OTCPK:KATFF - Post by User
Comment by
patels96on Jun 19, 2018 10:13pm
108 Views
Post# 28196118
RE:RE:RE:Some people on both sides still don't understand the deal
RE:RE:RE:Some people on both sides still don't understand the dealIf you actually did some research you would know that they increased the stake from 74% to 87% in order to buy out Gertler's stake in KAT But...it looks like no one does any due diligence on this board, and keeps making uncertain guesses into what might happen. Given the recent news from GLEN this significantly de-risks KAT in DRC, but that news came at an unopportunistic time (aka in a cross fire with the escalating trade war). The trade war put significant downward pressure on commodity prices, and given that the potential tariffs on Chinese goods might slowdown the Chinese economy the commodities took a hit, especially Cu since China is a huge consumer of Cu. However, this is a short term noise as the outlook for Cu is quite rosy given the decline in grades in all major mines expect for DRC (might fetch a premium) and given that not new major Cu mine is expected to come online in the next 5-7 years making supply disruption a significant headache.