Katanga Mining Ltd Ord KATFF

RE:Whats going on

[vad001]

I remember one lengendary investor saying that if you believe a commodity is going up, don't invest in the commodity, but the commodity producers (like the mining companies).   The reason is say you have a commodity that sells for .30 a pound.   The cost for producing that is .25 a pound, with a profit of .05.    But the commodity then moves from .30 to .35 a pound.    If you had bought the commodity, then you would be looking at an increase of 15%, but if you bought the company that mined it, they would be doubling their profits (from .05 to .10).   So the stock price for the mining stock should go up far more than the price of the commodity itself.     Katanga is not producing anything yet, but it will be by 4q this year.   The TA you should do would be against the value of the company once production begins, which one analyst shows it as around 3x it's current value.