Katanga Mining Ltd Ord KATFF

RE:RE:A case for Buying

[Sogosohubidu201]

The answers to both of your questions are NO.  Historically, Glencore had been accursed for many wrong doings, but not for any of these cases Glencore had ever been convicted.  Glencore had been a very shrewd operator and always covered their butt in difficult business environment.  This time should not be different.  This investigation by US will take many years to complete since it involves with several countries.  Many at this board will be long gone.  Even Glencore is convicted this time, very unlikely, it will not have impact on Chinese companies who purchase cobalt and copper from Glencore for refining and consumption.  China consumes 50% copper and refines 90% cobalt of world production. Worst case, Glencore may get a fine from US Government.

The weakness in KAT share prices results from macro cobalt and copper markets, and from the one time expenses and delay sale of copper and cobalt that affected Q2 results.  This should change going forward.  Q3 produciton numbers are just about 2 months away. Anyone who buys at current price shall be happy.