OTCPK:KATFF - Post by User
Comment by
springinhetveldon May 02, 2018 1:20pm
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Post# 27971177
RE:Nothing's For Free
RE:Nothing's For FreeSchiffKnowsBest wrote: Pigs are coming to the trough and the end result will likely mean KAT takes a haircut in their ownership of KCC. Like I mentioned, even if they lose 25% of their ownership this in no way shape or form equates to a 60% haircut that the shorters have driven this down to. Best case scenario Katanga holds their full ownership and we trade back up to $1.80 once Glencore resolves. A simple risk/reward equation at this point.
I think the 75%-25% will not be changed. But the 9b$ debt will be changed. So the debt of KCC will be reduced. But if I understand it correctly the debt is: KCC to KAT, and KAT to GLENCORE. So if Glencore voids the debt of KCC what effect will that have on the debt KAT has to Glencore?
I guess KAT will have to fully pay its debt back to Glencore and since it will not get it refunded by KCC this means that KAT will loose out. But this does not change much for KAT. It would have been paying back the debt based on 100% of the profits of KCC this now changes to 75% of the profits (if 100% of the debt is voided). So a significant change but with expected annual revenues at the 3b$ level this is nothing really major.
So if a deal is reached (which I expected) SP will go back up!