Katanga Mining Ltd Ord KATFF

RE:RE:RE:China Non Ferrous

[Lech1988]

Ultimately it would be very hard for any "analyst" to suggest investing in KAT now given the complete sh*t storm of this past year.  Yes these things are being put behind us one by one but still the volatility and uncertainty is far too much for most investors to stomach. 

In addition to say the legal structure of the KAT entity is complex is an understatement, and even I am still fuzzy as to how the revenues of the operating mines owned by KAT will be attributed to minority shareholders of the parent.  The new mining code specifically prohibits much of the cash earned from operations from leaving the DRC and KAT itself made a point of this in their results that it will make it very hard to make payments to international providers.  My question is how are these revenues attributed to minority shareholders of a Canadian listed parent company if they can’t leave the DRC?  I may be misinterpreting what this rule means but figured it was worth digging a bit deeper on this point.        

Also, Matt’s recommendation to buy at 13c was a complete no brainer and let’s be honest the run up above 2 CAD earlier this year was based on nothing but a broad based rally in cobalt stocks that has subsequently collapsed spectacularly.  He got lucky taking profit where he did.