Katanga Mining Ltd Ord KATFF

RE:RE:RE:RE:RE:RE:Finding its support

[springinhetveld]

sircharlesbarkl wrote: damn that sucks....my avg cost is 1.01.....thats pretty safe right?

Do not think that anything is really "safe" with this stock ATM. But I guess there will be some wild swings up and down in the coming days (at least until May 8) unless some news comes out. So you should have no problems getting out and even with a nice profit. But you will need some "cohones" and not be scared out of your shares at a loss at all the tree shaking and games and what not going on. But there is a chance that this will completely crash. Afterall we are talking about a 9b$ (and US$) debt which has to be resolved. And clearly DRC is not going to take on that debt. So Glencore will have to. But they will try to put as much as dept on DRC and others as they can. In KAT there is 13% "others", so not all the much to "play" with....

But then again we are talking about a cobalt mine which should produce 34.000 tonnes of Cobalt a year which currently sells for about 100.000 US$ a tonne. So a 3.4b$ revenue per year. With that a 9b$ debt is easily resolvable I would guess..... 

So I think the situation is just that Glencore has been cheating on the DRC but since there was not much revenue it did not matter all that much. Now that money will start flowing the DRC wakes up and says, wait 9b$ debt....no not with us. We want 25% of the revenues or we take 100% (and have to find an other miner to do the work but hey who would not want to get in, sure there are enough Chinese companies ready to jump in). So I think Glencore will (have to) take the debt itself and give DRC a significant share of the revenues (and that is fair). There will be enough revenue anyway for both!