Katanga Mining Ltd Ord KATFF

RE:My rough estimates of earning and SP

[Sogosohubidu201]

Your interest calculation is incorrect because the amount of debt and interest rate are incorrect.  The new interest rate is 7% and the total debt KAT owed to Glencore is $3.77 billions for loan debt and $2.3 billions for customer pre-payments.  KCC debts and KAT debts are different.  KCC owed KAT for the debts while KAT owed Glencore for the debts. Some posters on this borard still don't know the difference between KCC and KAT balance sheets.  That is why they still talk about dilution, There is not any dilution for KAT shareholders from the settlement with Gecamines.

Interest for $3.77 billion loan in 2019 = 7% x $3.77 b = $264 millions
Interest for $2.3 billion customer prepayment = $19.53 millions x 4 = $78 millions
Total inetrest in 2019 = $264 millions + $78 millions = $342 millions

This is far below your $900 million interest calcuation

Last Q (Q1 2018) KAT paid $103 million interest cost becasue the high interest rate of 10% that is now 7% from the settlement