RE:RE:RE:Combining our Minority Shareholder Interests
@patels96 sorry to be a downer, but I think you may be misguided.
You state "I believe once we are in full capacity, we should be getting Analyst coverage".
No, there won't. In point of fact, nothing could be further from the truth. Why? Allow me to enlighten you as to how, exactly, The City (London) & Bay Street (Toronto) & Mining Corporate Finance works.
These Banks and Brokers survive principally in four ways:
(1) Either a private Company is "coming to market" via an RTO or an IPO and needs a Sponsor Broker (= commission $);
(2) An established publicly listed company requires some kind of Financing (= commission $);
(3) A publicly listed company wants to grow via M & A or wants to sell "non-core" assets (see what Barrick & Randgold are about to do - its already rumoured that Lumwana in Zambia is on the block)(= Advisory Fees and commission $); and
(4) A Trading Desk at the Mining Bank and/or Broker has an affinity and/or a specialty in trading your company's type of stock on its Trading Floor and/or through sponsored Roadshows to see Institutional Clients and Shareholders. (= commission $).
So simply put, to work with Mining Bank or Broker, I hope you can see that they will only ever really play ball if you "Pay the Street". You have to bring one, two, three, or all four of those things to the table.
For a Mining Bank and/or Broker to initiate coverage on a company takes a certain commitment and costs them money. Sometimes lots of money. They have to choose you over, say, First Quantum, or Lundin Mining or whoever and they will make their own minds up whether they think your company will participate in any of those 4 points above. Ultimately its their choice and its all done to "get paid".
From the company's perspective, it also takes an immense amount of time, money and effort to engage The Street. But if a company thinks they will participate in one or more of those points, thay will determine its worthwhile putting in the work
Simply put, KAT has absolutely no (zero) senior executive capability to do this dance and engage with The Street. They are 86% controlled by Glencore and do EXACTLY WHAT GLENCORE TELLS THEM TO DO.
If they require anything, the call goes to Glencore. That's just a reality.
And I'm sorry, but with that overhanging our issue, no Mining Bank or Broker is going to go near us as we're simply not set up to participate, publicly and openly, in the 4 categories above. KAT doesn't care to create liquidity in our issue. KAT doesn't care to do Conference Calls and engage with The Street. KAT is NEVER GOING TO GO to London, Frankfurt, Hong Kong, Paris, Toronto, Sydney, New York etc. etc on roadshows seeing Institutional Shareholders. Outside of the above, the one or two of them who are very well known and highly regarded like Evy Hambro and Rick Rule, are the types of individuals who have Zug, or Baar, Switzerland, on speed dial anyway...
So we're stuck with our lot; that being the growth of Cobalt and EV and hopefully with Glencore's widely know prowess as Operators and Traders, we'll finally be ascribed a much higher rating. That's it.
Or they buy us and be done with it all.
These are my views only. Thanks for reading.