 2021 or

[Sogosohubidu201]

Don’t forget that Glencore CEO said at Annual Shareholder Meeting a few days’ ago that the agreement between Glencore and Gecamines would allow KCC to pay off its Glencore debts ($3.46 billions in January last year and now around $4 billions) VERY EASILY (his words). To pay off the remaining about $2.6 billions of KAT debts to Glencore would not be difficult either.

[topdop]

Can everyone please kindly refrain from continuing to speculate that KAT might pay a divvy to its shareholders with the money that might be leftover after paying off Glencore. This speculation is reckless in that it is not based on any past fact or industry precedent: incredibly speculative mining companies like KAT involved in the business of building and developing out Capital assets, in

[Lech1988]

I have said this before and totally agree.  How anyone can think KAT will be paying dividends is idiotic at best.

[bigguy56]

Well, frankly yes they could. And I just loked t the balance sheet numbes and they are indeed cary, especially in tis world of high interes rates. SO what in the world was this stock doing at 2.50 not so long ago?? Simply optimism and speculation. THis stock has the power to go up as we have recently seen. It is not a dead stock, but one certainly has to have alot of patience, and a job. I think

[bigguy56]

just to follow up on what I am saying... At one time I owned about 90000 shares. I doubled down (and these shares are included in that total) between .60 and .72. I sold some at a profit in one of my smaller accounts. Believing that February was a seasonal high, I sold over half of my largest position at that time. Since then I have made about 3-4k with that money and KAT has fallen to where it is