Katanga Mining Ltd Ord KATFF

RE:RE:RE:RE:RE:RE:Here's likely what's happening & what we haven't been told y

[patels96]

@bigguy56,

Remember they commissioned the second train of the WOL in December, so they had to allocate additional capitalized expenses as depreciation in Q42018.

You have to remember that when, KAT went offline in Sept 2015, the upgrades that happend to the facilities the costs of that was capitalized on the balance sheet. When KAT went into production, they had to increase capacity from Q1 to Q4. The costs that were capitalized in PP&E now needs to be expensed through depreciation in phases. You will see that depreciation increased from Q1 to Q42018.

In steady state capacity...according to my projections I have modeled COGS of about $1,400 (which is $850 allocated towards direct operational costs, $300 allocated towards depreciation, and $250 allocated towards royalties (includes 3.5% and 10%)). Provisional Pricing is diffcult to analysis, but allocate $100 (very aggressive, unless there is a signifcant commodity downturn). I have increased direct operational costs by $100 (as based on the 2018 TR). With 99% confidence, COGS will range from $1350-$1500