OTCPK:KATFF - Post by User
Post by
Katangaon Feb 05, 2019 8:07pm
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Post# 29323665
Had a thought
Had a thoughtOne reason to formalize the management services agreement is to make a clear separation between the mine itself and running the mine. That would make it cleaner for Glencore to sell the mine. Make it easy for some entity not in the mining business to buy it.
Ramp up the production get it to peak, and then by the end of the year beginning of 2020 if the cobalt craze is in full effect, they would be able to sell at the peak, justify a NPV of 10 - 12B (or more..). Recoup their 7B investment, make a decent return and move on to other things and get their money out of the crazy DRC and look for the next opportunity.
That's what I would do if I had 7B sitting in the ground there.