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Katanga Mining Ltd Ord KATFF

Metals & Mining Industrial Metals & Minerals
Katanga Mining Ltd, through its subsidiaries, is engaged in copper and cobalt production activities in the Democratic Republic of Congo (DRC). Specifically, the company explores and develops properties with potential copper and cobalt yields operate mining and processing facilities that produce copper and cobalt and holds a portfolio of other mines that may be developed in the future.


OTCPK:KATFF - Post by User

Katanga Mining Ltd Ord
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Post by run33on Apr 23, 2018 7:14pm
434 Views
Post# 27929338

I gave this some thought. A WIN for Glencore?

I gave this some thought. A WIN for Glencore? I've thought alot about this one. Glencore owns 86.3% of the outstanding shares of KAT. They also own most/all of the debt. If they convert their debt into equity, (for example, 4.3B shares at $1.00) then the enterprise value of the company would remain the same. What would change, is earnings per share. Isn't this situation actually a WIN for Glencore? They could basically convert their debt to equity at whatever price they felt like. Then, if they felt really greedy, which I'm sure they do, they could offer the remaining shareholders a nice "premium" on the remaining paper (which would be a joke seeing as how the stock just halved) and own the entire company.

Is this an inside job?

I own zero shares as of right now, but the steep price decline has me circling the wagon.


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